Last Updated on by Tree of Wealth
When it comes to general insurance like car insurance, accident plans, marine and even property coverage, Etiqa is an insurer that many would have heard about. Etiqa is also the appointed insurer to cover for Fire Insurance Scheme with the Housing Development Board (HDB) consecutively for 10 years from 2009 to 2019.
Definitely not a new insurer in Singapore (they have been in Singapore since 1961), they go into the life insurance space in 2014 with protection and endowment plans. The Etiqa Essential Whole Life Cover is a participating policy with limited premium terms with whole life coverage.
Accumulating cash value while providing comprehensive coverage as well as multiplier feature till age 65, read on for our review on this whole life plan should you be considering a comprehensive coverage.
Read more here for our analysis of Best Whole Life Plans Singapore 2022 – The Ultimate Guide.
Features At a Glance for Etiqa Essential Whole Life Cover
Death and Terminal Illness coverage is for life and Total Permanent Disability (TPD) coverage is until 70 years old.
Have the flexibility to multiply and enhance your basic sum assured from 200%, 300% or 400% and choose to have the multiplier until 65 or 80 years old.
Premium & Policy Term
Policy Coverage Term – Whole Life
Premium Term – 5, 10, 15, 20 years
Guaranteed Insurability Benefit (At Life Milestones)
At Key Life Milestones, have the option to increase your protection coverage without the need of medical underwriting nor providing any proof of insurability.
Key Life Events:
- Becomes a parent – newborn or legal adoption
- Graduates from Tertiary Education
Wide Range of Supplementary Benefit Riders
Be covered for critical illness from early, to intermediate to advance stage
Choose from Early CI protection rider, CI protection rider, Extra secure waiver, Extra secure CI and Extra payer waiver riders.
Early CI Protection rider
The Early CI (Critical Illness) Protection rider covers for 35 early and intermediate stages as well as 35 advance stage CIs.
This rider can also accelerate the payout by 20%, 50% 80% or 100% of the basic sum assured. This can be a little limiting as most insurers have a choice of the early CI sum assured being accelerated instead of limiting to the percentages being accelerated.
Something that stands out is that this Early CI coverage has a premium waiver added in by default. In the event of early or intermediate stages of CI, any remaining CI benefit premium will be waived and the premiums will not be required to pay.
Additionally, there is a monthly payout of 12 months in the event of advance (severe) stage CI diagnosis of the 35 critical illnesses.
Also, there are 23 Special Conditions covered for on top of the usual critical illnesses.
CI protection rider
The CI rider covers for 36 advance stage CI. Similar to the Early CI rider, you have the choice of accelerating the payout by 20%, 50% 80% or 100% of the basic sum assured.
Extra secure CI rider
The CI rider covers for 37 advance stage CI. Unlike the CI Protection rider and the Early CI Protection rider, the payout is 100% of the basic sum assured upon diagnosis of advance stage CI.
Extra secure waiver rider
Upon diagnosis of the 37 advance stage CI, have your premiums waived without the need to continue paying the premiums.
Extra payer waiver rider
This is especially helpful for parents and 3rd party policy holders, where they are paying the premiums for their loved ones. Premiums will be waived in the event of the death or diagnosis of total and permanent disability of the payer, or if the payer gets diagnosed with the 37 critical illnesses covered by insurer.
However this waiver of premiums is only until the age of 25 for the life assured, where most insurer actually waives the whole premium altogether.
At retirement age, should you feel that life’s liabilities are lessen and would prefer a lower protection and higher retirement funds, choose to convert the cash value in the whole life plan at age 65 and receive payouts annually.
Have it up to a period of 10 years receiving the retirement payout.
How The Etiqa Essential Whole Life Cover works
Why We Like The Etiqa Essentiual Whole Life Cover
- Premiums are waived in the event of early CI, no separate riders need as this comes with the Early CI Protection Rider.
- Multiplier term up to 65 and 80 years old, longer than most insurers’ at 70 years old.
- Early CI rider covers maximum of $350, 000, higher than most insurer’s $250, 000.
What We Don’t Like About Etiqa Essential Whole Life Cover
- TPD (Total and Permanent Disability) is only up to age 70 where as certain insurers can cover for life
- Only 35 early and intermediate stage CI is covered for, lesser than insurers like Singlife with Aviva and China Taiping.
- Early CI rider can only accelerate the payout by 20%, 50% 80% or 100% of the basic sum assured. This is not as flexible as compared to other insurers as most have a choice of the early CI sum assured being accelerated instead of limiting to the percentages being accelerated.
- For example, if basic sum assured is $100k, the early CI sum assured cannot be flexible like 67k. It has to be in the percentages of 20%, 50% 80% or 100% of the basic sum assured.
- Extra payer waiver rider only waives premium payment for the life assured up to 25 years old instead of the whole premium term.
Etiqa Essential Whole Life Cover is Suitable If:
- High amount of death, Terminal Illness and Total Permanent Disability Protection Sum assured at a competitive premium.
- Would like multiplier to a later age of 80 years old.
- Cash value that accumulates throughout the plan.
- Option to convert the cash value to yearly retirement payouts at age 65, for 10 years.
- A limited premium paying term and get coverage of death, TPD as well as early stage CI for life.
It would however be less suitable if you would like:
- A wealth growth instrument for retirement and savings purposes.
- Frequent withdrawals and access of cash from the insurance coverage plan.
- Short breakeven years and have high cash value early into the plan.
- Term insurance coverage of high sum assured with significant less premium
Conclusion for Etiqa Essential Whole Life Cover review
As with all whole life insurance plans, the suitability of this plan for you will largely depend on your needs and expectations. There are many whole life insurance plans in the market with many strong Insurers. Which one suits you the most?
To find the most suitable coverage, 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.
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