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Written by Singlife | 14 Dec 2020 |
Written in conjunction with MoneySmart.
Singlife, a fintech life insurer, has been rolling out insurance plans since 2017 that include its term life and critical illness plans; as well as the Singlife Account that can be easily accessed via the Singlife App.
Speaking of which, Singlife Account policyowners can now gain access to apply for Singlife’s latest product — Grow on the Singlife App.
*Note that the Singlife Account will go on waitlist from 15 December 2020. If you would like to sign up, you can still submit your Singlife Account application prior to 14 Dec, 23:59. Those who have not submitted their Singlife Account application by 23:59 on 14 December 2020 can put their names on the waiting list in the app to be notified of when the Singlife Account reopens.
Grow is an Investment-Linked Policy (ILP). We know that ILPs haven’t enjoyed the best reputation, but bear with us! For starters, you can buy Grow directly online and there’s no lock-in period and no withdrawal charges. And for those who are always busy and on-the-go, being able to access Singlife’s Grow via the Singlife App is a major convenience on its own.
More on Singlife’s Grow as well as ways to use it to broaden one’s investment options below!
Those who already have some investment experience, may or may not have purchased an ILP before. Very quickly, here’s a quick primer on ILPs and who may consider it as an investment option:
What is an ILP?
● Generally speaking, ILPs are policies that have both a life insurance coverage and an investment component
● Premiums go towards paying for units in one or more sub-funds of the policyowner’s choice — some units purchased are then sold to pay for insurance and other charges, while the rest remain invested
● ILPs provide coverage for death, and if included, for total and permanent disability (TPD)
● As the value of an ILP depends on how the sub-funds perform, returns are not guaranteed
Who can consider ILPs as an investment option?
● ILPs are known to be complex as they have 2 components: Investment and insurance
● As such, ILPs are classified under Specified Investment Products that aren’t listed on an exchange (unlisted SIPs), and as per MAS guidelines you’ll need to pass the Customer Knowledge Assessment (CKA) should you wish to buy an ILP
A lot of ILPs have many underlying charges that are higher than expected. Here are some ways Singlife’s Grow differs from traditional ILPs:
Note: As with all investment vehicles, returns are not guaranteed; do still exercise good investment principles when purchasing Singlife’s Grow
Here are some scenarios in which the product can help to broaden their investment options:
Scenario 1: Individuals with busy lifestyles
Tony is always on the go, go go. As someone who is always zipping to and fro work/social appointments, his schedule is always packed. He finds it a breeze to sign up for Grow via the Singlife App while he’s in a taxi to his next meeting — without the need to set up an appointment with an agent. He is also a Singlife Account policyowner, so this makes it easier for him to sign up for Grow via the Singlife App, after passing the CKA.
In his Singlife Account, he is already earning 2.0% p.a.^ on his first S$10,000. As Singlife’s Grow is managed by Aberdeen Standard Investments (ASI), he decides to park his next tranche of funds there, making ad-hoc premium top-ups as he pleases.
Scenario 2: Working adults who are looking to invest their extras
Jill has been working for almost a decade in the banking sector, and has already built up a nice nest egg in her savings account, but doesn’t know what to do with this cash as it’s just sitting there but not really attracting great interest.
She decides to sign up for Grow (after signing up for a Singlife Account and passing the CKA). In addition to putting funds in the Singlife Account, she parks her additional funds in Grow.
Jill is not worried about putting a portion of her additional funds into Grow for investment purposes as she aims to leave the money in Grow for as long as possible, to hedge against inflation while growing her money, and she’s able to make a withdrawal of what she needs (if that should happen) as there is no lock-in period or withdrawal charge.
Scenario 3: Young digital natives who have yet to accumulate much wealth
Zane has just graduated with a finance-related degree and doesn’t have much savings. The money he has, was earned through internships and part-time gigs. As he doesn’t have any commitments yet (other than the 12-month instalment for his new electric guitar), he is looking to put a portion of his savings and future salary into an investment each month.
A digital native, he prefers to do everything online, be it ordering food to banking. Naturally, Singlife’s insurance plans appeal to him. He applies for a Grow after signing up for a Singlife Account and passing the CKA. After putting in S$5,000 in his Singlife Account, he also puts in an initial premium of S$1,000 and opts for a recurring single premium of S$500 every month for Grow to earn more potential returns.
To sum up, SingIife’s Grow is an ILP product with an investment focus. The management fee is a competitive 0.25% per quarter of the account value. There’s also no lock-in period and no withdrawal fee.
You’ll need a Singlife Account— plus pass the Customer Knowledge Assessment to get started. Managed by Aberdeen Standard Investments, choose from 3 risk-rated portfolios to suit your needs — conservative, balanced, or dynamic.
The minimum investment is a S$1,000 single premium payment, but you can opt to make recurring single premium payments (from S$100/month) and ad-hoc premium payments as well.
Find out more about Singlife’s Grow here.
^2% p.a. on first S$10,000 | 1% p.a. on amounts above S$10,000. | There are no returns for amounts above S$100,000. | Returns are not guaranteed.
The information is meant for your general knowledge and does not regard any specific investment objectives, financial situations or particular needs any person might have and should not be relied upon as the provision of financial advice.
Singlife’s Grow are Investment-Linked Policy (ILP) which invest in the respective ILP sub-funds within your chosen portfolio. Investment products are subject to investment risks including the possible loss of the principal amount invested. The portfolio performance is not guaranteed and the value of the units and the income accruing to the units (if any) may fall or rise. Past performance is not necessarily indicative of future performance. A product summary, terms and conditions and fact sheet relating to Singlife’s Grow are available. You should read the product summary, terms and conditions and fact sheet before making a commitment to purchase.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Singlife or visit the LIA or SDIC web-sites (www.lia.org.sg or www.sdic.org.sg).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Information is correct as of 5 Dec 2020.