This submit was written in collaboration with Etiqa Insurance coverage. Whereas we’re financially compensated by them, we nonetheless attempt to keep up our editorial integrity and assessment merchandise with the identical goal lens. We’re dedicated to offering the very best suggestions and recommendation so as so that you can make private monetary selections with confidence. You possibly can view our Editorial Tips right here.
One of the necessary but often-neglected issues that Singaporeans have to do is to develop our wealth.
Sure, a method is to maintain a proportion of our wage apart within the financial institution and hope that the curiosity will assist our cash develop in the long term.
Nonetheless, though you would possibly be capable of hit over 4% p.a. on sure financial savings accounts, there’s loads of circumstances you want to fulfil, akin to sustaining a minimal month-to-month common day by day steadiness of $200,000. Usually, financial savings account rates of interest begin at 0.05% p.a..
Actively investing may also be difficult. Most of us are so preoccupied with our full-time job and household commitments that there’s hardly any time left to dabble within the inventory market — and even make step one to study all of the monetary jargon. Plus, there’s all this speak about planning for our retirement early.
The excellent news is that constructing wealth doesn’t have to be as difficult or time-consuming because it appears. The EASY save insurance coverage financial savings plans at Tiq — the digital channel of Etiqa Insurance coverage — let you sit again and let your cash be just right for you…with engaging crediting charges (for eEASY save V) and varied premium phrases besides. Saving is made simple and stress-free, as a result of you can begin saving from simply $5,000 per yr, with excessive potential yield of as much as 4.07% p.a.
Let’s try in additional element the way it works:
State of affairs 1: Saving up for a mid-term aim, akin to a dream marriage ceremony or residence renovation
Tom and Sally are a Singaporean couple who plan to avoid wasting up for his or her marriage ceremony and new residence. Each of them are at the moment in College Yr 2, so that they hope to get married after they graduate and have labored in full-time jobs for just a few years. In the meantime, they’d additionally like to use for a BTO flat and wish to use a number of the cash saved to pay for his or her renovation.
By saving early, they’ll ease their monetary burden by not blowing all their money at one go. And planning nicely forward offers them the funds they want and a bit of further down the highway.
One method to obtain that is by means of eEASY save V — a mid-term plan with respectable crediting price at Tiq. With it, Tom and Sally can get pleasure from a assured 2.68% p.a. crediting price for the primary 6 years to allow them to optimise their financial savings and obtain cash targets, like their marriage ceremony and residential renovation. In addition they get pleasure from a brief premium time period — Tom and Sally solely have to pay for two years, or they make an upfront cost for each years to get pleasure from 3% off 1 yr’s premium. As well as, the brief lock-in interval means they’ll make full withdrawal after Yr 6 with out prices, or they’ll proceed to avoid wasting on the prevailing market charges.
Nonetheless, eEASY save V is a non-participating life insurance coverage financial savings plan, which signifies that Tom and Sally gained’t get pleasure from bonuses from the income of the taking part fund.
However there are different advantages just like the Loyalty Bonus (non-guaranteed), which is equal to 0.6% of the account worth and shall be paid on the finish of Yr 6 and at each 6 coverage yr interval so long as no partial withdrawal has been made earlier than. Tom and Sally additionally get free partial withdrawal profit (topic to phrases and circumstances), they’ll make a withdrawal earlier than the 6 years are up with out incurring any partial withdrawal cost. There’s additionally a loss of life good thing about 101% of the account worth.
Right here’s what occurs when Tom and Sally take up eEASY save V at Tiq, opting to make an upfront cost on the minimal deposit of $10,000 a yr.
|
START:
Tom and Sally put in an upfront cost of $20,000 and get 3% off their first yr premium quantity = $19,700 |
YEAR 1 to six:
Tom and Sally full their research and exit into the workforce. They will make partial withdrawal(s) with out incurring prices (topic to phrases and circumstances), akin to within the occasion that the policyholder is identified with a terminal sickness. |
YEAR 7 onwards:
On the finish of Yr 6, Tom and Sally can now select to proceed on the prevailing price or withdraw the complete sum at 2.68% p.a. crediting price and a loyalty bonus (non-guaranteed) of 0.6% = $23,107 With out 0.6% loyalty bonus: $22,970 |
| Financial savings: $300 | No motion wanted | Complete achieve: $3,407 |
State of affairs 2: Saving up for a mid- to long-term aim, akin to your little one’s college training
Now meet Paul and Jane, dad and mom to a 3-year-old. Like most Singaporean dad and mom, they’ve already opened a Baby Growth Account in addition to a children’ financial savings checking account. However is that sufficient?
Along with saving up for his or her little one’s college training, they’re additionally contemplating setting apart a lump sum for a dream household trip/emergency fund. Enter Tiq’s eEASY savepro — a mid- to long-term plan, with excessive potential yield.
Paul takes up the eEASY savepro insurance coverage financial savings plan, and he can now obtain his saving targets with excessive potential returns of as much as 4.07% p.a. With greater than 100% capital assured upon maturity, and a loss of life good thing about 105% of the overall premiums paid, Paul can save whereas being insured. He additionally enjoys versatile premium funds — go for both a lump sum premium cost with as much as 4.5% upfront low cost off 1 yr premium, or get pleasure from a 4.5% upfront low cost for yearly cost (for a 10-year premium time period).
As it is a taking part insurance coverage financial savings plan, the premiums that Paul paid are pooled with these of different taking part insurance policies provided by Etiqa Insurance coverage in a specifically designated “taking part fund”. The taking part fund invests in a variety of belongings akin to bonds, equities, money, deposits, loans or different belongings. So he’ll get pleasure from bonuses from the income of the taking part fund, if any.
Right here’s what occurs when Paul takes up eEASY savepro for a coverage time period of seven years (2-year premium time period) to maturity (mid-term) at Tiq, opting to make an upfront cost on the minimal deposit of $5,000 a yr. His aim? A dream household trip.
|
START:
Paul places in an upfront cost of $10,000 and get 4.5% off their first yr premium quantity = $9,775 |
YEAR 1 to 7:
Paul and Jane focus their energies on their little one’s development and training whereas ready for Paul’s coverage to mature. |
AFTER YEAR 7:
After Yr 7, the coverage matures. Paul will obtain the complete sum on the following charges: Complete Illustrated Maturity Return:
Assured Maturity Return:
|
| Financial savings: $225 | No motion wanted |
Complete achieve:
At 4.20% p.a. illustrated funding return: $2,361 At 2.70% p.a. illustrated funding return: $1,419 |
Right here’s what occurs when Paul takes up eEASY savepro for a coverage time period of 15 years (10-year premium time period) to maturity (long-term), on the minimal deposit of $5,000 a yr.
|
START:
Paul places in $5,000 per yr for 10 years and get 4.5% off their first yr premium quantity = $49,775 |
YEAR 1 to fifteen:
Paul and Jane focus their energies on their little one’s development and training whereas ready for Paul’s coverage to mature. |
AFTER YEAR 15:
After Yr 15, the coverage matures. Paul will obtain the complete sum on the following charges: Complete Illustrated Maturity Return:
Assured Maturity Return:
|
| Financial savings: $225 | No motion wanted |
Complete achieve:
At 4.20% p.a. illustrated funding return: $26,316 At 2.70% p.a. illustrated funding return $14,945 |
It’s simple to begin rising your wealth with the EASY save insurance coverage financial savings plans at Tiq by Etiqa
- Confirm your particulars by way of MyInfo or snap a photograph of your NRIC/FIN
- In case you are a non-Singaporean, put together a proof of deal with, akin to out of your payments or statements
- Merely pay on-line by way of a DBS/POSB checking account or PayNow. The checking account ought to match the identify of the policyholder
- Repeat the steps above in case you are shopping for a couple of coverage
EASY save collection early-bird promotions:
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eEASY savepro — Be the primary 5 clients day by day to buy and obtain as much as $7,500 purchasing vouchers
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eEASY save V — Be the primary 5 clients day by day to buy and obtain as much as $500 purchasing vouchers
- Extra CNY promo (from 23 Jan to 16 Feb 2020) — Clients obtain extra $110 purchasing vouchers (on prime of early-bird promotion) with a minimal premium paid of $30k
Phrases and circumstances apply. Learn full particulars right here.
Develop your nest egg with Tiq by Etiqa’s EASY save insurance coverage financial savings plans and discover out extra about its secure of insurance coverage merchandise right here.
This coverage is underwritten by Etiqa Insurance coverage Pte. Ltd. (Firm Reg. No. 201331905K).
As shopping for a life insurance coverage coverage is a long-term dedication, an early termination of the coverage normally entails excessive prices, and the give up worth, if any, that’s payable to it’s possible you’ll be zero or lower than the overall premiums paid. You must search recommendation from a monetary adviser earlier than deciding to buy the coverage. When you select to not search recommendation, you need to take into account if the coverage is appropriate for you.
Protected as much as specified limits by SDIC. Info is correct as at 23 January 2020.
This commercial has not been reviewed by the Financial Authority of Singapore.
Are you saving up for one thing proper now? How do you obtain your monetary targets? Tell us within the feedback under!
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