Tiq Invest: Your Investment-Linked Plan in Singapore

Person leading his investments to growth

Tiq Invest – An Investment-Linked Plan That Gives You Full Financial Flexibility


Everyone knows that saving money is important, but that is only part of the story. A savings account may be good for holding on to emergency savings but to grow your money, you would have to put your money to work through other ways such as investing. 

With Singapore’s overall inflation rate at 2.3% in 2021, and expected to continue rising according to the Monetary Authority of Singapore, investing may be the smarter financial choice if you are looking to grow your savings beyond the inflation rate!

Introducing Investment-Linked Plans

One way Singaporeans can invest is through an Investment-Linked Insurance Plan.

An Investment-Linked Insurance Plan (ILP) is a life insurance plan that combines protection and investment.  Most ILPs let you choose from a wide range of investment-linked funds, managed by professional fund managers. These funds will also have varying degrees of risk and allow for fund switching to suit your financial goals as you progress in life. 

Premiums invested by the policyholder will usually be allocated to pay for the insurance coverage and to purchase units of the fund(s) to be allocated to the policy.

In the event of death, ILPs provide insurance protection for the policyholder. Depending on the type of ILP, there are usually bundled insurance benefits like total and permanent disability, accidental death and critical illness. You can even choose to increase your coverage by adding a rider for hospitalisation coverage. 

The benefit of investing in an ILP is combining insurance coverage with your investments. Furthermore, the investment-linked funds offered are generally diversified so a newbie investor would not have to worry about diversifying their investment. With an ILP, you will be covering both bases on the insurance and investment front!

Features Of Tiq Invest — A Digital Investment-Linked Policy

Let’s take a look at Tiq Invest, an investment-linked plan from Etiqa Insurance.

Here are the features of Tiq Invest:

Feature

Details

Premium

Single premium starting from $1,000 (Minimum) – $200,000 (Maximum) per plan.
With the option to top-up, withdraw or switch Packaged Funds anytime.

Management Fee

0.75% p.a. of the account value

Types of Packaged Funds with Diversified Risk

4 Types:

  • Conservative (80% fixed income, 20% Equities)
  • Moderate (40% fixed income, 60% Equities)
  • Growth (20% fixed income, 80% Equities)
  • Aggressive (100% Equities)

Returns

Subject to the market performance of the assets of the ILP sub-funds

Lock-in Period

Zero lock-in period

Maturity Period

It matures on the policy anniversary immediately before the Life insured attains 100 years old.

Death Benefit

The higher of the two:

  • The account value or
  • 105% of the single premium paid and 105% of the Top-up(s) less any partial withdrawal(s).

Premium Allocation

100% of the premium will be invested 

Who can purchase this investment?

Any Singapore Resident with a valid NRIC or FIN between the ages 17 to 60 (age next birthday) who has passed the Customer Knowledge Assessment. 

Can I own multiple Tiq Invest policies?

Yes, each policyholder may own multiple Tiq Invest policies. Each of the policies can only have 1 Packaged Fund.

Curated Packaged Funds With Different Risk Profiles

Tiq Invest is a single premium investment-linked insurance plan that is designed to help with your wealth accumulation needs. This plan is available with a minimum starting amount of $1,000. From there, policyholders can select from 4 Packaged Funds with different risk profiles. 

Tiq Invest has zero lock-in period and provides flexibility to policyholders to top-up, withdraw, and switch their Packaged Fund whenever they need to at no additional cost. If you are worried about putting in a lump sum in one go, you can set recurring top-ups into the plan at a minimum of $100 a month.

You can also make partial withdrawals of min. $200 at any time, while ensuring that the minimum account balance is $200. Partial withdrawal(s) will not be allowed if the remaining amount in your Packaged Fund falls below the minimum requirement after withdrawal.

The policy can be terminated if the policyholder requests for full surrender. The surrender benefit will be paid in one lump sum which is equivalent to the Account value, less applicable fees and charges. When we make this payment, the policy ends. The policyholder may request for full surrender any time after the free-look period.

Death Benefit

Upon death or terminal illness, your loved ones will receive a lump sum payment of either 105% of the net premiums paid or the policyholder’s account value, whichever is higher.

Fees Incurred On Tiq Invest

The fees for Tiq Invest are a management charge fee of 0.75% p.a. of the account value and a fund management fee.  Fees are subject to changes and a thirty (30) day written notice will be provided if that happens.

Fees and Charges

Management Charge Fee
(A fee charged by Etiqa for the management of your policy.)

0.75% per annum of your account value. Charged at the beginning of each Policy month.

Fund Management Fee
(A fee that is payable to the ILP sub-fund manager for managing the ILP sub-funds.)

Range between 0.00% to 4.00% per annum, fee is calculated into the daily unit price.

Your Investments Managed with Ease

If you are a new investor and looking for a hassle-free way of growing your money then Tiq Invest may be for you. For a small annual management fee, you get the expertise of fund managers that will automatically rebalance your chosen Packaged Fund.  This rebalancing is done to minimize the deviation from the stated proportions of each stated Packaged Fund.

Investing can be a very daunting task, be it choosing which asset to invest in or the investment strategy to use.  By choosing Tiq Invest, you need only to choose a Packaged Fund with a risk profile that you prefer, and pay a small annual management fee.

Tiq Invest is managed by the local expertise of Etiqa Insurance with advisory from OAC Singapore Pte Ltd, together with the global investment experiences of reputable Funds Managers like Dimensional Fund Advisors, PIMCO Global Advisors (Ireland), BlackRock Global Funds and Lion Global Investors. Thus, you can be assured that your investment will be in good hands.

Tiq Invest charges a base fund management fee of 1.55% p.a. for each Packaged Fund.  While this is subject to changes, the fund management fee charged will not exceed 4% p.a. 

Furthermore, Tiq Invest also uses the full 100% of the premium that the policyholder deposits to purchase units of the chosen Packaged Fund, without any insurance charge being deducted. Despite that, the full invested capital will still be covered by the plan in case the policyholder passes away, meaning the claimant will still receive the original sum that is put in or the current account value, whichever is higher.

Final Thoughts

ILPs remain an effective way for people who prefer to have experienced fund managers to handle their portfolios. If you are not someone who has the time to constantly monitor the market movements, Tiq Invest may be a suitable choice as the low fees mean that more of your capital is being put to work in the investment market while letting professionals manage your investment. In this day and age where the inflation rate is continuously rising, it is imperative to ensure that our money also continues to grow at a good rate.

How Can I Learn More About Tiq Invest?

Want to start growing your savings from just $1,000? Or are you saving for the future but want the flexibility to withdraw your money at any time? Tiq Invest may  suit your needs. 

You can learn more about Tiq Invest at PolicyPalFA here


Exclusive offer: Receive $10 Cash Rebate for each Tiq Invest plan incepted with PolicyPalFA. Plus, you can also get P$10 Encashable PolicyPal Credits^ for each successful referral you make!

* You will receive the rebate in cash, credited directly into your mobile number-linked bank account via PayNow. Refer to the full Terms and Conditions.

^ The P$10 PolicyPal Credits will be credited into your PolicyPal account. There must be at least P$20 Encashable Credits in your PolicyPal account before you can encash, so you may have to refer at least two persons before you can encash any P$ PolicyPal Credits. Refer to the full Terms and Conditions. (https://policy-wording.s3-ap-southeast-1.amazonaws.com/d/Final_PolicyPal_x_Etiqa_Tiq_Invest_Terms_and_Conditions_11_Jan_2022.pdf)

Tiq Invest lets you start growing your savings from just S$1,000!

Tiq Invest is distributed by Baoxianbaobao Pte. Ltd, a subsidiary of the PolicyPal Group.
The policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K).

Disclaimers

Tiq Invest is an Investment-linked Plan (ILP) that invests in ILP sub-fund(s). Investments in this plan are subject to investment risks including the possible loss of the principal amount invested. The performance of the ILP sub-fund(s) is not guaranteed and the value of the units in the ILP sub-fund(s) and the income accruing to the units, if any, may fall or rise. Past performance is not necessarily indicative of the future performance of the ILP sub-fund(s).

A product summary and product highlights sheet(s) relating to the ILP sub-fund(s) are available and may be obtained from us via this link here. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund(s).

As buying a life insurance policy is a long-term commitment, early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you.

This content is for reference only and is not a contract of insurance.

Full details of the policy terms and conditions can be found in the policy contract.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is accurate as of 20 April 2022

 

PolicyPal

PolicyPal is here to help you make informed and savvy financial decisions through the good times and the bad.

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