Frequently Asked Questions

FlexiLink

Product coverage

    • Q: What is FlexiLink? A:

      FlexiLink is a single premium investment-linked plan 1.

       

      1 An investment-linked plan is a plan where the premiums paid are used to purchase units in an investment fund. The price of the units will depend on the investment performance of the fund.

    • Q: What are the benefits payable? A:

      We will pay if the insured dies or becomes totally and permanently disabled in accordance to the terms set out in the policy contract.

Death benefit

    • Q: What is the death benefit? A:

      We will pay the higher of the cash value or minimum sum assured as the death benefit.

      • The cash value will be based on the valuation price on the date the claim submission is received by us.
      • The minimum sum assured varies with the attained age and medical condition of the insured, as follows:
      Age Minimum Sum Assured
      a) Below 60 1.25 x (Initial Single Premium + Total Top-ups - Total Withdrawals)
      b) 60 and above 1 x (Initial Single Premium + Total Top-ups - Total Withdrawals)
      • For Medically Substandard Life age below 60, the minimum sum assured is adjusted as follows:
      Policy Year Minimum Sum Assured
      1st policy year 100% x (Initial Single Premium + Total Top-ups - Total Withdrawals)
      2nd policy year onwards 110% x (Initial Single Premium + Total Top-ups - Total Withdrawals)
      • For Medically Substandard Life age 60 and above, the minimum sum assured is set at 100% x (Initial Single Premium + Total Top-ups - Total Withdrawals).
    • Q: What is the exclusion for death benefit? A:

      We will not pay the death benefit if the insured committed suicide within one year from the commencement date of the policy. We will refund you the cash value and the policy will be completely free of all legal effect.

    • Q: What is the meaning of Medically Substandard Life? A:

      Medically Substandard Life refers to an insured suffering from any of the following listed medical conditions at:

      1. the time of application,
      2. within three months from the date of issue of the policy; or
      3. the date of receipt by us of any top-up in premiums or
      4. the effective date of increase in the amount of the regular premium, whichever is applicable:
        • Cancer
        • Ischaemic heart diseases
        • Chronic artery disease
        • Chronic renal disease
        • Kidney failure
        • Stroke
        • Chronic liver cirrhosis
        • Systemic lupus erythematosus

Total and permanent disability (TPD) benefit

    • Q: What is the total and permanent disability benefit? A: In the event the insured is diagnosed as totally and permanently disabled before the age of 70 (last birthday), we will pay the basic benefit or cash-in value at the time we are told of the claim, whichever is higher.

      The basic benefit is as follows:

      For Standard Life:
       
      Age when becoming totally
      and permanently disabled
      Basic Benefit
      Under 65 1.25 times
      net premium
      Above 64 1 times
      net premium

      For Non-standard Life:
       
      Age when becoming totally
      and permanently disabled
      Time when the insured event happens Basic benefit
      Under 60 Within one year from the cover start date 1 times
      net premium
      Under 60 After one year from the cover start date 1.10 times
      net premium
      Above 59 At all times 1 times
      net premium
    • Q: What is the meaning of totally and permanently disabled? A:

      The insured must be incapable of engaging in any occupation when is he totally and permanently disabled. We do not pay if the insured is merely unable to perform the same job as before, or is unable to perform a job to which his training, education or experience is suited.

      Total and permanent disability/totally and permanently disabled means the inability to take part in any paid work for the rest of the insured’s life, or total physical loss.

      “Total physical loss” means:

      • the total and permanent loss of sight in both eyes;
      • the loss of, or total and permanent loss of use of, two limbs at or above the wrist or ankle; or
      • the total and permanent loss of sight in one eye and the loss of, or total and permanent loss of use of, one limb at or above the wrist or ankle.
    • Q: What are the exclusions for total and permanent disability benefit? A:

      We will not pay this benefit if your claim arises from:

      • deliberate acts such as self-inflicted injuries, illnesses or attempted suicide;
      • unlawful acts, provoked assault, or deliberate exposure to danger; or
      • effects of alcohol, drug or any dependence.

      We will also not pay this benefit unless the insured is certified by a registered medical practitioner to have been totally and permanently disabled for at least six months in a row.

    • Q: How will the total and permanent disability benefit be paid? A:

      We will pay this benefit in a single lump sum.

Riders/supplementary benefits

    • Q: Can I add riders? A:

      No, you cannot add riders for this plan.

Cash value and bonuses

    • Q: Is there any cash value for this plan? A:

      Yes, your policy has a cash value. The amount of cash value will be based on the valuation price (offer price) of your units multiplied by the number of units, less charges and deductions if applicable.

      The cut-off time used to determine the pricing of units is 3.00 pm (Singapore time) on each business day (Monday to Friday, excluding weekends and public holidays).

    • Q: Does this plan provide any bonus? A:

      No, this plan does not provide bonus.

    • Q: Is there a surrender value for my policy? A:

      Yes, your policy has a surrender value. The surrender value is the amount of cash value, less charges and deductions if applicable.

      Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value may be less than the total premiums paid.

Eligibility and premium payment

    • Q: Can I use cash, CPF or SRS funds to buy this plan? A:

      You can only use CPF monies to buy this plan.

    • Q: What is the minimum and maximum premium set for this plan? A:

      The minimum single premium investment is $5,000 per policy and you may select up to a maximum of two funds per policy.

      There is no maximum limit set for investment.

    • Q: Can I backdate my policy? A:

      No, you cannot backdate your policy.

    • Q: How can I increase my investment? A:

      You can do a single premium top-up.

      The minimum top-up premium is $1,000 per top-up. For each top-up premium payment, we will allocate extra 0.5% as bonus units.

      Bonus Units = (Top-up Premium /Offer Price) × 0.5%

      The top-up premium will be taken into account for the computation of insurance coverage.

Investment-linked policy (ILP) funds available for investment

    • Q: What investment-linked policy (ILP) funds are available for my investment? A:

      The following ILP funds are available for your investment:

      Core Funds Target Maturity Funds
      Singapore Bond Fund
      Singapore Equity Fund
      Global Bond Fund
      Global Equity Fund
      Aim 2025
      Aim 2035
      Aim 2045
      Aim Now
      Managed Funds Specialised / Thematic Funds
      Singapore Managed Fund
      Asia Managed Fund
      Global Managed Fund (Conservative)
      Global Managed Fund (Balanced)
      Global Managed Fund (Growth)
      Prime Fund
      Global Technology Fund
    • Q: How can I obtain more information on your investment-linked policy (ILP) funds? A:

      You can refer to the Fund Report for more information.

    • Q: Which investment-linked policy (ILP) fund should I invest in? A:

      Each investment-linked fund has its own investment objective, asset allocation and risk classification. You should consider all aspects of your financial situation, including risk profile and investment horizon, before making a decision. If you are in any doubt as to which fund to invest, you should consult your insurance adviser.

    • Q: How many funds can I select for investment? A:

      You may select up to a maximum of two funds per policy.

    • Q: Can I switch funds? A:

      Yes, you are entitled to two free fund switches each year.

      Depending on the circumstances in the future, we may revise the terms for switching. Sufficient notice will be given to you before any changes take effect.

Unit pricing and allocation

    • Q: What is meaning of forward pricing? A:

      Forward pricing means that the prices of your transacted funds will only be known after the close of each dealing day.

      The price is not available at the time of transaction. This is because many of our investment-linked policy (ILP) funds are well diversified across the world. Due to the time-zone differences, the market value of some global investments is not available immediately.

    • Q: What is the cut-off time used to determine pricing of the units? A:

      All transactions submitted and received by us by 3.00 pm (Singapore time) each day will be executed based on the unit prices of the same business day. For transactions submitted on a non-business day (i.e. Saturday, Sunday or public holiday), the execution will be based on the prices valued for the following business day.

    • Q: What is the price used for Surrendering/Switching/Top-up of funds? A:

      The offer price is used when you buy or top-up your funds.

      The bid price is used when you sell units, surrender or switch unit from your funds.

    • Q: How are the prices calculated? A:

      When you buy into a fund, you are actually buying into units of the fund. The fund invests your money by buying into stocks, bonds, alternatives or a combination. The total market value of all the investments in the fund (net of charges) is called the Net Asset Value – NAV.

      • The bid price is the net asset value divided by the total number of units of the refund. It is the net asset value per unit of the fund.
      • The offer price is the bid price plus a bid-offer spread, which is 3.5% for our ILP funds.
    • Q: How do I monitor the fund prices? A:

      Fund prices are updated daily.

    • Q: How much is the bid-offer spread? A:

      Currently, the bid-offer spread is 3.50%. This is factored into the offer prices of the funds; e.g. Bid Price of Fund A = 2.000

      Offer Price of Fund A = 2.000 × (1 + 3.50%) = 2.070

      The offer prices are applied during unit allocation.

      For single premium investment and top up, the nominal bid-offer spread is 3.0%. This is implemented by allocating premiums using offer price (still calculated as per bid-offer spread of 3.5%) and automatically adding extra 0.5% bonus units, i.e.

      Total Units Allocated = Single / Top-up Premium /Bid Price x (1+3.50%) x (1+0.5%)

    • Q: What is the allocation ratio? A:

      100% of the single premium and top-up premium payments will be allocated, together with the extra 0.5% bonus units.

Fees and charges

    • Q: How much is the policy fee? A:

      The current policy fee is set as follows:

      Policy Year Amount of Policy Fee
      First Policy Year $0
      Renewal Years $50.
      The renewal fee may be waived if net premium exceeds a specified amount, currently $15,000. The net premium is the sum of all premiums paid less withdrawal made less rider premiums deducted.

      The policy fee, if applicable, is deducted from the policy at the beginning of each policy year, paid via unit cancellation at bid price.

      The amount of policy fee is not guaranteed and will be subjected to revision. Sufficient notice will be given to you before any changes take effect.

    • Q: Is the annual management fee same for all investment-linked policy (ILP) funds? A:

      The annual management fee is not the same for all ILP funds. The fee for each fund could be found in the Fund Report.

    • Q: How much are the charges for insurance coverage? A:

      No additional charges will be deducted from your premium. The insurance cover is given to you free.

Partial withdrawal and surrender

    • Q: Can I make partial withdrawal from my investment? A:

      Yes, you can make partial withdrawal from your funds at any time provided that the net premium invested is at least $5,000.

      Partial withdrawals have the effect of reducing the minimum sum assured and fund value of the policy.

    • Q: How is the withdrawal value computed? A:

      The withdrawal amount is calculated based on bid prices as follows:

      Withdrawal Amount = Unit × Price

      Where

      • Unit is the number of units withdrawn from selected fund, and
      • Price is the bid price of the fund
    • Q: Will my insurance coverage be reduced as a result of partial withdrawal? A:

      Yes, the benefits payable for death and total and permanent disability would be adjusted.

    • Q: Is there any additional deduction from the surrender proceeds? A:

      No.

    • Q: How much is refunded if I were to cancel the application during free-look? A:

      Upon cancellation during free look, the lower of follow two values will be returned to you and the policy will terminate.

      • Paid premium;
      • Cash value of the policy calculated using offer prices on the date the notice of cancellation is received by us, plus all fees and charges deducted (except medical fees) at policy inception.

      If the policy document was mailed to you, the 14 days Free-Look period will start seven calendar days after we have mailed the policy document.

Policy loan

    • Q: Can I take a policy loan? A:

      Policy loan is not allowed for policies purchased using CPF monies.