Etiqa’s Tiq Invest Review

Tiq Invest is a single premium investment-linked policy (ILP) that provides you with a comprehensive solution for both wealth accumulation and life protection.

With a minimum single premium of $1,000 and the ability to make top-ups as low as $100/month, low-risk individuals might find this policy attractive.

Here’s our review of the Tiq Invest, keep reading!

Criteria

• The minimum single premium: $1,000
• Maximum single premium: $200,000
• Entry Age: between 17 and 60 years (on your next birthday)

General Features

Premium Payment Terms

Tiq Invest is a single premium ILP where you can invest from as low as $1,000.

Premium Top-Ups

You have the option of ad-hoc or recurring top-ups after the issue date. However, this is subject to certain conditions;

Ad-Hoc Top-Up

• The minimum amount allowed for ad-hoc top-ups is $500.
• Ad-hoc top-ups must be made in multiples of $100.
• The maximum amount you can top up through ad-hoc contributions is $200,000.

Recurring Top-up

In addition to ad-hoc top-ups, you also have the option of recurring top-ups after the issue date subject to certain conditions:

• The minimum recurring top-up amount must be at least $1,200 per year.
• The minimum recurring top-up amount must be at least $600 every 6 months.
• The minimum recurring top-up amount must be at least $300 per quarter.
• The minimum recurring top-up amount must be at least $100 per month.
• Each recurring top-up must be made in multiples of $100.
• The maximum recurring top-up allowed per enrollment is $200,000.

The Ad-Hoc and Recurring top-up options offer you a great deal of flexibility to manage your cashflow when investing.

Whether you are comfortable setting aside some money each month or a sizable sum each year, Tiq Invest allows you to contribute at your own pace.

Protection

Death Benefit

In the event of the insured individual’s death while the policy is active, the death benefit payable will be determined as follows:

• The higher of the account value: This refers to the value of all the units held within the policy, after deducting any applicable fees and charges, or
• 105% of the single premium paid and 105% of the total top-up(s) minus partial withdrawals made to the policy.

Terminal Illness (TI) Benefit

In the unfortunate event that the insured is diagnosed with a terminal illness while the policy is active, the following provisions apply:

• If the life insured has a TI while the policy is in force, the death benefit will be paid out in a lump sum.
• The maximum total amount payable for the TI benefit is capped at $5,000,000 per insured individual. This means that if multiple policies and riders with terminal illness benefits have been issued by Tiq, the total payout for terminal illness cannot exceed this limit.
• If the TI benefit payable is lower than the death benefit, the death benefit will be reduced by the amount you paid for the terminal illness.
• If the terminal illness benefit payable is the same as the death benefit, the policy will come to an end upon the payment of the terminal illness benefit.

The TI diagnosis must be supported by a specialist and confirmed by Etiqa Insurance’s appointed doctor.

Maturity Benefit

You will receive a lump sum maturity benefit if the policy is still active on the anniversary immediately before you reach 100 years old.

In this case, you will receive a single payment which is equal to your account value minus any debts owed to the policy.

Tiq Invest Packaged Funds (Portfolios)

Tiq Invest offers you 4 packaged funds to choose from (also known as investment portfolios) – Conservative, Moderate, Growth, and Aggressive.

These Packaged Funds invest in unit trusts managed by fund managers such as:

• Dimensional Fund Advisors Ltd.,
• PIMCO Global Advisors (Ireland) Limited,
• BlackRock (Luxembourg) S.A., and
• Lion Global Investors Limited.

In fact, there are only 5 funds available via Tiq Invest:

1. Global Short Fixed Income Fund
2. Global Investment Grade Credit Fund
3. Asian Tiger Bond Fund
4. Emerging Markets Bond Fund
5. Infinity Global Stock Index Fund

Each of the portfolios offered by Tiq Invest will have varying allocations to the above unit trusts mentioned, which I’ll cover in a bit.

Conservative Portfolio

The Conservative portfolio has an allocation of 80% fixed income and 20% in equities. This is suitable for low-risk investors looking for stable returns.

Here are the asset allocations as of 2 September 2023:

Based on these allocations, here are the cumulative returns as of 31 July 2023:

Fund management fees for this portfolio are 1.55% per annum as of 2 September 2023.

Moderate Portfolio

The Moderate portfolio has an allocation of 40% fixed equities and 60% equities – best for medium risk-takers looking for moderate returns.

Here are the asset allocations as of 2 September 2023:

Based on these allocations, here are the cumulative returns as of 31 July 2023:

Fund management fees for this portfolio are 1.55% per annum as of 2 September 2023.

Growth Portfolio

The Growth portfolio has an allocation of 20% fixed income and 80% equities, suitable for high-risk takers looking for capital growth.

Here are the asset allocations as of 2 September 2023:

Based on these allocations, here are the cumulative returns as of 31 July 2023:

Fund management fees for this portfolio are 1.55% per annum as of 2 September 2023.

Aggressive Portfolio

The Aggressive portfolio allocates 100% of its assets into equities – which is suitable for high-risk takers looking for long-term growth.

Here are the asset allocations as of 2 September 2023:

Based on these allocations, here are the cumulative returns as of 31 July 2023:

Fund management fees for this portfolio are 1.55% per annum as of 2 September 2023.

Key Features

No Minimum Investment Period

Unlike other ILPs, the Tiq Invest doesn’t impose a minimum investment period.

This means that your money won’t be locked up and will remain liquid whenever you need it.

Guaranteed Insurance Protection

Tiq Invest boasts a 105% guaranteed insurance protection of your net premiums (less fees and charges) regardless of the investment returns.

Surrender Benefit

With Tiq Invest, you can surrender your policy in whole.

• In the case of a full surrender, the surrender benefit will be paid out in a lump sum.
• The surrender benefit amount will be equivalent to the account value of your policy minus applicable debts owed to the policy.
• You may request for a full surrender during the free look period.

Partial Withdrawal

While the policy is active, you can request partial withdrawals subject to:

• Each Packaged Fund must maintain a minimum value of $200 after the withdrawal.
• The minimum amount you can withdraw in each partial withdrawal is $200.
• Partial withdrawals are not allowed if the remaining amount in any of the Packaged Funds falls below the minimum requirement after the withdrawal(s).
• Each partial withdrawal will reduce the account value of your policy by the withdrawn amount.
• Partial withdrawals will be processed proportionately based on the respective allocations of the Investment-Linked Policy (ILP) sub-funds.

Premium Allocation

100% of your premiums and any top-ups are invested in the Packaged Fund of your choosing.

Each Packaged Fund includes a list of ILP sub-funds. Each ILP sub-fund will invest according to the investment objective and strategy determined by the ILP sub-fund Manager.

Note that you should do your due diligence to assess the suitability of the Packaged Fund that you choose to invest in.

Fund Switching

While your policy is still running, you can make an unlimited number of Packaged Fund switches. Currently, there are no fund-switching charges.

Fees and Charges

Management Charge Fee

A management fee of 0.75% p.a. is applied at the start of each policy month.

Fund Management Fee

A fund management fee of up to 4.00% p.a is charged on your policy on the fund level.

However, as of 2 September 2023, the fund management fees across all Packaged Funds lie at 1.55% p.a.

Insurance Charge

The policy does not impose an insurance charge.

Compulsory Fees

In terms of compulsory fees, these are the compulsory fees you will incur:

• Tiq Invest Management Fees: 0.75% p.a.
• Packaged Funds Fees: 1.55% p.a.
• Underlying Subfund Fees: Varies

As the Packaged Funds invest in underlying unit trusts, there are fund-level fees you will incur – which differ based on the allocation of each portfolio offered.

These are calculated into your returns on the fund level.

Next, Packaged Fund fees are at 1.55% yearly. These are portfolio-level fees and it’s already included in the calculation of your returns at this level.

Lastly, the yearly management fee of 0.75%. This is the ILP-level fee and is not included in the calculation of your return.

Thus, to find how much returns you’re making, take the annualised portfolio returns and deduct 0.75% from it.

Summary of Tiq Invest

My Review of Tiq Invest

Tiq Invest is perfect for individuals looking for an ILP with a low initial investment and no minimum investment period.

Tiq Invest offers portfolios with diversified risks and no lock-in period, allowing you to choose from different risk profiles including conservative, moderate, growth, and aggressive.

The policy has a minimum investment of $1,000 and provides 105% guaranteed insurance protection.

The Tiq Invest also offers a death benefit and terminal illness benefit, providing financial protection in case of unfortunate events.

Its fees are also at a yearly low of 0.75% – the lowest when compared to other single premium ILPs in the market. Not forgetting there are no sales charges too, which other ILPs charge up to 5%.

However, it’s not without its drawbacks.

Firstly, there are only 5 unit trusts to choose from, of which you can only select from 4 portfolios.

Being a new product, there isn’t much to show for it in terms of its returns, which we think isn’t doing too well either.

This is seen in negative returns in all portfolios since its launch. Tiq also shows cumulative returns, instead of annualised returns.

When comparing investment returns, take note that you should be looking at annualised returns.

But to be fair, 2021 to 2023 hasn’t been all rainbows and butterflies for everyone in the financial markets.

So is the Tiq Invest any good?

Well, we think if you’re looking for an ILP with a low minimum investment of $1,000 and no lock-in periods, it might just be for you.

If you don’t fit the above demographics or are looking for other options available, check out one of our most popular posts on the best investment plans in Singapore.

You might find something suitable for yourself.

Still not sure if the Tiq Invest is for you?

It’s best to always get advice from an unbiased financial advisor before making a decision.

Reference

• Product Summary
• Product Website
• Tiq Invest Packaged Funds Information