AMTD PolicyPal 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 it to work through other ways, like investing.
The country’s Monetary Authority of Singapore (MAS) Core Inflation was at 5.5% in January and February 2023 compared to 5.1% in the 4th quarter of 2022. MAS predicts it to remain steadfast, given the current economic trend. Therefore, investing may be the smarter financial choice 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 have varying degrees of risk and allow for fund switching to suit your financial goals as you progress in life.
Premiums you invest in 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:
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Feature |
Details |
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Premium |
Single premium starting from S$1,000 (Minimum) – S$200,000 (Maximum) per plan. |
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Management Fee |
0.75% p.a. of the account value |
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Types of Packaged Funds with Diversified Risk |
4 Types:
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Returns |
Subject to the market performance of the assets of the ILP sub-funds |
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Lock-in Period |
Zero lock-in period |
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Maturity Period |
It matures on the policy anniversary immediately before the Life insured attains 100 years old. |
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Death Benefit |
The higher of the two:
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Premium Allocation |
100% of the premium will be invested |
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Who can purchase this investment? |
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Can I own multiple Tiq Invest policies? |
While a policyholder can have multiple Tiq invest policies, a policyholder can only have one Packaged Fund at any time. |
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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 S$1,000. From there, policyholders can select from four Packaged Funds with different risk profiles.
Tiq Invest 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 S$100 a month.
You can also make partial withdrawals of a minimum of S$200 at any time, while ensuring that the minimum account balance is S$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 you request for full surrender. Tiq will pay you your surrender benefit in one lump sum. This is equivalent to the Account value, minus the applicable fees and charges. When this payment takes effect, the policy ends. You may request for full surrender anytime 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.
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Fees and Charges |
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Management Charge Fee |
0.75% per annum of your account value. Charged at the beginning of each Policy month. |
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Fund Management Fee |
Ranging between 0.00% to 4.00% per annum, this 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 could be your choice. 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 minimise the deviation from the stated proportions of each Packaged Fund.
Investing can be a daunting, 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 nominal annual management fee.
Why Tiq Invest?
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. You have the assurance 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 change, the fund management fee charged will not exceed 4% p.a. The insurer will give policyholders written notification of thirty (30) days before they make the change.
Tiq Invest also uses the full 100% of the premium that you deposit to purchase units of the chosen Packaged Fund, without any insurance charge deductions. Despite that, the full invested capital is covered by the plan if the policyholder passes away. This means 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. The low fees mean that more of your capital is being put to work in the investment market with professionals managing your investment. In this day when the inflation rate is high, it is imperative to ensure that your money continues to grow at a good rate.
How can I learn more about Tiq Invest?
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Disclaimer: Protected up to specified limits by SDIC. This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that is not suitable for you may impact your ability to finance your future financial needs. If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.
