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One of the most important yet often-neglected things that Singaporeans need to do is to grow our wealth.
Yes, one way is to keep a percentage of our salary aside in the bank and hope that the interest will help our money grow in the long run.
However, although you might be able to hit over 4% p.a. on certain savings accounts, there’s a lot of conditions you need to fulfil, such as maintaining a minimum monthly average daily balance of $200,000. Typically, savings account interest rates start at 0.05% p.a..
Actively investing can also be challenging. Most of us are so preoccupied with our full-time job and family commitments that there’s hardly any time left to dabble in the stock market — or even make the first step to learn all the financial jargon. Plus, there’s all this talk about planning for our retirement early.
The good news is that building wealth doesn’t need to be as complicated or time-consuming as it seems. The EASY save insurance savings plans at Tiq — the digital channel of Etiqa Insurance — allow you to sit back and let your money work for you…with attractive crediting rates (for eEASY save V) and various premium terms to boot. Saving is made easy and stress-free, because you can start saving from just $5,000 per year, with high potential yield of up to 4.07% p.a.
Let’s check out in more detail how it works:
Scenario 1: Saving up for a mid-term goal, such as a dream wedding or home renovation
Tom and Sally are a Singaporean couple who plan to save up for their wedding and new home. Both of them are currently in University Year 2, so they hope to get married after they graduate and have worked in full-time jobs for a few years. Meanwhile, they would also like to apply for a BTO flat and want to use some of the money saved to pay for their renovation.
By saving early, they can ease their financial burden by not blowing all their cash at one go. And planning well ahead gives them the funds they need and a little extra down the road.
One way to achieve this is through eEASY save V — a mid-term plan with decent crediting rate at Tiq. With it, Tom and Sally can enjoy a guaranteed 2.68% p.a. crediting rate for the first 6 years so they can optimise their savings and achieve money goals, like their wedding and home renovation. They also enjoy a short premium term — Tom and Sally only need to pay for 2 years, or they make an upfront payment for both years to enjoy 3% off 1 year’s premium. In addition, the short lock-in period means they can make full withdrawal after Year 6 without charges, or they can continue to save at the prevailing market rates.
However, eEASY save V is a non-participating life insurance savings plan, which means that Tom and Sally won’t enjoy bonuses from the profits of the participating fund.
But there are other benefits like the Loyalty Bonus (non-guaranteed), which is equivalent to 0.6% of the account value and will be paid at the end of Year 6 and at every 6 policy year interval as long as no partial withdrawal has been made before. Tom and Sally also get free partial withdrawal benefit (subject to terms and conditions), they can make a withdrawal before the 6 years are up without incurring any partial withdrawal charge. There’s also a death benefit of 101% of the account value.
Here’s what happens when Tom and Sally take up eEASY save V at Tiq, opting to make an upfront payment at the minimum deposit of $10,000 a year.
|START:Tom and Sally put in an upfront payment of $20,000 and get 3% off their first year premium amount = $19,700||YEAR 1 to 6:Tom and Sally complete their studies and go out into the workforce.
They can make partial withdrawal(s) without incurring charges (subject to terms and conditions), such as in the event that the policyholder is diagnosed with a terminal illness.
|YEAR 7 onwards:At the end of Year 6, Tom and Sally can now choose to continue at the prevailing rate or withdraw the full sum at 2.68% p.a. crediting rate and a loyalty bonus (non-guaranteed) of 0.6% = $23,107
Without 0.6% loyalty bonus: $22,970
|Savings: $300||No action needed||Total gain: $3,407|
Scenario 2: Saving up for a mid- to long-term goal, such as your child’s university education
Now meet Paul and Jane, parents to a 3-year-old. Like most Singaporean parents, they’ve already opened a Child Development Account as well as a kids’ savings bank account. But is that enough?
In addition to saving up for their child’s university education, they are also considering setting aside a lump sum for a dream family vacation/emergency fund. Enter Tiq’s eEASY savepro — a mid- to long-term plan, with high potential yield.
Paul takes up the eEASY savepro insurance savings plan, and he can now achieve his saving goals with high potential returns of up to 4.07% p.a. With more than 100% capital guaranteed upon maturity, and a death benefit of 105% of the total premiums paid, Paul can save while being insured. He also enjoys flexible premium payments — opt for either a lump sum premium payment with up to 4.5% upfront discount off 1 year premium, or enjoy a 4.5% upfront discount for yearly payment (for a 10-year premium term).
As this is a participating insurance savings plan, the premiums that Paul paid are pooled with those of other participating policies offered by Etiqa Insurance in a specially designated “participating fund”. The participating fund invests in a range of assets such as bonds, equities, cash, deposits, loans or other assets. So he will enjoy bonuses from the profits of the participating fund, if any.
Here’s what happens when Paul takes up eEASY savepro for a policy term of 7 years (2-year premium term) to maturity (mid-term) at Tiq, opting to make an upfront payment at the minimum deposit of $5,000 a year. His goal? A dream family vacation.
|START:Paul puts in an upfront payment of $10,000 and get 4.5% off their first year premium amount = $9,775||YEAR 1 to 7:Paul and Jane focus their energies on their child’s growth and education while waiting for Paul’s policy to mature.||AFTER YEAR 7:After Year 7, the policy matures. Paul will receive the full sum at the following rates:
Total Illustrated Maturity Return:
Guaranteed Maturity Return:
|Savings: $225||No action needed||Total gain:At 4.20% p.a. illustrated investment return: $2,361
At 2.70% p.a. illustrated investment return:
Here’s what happens when Paul takes up eEASY savepro for a policy term of 15 years (10-year premium term) to maturity (long-term), at the minimum deposit of $5,000 a year.
|START:Paul puts in $5,000 per year for 10 years and get 4.5% off their first year premium amount = $49,775||YEAR 1 to 15:Paul and Jane focus their energies on their child’s growth and education while waiting for Paul’s policy to mature.||AFTER YEAR 15:After Year 15, the policy matures. Paul will receive the full sum at the following rates:
Total Illustrated Maturity Return:
Guaranteed Maturity Return:
|Savings: $225||No action needed||Total gain: At 4.20% p.a. illustrated investment return: $26,316
At 2.70% p.a. illustrated investment return
It’s easy to start growing your wealth with the EASY save insurance savings plans at Tiq by Etiqa
- Verify your details via MyInfo or snap a photo of your NRIC/FIN
- If you are a non-Singaporean, prepare a proof of address, such as from your bills or statements
- Simply pay online via a DBS/POSB bank account or PayNow. The bank account should match the name of the policyholder
- Repeat the steps above if you are buying more than one policy
EASY save series early-bird promotions:
eEASY savepro — Be the first 5 customers daily to purchase and receive up to $7,500 shopping vouchers
eEASY save V — Be the first 5 customers daily to purchase and receive up to $500 shopping vouchers
- Additional CNY promo (from 23 Jan to 16 Feb 2020) — Customers receive additional $110 shopping vouchers (on top of early-bird promotion) with a minimum premium paid of $30k
Terms and conditions apply. Read full details here.
Grow your nest egg with Tiq by Etiqa’s EASY save insurance savings plans and find out more about its stable of insurance products here.
This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K).
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 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.
Protected up to specified limits by SDIC. Information is accurate as at 23 January 2020.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Are you saving up for something right now? How do you achieve your financial goals? Let us know in the comments below!
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