Etiqa Essential Whole Life Cover with CI: A Detailed Look

Etiqa Insurance Pte. Ltd. offers the "Essential whole life cover with CI," a participating whole life plan designed to provide lifelong protection against death, terminal illness, and total permanent disability (TPD) until age 70. As a participating policy, it allows policyholders to benefit from the insurer’s Participating fund through non-guaranteed bonuses, which are influenced by the fund’s net investment returns. The product includes a Sum Assured Multiplier feature, allowing for enhanced coverage in the early years, and offers a Guaranteed Insurable Option that permits coverage increases without medical underwriting upon specific life events like marriage or childbirth, provided these occur before age 50. While it does not allow SRS or CPFIS premium payments, it is protected under the Policy Owners’ Protection Scheme administered by SDIC.

How it compares

When evaluating the Etiqa Essential whole life cover with CI against similar whole life products for a 35-year-old male non-smoker, significant differences in cost and return profiles emerge.

Premiums: The target product is notably expensive compared to its peers. At a basis of $9,230 per year per $100,000 sum assured, it costs more than three times the premium of China Life’s Multiplier Guardian Plus ($2,800) and Income Insurance’s Complete Life Secure ($2,855). It is also roughly 69% higher than Manulife’s LifeReady Plus II ($5,455). This high cost reflects the inclusion of critical illness coverage and the participating nature of the policy.

Surrender Values: In terms of cash value accumulation at year 20 per $100,000 sum assured, Etiqa offers $26,300. This is higher than China Life ($9,170) but lower than Manulife ($17,500) and Income Insurance ($17,000). However, it is important to note that the premium disparity means the absolute cash value must be weighed against the significantly higher capital outlay required for Etiqa’s policy.

Returns and Costs: The product’s 5-year net investment return is -0.40%, with a 10-year projection of 1.92%. This lags behind Income Insurance’s Complete Life Secure, which offers a 10-year return of 4.04% and a low Total Expense Ratio (TER) of 0.94%. China Life reports a 5-year return of 2.36% with a TER of 3.31%, while Manulife’s TER is 2.40%. Etiqa’s TER of 2.25% sits in the middle range for costs, but its negative early returns may deter investors seeking quicker capital growth.

Pros

• Guaranteed Insurability: Allows coverage increases without proof of health after key life events (marriage, childbirth, adoption) before age 50.
• Comprehensive Coverage: Includes death, terminal illness, and TPD benefits, with an optional non-participating sum assured multiplier for enhanced early protection.
• Retirement Option: Provides a structured payout of up to 80% of surrender value at age 65 in 10 equal yearly installments.
• Financial Security: Backed by Etiqa’s A credit rating (Fitch) and covered under the Policy Owners’ Protection Scheme.

Cons

• High Premiums: The annual premium is substantially higher than comparable whole life plans from China Life and Income Insurance.
• Negative Early Returns: The 5-year net investment return is negative (-0.40%), indicating poor performance in the initial policy years compared to peers like Income Insurance (1.58%).
• Limited Payment Flexibility: Does not support SRS or CPFIS premium payments, limiting funding options for some Singapore consumers.
• No Cash Coupons: Unlike some market alternatives, this product does not distribute cash coupons.

Who it may suit

This product may suit individuals who prioritize the security of a participating policy with a strong insurer credit rating (A-rated) and value the flexibility of increasing coverage without medical underwriting in the future. It is appropriate for those willing to pay a premium price for integrated critical illness protection and a guaranteed insurability benefit, rather than seeking the lowest cost or highest early returns. Consumers looking for lower premiums or SRS/CPFIS payment options might find China Life or Income Insurance products more aligned with their financial goals.

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.