Frequently Asked Questions

FlexiLink

Product Coverage

  • Q:What is FlexiLink?

    A:

    FlexiLink is a single premium investment-linked plan *.
     

    * 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 (before the age of 70) in accordance to the terms set out in the policy conditions.

Death Benefit

  • Q:What is the death benefit?

    A:


    In the event the insured dies before the age of 70, 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 the insured at deathBasic benefit
    Under 601.25 times net premium
    Above 591 times net premium


    For Non-standard Life:

    Age when the insured at deathTime the insured event happensBasic benefit
    Under 60Within one year from the cover start date1 times net premium
    Under 60After one year from the cover start date1.10 times net premium
    Above 59At all times1 times net premium

  • 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 non-standard life?

    A:

    Non-standard life means an insured who has been diagnosed with any of the following medical conditions at any time before or within 90 days after the cover start date:

    • Cancer
    • Ischaemic Heart Disease
    • Coronary Artery Disease
    • Chronic Renal Disease
    • Kidney Failure
    • Stroke
    • Chronic Liver Cirrhosis
    • Systemic Lupus Erythematosus
Total and Permanent Disability 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 disabledBasic Benefit
    Under 601.25 times net premium
    Above 591 times net premium

    For Non-standard Life:

     

    Age when becoming totally and permanently disabledTime when the insured event happensBasic benefit
    Under 60Within one year from the cover start date1 times net premium
    Under 60After one year from the cover start date1.10 times net premium
    Above 59At all times1 times net premium

  • Q:What is the meaning of totally and permanently disabled?

    A:

    If the insured is under 65 years old, total and permanent disability, and totally and permanently disabled mean total physical loss, or the inability to take part in any paid work for the rest of a person’s life. 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 or her training, education or experience is suited for.

    If the insured is 65 years old and above but under 70 years old, total and permanent disability, and totally and permanently disabled mean total physical loss, or severe disability.

    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.

    Severe disability means the inability to perform at least three of the following activities of daily living, even with the aid of special equipment and always needing the help of another person throughout the entire activity.

    • Washing - the ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash satisfactorily by other means.
    • Dressing - the ability to put on, take off, secure and unfasten all garments and, as appropriate, any braces, artificial limbs or other surgical appliances.
    • Transferring - ability to move from a bed to an upright chair or wheelchair and vice versa;
    • Mobility - the ability to move indoors from room to room on level surfaces.
    • Toileting - the ability to use the lavatory or otherwise manage bowel and bladder functions so as to maintain a satisfactory level of personal hygiene.
    • Feeding - the ability to feed oneself once food has been prepared and made available.

  • 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.

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 (bid 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 Payments

  • 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:Is reinvestment of maturity proceeds into FlexiLink eligible for reinvestment vouchers?

    A:

    No, reinvestment of maturity proceeds into FlexiLink is not eligible for reinvestment vouchers.

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

Investment Linked Policy(ILP) Funds Available for

  • 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)
    • Asian Bond Fund
    • Asian Income Fund
    • Global Income Fund
    • Prime Fund
    • Takaful Fund
    • Global Technology Fund
    • Money Market Fund (available for switching only)
    • Multi-Asset Premium 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 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 effective 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%)

     

    From 1 Oct 2018, a minimum of 2% bonus unit (instead of 0.5% bonus units) will be given for the initial single premium and all top-ups paid with funds from CPFIS account. This will reduce the effective bid-offer spread to no more than 1.5%; i.e. Total Units Allocated = Single / Top-up Premium /Bid Price x (1+3.50%) x (1+2.0%).

     

    Should you close your CPFIS account, a 0.5% bonus unit will be given for all top-ups paid with cash, reducing the effective bid-offer spread to 3%; 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 with the extra 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 withdrawals from your funds provided that your minimum value of units is worth $2,000 in aggregate across all sub-funds.

    The minimum partial withdrawal amount is $500 each time.

    Partial withdrawals have the effect of reducing the basic benefits and sub-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.