A Flexible Insurance Savings Plan That Continues Even After You Withdraw From it? Yes!
An insurance savings plan offers a unique opportunity to secure your financial future. The money that you invest in the form of insurance premiums over the years can accumulate to give you a surprisingly large sum when the plan matures.
Here are the typical benefits offered by insurance savings plans in Singapore.
Benefit #1 – if you pay your premiums regularly for the life of the plan, you can receive a lump sum of money at the time of maturity.
Benefit #2 – during the policy term, the insurance company provides coverage for certain events like death and permanent disability.
Benefit #3 – you have the choice of selecting between different premium payment terms. This allows you to time the maturity benefit of your policy with your financial goals.
Most life insurance companies in Singapore offer savings plans that provide the three benefits listed above. However, Etiqa Insurance, which is owned by Maybank, an international banking group based in Southeast Asia, goes much further.
Stretch your money with AmplifyFlex, Etiqa’s latest insurance savings plan
Etiqa Insurance has been operating in Singapore since 1961, and its experience within the industry has put it in a unique position.
Etiqa understands the insurance needs of Singaporeans. Its policies are specifically designed to address your ever-changing needs and to provide the maximum level of benefits.
Here is what you can achieve with Etiqa’s AmplifyFlex insurance savings plan.
Benefit #1 – Grow your wealth with a combination of guaranteed and non-guaranteed benefits for a total return.
Benefit #2 – During the policy term, you are covered with death, terminal illness or total and permanent disability protection.
Benefit #3 – You can choose between premium payment terms of 10, 15, and 20 years.
The three benefits listed above are available from other insurance companies in Singapore as well. But, Etiqa provides two additional benefits. Let’s understand them:
Benefit #4 – Flexibility to withdraw your cash value at any point in time
One of the factors holding many Singaporeans back from investing in insurance savings plans is the fear that their money will be “locked up” for many years, possibly decades. What if you need the cash to meet an emergency and have tens of thousands of dollars saved with the insurance company?
That money is of no practical use if you cannot access it when you need it. You may have to resort to other high-cost sources of funds to meet your urgent requirements.
When you invest in AmplifyFlex by Etiqa, you will have no such worries. Etiqa gives you the flexibility to withdraw your accumulated cash value from the policy anytime you need it.
Of course, there are certain conditions that you must meet if you want to retrieve a part of your funds. For example, the policy should have been in force for 2 years. Once you meet the required stipulations, it is easy to claim your funds.
Benefit #5 – the gift of appointing a secondary life insured
Why should anyone want to do this? When you add the second person to the policy, the plan can continue even after you (the primary insured person) pass away.
Remember that the policy is valid until the primary insured person attains the age of 100. If this individual passes away before reaching this age, the plan will still continue and the secondary life insured will continue to receive the lump sum benefit on the maturity date on which the primary insured would have turned 100.
Let’s understand this benefit with an example.
Eleanor, who is 25 years old, invests in Etiqa’s AmplifyFlex. She pays an insurance premium of S$5,030 for the next 20 years.
Three years later, at the age of 28, she is blessed with a baby girl, Lynette. Eleanor decides to add her to the policy as the secondary life insured.
At age 65, Eleanor passes away. The insurance policy continues with Lynette as the new life insured.
What is the benefit that Eleanor’s daughter will get under the terms of the policy? This is the amount of money that she can have at her disposal under various scenarios:
Scenario 1 – let’s assume that Lynette waits for the policy to mature. That would happen in the year when her mother would have turned 100 had she been alive. In that year, Lynette is 72 years old. (Eleanor had Lynette when she was 28 – 72 years later, she would have turned 100).
Lynette would receive a one lump sum benefit payout of S$1,214,845, that’s 12 times of the total premium paid, assuming an illustrated investment rate of return of 4.75% p.a. (or S$623,217 assuming an illustrated investment rate of return of 3.25% p.a.) on the policy anniversary immediately before the date Eleanor would have turned 100.
If Eleanor did not assign a secondary life insured, and if Lynette is the beneficiary, she would receive S$326,653 assuming an illustrated investment rate of return of 4.75% p.a. (or S$204,904 assuming an illustrated investment rate of return of 3.25% p.a.) when Eleanor passes away at age 65.
Scenario 2 – In a scenario that Lynette does not wish to wait that long to receive the funds that are due to her, she would receive one of the following amounts at age 32 and 47. (Her mother would have been 60 years old, or 75 years old).
|Surrender value assuming an illustrated investment rate of return of 3.25% p.a.||Surrender value assuming an illustrated investment rate of return of 4.75% p.a.|
|Eleanor’s daughter is aged 32||S$179,365||S$266,904 (More than2.5 times of premium paid)|
|Eleanor’s daughter is aged 47||S$259,767||S$473,774 (More than 4.5 times of premium paid)|
Don’t let your funds idle
Etiqa’s AmplifyFlex is a participating savings plan, which means your insurance savings plan could benefit if the company’s participating fund performs well. Etiqa manages their participating fund with a long-term view of delivering stable and reasonable returns for their customers. In 2017, the fund delivered an impressive net investment return of 10.99%.
What’s more, you can enjoy the flexibility to withdraw your money when you need it. You are also protected against death, terminal illness or total & permanent disability (before 71 years old) during the policy term.
Instead of leaving your money untapped, explore the option of Etiqa’s AmplifyFlex insurance savings plan. You may find that its features could help you to meet your financial goals while living fully in the present.
This article is published for general information only and does not have any regard to the specific financial or investment objectives, financial situation and the particular needs of any specific person who may read this article and is not a contract of insurance.
As buying a life insurance policy is a long-term commitment, an 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 are recommended to seek advice from a financial adviser before deciding whether to purchase the policy. In the event that you choose not to seek advice from a financial adviser, you should consider whether the policy is suitable for you.