Review of Etiqa Gigantiq Insurance Savings Account

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 Gigantiq, which offers guaranteed 2.0% p.a. on the first $10,000 for the first year. Here is Heartland Boy’s review of Etiqa Gigantiq, an insurance savings plan by tiq.

2.0% On Your First S$10,000 In The First Year

GIGANTIQ is a single premium, non-participating universal life plan that is renewable annually. What caught Heartland Boy’s attention is that the first $10,000 is eligible to earn an interest rate of 2.0% in its first year (1% guaranteed + 1% non-guaranteed). Anything above S$10,000 earns 1% thereafter as shown in Diagram 1. The difference is because a 1% p.a. bonus is levied only on the first $10,000 in the first policy year.

Based on prevailing market conditions, do note that the projected interest rate is 1% from the second year onwards. Since this is a yearly renewable plan, it will be renewed automatically. Therefore, if you find that the crediting interest rate in the 2^nd year is no longer competitive, do write in to Etiqa to request for a policy termination (the polite way) or simply empty out your account (the obvious way).

For now, Heartland Boy is contented with the 2% offered to the first $10,000. Therefore, upon learning about it, he immediately top up the minimum premium of $50 to have his GIGANTIQ issued and activated immediately. This ensures that he does not miss out (which is what happened to Income Gro Capital Ease) and lock in the current terms (Dash reduced its interest rates few months after its launch).

No Restrictions on Top Ups And Withdrawals

GIGANTIQ boasts high flexibility and convenience. Customers can manage their accounts conveniently from the tiq mobile app to make top-ups and withdrawals.

Top-Ups

• No lock in period
• Minimum top-up amount is $1 and it can even come from cashable credits in your Etiqa eWallet
• No service fee
• Account is capped at $200K including your initial deposit and net of any withdrawals

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

• No lock in period
• $0.50 service fee for withdrawal into a POSB/DBS Account
• $0.70 service fee for PayNow withdrawal
• Account average daily value for the calendar month must be at least S$50 or else policy will be de-activated

The general rules governing top-ups and withdrawals have been summarised in Diagram 2 for easy reference.

Additionally, Heartland Boy would like to highlight this clause found in the terms and conditions governing GIGANTIQ – “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 and Elastiq, 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 105% 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 GIGANTIQ by Etiqa is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (‘SDIC’). As the amount insured has a guaranteed surrender value capped at $100,000, Heartland Boy views it safe to park his emergency funds in both Gigantiq and Dash EasyEarn which are managed by eTiQa Insurance.

Where Heartland Boy Parks His Emergency Funds

With a household of 4, Heartland Boy ensures that he has at least 1 year of emergency funds locked away earning good interest rates. That is why he has recently parked them in high-yield insurance savings plan that can be withdrawn easily. The criteria of flexibility and high interest-rates are the top 2 considerations for Heartland Boy.

As each individual’s financial circumstances differ, Diagram 3 shows where Heartland Boy would park his emergency funds, ranked in order of priority. At 2.0% interest rate, Singlife and GIGANTIQ remain the best insurance savings accounts to stash away your first $10,000.

How To Sign Up For Etiqa GIGANTIQ

You are eligible to sign up for GIGANTIQ if you meet the following criteria:

• Singapore Citizen or Permanent Resident (PR) or foreigner holding valid work pass/permit or Long-term visit pass
• Between 17-75 (age next birthday)

PolicyPal Limited Time Promotion

PolicyPal is running a limited time promotion for PolicyPal users who purchase Gigantiq through the PolicyPal mobile app. Details of the promotion can be found in Diagram 4.

*Note that Additional Policy(ies) are limited to the following policies with minimum purchase amount of $2,000: (i) Investment-linked, (ii) Endowment (advisory-regular premiums) (iii) Term life, (iv) Whole life, (v) Retirement, (vi) Critical Illness, (vii) Motor (capped at 1 per user)

** Total Max Bonus for A+B is 8%, capped at total premium of $10,000

Pay particular attention to E as this is a limited time promotion that will terminate after 11 Nov 2020. Valid for the first 1,111 customers who deposit $10,000 or more as the initial premium. This juices up the first year return to 2.5% p.a., making it the most competitive in the market right now.

Note that the non-encashcable credits can be used to redeem NTUC or Grab vouchers etc. Full terms and conditions of PolicyPal’s promotion can be found here.

Do note that each eligible individual is only able to purchase 1 GIGANTIQ policy. You may sign up for Gigantiq via PolicyPal using the promo code of “heartlandboy” and receive $10 non-encashcable Policypal credits.

In summary, Heartland Boy treats this as a high-yield savings account providing 2.0% for the first year! If you find this policy suitable, do sign up here

Please note that following the huge success of GIGANTIQ, Etiqa has revised the interest rate to 1.8% consisting of 1% guaranteed and 0.8% non-guaranteed with effect from 19 Nov 2020. Existing policyholders who signed up before 19 Nov will continue to enjoy 2% interest rate.

* 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 3 October 2020

**Note that this article contains referral links that goes to maintain the sustainability of this blog.