Asked by Anonymous
Asked on 02 Jan 2019
You bear the investment risk with an ILP. This is different.
Then what's the difference between traditional wholelife plans and universal life plans? Universal life plans use a transparent "crediting method" whereas for wholelife plans it is opaque because they smooth out returns and guarantee bonuses on a yearly basis.
It does not mean a universal life plan gives superior returns. It all depends on the underlying asset.
Etiqa Elastiq is called a universal life (UL) plan because it does the crediting rate method. It's not focused on protection value so you can see it more of a savings plan.
" ...first-of-its-kind online universal life (UL) insurance plan in Singapore, ... ELASTIQ by Etiqa offers a high guaranteed crediting rate of 2.02% p.a. in the first 3 years, and a short 90-day lock-in period, after which customers enjoy the flexibility to top-up or withdraw their funds without any penalty charges or interest clawback". It seems so but the rates aren't that nice.