Enrich Rewards (Etiqa Insurance) — Endowment Plan Review

Overview

Enrich Rewards is a 10-year regular premium endowment plan from Etiqa Insurance Pte. Ltd. that combines savings with modest life protection. The plan requires premiums for only the first three years, thanks to an Automatic Premium Benefit that covers premiums from the 4th to 10th policy year. It pays guaranteed yearly cash benefits of 2.5% of the face value from the end of the 3rd policy year, plus a maturity benefit at the end of the term. On death, beneficiaries receive 101% of total premiums paid plus any attached bonuses. The plan is a participating policy, meaning policyholders share in the performance of Etiqa's participating fund through reversionary and performance bonuses, though these are non-guaranteed. No medical underwriting is required for this guaranteed issuance policy. Etiqa holds an A credit rating from Fitch.

How It Compares

At a $10,000 annual premium for a 35-year-old male non-smoker, Enrich Rewards' projected yield to maturity ranges from 0.73% to 2.40% p.a., with an illustrated maturity value of $26,312 guaranteed (up to $33,121 projected). The plan's participating fund has delivered net investment returns of 0.43% (5-year) and 2.72% (10-year), with a total expense ratio of 1.93% over 5 years.

Against peers, China Life FlexiCash Growth shows a stronger 5-year net return of 2.36% but carries a higher 5-year TER of 3.31%. TM Nest Egg (II) (CashBack 10) offers a lower TER of 0.58% and a 10-year net return of 4.16%, though its 5-year return of 1.64% trails Enrich Rewards' 0.43% only modestly. Manulife Spring (II) has a TER of 2.40% but no return data is available for comparison. Notably, Enrich Rewards' 10-year net return of 2.72% is the second-highest among the group, though its 5-year return is the weakest.

Pros

• Short premium payment period: Only 3 years of premiums for a 10-year policy
• Guaranteed cash benefits: Annual payouts from year 3 provide early liquidity
• No underwriting: Guaranteed issuance without health declarations
• Death benefit: 101% of premiums paid plus bonuses offers capital protection for beneficiaries
• Reversionary bonuses vest: Once declared, they become guaranteed

Cons

• Low projected yields: 0.73%–2.40% p.a. is modest compared to other savings options
• High expense ratio: 5-year TER of 1.93% erodes returns
• Non-guaranteed elements: Bonuses depend on participating fund performance
• No CPFIS/SRS eligibility: Cannot use CPF or SRS funds
• Distribution cost: $1,274 on a $10,000 annual premium is significant
• Weak 5-year fund performance: 0.43% net return suggests near-term volatility

Who It May Suit

Enrich Rewards may suit investors who prioritise capital protection and guaranteed cash flow over high returns, and who appreciate the convenience of a short premium payment period. The no-underwriting feature makes it accessible to those who may struggle with medical underwriting elsewhere. However, those seeking higher growth potential or lower fees may find TM Nest Egg (II) or China Life FlexiCash Growth more compelling, depending on their preference for lower costs versus stronger historical returns.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.