Insurance Savings Plans: Singlife Account vs GIGANTIQ vs SingTel Dash PET

Featuring greater flexibility with high-interest yields, meet the new generation of insurance-savings hybrids. 

If you’ve ever been torn between saving money and having insurance protection, you’d be glad to know there are financial products that combine the two.

These products — a type of universal life plan — promise to pay interest on the amount you put in, at better rates than traditional bank accounts. At the same time, you gain insurance benefits based on your account value. 

However, unlike most insurance life plans, there are no fussy rules and regulations such as early surrender penalties or strict premium payment dates. In fact, these plans act more like regular savings plans, allowing you to make partial withdrawals and top-ups into your account whenever you feel like it, and with nary a fee or form in sight. 

So how do these really work? Should you think of them as bank accounts or insurance policies? Are they merely a flash-in-the-pan, or a genius product you never knew you’ve been missing all along? 

A good way to understand these insurance savings plans (again, we use the term loosely) is by examining the features and benefits they offer. 

Let’s compare three such plans available in Singapore: Singlife Account, SingTel Dash PET and GIGANTIQ by Etiqa.

Singlife Account: Generous returns with useful insurance benefits

Of the three plans, Singlife Account stands out for its refreshingly different proposition. They have also recently increased their interest rate up to 3.5% p.a.!

Earn 2% p.a. on the first S$10,000, plus a bonus 0.5% p.a. by spending S$500 on your Singlife Visa debit card. Finally, to earn yourself another 0.5% p.a. (to add up to 3% p.a.), you can invest in Singlife Sure Invest.

They are also awarding cash bonuses up to S$810 when you fund or top up your Singlife Account with S$10,000, S$30,000 or S$50,000, limited to the first 1,000 customers (which makes up the remaining 0.5%). Do note you will need to maintain the funds for 12 months to enjoy this additional 0.5%.

Let’s examine why this is so attractive. While the returns drop after the first $10,000, you are allowed to get there on your own schedule. Other plans give high payouts for a limited time only. 

Now, let’s talk about the insurance benefits you’ll enjoy. Your account value (i.e. how much you have inside your Singlife Account) forms the death benefit that will be paid out upon your death or diagnosis of terminal illness; your beneficiaries will receive up to 105% of the account value. 

So, if you’ve managed to max out your Singlife Account, you’ve gained a S$100,000 life insurance policy. Even if you don’t hit the cap, any amount you have accrued forms a life policy of equivalent value. 

Additionally, there’s also a retrenchment benefit which you can tap on. This benefit allows you to claim up to S$10,000 over three months, should you become unemployed for four months or more. The actual benefit you can claim is dependent on your spending habits: it is the average spent from your Singlife Card over the last six months of employment.

Singlife Card? Yes, your Singlife Account is linked to a complimentary VISA Debit Card with no annual fee or foreign exchange charges.

Take note that in order to earn interest, your account value must be at least $100.

Who is it for?

With its flexible character and useful features, Singlife Account is best suited for users looking for a fuss-free everyday spending account while building towards the foundations of a life insurance plan. 

Minimum premium, eligibility and other notes

If you’re interested to sign up for a Singlife Account, take note of the following:

• Minimum premium: S$100, top up at anytime
• Maximum account value: No limit
• Requires Singlife app
• Eligibility: Singapore citizen, PR or Work Pass holder, between 18 and 75 years old
• Funds transfer: FAST
• Free-look period: 14 days
  
  

GIGANTIQ by Etiqa: Savings tool to help you grow spare cash for the first year (Fully Subscribed)

Etiqa previously offered Elastiq, an insurance savings plan that offered a guaranteed 1.80% p.a. for the first three years. Elastiq has since been fully subscribed and Etiqa has now introduced GIGANTIQ.

GIGANTIQ is now offering 1.8% p.a. returns on your first S$10,000 for the first year (guaranteed 1% p.a. and 0.8% p.a. bonus). Applicants and policyholders prior to 19 November 2020 would continue to receive the previously advertised 2.0% p.a. (1.0% p.a. guaranteed + 1.0% p.a. bonus) rate.

Amounts more than S$10,000 will earn 1% p.a. for the first year. Beyond the first year, you will earn prevailing market rates with your capital guaranteed.

In terms of insurance coverage, you have a death benefit of 105% of your account value. There is no lock-in period​ and you can top up or make withdrawals anytime.​​ Returns are earned daily and will be credited monthly into your account.

You can also earn additional interest of up to 0.25% p.a. on the first S$10,000 for every protection plan purchased from Etiqa. These insurance plans can include home, cancer or travel insurance.

The minimum amount required to get started with GIGANTIQ is just S$50. While GIGANTIQ is currently oversubscribed. However, you can leave your contact and be notified once availability resumes.

Who is it for?

Savvy savers looking for an account to store their spare cash for a year, or for those looking to purchase an insurance plan with Etiqa.

Minimum premium, eligibility and other notes

If you’re interested to sign up for GIGANTIQ, take note of the following:

• Minimum premium: S$50, top up at anytime
• Maximum account value: S$10,000 to earn 1.8% p.a. in the first year; amounts above S$10,000 earn 1% p.a. in the first year
• Eligibility: Singapore citizen, PR or foreigner with a valid Work Pass/Permit or Long-Term Visit Pass
• Age: 17 to 75 (age next birthday)
• Funds transfer: Payment only via DBS/POSB bank account, or via your Etiqa eWallet
• You are only allowed to purchase one GIGANTIQ plan at a time
• Tiq by Etiqa mobile app required

Do note that GIGANTIQ is currently oversubscribed. However, you can leave your contact and be notified once availability resumes.

Singtel Dash PET: Save and boost your digital wallet funds

Those of you who are familiar with digital wallets would no doubt have heard of Singtel Dash. In case you’ve been meaning to jump on the bandwagon, but find the lack of interest a turnoff, PET may change your mind.

Essentially, PET (which is underwritten by Etiqa insurance, incidentally), adds the ability to earn some interest on the funds stashed in your digital wallet, providing the same advantage as a traditional bank account. 

Users who signed up before 27 April 2021: Enjoy 1.7% p.a. for the first S$10,000 and 1.2% p.a. for amounts above S$10,000. This puts it on equal footing with many competing alternatives.

However, there have since been changes made to the interest rates.

Users who signed up from 27 April 2021 to 3 August 2022: Receive 1.3% p.a. on your first S$10,000 and 0.3% p.a. for amounts above first S$10,000.

You also enjoy additional insurance coverage for COVID-19 with PET. This COVID-19 coverage includes hospitalisation benefit, intensive care unit benefit and a S$52,000 death benefit.

To start growing your PET, you’ll need to put in a single premium of at least $50, and you can top up your account to a maximum of S$30,000. 

Granted, you’ll be covered for up to 105% of your total account value in death benefits when you sign up for this plan, but do bear in mind that the account value is capped at S$30,000. You should make a proper assessment whether this is adequate for your beneficiaries.

Users who sign up after 3 August 2022: Receive 1.6% p.a. on your first S$50,000. There is also bonus interest of up to 0.75% p.a. with add- on protections.

Dash PET is also offering free life protection and COVID-19 coverage, as well as add-on protections from just two cents a day. These add-ons include major cancer, death & total and permanent disability and accidental death.

However, this time there is a short lock-in period of 12 months. You can enjoy instant top-ups  and flexible partial withdrawals of up to 10% of your Single Premium and Top-ups in teh first policy year.

Who is it for?

Digital wallet users looking to boost their digital wallet funds by collecting passive returns. 

Minimum premium, eligibility and other notes

If you’re interested to sign up for Singtel Dash PET, take note of the following:

• Minimum premium: S$50, top up at anytime
• Maximum account value: $50,000
• Eligibility: Singapore citizen, PR or Work Pass holder, between 17 and 75 years old
• Funds transfer: eNets 
• Singtel Dash app required
• Free-look period: 14 days

In conclusion, as these alternatives to savings accounts can change their interest rates frequently (as we've already seen), you could also consider other ways to stash your cash. This includes putting it in your usual savings accounts, cash management accounts, or investing the money with a robo-advisor.

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