Etiqa’s ELASTIQ and SAVE3?

[ahboi95]

Anyone any comments on them? 2.02% and 3% respectively, but one more flexible while the other 6 years (if im not wrong)

 

[dgeralds]

Just received an email (see below). Wondering if this falls under SDIC 75K protection?

**********
Sizable, credible, and simply incredible!

With SAVE3 Insurance Savings plan that promises guaranteed 3% p.a. for the first 6 years, you can strengthen your money muscles in just a few clicks! No daily grind, no sweat!

Invigorating benefits at a glance:

- High crediting rates of 3% p.a. guaranteed for first 6 years
- 1 x free partial withdrawal benefit with no penalty if conditions are met
- Capital guaranteed from the end of 4th policy year^
- Loyalty bonus every 6 years^
- Death benefit at 101%
- Start saving from S$10k
- Immediate online approval

^If no prior withdrawal has been made.

*********

 

[demoforce1]

Just received an email (see below). Wondering if this falls under SDIC 75K protection?

**********
Sizable, credible, and simply incredible!

With SAVE3 Insurance Savings plan that promises guaranteed 3% p.a. for the first 6 years, you can strengthen your money muscles in just a few clicks! No daily grind, no sweat!

Invigorating benefits at a glance:

- High crediting rates of 3% p.a. guaranteed for first 6 years
- 1 x free partial withdrawal benefit with no penalty if conditions are met
- Capital guaranteed from the end of 4th policy year^
- Loyalty bonus every 6 years^
- Death benefit at 101%
- Start saving from S$10k
- Immediate online approval

^If no prior withdrawal has been made.

*********

Seems like not many people interested with this product?

 

[Panerex]

That means 1st 4 years not capital guaranteed ie interest income may not cover capital loss?

 

[Opps-gal]

https://tiq.com.sg/product/save-3/?...-14Apr19&utm_term=SAVE3&utm_content=TiqItEasy

I also came across this. Is this safe? Is it MAS approved?

 

[Opps-gal]

That means 1st 4 years not capital guaranteed ie interest income may not cover capital loss?

Thought is capital guarantee? So many terms?

 

[Lewis.T]

It is not guaranteed in the first few years because the surrender charges are more than your principal + interest earned.

You can learn more through their product summary found here
https://tiq.com.sg/wp-content/uploads/2019/03/Save3-Product-Summary-1.pdf

 

[Captain89]

Ytd i went to their website and ask the chatbox (live agent) one question and they are unable to advise me lol.

I asked how long will it takes for my $$ be reflected in my bank account if i made a withdrawal from ELASTIQ.

I think they have the right to delay withdrawal up to 6 mths..

 

[Opps-gal]

If $ not guarantee, then no point?

 

[Lewis.T]

If $ not guarantee, then no point?

It's probably guaranteed from the 6th year, when the surrender charges are 0.1% of the surrendered value, (while you have been receiving 3% guaranteed) unless I'm misunderstanding something.

Best to check with them directly

 

[maple96]

Just reading the info online already triggers alot of queries in my mind. Dun appear to be a simple product. I dun bother to seek clarifications.

Just read this:

:This is a Regular premium, Non-participating universal life plan denominated in Singapore dollars. It matures on the policy anniversary immediately before the Life insured attains 100 years old. It offers the opportunity for wealth accumulation, financial flexibility and the assurance of life insurance coverage through providing death Benefit. The plan has a premium payment term of 2 years.

Account Value Account value is calculated as: The Regular premiums less a) premium charge on the first year Regular premium; and b) partial withdrawal amount and partial withdrawal charges (if any) plus accumulated interest. Any interest will be credited into the Account value at the end of each Policy month.

It seems account value = surrender value, u have to carefully check when (year) the policy will breakeven, if u surrender what will u get? Definitely not within first 6 years. (altho it state capital guaranteed after 4th year, where is your 3% guaranteed for 6 years?)

Too much "marketing gimmicks on the 3% guaranteed for first 6 years"

 

[limster]

did any of their funds invest in tuaspring loans?

 

[justwakeup]

Impact of Early Surrender:
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.

Hmm....got 101% death benefit, so considered as life insurance. Joking or?

 

[Lewis.T]

Impact of Early Surrender:
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.

Hmm....got 101% death benefit, so considered as life insurance. Joking or?

It's pretty standard. Insurers need to have the death benefit wrapper to be able to sell it as insurance.

More death coverage means less returns so an easy way is to make it have a death benefit of 101% of premiums paid.

 

[justwakeup]

It's pretty standard. Insurers need to have the death benefit wrapper to be able to sell it as insurance.

More death coverage means less returns so an easy way is to make it have a death benefit of 101% of premiums paid.

Why must insurers sell it as insurance? Why must it be packaged as insurance? Sorry if this question sounds stupid

 

[demoforce1]

It is not guaranteed in the first few years because the surrender charges are more than your principal + interest earned.

You can learn more through their product summary found here
https://tiq.com.sg/wp-content/uploads/2019/03/Save3-Product-Summary-1.pdf

I am reading their website and see How it works, then I calculate the amount is correct for 3%
then someone bring up "Account Value", can we withdraw all as Account Value at year 6.

 

[deepblueli]

I think the crucial point is how much is the insurance cost? Is it guaranteed 3% return after taking into the account of the insurance cost?

 

[deepblueli]

I think the crucial point is how much is the insurance cost? Is it guaranteed 3% return after taking into the account of the insurance cost?

Looks like it is 1.2% of first year premium and deducted one time only. Calculated I/Y around 2.88 - 2.98% according to BI. Doesn’t sound bad.

 

[BBCWatcher]

Yes, it amounts to a 2.X% (where X is a high number) on a 6 year commitment. Think of it like a 6 year fixed deposit, except you really shouldn’t even think about touching the money early, and don’t die if you’re concerned about a survivor since the insurance company is taking the other side of the bet (the insurance company wins if you die too soon). Also, the returns are all backloaded. Unlike Singapore Savings Bonds, for example, there are no coupon payments to reinvest.

If you want to park some funds for 6 years that you know you’re going to spend 6 years from now — maybe funds for university tuition in Singapore for somebody who’s age 12 to 14 currently — then this SAVE3 plan is decent.

 

[demoforce1]

Yes, it amounts to a 2.X% (where X is a high number) on a 6 year commitment. Think of it like a 6 year fixed deposit, except you really shouldn’t even think about touching the money early, and don’t die if you’re concerned about a survivor since the insurance company is taking the other side of the bet (the insurance company wins if you die too soon). Also, the returns are all backloaded. Unlike Singapore Savings Bonds, for example, there are no coupon payments to reinvest.

If you want to park some funds for 6 years that you know you’re going to spend 6 years from now — maybe funds for university tuition in Singapore for somebody who’s age 12 to 14 currently — then this SAVE3 plan is decent.

What do you mean not die in 6 years? I read that they will teriminate the policy and return 101%, and assume it no need to wait till the end of 6 years to pay the beneficiaries.

Even there is no coupon every 6 months, but every year interest will be added to next year principal.