Singlife Account: Is This Capital Guaranteed Insurance Savings Plan Worth Getting?
If we can take you down the rabbit hole, we live in an interesting time when insurers in town are launching high-interest short-term endowments, and every other bank is launching a high-interest savings account.
Products like MySecureSaver II, Endowment Series Four, Capital Plus offer an alternative to the dipping returns on the Singapore Savings Bond.
While a high-interest savings account allows us to park out money for higher returns.
That got us thinking about the possibility of a product with both the insurance element and the features of a savings account.
But before Seedly can launch such a product (probably 2,274 years late), someone beat us to it. DAMN IT!
Overview of Singlife Account with Singlife Visa Debit Card
Disclaimer: We are not sponsored to do this. All opinions are our own, we just like to help you!
| Key Features | Details (With Effect From 1 Nov 2020) |
|---|---|
| Minimum balance | $100 |
| Crediting Rate (Non-Guaranteed) | Up to 2.0% p.a. for the first $10,000 |
| Up to 1% p.a. for the next $90,000 | |
| 0% per annum for anything above $100,000 | |
| Bonus Save Spend and Earn Campaign | Additional 0.5% p.a. for spending at least $500 on Singlife Card per policy month |
| Life insurance coverage for death | Up to 105% of account value |
| Overseas spend on Singlife Visa Debit card | No additional FX charges on overseas spend |
| Retrenchment coverage (based on card spend) | Claim up to three months’ worth of average card spend (up to $10,000 and if cardholder unable to find a job for four months or more) |
| Coverage | Covered by PPF Scheme* |
*The Singlife Account insurance savings plan is protected under the Policy Owners’ Protection (PPF) Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC).
The PPF Scheme provides 100% protection for the guaranteed benefits of your life insurance policies, subject to caps where applicable.
As the Singlife account is a universal life plan (as stated in the product summary), this puts it under the individual life and voluntary group life policies excluding annuities)
According to SDIC, the amount insured (amount deposited) has a guaranteed surrender value at the point of failure that is capped at $100,000.
There is also a cap of $500,000 for the aggregated guaranteed sum assured.
The coverage is automatic and no further action is needed from you. You can check also out the SDIC site or the Life Insurance Association (LIA) site for more information about the benefits and caps of the PPF scheme.
Singlife is positioning the Singlife account as a capital guaranteed insurance savings plan with no lock-in or fees.
If that’s not enough they even have the Singlife Visa debit card: a Visa card that can be used as a worldwide multi-currency card with no additional FX fees and zero annual fees.
So many features…
Now, allow us to break it down for you.
Singlife Account Rate of Returns
As of 1 November 2020, Singlife has reduced the crediting rates on the Singlife Account from up to 2.5% to up to 2% p.a. for the first S$10,000.
However, there will be no change to the crediting rate of up to 1% p.a. for the next S$90,000 for the Singlife Account.
This means that the blended interest rate will be up to 1.1% p.a. for the first $100,000 in the account.
Also, do note this rate of returns is not guaranteed and may fluctuate according to economic and market conditions.
Singlife Save, Spend Earn Campaign
From 1 November 2020 to 28 February 2021, Singlife will be running a campaign for additional interest.
You will simply need to spend at least $500 per policy month with your Singlife Visa debit card.
This will earn you an additional 0.5% bonus interest on the first $10,000 in your Singlife account for the following month.
But here are some terms and conditions you need to take note of for the campaign:
- You must have an in-forced Singlife Account policy
- You must have ordered and activated your Singlife Visa Debit Card
- You must spend the minimum of S$500 within a card spend period to qualify for the 0.5% p.a. bonus return on your first S$10,000 in the next policy month.
- You can spend the minimum of S$500 in any or all of the individual card spend periods to qualify for the 0.5% bonus return in the next policy month as each card spend period is independent of each other. Spend the minimum of S$500 in all of the card spend periods throughout the Promotion to maximize your bonus return earnings.
Registration Process
The registration process for the account is through their mobile app, another plus points for millennials and fintech lovers.
Also, here are some terms and condition which you need to take note of:
- You will need to deposit a minimum amount of $500 to activate the account.
- But you will only need to maintain a minimum account balance of $100 required to enjoy the basic benefits of the account. There will also be no fall-below fee even if your balance falls below that amount.
- The up to 2.0% p.a. interest is only applicable to the first $10,000 of your savings in your Singlife Account. Here’s a breakdown of the returns on your deposit:
Amount in Singlife Account Returns First $10,000 Up to 2.0% p.a. Next $90,000 Up to 1% p.a. Blended Interest Rate for First $100,000 Up to 1.1% p.a. Anything above $100,000 0% per annum Bonus Save Spend and Earn Campaign Additional 0.5% p.a. for spending at least $500 on Singlife Card per policy month
Singlife Visa Debit Card
You will be able to apply for a Singlife Visa Debit card upon account opening. This card can be used worldwide with no additional FX fees and zero annual fees.
For overseas transactions through the Singlife Card, there will be an option for you to either make your payment in Singapore Dollar or in foreign currency at the point of sale.
Life Insurance Coverage
There will also be a life insurance coverage element for Singlife Account.
This means that upon death, up to 105% of your account value in your Singlife Account will be passed to your loved ones.
Here’s a more detailed explanation of the life insurance coverage in the event of death or terminal illness:
| In Event of Death or Terminal Illness | Benefit |
|---|---|
| Before the policy anniversary on which account holder’s age last birthday is 61 | The sum of: - account value and - 5% of account value or SGD 50,000, (whichever is lower) |
| On or after the policy anniversary on which account holder’s age last birthday is 61 | The sum of: - account value and - 1% of account value or SGD 50,000 (whichever is lower) |
This means that the additional 5% death benefit coverage is only for account holders who are before the age of 61. The benefit becomes 1% after the age of 61.
Retrenchment Coverage
The Singlife Account’s retrenchment coverage got our attention the most, given the state of our economy due to the COVID-19 pandemic.
Here’s a summary of how this coverage works:
- Upon retrenchment, your average monthly card spend over the six months (immediately before you were retrenched), will be recorded.
Let’s assume that your average card spend is at $800 per month. - If you fail to find a job in the next four months, Singlife will pay you your Retrenchment benefit for three months.
Meaning, after four months of unemployment, you will receive $800 per month for three months. - The amount of Retrenchment Benefit payout will be capped at $10,000 in total.
- There should be no payout if the individual is retrenched within the first 6 months of opening the account or your severance package is more than three (3) months of Your monthly salary.
Pros of Singlife Account and Singlife Visa Debit Card
Here are some pros of the Singlife Account and the Singlife Visa Debit card combination for those who are considering signing up for it:
- It is quite a worry-free product given that there is no fees and no minimum condition to meet.
- Up to 2.0% p.a. return on savings is great!
Even with the reduction, the rate of returns is still decent. - Life insurance in the event of death is also something unique to make sure your loved ones are taken care of
- Retrenchment coverage can help mitigate a portion of unemployment risk.
- The multi-currency feature on Singlife Visa Debit card can be a plus point for Singaporeans who are frequent travellers.
- Everything is done through the Singlife app which means convenience for users.
Cons of Singlife Account and Singlife Visa Debit Card
There are also some considerations which Singaporeans should pay attention to:
- Most of the benefits come with terms and conditions, so do your research and own calculations before making a decision.
- The up to 2.0% p.a. return on savings is only applicable to the first $10,000.
- The FX rate for Singlife Visa Debit card in comparison with the rest of the Multi-currency cards is still unknown.
Singlife Application 11 December 2020 Update
Due to the overwhelming response to the Singlife Account in 2020, Singlife will be putting new sign-ups for the Singlife Account on the waitlist from 15 Dec 2020.
Those who have not submitted their Singlife Account application by 23:59 on 14 December 2020 can put their names on the waiting list to be notified of when the Singlife Account reopens.
But rest assured, sign-ups for the Singlife Account will reopen in 2021.
For existing customers, there will be no changes to your Singlife Account policy. You will still be able to access your Singlife Account via the app and can continue to enjoy returns of 2% per annum (p.a.) for the first S$10,000 and 1% per annum (p.a.) for the next S$90,000.
Are You a Singlife Account User?
What is your experience with this insurance savings plan? Share your thoughts and help out fellow members of the SeedlyCommunity!
