This review focuses on one specific ILP: Etiqa’s Invest flex pro, to help you see if it fits your financial plans.
What is Etiqa Invest flex pro?
Etiqa Invest flex pro is an Investment-Linked Plan (ILP) that mixes wealth growth through investments with insurance protection. It covers you up to age 100.
It’s key features include:
- Flexible Payment Terms: Choose to pay premiums for 10 years (with “Flexi 3” or “Flexi 5” options); or just for 20 years.
- Accessible Premiums: Regular monthly premiums can start from S$200, depending on your chosen term.
- Dual Accounts: It uses two accounts: a Regular Premium Account for core investments and bonuses, and a Top-up Account for any extra voluntary contributions.
- Main Goals: The plan aims to help you build wealth. Additionally it provides some insurance elements.
Key Features of Invest flex pro
The plan comes packed with several features designed to boost your investment and provide peace of mind. Let’s explore some of the most significant ones.
1) Hassle-Free Application: Guaranteed Issuance Offer
One of the notable features of Invest flex pro is its “Guaranteed Issuance Offer” (GIO). In practical terms, this means Etiqa issues this policy without asking for the Life insured’s health declaration or medical checks at the time of application
2) Enhancing Your Investment with Bonuses on Invest flex pro
Invest flex pro includes several bonuses to help grow your investment:
- Start-up Bonus: Get an upfront bonus (up to 55%) credited in your first policy year when you pay your regular premium. The rate depends on your premium amount and payment term.
- Special Bonus: Receive an extra 3% bonus on regular premiums paid during specific periods (e.g., from the 6th year for certain premium terms).
- Loyalty Bonus: For the 20-year premium term, get an ongoing bonus of 0.1% p.a. of your Regular Premium Account value, credited monthly after your premium payment term ends. This can be paused if you make a partial withdrawal.
To provide a clearer overview, here’s a summary of the bonuses:
| Bonus Type | Rate |
|---|---|
| Start-up Bonus | Up to 55% in the first year |
| Special Bonus | 3% of regular premium received |
| Loyalty Bonus | 0.1% p.a. of Regular Premium Account value |
3) Flexibility Options within Invest flex pro
Life is unpredictable, and your financial plan should be adaptable. Invest flex pro offers several flexibility features:
- Premium Term Choice: Select from different payment durations (10 or 20 years), with “Flexi” options for the 10 years option.
- Payment Breaks (Premium-Free Period): You may be able to pause premium payments for a set period while your policy continues.
- Access Funds (Partial Withdrawals): Make up to 2 free partial withdrawals from your main premium account starting from the 4th policy year, capped at 5% of total regular premiums paid each time.
- Invest More (Top-ups): Option to add extra funds to your investment.
- Change Life Insured: You can request to change the person insured on the policy from the 3rd policy year, subject to conditions
4) Protection Benefits offered by Invest flex pro
Beyond wealth accumulation, Invest flex pro also provides essential insurance coverage:
- Death Benefit: Pays a sum if the insured person passes away.
- Terminal Illness (TI) Benefit: Allows an early payout of the Death Benefit if the insured is diagnosed with a terminal illness.
- Optional Premium Waivers: You can add riders to waive future premium payments if certain events occur, like critical illness or disability of the insured or policy owner.
Managing Your Investments with Invest flex pro
With Invest flex pro, you’re not just putting money aside; you’re actively investing it.
- Fund Choices: Invest in up to 10 different investment funds (ILP Sub-Funds) from reputable managers.
- How Premiums are Invested: 100% of your regular premiums (Premium Allocation) go into your chosen funds.
- Switching Funds: Move your money between different investment funds (Fund Switching) an unlimited number of times, currently without any charge.
- Changing Future Investments: Direct your future regular premium payments (Premium Redirection) into different funds without affecting your existing investments.
Quick Look at the Costs
Basically, these are different basic fees for running your Invest flex pro plan. They can affect your investment growth:
- Policy Charge: A regular fee to keep your policy active.
- Premium Shortfall Charge: A fee if you miss payments when you’re not on an official payment break.
- Surrender Charge: A fee if you end your policy too soon.
- Insurance Charge: The cost for your life insurance (death and terminal illness coverage).
- Fund Management Charge: Fees paid to the experts managing the investment funds your money is in.
Is Invest flex pro Right for You?
Okay, here’s a concise table to help you see if it might be a good fit:
| Consider Invest flex pro if you: | Invest flex pro might NOT be for you if you: |
| 1. Want a regular payment plan that mixes investment with insurance coverage. | 1. Prefer investments with guaranteed returns or where your initial capital is protected. |
| 2. Are comfortable with investment risks for potentially higher returns. | 2. Need a short-term investment (ending it early can be costly). |
| 3. Value flexibility in payment terms and options like taking premium breaks. | 3. Mainly want a fixed insurance plan focused on protection, rather than investment. |
| 4. Prefer a straightforward application process (it’s a guaranteed issuance policy). | 4. Are uncomfortable with investment risks, including the chance of losing your capital. |
| 5. Are focused on long-term wealth growth and planning for the future. |
Final Thoughts on Invest flex pro
Etiqa Invest flex pro can be a viable option for anyone who have a long-term investment horizon, a clear understanding of and comfort with the risks associated with ILPs, and who value flexibility alongside the potential for investment growth. It is particularly suited for those who appreciate the convenience of a GIO application and are disciplined enough to maintain regular premiums or strategically use the flexibility features.
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