How Invest Flex Can Help with Life's Major Milestones
Singaporeans are known for their meticulous planning, but life always has other plans. We all have different goals and aspirations, and the path to achieving them can be as unique as we are. Whether it's starting a business, buying a home, travelling the world, or simply enjoying a comfortable retirement, having a financial plan in place can make all the difference to the expected and unexpected milestones we’d like to see.
What happens when your dream home pops up on the market earlier than expected, or your education plans require additional funding? This is where a flexible investment-linked plan like Income's Invest Flex can be a game-changer.
Understanding Invest Flex
In simplest terms, Invest Flex is an investment-linked plan (ILP) that can help to grow your wealth over the long term. It allows you to invest a portion of your premiums into a unit trust fund, with the potential to grow your wealth over time. The plan also provides a layer of life insurance protection, offering peace of mind for you and your loved ones.
One thing that flexible plans like Invest Flex excel at is providing you with options when you need them most. As a flexible ILP, Invest Flex offers features like life event withdrawal options and premium holidays.
These features provide much-needed liquidity when unexpected expenses arise or your life goals shift, prompting to you dip into your funds.
Major Life Milestones and Financial Planning
But first, what really counts as a life milestone? Life milestones are significant events that shape our life journeys. They can be joyous occasions, like graduations, weddings, and the birth of your child. However, life also throws us curveballs and unexpected events like divorce or hospitalisation can also be considered milestones that require financial preparedness.
Income's Invest Flex recognises these various turning points and offers flexibility to address them financially. The plan allows the option to withdraw some of your investments at no charge when any specified life event1 occurs during the Minimum Investment Period (MIP), including:
- Turning 21 or 65
- Enrolled into tertiary education
- Marriage
- Divorce
- Death of a spouse
- Becoming a parent
- Purchase of a residential property
- Stay in hospital
Put into perspective, achieving these milestones often requires careful financial planning. By aligning your investment portfolio with your life goals, you can ensure you have the resources needed to navigate both the happy and challenging chapters of your life.
Using Invest Flex to Help Finance Significant Life Goals
1. Home Purchases
Every Singaporean's biggest hurdle, and arguably one of their biggest expenses too, is securing a roof over their head. Invest Flex can be a valuable tool towards achieving this life goal. By diligently contributing premiums over time, you can accumulate a sum that can be used for a down payment (or even potentially) the full purchase of a home.
It's important to note that the free partial withdrawal for purchase of a residential property is capped at 10% of the prevailing policy value. The more you save in your plan, the greater the amount you'll be able to access.
Benefits of withdrawing funds for your home purchase with Invest Flex:
- Access Liquidity When Needed: Invest Flex provides you with the flexibility to access a portion of your accumulated funds for your down payment without derailing your long-term investment goals.
- Maintain Investment Growth Potential: Even with a withdrawal, your remaining policy units continue to grow based on the performance of the underlying investments.
- Peace of Mind for Your Big Move: Knowing you have access to these funds can ease the financial stress associated with buying a home.
2. Education
If you're thinking of putting these savings towards studies, Invest Flex can be strategically used to finance your children's tertiary education. Here, tertiary education refers to enrolling in a program lasting at least three months at a vocational institute, polytechnic, college, university, or institute of higher learning accredited to provide educational services by qualified professionals.
The rising costs of education can put a strain on your finances. Invest Flex allows you to plan for these future expenses well in advance, ensuring you have the resources needed to invest in your education or that of your loved ones.
3. Time-Locked Milestones
Among all the ages that can count as major turning points, turning 21 marks a significant step into adulthood. It signifies new responsibilities and choices, often requiring additional financial resources. On the other end of the "adulting game," reaching 65 signifies retirement, a time when accessing your Central Provident Fund (CPF) withdrawal sum becomes crucial for financial security.
This is where Invest Flex can be particularly helpful. The plan allows for partial withdrawals upon reaching these key milestones (ages 21 and 65), providing you with a buffer during these potentially transitional periods in your life. Whether you need funds to cover initial expenses associated with starting your career or require additional resources to supplement your retirement income, Invest Flex provides the flexibility to access your accumulated savings when you need them most.
Key Features of Invest Flex
Invest Flex empowers you to take charge of your financial future by starting to invest early. With its flexible features, you can build a strong financial foundation for yourself and your loved ones, ensuring peace of mind knowing you're prepared for various life events that may come your way.
- Flexibility to take a premium holiday2 at no charge for up to 120 months from the 5th policy anniversary
- Investment bonus of up to 60.0% of your regular premiums paid for the 1st policy year
- Provide 0.5% annual loyalty bonus3 starting from the 10th policy anniversary or the end of the Minimum Investment Period (MIP), whichever is later
- Maximise your investment with up to 105% of your regular premiums paid to purchase units
- Have the option to withdraw some of your investments at no charge when any specified life event1 occurs during the MIP.
- Continuity of wealth accumulation with a secondary insured4
Strategies to Help Maximise Benefits
Invest Flex offers a unique blend of flexibility and growth potential. As such, you may wish to consider the following:
- Plan Your Withdrawals Carefully: While Invest Flex allows for withdrawals upon reaching certain milestones or during the MIP, it's crucial to plan these withdrawals strategically to minimise the impact on your long-term investment goals. Consult a financial advisor to create a personalised withdrawal schedule that aligns with your life goals and risk tolerance.
- Integrate with Existing Plans: Invest Flex can complement other financial tools and plans. For example, you can use Invest Flex to accumulate funds for a down payment on a house while contributing to your Central Provident Fund (CPF) for retirement savings.
- Start Early and Contribute Regularly: The power of compound interest is significant. By starting your investment journey early and making consistent contributions to your Invest Flex plan, you can leverage compound interest to grow your wealth over time.
Invest Flex Across Life's Milestones
Life is a journey filled with significant milestones, both expected and unexpected. With careful planning and the right tools, you can navigate these turning points with greater financial security and confidence. Invest Flex, with its unique blend of flexibility and growth potential, can empower you to take charge of your financial future.
By starting your investment journey early and leveraging the plan's features strategically, you can accumulate wealth and achieve your life goals. Whether it's securing your dream home, investing in your education, or planning for a comfortable retirement, Invest Flex can be a valuable partner on your financial journey.
Ready to explore how Invest Flex can help you achieve your financial goals? Learn more about our range of Investment-Linked Plans.
1 During the MIP, the policyholder may choose to exercise a free partial withdrawal if the insured experiences a life event, subject to the policy’s terms and conditions. Please refer to the policy conditions for further details on the life events and the applicable terms and conditions.
2 If the policyholder still has not paid the premium after the grace period, the policy will enter into a premium holiday. During this premium holiday, the policyholder can stop paying the premium provided the policy value is able to cover the fees and charges that continue to be due on the policy. The premium holiday charge may be payable during the premium holiday if it is within the MIP. From the 5th policy anniversary, the policyholder can take a premium holiday without any premium holiday charge up to the specified period according to the MIP selected. Please refer to the policy conditions for further details.
3 The loyalty bonus will be provided on the next working day from the 10th policy anniversary. The loyalty bonus is a percentage of the policy value based on the anniversary. It will be used to invest in the funds the policyholder has chosen. The policy must meet all the following conditions to receive the loyalty bonus: a) The policy must not have ended when the loyalty bonus is provided. b)The policyholder did not make any withdrawal, except withdrawal under life events withdrawal benefit, for the past 12 months before the date for the loyalty bonus payment.
4 Only you as the policyholder (before the age of 65 years old), your spouse (before the age of 65 years old), or your child/ward (before the age of 18 years old) can be the secondary insured at the time you exercise this option. You can exercise this option to appoint a secondary insured no more than three times. Terms apply for the benefit. Please refer to the policy conditions for further details.
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income Insurance products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income Insurance advisor. This advertisement has not been reviewed by the Monetary Authority of Singapore.
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Income Insurance or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
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