Best Investment- Linked Policy Detailed In-Depth Comparison Singapore (May 2022)

Best Investment- Linked Plan Detailed In-Depth Comparison Singapore (2022)
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Last Updated on by Tree of Wealth

There are many competitive 101% ILPs around with strong funds and finding for the right one is not going to be easy, especially with the undergoing charges and returns and the many different start-up bonuses and loyalty bonuses that each insurer is going to give.

Retail and even Accredited Investor (AI) like Fundsmith fund is available on these platforms and it certainly attains higher returns. As always, when it comes to investment it is always non-guaranteed and returns are always matched with the risks.

That being said, 101% ILPs set out to minimise that risk by investing in longer time horizon to average the risk and steady the returns.

How 101% comes about is that in the event of death, 101% of the investment value will be paid out, as opposed to traditional 105% ILPs that takes into higher cost of insurances (as well as investing into sub-funds managed by insurers). This means that the 101% has more weightage into investment, yet providing assurance to policy holders that in the event of death, their investments are being protected for.

Also to note that even the same plan from the same insurer will also reflect the different bonuses that you will receive.

We have done the homework and below let’s have a comparison view on which plans are the most competitive!

Analyzing Breakeven Yield P.A. $1,000/month Comparison

3 years 5 years 10 years 15 years 20 years 25 years 30 years

Singlife Savvy Invest

2.53% 2.13%

2.26%

(Flexi)

2.35%

2.39%

(Flexi)

NA 1.00% Na NA
AXA Wealth Harvest NA NA NA 1.56% 0.81% 0.46%

0.28%

TM Atlas Wealth NA 2.32% 1.63% 1.49% 1.42% 1.37%

NA

TM Go Treasures

NA NA 2.05% 1.51% 1.15% 0.85%

0.72%

Etiqa InvestBuilder NA 1.91% 1.49% 0.72% 0.48% NA

NA

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Tokio Marine TM Atlas Wealth

Strength

  • Premium Flexibility after 1st year (Regardless of Payment Term) MIP 1 year only
  • Access to Fundsmith
  • Low Breakeven Yield 10 – 15 years Premium Term
  • Range of riders to be added to waive premium e.g. cancer, spouse, eci waiver
  • Advanced Death Benefit (Principal Guaranteed upon death during premium payment term)

Weakness

  • Higher Breakeven yield Beyond 20 years
  • No immediate dividends
  • High Minimum Cash Outlay – $630/mth

How TM Atlas Wealth Works

Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)
source: Tokio Marine

Tokio Marine TM #goTreasures

Strength

  • Premium Flexibility after 2 years (Regardless of Payment Term) MIP 2 years only
  • Access to Fundsmith
  • Lower Cash outlay for 20 years premium term – $300/mth
  • Low Breakeven Yield from 15th year onwards
  • Can be converted to auto unit deduction draw down after premium payment term
  • Advanced Death Benefit (Principal Guaranteed upon death during premium payment term) + Secure Feature

Weakness

  • No immediate dividends
  • High Breakeven yield for 10 years
  • High cash outlay for 10 / 15 years: $500 per month
  • Lack of premium waiver riders 

How TM #goTreasures Works

Tokio Marine TM #goTreasures Investment-Linked Policy

Tokio Marine TM #goTreasures Investment-Linked Policy
source: Tokio Marine

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AXA Wealth Harvest

Strength

  • Minimum to start 300/mth
  • Low breakeven yield beyond 15 years – 30 years (Extremely low from 20th year onwards) due to 0 Account Maintenance Fee from year 12th
  • Access to Fundsmith Fund

Weakness

  • No Flexibility for First 11 years
  • No immediate dividends
  • Lack of flexibility for first 11 years
  • No Principal Guarantee upon death

How AXA Wealth Harvest Works

AXA Wealth Harvest Investment-Linked Policy
source: AXA

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Singlife with Aviva Savvy Invest

Strength

  • Short term Investment (3 years Available / 5 years Flexi)
  • Restricted Funds
  • Principal Guaranteed upon death throughout holding period
  • 2x Withdrawal of 10% from Account value during life stages

Weakness

  • No Fundsmith Fund
  • No Immediate Dividend Payout
  • Flexi Option No Options to reduce premium to 0

How Singlife with Aviva Savvy Invest Works

How Singlife with Aviva Savvy Invest Works
Source: Singlife with Aviva
singlife savvy invest minimum investment period
Source: Singlife with Aviva

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Etiqa Invest Builder

Strength

  • Short term Investment (3 years Available / 5 years)
  • Portfolio Managed Funds
  • Principal Guaranteed upon death throughout holding period
  • 1x Withdrawal of 15% from Account value during life contingency event + Premium freeze 12 months

Weakness

  • No Fundsmith Fund
  • No Flexi Feature
  • 30% p.a. charge throughout policy term (Till age 100)
  • No Immediate Dividend Payout

How Etiqa Invest Builder Works

How Etiqa Invest Builder Works
source: Etiqa

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Charges Breakdown

Product Policy Fees
TM Atlas – 4% p.a. Initial Charge on First Year Premium ONLY During Premium Term (Total 5.5% p.a. inc policy charge)

– 1.5% p.a. Policy Charge on Total Policy Value throughout as long as policy is inforced

TM #goTreasures

– 5.4% p.a. Initial Charge on First Two Years Premium ONLY During Premium Term (Total 6.9% p.a. inc policy charge)

– 1.5% p.a. Policy Charge on Total Policy Value throughout as long as policy is inforced

Singlife Savvy Invest – 0.65% p.a. Administrative Charge throughout

– 1.85% p.a. Supplementary Charge First Ten years

Etiqa Invest Builder – 2.30% p.a. Policy Charge Throughout
AXA Wealth Harvest – 3.5% p.a. Account Maintenance Fee for first Eleven years only

Interested to learn more?

Fill in the form below and we will get back to you!

101% Investment Linked Policies are recently picking up traction as they offer investors another platform of investment coupling with start up bonuses as well as loyalty bonuses and pure investment funds.

Here the ILPs shown are competitive in their own rights. With the different yields, minimum investment periods, bonuses, charges, funds availability and many other factors taken into consideration, it is important to know which plan is most suitable for you to match your investment horizon and needs.

To find the most suitable investment plan, simply fill in the form below and our friendly licensed FA advisor will get in touch with you. Based on your needs, a custom made solution will be adjusted only addressing your concerns.

No obligations, no hidden fees. All advice are of no charges.

 

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