China Taiping Infinite Harvest is a single premium, participating (PAR) whole life plan designed as an annuity. You would receive a lifetime of regular monthly from the plan.
The first monthly cashback will be payable starting from 5th Policy Anniversary of the policy.
Each monthly cashback consists of a guaranteed amount and a non-guaranteed cash dividend (i.e. Monthly Dividend).
This plan was created in 2019 and originally planned for the high networth individual (HNWI) but today, I'd show you how affordable it can be.
As your income stream or as a gift
If you wish to build a passive stream of lifetime income. this plan can deliver that objective
- 100 percent capital guaranteed from as early as 10th policy anniversary.
- No medical check-up is required and is available to anyone between ages 1 and 70
- A yearly increasing death benefit
- 1.77% guaranteed + 2.5% non-guaranteed of the single premium as monthly cashflow
Minimum plan size will be single premium that starts at S$112,412 for a lifetime or plan size with monthly payout of S$400. Read brochure here
Alternatively, if you want to create a financial gift to your future generations this plan may be suitable.
How does it compare to other plans
There are a few other similar plans in the market.
If you are keen to learn on NTUC Vivowealth solitaire, click on the link below.
Below is a quick summary for you on the other plans in the market.
The most striking benefit of this plan is it has the highest guaranteed income % which is 1.77%.
Risk of investing into this plan
China Taiping's participating plan was only introduced in Dec2018. Hence, there is not much of investment track record to describe possibly on the non-guaranteed portion.
The Total expense ratio from 2018 to 2020 of the Participating Fund is also not shown.
On an asset allocation of the plan it self, it has 30% in equities.
Some other insurer's PAR plans have property components within it.
Concept of this plan with your CPF LIFE for retirement
The first objective to address is how it complements your CPF LIFE.
CPF LIFE will pay you cashflow from age65 onwards.
Let's use $1,500/m* for a basic plan at full retirement sum (FRS).
*Amount depends largely on your current age. Amount can vary
Having extra few hundred or few thousand in cashflow from China Taiping Infinite Harvest will give you more room for luxuries in retirement.
It can be for holiday or for for better healthcare treatment if need.
In addition, the death benefit increases as you age unlike the CPF life amount which decreases as you draw out. Effectively, you create legacy for you next generation.
If you're unsure about CPF LIFE and basic plan, check the tutorial below.
Why I like this VS even property investment
I've invested in property and currently earning income from property rental.
The amount of headaches finding and managing a tenant cannot be underestimated. In addition, ABSD (additional buyer stamp duty) now is crazy!
China Taiping Infinite Harvest (or any annuity plan) gives you fuss free cash flow unlike property investment. And it even has capital guarantee after 10years and capital appreciation yearly after.
Lastly, you can nominate or will the proceeds of the plan off easily unlike leaving a property which your next generation need to sell off first before getting cash if they want.
I've a full summary for you below.
I've solutions on how you can structure this plan for your retirement and also solutions on using leverage to increase your policy yield. Read me below for a personalised discussion