Asked 4w ago
Assuming I buy eEasy Save V by Tiq ($25000), and Etiqa decide to close, just after 2 years will I only be given $7757 or will I be given the whole of $25000 back?
Etiqa is part of the SDIC PPF scheme.
Should anything happen to Etiqa, the preferred course of action is to transfer the insurance business of the failed insurer to another insurer as there is less disruption for policy owners.
However, if an alternative insurer cannot be found or if costs are too excessive to facilitate a transfer of insurer, MAS may choose to terminate if the impact of the policy is not significant.
On the other hand, if it is significant, SDIC will take over the business of Etiqa. Policy owners will then continue to be covered until such time their policy matures or expires, or choose to surrender their policy.
If you choose to surrender your policy, you will receive the surrender value at the end of Year 2 of your policy (which may be less than the premium paid). For non-voluntary group whole life or endowment policies, this is capped at S$100,000 for aggregated guaranteed surrender value per policy.
You can read more about SDIC here.
Customers of SDIC's Scheme Members get automatic protection under the Schemes - in the case of deposit insurance, (EDIT) up to S$75,000 per depositor per Scheme member; and for life insurance, 100% protection for the guaranteed benefits of the policy subject to caps, for example on the amount of sum assured and surrender value; and for general insurance, 100% protection for the insured policies, without being subject to caps.
The caps applicable are as follows:
Individual life and voluntary group life policies (with the exception of annuities): Cap of S$500,000 for the aggregated guaranteed sum assured and S$100,000 for aggregated guaranteed surrender value per life assured per insurer.
Individual and voluntary group annuities: Cap of S$100,000 for the aggregated commuted value of guaranteed benefits (i.e. annuity payments, death or surrender benefits) per life assured per insurer.
Non-voluntary group term life policies: Cap of S$100,000 for guaranteed sum assured per policy.
Non-voluntary group whole life or endowment policies: Cap of S$100,000 for guaranteed sum assured and S$50,000 for guaranteed surrender value per policy.
Non-voluntary group annuities: Cap of S$100,000 for commuted value of guaranteed benefits per policy.