Having landed on this page, you most likely were looking for more effective solutions to save, so as to get the best value out of your money. You may have heard of ELASTIQ whole life insurance savings plan that has been mentioned here and here, and our EASY save series, including the eEASY save V insurance savings plan.
Both policies have much similarities and are meant to help you to accumulate wealth with life protection benefits at Tiq by Etiqa Insurance. In this article, we are going to place eEASY save V and ELASTIQ side by side for a direct comparison review so that you can better determine which is a more suitable insurance savings plan for you.
eEASY save V and ELASTIQ at a glance
|Features||eEASY save V||ELASTIQ|
|Policy type||Non-participating Universal Life plan|
|Guaranteed crediting rates||2.68% per annum for first 6 years||1.80% per annum for first 3 years|
|Death benefit||101% of account value||106.8% of account value|
|Loyalty bonus (non-guaranteed)|
*If no partial withdrawal has been made
|Equivalent to 0.6% of the Account value every 6 years*||Equivalent to 0.3% of the average monthly Account value in the past 3months, payable every 3 years*|
|Flexible top-up||N.A.||Allows ad-hoc / recurring top-up(s)|
|Withdrawal benefit||Free partial withdrawal can be exercised once during policy term if conditions are met||Withdrawal(s) can be made 90 calendar days after policy issue date with no penalty or interest clawback|
|Long term benefits||Up to age 100. If the policy is still in force, the maturity benefit payable is the Account value less any amounts owing to Etiqa.|
|Premium amount||Minimum annual premium: S$10,000||S$5,000 to S$200,000|
|Premium terms||2 years or a lump sum payment with 3% off your one year premium amount||Single premium amount between S$5,000 and S$50,000, in multiples of S$1,000|
A universal life plan is a whole life insurance that offers flexibility in the amount and timing of premium payments. Such plans pay a death benefit and allow build-up of cash value through offering crediting rate. Our universal life plans such as eEASY save V and ELASTIQ offer a guaranteed minimum crediting rate.
eEASY save V vs ELASTIQ – Which is more suitable for you?
Reasons to choose eEASY save V
• Higher guaranteed crediting rate at 2.68% p.a. for first 6 years. This means higher earnings to help you reach your financial goals quicker
• If you have no urgent need to use your savings, why not choose the option that gives a better guaranteed crediting rate?
• The guaranteed crediting rate is locked in for 6 years, and this means stable, non-fluctuating interest earnings, a welcoming thought in the event of a struggling economy like what we are currently facing. That’s food for thought to mitigate risks.
eEASY save V offers a higher guaranteed crediting rate at 2.68% p.a. for the first 6 years that can help you to accumulate greater wealth. Aside from ongoing trade wars and civil unrest, uncertainty brought on by COVID19 have been causing the global economy to suffer. The higher guaranteed crediting rates for 6 years is worthy to note, especially if you are saving in advance for some big-ticket expenses such as a wedding, home or even retirement.
Also, you’d be happy to know interest is calculatedly daily and compounded.
In addition, you get 3% off your one year premium amount with the lump sum payment. Do note that there’s a 1.2% premium charge on the first year regular premium though.
Reasons to choose ELASTIQ
• No stress! Start saving with an affordable premium from S$5,000
• Top-up anytime! Interest is calculatedly daily and compounded
• Flexibility to withdraw your money after just 90 days. In case of emergency, you’d still have access to funds but if discipline is an issue^, do think twice.
• For those with life protection gap, note that the death benefit for ELASTIQ is higher at 106.8% of account value
As you can see from the above chart, ELASTIQ does provide greater flexibility with a lower premium amount (as compared to eEASY save V), and top-ups can be made anytime. But the best part? You can make flexible withdrawals after just 90 days of purchase, without incurring penalty and interest clawback.
In exchange for this flexibility, the guaranteed crediting rate for initial single premium amount is set at 1.80% p.a. for the first three years – still a decent figure, albeit not as attractive as eEASY save V.
^Note: A service fee of S$5 will be charged at the end of each Policy month if your average daily account value for the policy month falls below S$5,000.
How about getting both eEASY save V and ELASTIQ?
Can’t make a choice between eEASY save V and ELASTIQ? How about getting both insurance savings plans to optimise your wealth accumulation game? Here’re some benefits to consider:
Growth and flexibility
In fact, getting both insurance savings plans together can help you to grow your savings (since eEASY save V provides a higher crediting rate with a more disciplined savings requirement) while ensuring you have the flexibility to access your funds (with ELASTIQ) when you need it. That’s simple growth and flexibility for you.
In addition, you can easily manage your finances on a single platform at TiqConnect. Upon a secured login, you will be able to see how your money has grown at a glance, across both policies. So convenient!
When it comes to saving smart, it is important to review the interest rates, accompanying terms and conditions, ease and convenience of managing your money, and reliability of the financial institution.
This year, credit ratings agency Fitch reaffirms Etiqa’s Insurer Financial Strength (IFS) rating as ‘A’ (Strong). The ‘A’ rating in 2019 and 2020 reflects our group’s “Favourable” business profile, “Very Strong” financial performance with a “Stable” outlook. In case you are wondering, Tiq is the digital channel of Etiqa Insurance, which is the insurance arm of Maybank Group.
Smart ways to save
Since young, we have been taught the virtues of saving. Be it water or money, we should use our resources prudently so that we do not get caught off guard in unexpected situations.
Are you a student trying to make the most of your allowance or a young working adult saving towards a life’s milestone such as getting married or buying your first property? Perhaps you are saving for retirement or your child’s further education fees while managing household expenses. Check out these ideas on where you can get good money advice. One thing to keep in mind would be to always go back to the basics.
When you are ready, do consider insurance savings plans such as eEASY save V and ELASTIQ that offer high crediting rates with an element of life protection. Unlike some insurance savings plans that have a strong hold on your money, eEASY save V and ELASTIQ also offer withdrawal options with varying degrees of flexibility, allowing you to use your money when the needs arise. Learn more about eEASY save V and ELASTIQ now!
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. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC.
Information is accurate as at 23 August 2020. This content is for reference only. 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 advertisement has not been reviewed by the Monetary Authority of Singapore.
Tiq by Etiqa Insurance Pte. Ltd.
A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.
With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.
Discover the full range of Tiq online insurance plans here.