Invest Round-up

Meeting working adults' retirement, savings needs

Office workers seen in the Central Business District in Singapore.
Office workers seen in the Central Business District in Singapore. PHOTO: ST FILE

The Sunday Times highlights four insurance products.

AXA WEALTH TREASURE BY AXA INSURANCE

This is a whole-life investment-linked insurance plan, designed to help young working professionals accumulate their wealth while providing protection to them and their loved ones.

AXA Wealth Treasure offers customers a generous start-up bonus of up to 100 per cent of the first-year premium to boost their investment. This means that for each dollar that the policyholder invests, AXA will match it up to one dollar, subject to conditions. The plan also rewards policyholders for long-term investments by giving them a loyalty bonus of 1 per cent per annum (pa) of their account value from the sixth policy year onwards.

Policyholders have the flexibility to pay their premiums over any period from five to 30 years. On top of that, they can choose to invest in Singapore or US dollars and have the option to withdraw part of their investment at any time.

Customers can opt to add recurring single premiums and/or top-ups to their investments at any time. They can also enjoy cash from their investment through ad hoc withdrawals or regular withdrawals after the payment is complete.

The plan comprises close to 100 unique diversified ranges of investment-linked funds, including access to accredited investor funds. Customers are able to select from various industries and geographical sectors.

CHINA LIFE SAVEREWARD 101 SERIES III (SGD) BY CHINA LIFE

SINGAPORE This is a five-year endowment plan which gives 2.08 per cent pa guaranteed returns upon maturity. Customers need only to pay premiums for three years to enjoy 100 per cent capital guarantee and be covered against death for as long as they keep the plan.

Do note that the guaranteed return of 2.08 per cent pa applies only upon the plan's maturity.

In the event of the insured's death, the insurer will pay 101 per cent of the total premiums due and paid, less amounts owing, if any.

"This plan is simple and hassle-free as customers do not need to do any medical check-up to enjoy the benefits of our plan. We have made this plan to be affordable for customers with a minimum annual premium of $5,000 and they only need to pay for three years," said China Life Insurance Singapore chief executive Tony Chow.

This is a limited tranche product and China Life will stop accepting applications six months after the product launch date or when the tranche is fully subscribed, whichever is earlier.

CHINA LIFE RETIRE EASY PLAN BY CHINA LIFE SINGAPORE

A retirement income plan, China Life Retire Easy provides guaranteed annual income that increases yearly from the customers' chosen payout age until they turn 99. Besides helping customers to better manage rising living costs, the plan aims to offer peace of mind at a time when people are living longer and are concerned about outliving their savings and assets.

The annual payouts will supplement policyholders' Central Provident Fund Life payouts and other savings for a more adequate and sustainable retirement funding, said China Life's Mr Chow.

The yearly premiums paid are capital guaranteed, subject to conditions. Policyholders can choose to pay yearly premiums over five, 10 or 15 years based on their financial comfort level, and also decide when to start receiving their retirement income payouts - at age 55, 60, 65 or 70 - until they turn 99.

China Life will increase the guaranteed yearly retirement income by 4 per cent of the sum insured value each year. There is a non-guaranteed yearly retirement income component which may be paid with the guaranteed yearly payout each year, and it is dependent on the future performance of the participating fund.

On policy maturity, the insurer will pay the guaranteed maturity value and a non-guaranteed terminal bonus, less amounts owing if any.

CHUBB WORK GUARD BY CHUBB INSURANCE SINGAPORE

Chubb has enhanced its work injury compensation insurance plan for Singapore businesses. The insurer says that the enhanced wording will apply to all risks bound from the start of this year, unless separately agreed.

At the core of the enhanced policy is the broader suite of insurance coverages that encompasses the "increased common law limit" and "increased medical expenses" provision. These have been incorporated to meet evolving business needs in the face of changing workplace safety and health management systems here.

Chubb Work Guard also offers benefits such as coverage for hospitalisation leave and non-occupational accidental death and total permanent disability, both of which are beyond the statutory requirements. Twelve new benefits have also been added, including traditional Chinese medicine expenses, replacement staff/recruitment costs, and 24-hour cover on worldwide business travel.

A version of this article appeared in the print edition of The Sunday Times on January 14, 2018, with the headline 'Meeting working adults' retirement, savings needs'. Print Edition | Subscribe