AXA Early Saver Plus Review
As part of the retirement planning in Singapore article, here is another retirement/savings plan broken down and summarised. In this review, I will be covering the AXA Early Saver Plus.
The AXA Early Saver Plus is a form of endowment plan offered. Unlike the AXA SavvySaver, the Early Saver Plus was designed for you to save for your children’s education. Despite being designed this way, you may still choose to opt for this policy for various milestones in your life.
Criteria
- To qualify for the AXA Early Saver Plus, you will need to be below 61 years old
- Minimum premium of S$1,800 yearly
Features
Payout Options
There are 2 payout options available for this plan.
The first option is to make cash withdrawals from the guaranteed portion of the plan in the last 3 years of the policy. If you were to choose this option, you will receive 20% upon maturity, and 40% for the first 2 withdrawals.
The second option is to reinvest the payouts and make a lump sum withdrawal upon maturity.
Policy Terms
The AXA Early Saver Plus has a policy term from 10 to 25 years with a premium payment term of 5 years. Alternatively, you may opt for a policy term from 15 to 25 years, with a premium payment term of 10 years.
This means that you can choose the plan based on your priorities and what you can afford.
Assuming you will be investing $1,800 yearly, if you choose the 5-year premium payment plan, your cash payouts would be lesser than the 10-year premium payment plan. Likewise, if you choose the 10-year premium payment plan, you will receive higher cash payouts as compared to the 5-year plan.
Depending on the plan you take, there is a guaranteed return of 1.57% per annum.
Protection
- Coverage of minimally 101% of the total premiums invested in the scenario of:
- Death
- Additional 50% benefit payable if death was due to an accident
- Terminal illness
- Total and permanent disability
- Reimbursement of up to $200 per claim for outpatient medical expenses for
- Infectious diseases, including hand-foot-mouth disease, dengue, and chicken pox;
- Medical check-up costs for Zika, Ebola, or SARS
- Mobility aid equipment needed due to an accident
- Food poisoning
- Vaccination for dengue, H5N1, and chicken pox
For #2, there are 2 claims allowed per Life Assured per policy for benefits A, B, C, and D.
Hassle-free Application
There is no need for a medical examination as all applications for the basic plan will readily be accepted.
Coverage Add-ons
This part of the AXA Easy Saver Plus is optional. It is definitely a good to have, but not a necessity! As you will be seeing below, the need to purchase add-ons depends on how much coverage your main insurance policies provide, and whether you can afford paying for your premiums if you *touchwood* encounter any critical illness, total, and permanent disability.
Critical Illness PremiumEraser
Upon critical illness diagnosis of the Life Assured, all future premiums (of the basic policy) will be waived up to the Premium Expiry Date of the Basic Policy.
Premium Waiver
In the event of involuntary loss of income before age 50 and critical illness diagnosis, your premiums for the next 6 months will be waived.
Payer PremiumEraser (DTPD/DTPDCI)
In the event of total and permanent disability (before age 65), critical illness, or death of the payer, all future premiums will be waived to the Premium Expiry Date of the Basic Policy or the policy anniversary at which the Payer is age 65, whichever comes first.
Payer PremiumEraser (UN/DTPDUN/DTPDCIUN)
In the event of total and permanent disability (before age 65), critical illness, or death, all future premiums will be waived to the Premium Expiry Date of the Basic Policy or the policy anniversary at which the Payer is age 65, whichever comes first. In the event of involuntary loss of income (before age 50), so your premiums for the next 6 months will be waived.
How much will I receive upon maturity of the AXA Early Saver Plus?
In the scenario where you don’t make any withdrawals in the last 3 years and accumulate the full amount, save $412 monthly over 10 years, and choose the 15-year term, you will receive a total of S$63,548 upon maturity. Below are the calculations:
Total Premiums Paid:
S$412 x 12 months x 10 years = S$49,440
Guaranteed Portion:
S$50,000
Non-Guaranteed Portion:
S$13,548 (Based on a projected investment rate of return of 4.75% per annum)
Total Received:
S$63,548
Source:
https://www.axa.com.sg/savings-investments/axa-early-saver-plus
My Take on The AXA Early Saver Plus
The AXA Early Saver Plus definitely is pretty unique. As this is mostly a savings plan, the insurance coverage provided is expectedly limited. Due to it being mainly targeted for your child’s education, the term policies are short and you can only make withdrawals within the last 3 years of the policy. Definitely something you should reconsider if you’re looking for monthly payouts in a policy.
However, the AXA Early Saver Plus may be a good fit for you if you’re looking to save in the short-medium term and while rewarding you with larger payouts. Furthermore, it is a hassle-free application as it requires no medical underwriting for its basic plan. This policy is definitely great for those who are saving for specific events in your life such as your child’s education, a wedding, a new home, or even imminent retirement.
Edit by Singapore Financial Planners team:
If you’re looking for financial advice and/or financial planning, contact one of our highly qualified financial advisors who will only provide you with advice based on YOUR needs.
source https://singaporefinancialplanners.com/blog/axa-early-saver-plus-review/
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