(Source: Etiqa)
Lately, insurance savings accounts/policies have increased in popularity as banks are slashing interest rates on their flagship high interest rate savings accounts. Heartland Boy blogged that he had also unabashedly jumped onto the bandwagon by parking a total of $30,000 with Singlife and Dash EasyEarn. The next exciting product in line under his consideration would be Etiqa Elastiq, which offers guaranteed 1.8% p.a. for the first 3 years. Here is Heartland Boy’s review of Etiqa Elastiq, an insurance savings plan by tiq.
Guaranteed 1.8% For First 3 Years On Your Initial Premium
What caught Heartland Boy’s attention is that the initial premium, capped at a maximum of $50,000, is eligible to earn a guaranteed interest rate of 1.8%. This interest rate is guaranteed for only the first 3 years, which is more than a sufficient amount of time for Heartland Boy’s consideration.
Additionally, should no withdrawal be made (include premium + top-ups) from the account at the end of 3 years, an additional (non-guaranteed) loyalty bonus will be credited. As at the time of this article, this loyalty bonus is equivalent to 0.3% of the average monthly account value for the past 36 policy months. To sum up, if no withdrawal is made at the end of 3 years, the interest rate would be a total of 5.8% over 3 years or an 1.9% p.a. as shown in Diagram 1.

Diagram 1: Guaranteed Interest Rate and Non-Guaranteed Loyalty Bonus
The good news is that this total return excludes the sign-up gifts thrown in by PolicyPal. Heartland Boy would illustrate later how your returns can be juiced up to as high as 1.95%* by signing up for Etiqa Elastiq during this limited time promotion period.
Some Restrictions on Top Ups And Withdrawals
Some restrictions do apply for top-ups and withdrawals but there is still way more flexibility compared to traditional fixed deposits.
For top-ups, do note that:
- Amount for each top-up must be at least S$500 and in multiples of S$500,
- Maximum aggregate of top-ups and premium cannot exceed S$200,000 and
- Crediting interest rate for top-ups will be determined based on prevailing market conditions, which at the time of writing is also 1.8%
Since interest is calculated based on the daily account value and credited at the end of each policy month, it helps to top-up as soon as possible when one has accumulated the cash to set aside.
For withdrawals, do note that:
- First withdrawal must be made at the earliest 90 calendar days after Policy issue date,
- Amount for each withdrawal must be at least S$500 and in multiples of S$500 and
- Average daily Account value for the month must be at least S$5,000 for waiver of service fee (S$5)

Diagram 2: General rules of top-ups and withdrawals of Etiqa Elastiq
Additionally, Heartland Boy would like to highlight this clause found in the terms and conditions governing Dash EasyEarn – “We reserve the right to delay the payment of the partial withdrawal amount/surrender value for up to a period of 6 months from the date of your surrender request.” The same clause is also found in other Etiqa products such as Dash EasyEarn, so Heartland Boy treats this as their legal counsels being diligent and adding more buffer for their company. In other words, kiasu but it is something Heartland Boy can accept.
Insurance Benefits
This is marketed as an insurance savings plan because it is actually a universal life plan. It does come with more limited coverage compared to traditional life plans. In the event of death, the policy pays out 106.8% of the account value. However, do note that usual exclusions such as death from suicide within first 12 months, death due to pre-existing conditions etc will apply. Note that Elastiq by Etiqa is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corp (SDIC)
How To Sign Up For Etiqa Elastiq (Limited Time Promotion*)
To maximise your benefits from Etiqa Elastiq, simply sign up via PolicyPal using the promo code of “heartlandboy” Readers would receive tiered cash rebates and vouchers from PolicyPal as shown in Diagram 3.

Diagram 3: Summary of cash rebates and vouchers for limited time promotion from PolicyPal
Upon successfully signing up for Etiqa Elastiq with the promo code**, PolicyPal would contact you with regards to your cash rebate after the free-look period is over. You can choose either PayNow or bank transfer to receive your cash rebate varying from $10 to $30. Additionally, those who sign up with an initial premium of $50,000 are eligible to receive $55 worth of CapitaLand vouchers which will be mailed to them within 4 weeks.

Diagram 4: Your tiqconnect account will be created upon signing up for Etiqa’s product
For simplicity, let’s consider the PolicyPal credits as an additional bonus since it is difficult to quantify a dollar value to it.
Because of how the cash rebates and vouchers are rewarded, depositing $50,000 as the initial single premium easily represents the best value for money. Provided conditions are met, this enables the Policy Owner to be eligible for the guaranteed interest rate, the loyalty bonus, as well as all the sign-up gifts from PolicyPal. Under such circumstances, the total interest rate for a $50,000 initial premium is a total of 5.97% over 3 years or 1.95%* p.a. on a compounded basis. Refer to Diagram 5 for the breakdown.

Diagram 5: 1.95% interest rate* p.a. for Etiqa Elastiq for initial premium of $50,000
Even if policy holder does partial withdrawal and becomes ineligible for the loyalty bonus, the effective interest rate is still a remarkable 1.85 p.a.%. Therefore, we can treat this as a high-yield savings account providing guaranteed 1.85% p.a. for 3 years!
[Update on 8 Oct 2020: Note that applications for Elastiq have closed. There is an even better product by Etiqa known as GIGANTIQ. Check out my review of GIGANTIQ and how you can earn 2% interest rate on your first $10,000)* 1.95% is Heartland Boy’s own interpretation as it includes all sign-up gifts, loyalty bonus(non-guaranteed), and the interest rate crediting rate (guaranteed for 3 years) provided that the eligible conditions are met. This limited time promotion ends at 16 Aug 2359h.
**Note that this article contains referral links that goes to maintain the sustainability of this blog.
Disclosure: This article is meant purely for informational purposes and should not be construed as financial advice. For customised advice on your financial needs, you should seek advice from a licensed representative. It has not been reviewed by MAS. Information is correct as at 19 July 2020
Hi, Do you know if we can add $ after open the account/policy?
Say I start with 10K, after 3 month I add another 10K, will I get 1.8% for 20K?
Hi Johan,
Yes, you can add $ after opening the account/policy. This is known as top-ups.
Do note that in your example above, the initial premium of $10K is guaranteed 1.8% for 3 years. For the top up of $10k after 3 months, the crediting rate will be based on the prevailing interest rate. Currently, the prevailing interest rate is 1.8% today. Hope this clarifies.
Hi, do you know if I have to put the money for 3 years in order to get the Bonus tiq credit?
Hi Steve,
You will receive the bonus tiq credits roughly 4 weeks after the freelook period of 14 days. If you cancel your policy within the first year, Etiqa is entitled to claw back the tiq credits given from the surrender value of the policy. Therefore you can withdraw and leave a minimum $5k (no fall below fee) and still keep your etiqa credits. Hope this clarifies.
Hi, please note that if we join directly to Etiqa rather than third party platform, we are eligible to refer a friend and entitled to referral fee of $50 subject to T&C of course. It will be a much better deal to apply directly rather than third party platform. I appreciate that you include this in your article as well. I myself signed up via PolicyPal using your referral link only to realize that it will be a much better deal to apply directly. Thanks!
Hi Cheryl,
Thanks for highlighting this issue. I am completely unaware of it. I have clarified this with PolicyPal and they are happy to assist in cancelling your policy since you are still under the 14-day free look period. You would then be able to sign up directly via Etiqa and participate in its referral programme. Do note that if you sign up directly via the Etiqa platform, you will not receive the $30 cashback from PolicyPal. People whom you successfully referred will also not receive the $30 cashback from PolicyPal. Let me know if you would like PolicyPal to assist you further?
Hi, one more question, because you mentioned the $10-$30 cash rebate under the “from PolicyPal” column of your table, but you said Etiqa Elastiq will contact the policyholder with regards to the cash rebate. Shouldn’t PolicyPal contact the policyholder instead? or the promotion comes from Etiqa due to the tie up?
Thanks for pointing out, i have made the amendment.
Hi, a bit confusion on how to join. (1) join directly to Etiqa, can be entitled cash back from Etiqa, as well as referral fee if possible. (2) join from the 3rd party platform PolicyPal, can be entitled cash back from both Etiqa and PolicyPal, but not be able to get referral fee. Is my understanding right? Furthermore, the referral code “heartlandboy” apply for Etiqa, PolicyPal or both? Thanks
Hi Eugene,
Your understanding is correct. heartlandboy referral code works only via PolicyPal.
Hi Alison, I have clarified with Etiqa on this. So they confirmed that third party purchase of Elastiq do not qualify for the referral and earn program. Also, suppose I made payment and then cancel the policy (after applying via policy pal) during the free look period, and buy directly with Etiqa, I do not qualify for the $100 cash back ongoing promotion. In my case, I have yet to make payment so I will just let the application lapse. As the policy is not in force, I will qualify for the $100 cash back promotion when I reapply directly on Etiqa website. Hope this helps to clarify. But thanks so much for introducing to your readers on this product!
Hi Cheryl,
No worries, I am glad you found a way out. Let me know if you need anyone from PolicyPal to assist? Otherwise, I wish you success with your own referrals!
Hi,
In the event that I placed an initial premium of $10k and I have to withdraw the entire amount after 90 calendar days (thereby effectively ending the policy) , (1) am I allowed to do so, and (2) would the policypal cash rebates and tiq credits be clawed back?
Hi Ethan,
(1) you are allowed to do so of course. (2) policypal will not claw back but tiq credits might by deducting from the premium u have paid.
Sorry I actually have not heard of Etika Elastiq ? Is it another insurance company besides Manulife , Prudential…
How trustworthy is it ? It is pointed that Etika is protected by Policy Owners Protection Scheme administered by SDIC , does it mean it will be backed up by Govt , just like banks governed by MAS ?
Hi Samantha,
Happy to clarify your doubts. I reproduce this from Etiqa’s website “s 69% owned by Maybank, the fourth largest banking group in Southeast Asia with more than 22 million customers worldwide in 20 countries; and 31% by Ageas, an international insurance group with 33 million customers across 16 countries and a heritage that spans over 190 years. As a licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore (MAS), we are governed by the Insurance Act.” (https://www.etiqa.com.sg/about-us/our-history/)
On your second question, the Policy Owners’ Protection (PPF) Scheme protects policy owners in the event a life insurer which is a PPF Scheme member fails. The PPF Scheme provides 100 per cent protection for the guaranteed benefits of your life insurance policies, subject to caps where applicable.
Thank you so much for clarification. Appreciate much
Hi , may I know after 90days we able to withdraw all Amount without any penalty ?
Hi,
No penalty will apply but tiq credits (that you earn from the promotion) MIGHT be clawed back.
Seems like a good alternative to FD. I have used Etiqa before. But have never dealt with PolicyPal before. Are they a licensed MAS insurance broker? Have you bought policies from them before? Good experience?
Hi, yes Policypal is a licensed insurance broker. Here’s the link https://eservices.mas.gov.sg/fid/institution/detail/201229-POLICYPAL-SINGAPORE-PTE-LTD
hi
you mentioned a referror and the referred will receive $30 cashback ? Can the referred party still be entitled to the other policy pal rebates and capital land vouchers in this instance using heartlandboy as code? How can i do the referral to my friend in this case as it is not clear on the policypal site (which is a $10 referral)?
Hi,
The person who refers does not receive $30 cashback. The person being referred will receive what is stated on the blog by signing up on PolicyPal platform using “heartlandboy” as the referral code, provided it is still within the promotion period
thank you Alison.
Can advise for top ups, can it be done while pending first payment to be cleared or must policy be incepted before one can top up? So the top up interest rate will stay fixed for 3 years too correct?
what is the interest rate now for top up?
thank you
Hi Irene,
The interest rate for top up is 1.8%. You can only top up after the policy has been incepted.
Hi
Thanks for your review. I read that the withdrawals have to be done in multiples of $500. That means if after compounding interest, lets say our account value is $999 or $1001, the loose monies cannot be withdrawn?
Hi Jeric,
Yes, withdrawals can only be done in multiples of 500, unless you are terminating the policy
Hi, I had click your referral link, but I can see only the $30 rebate. Is the $55 Capitaland voucher still valid?
Hi Tan CH,
The $55 CapitaLand voucher promotion was in conjunction with national day. This has expired since 17 Aug, as stated in the footnote on my article.
Hi,
On Policypay website, it states “Tranche closed”. Similarly on Etiqa website, it states ‘Elastiq is sold out for today. Please try again tomorrow or check out GIGANTIQ before its gone too! “. So does it nean we cannot buy Elastiq anymore?
Hi Kong LC,
I have also heard that the tranche has reached its limits. You can try Dash EasyEarn or Gigantiq?