FWD Invest First Horizon: A Customisable Investment-Linked Plan with Bonus Incentives

FWD Invest First Horizon is a whole-of-life investment-linked policy (ILP) offered by FWD Singapore Pte. Ltd., designed to provide long-term coverage until age 100 while allowing for significant customisation of premiums and payment durations. As an ILP, its value fluctuates based on the performance of selected sub-funds, but it distinguishes itself through a structured bonus framework aimed at rewarding consistent premium payments. The policy covers the insured person with a Death Benefit and a Terminal Illness Benefit (capped at S$2 million per life). Notably, this product summary does not contain specific premium quotes, surrender values, or maturity tables; therefore, exact costs and cash values are not available in this overview.

How it compares

When comparing FWD Invest First Horizon to similar investment-linked products like Great Eastern’s Life Advantage 4, HSBC Life’s Flexi Protector, and Tokio Marine Life’s #goElite Secure, the primary differentiator is its explicit bonus structure rather than cost metrics. The comparison table provided indicates that none of these products have available premium quotes or surrender data in this dataset, meaning they are all classified as having "no quote data" on a per-$100k Sum Assured basis.

While competitors like Life Advantage 4 and Flexi Protector rely primarily on standard ILP mechanics where benefits are tied strictly to fund performance and initial premiums, FWD Invest First Horizon introduces three distinct bonus components:

1. Booster Bonus: Paid during the first two policy years for regular premiums, with rates ranging from 15% to 30% depending on the premium payment term (20 or 25 years) and annualised premium band.
2. Annual Premium Bonus: A flat 1.0% p.a. bonus for the first five years, applicable only if premiums are paid annually.
3. Loyalty Bonus: An ongoing benefit starting from Policy Year 3, calculated as a percentage of the initial units account value. Rates range from 0.4% to 2.0% p.a., heavily influenced by the chosen premium payment term and policy duration.

In contrast, the peer products listed do not disclose similar multi-tiered bonus structures in the provided summary data. This makes FWD’s product uniquely focused on incentivising long-term commitment through these additional unit credits, whereas the others may offer more straightforward, transparent fee structures without variable bonus complexities.

Pros

• Customisable Structure: Policyholders can choose their premium amount, payment duration (20 or 25 years), and number of insured persons, offering flexibility not always present in standard ILPs.
• Multiple Bonus Layers: The combination of Booster, Annual Premium, and Loyalty bonuses provides potential for enhanced policy value beyond standard fund growth, particularly for those committing to longer payment terms.
• Charging Waivers: Includes waivers for charges associated with premium reduction or non-payment in cases of Involuntary Unemployment, Terminal Illness, or Total and Permanent Disability.
• Terminal Illness Support: Offers an advance payment option up to S$2 million, aiding liquidity during critical health events.

Cons

• Complexity of Bonuses: The bonus calculations involve adjustment factors, reward bands, and specific conditions (e.g., no withdrawals from the initial units account for Loyalty Bonus), which can be difficult to track and understand.
• Surrender Charge Risk: Longer premium payment terms yield higher Booster Bonuses but are subject to longer surrender charge periods, potentially locking in funds for extended durations.
• No Guaranteed Values: As an ILP with no quoted premiums or maturity values, the final payout is entirely dependent on fund performance and cannot be predicted from this data.
• Bonus Volatility: FWD reserves the right to change bonus rates and reward bands with 30 days' notice, introducing uncertainty into long-term planning.

Who it may suit

This product may suit investors who prefer a hands-on approach to insurance savings and are comfortable with market-linked returns. It is particularly relevant for those who can commit to a 20- or 25-year premium payment term and wish to maximise potential unit credits through the Loyalty and Booster bonuses. It is less suitable for individuals seeking guaranteed, predictable cash values or those who may need flexibility to withdraw from their initial units account early, as this would halt Loyalty Bonus accruals.

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.