Enrich Index Income — A New Index-Linked Endowment Plan

Overview

Enrich Index Income is a non-participating endowment plan from Etiqa Insurance Pte. Ltd. (rated A by Fitch) that combines savings with index-linked growth potential. The policy runs for 10 years and offers a non-guaranteed yearly cash benefit based on the performance of the Barclays RADAR 6% RC SGD Index, which dynamically allocates across equities, fixed income, and commodities with volatility control. The plan guarantees a maturity benefit of 100% of total premiums paid, meaning your principal is protected regardless of index performance. You may choose a single premium or a 3-year premium payment term, and the plan also provides death, terminal illness, and accidental death coverage. Premiums are quoted by outlay — for example, a $50,000 annual premium — with no sum assured to normalise against.

How It Compares

The comparison table uses different ages and genders across products (age 18 female for Enrich Index Income; age 35 male for peers), so direct premium comparisons should be treated cautiously. All plans are quoted by premium at $50,000 annual outlay.

Enrich Index Income's illustrated yield to maturity is 2.00%–3.50% p.a., which is broadly in line with GREAT Index Income's net returns of 2.39% (5-year) and 3.68% (10-year). AIA Retirement Saver (IV) offers higher projected returns at 3.10% (5-year) and 4.90% (10-year), while PRUActive Retirement II shows 2.32% (5-year) with no 10-year figure available.

A key differentiator: Enrich Index Income's distribution cost is $2,194 per $50,000 premium, and its structure uses a guaranteed minimum participation rate of 23% with a 0% floor — meaning you won't lose principal but may receive no yearly cash benefit in poor index years. The plan's projected returns are non-guaranteed, and the participation rate can vary each segment term.

Pros

• Principal protection: 100% of premiums returned at maturity regardless of index performance
• No underwriting: Guaranteed issuance without health declarations or medical checks
• Death benefit enhancement: 101% of total premiums paid plus accumulated cash benefits
• Flexible cash benefit options: Choose to receive yearly payouts or accumulate for reinvestment
• Withdrawal flexibility: Partial withdrawals of accumulated benefits (minimum $5,000) with no charge if requested 14 days before segment initiation

Cons

• Zero floor on returns: If index return is 0% p.a., no yearly cash benefit is paid for that segment
• Non-guaranteed participation rate: Can vary each segment (minimum 23% guaranteed)
• No SRS or CPFIS payment: Premiums cannot be paid via SRS or CPFIS funds
• Limited protection element: Death benefit is only 101% of premiums — minimal insurance coverage relative to savings focus
• Withdrawal charges: 5% charge applies for immediate withdrawals requested less than 14 days before segment initiation

Who It May Suit

This plan may suit investors seeking principal-protected exposure to market-linked returns with a 10-year horizon, who are comfortable with variable yearly income and do not require significant life insurance coverage. It may be less suitable for those prioritising strong protection benefits or needing CPF/SRS funding flexibility.

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.