NTUC Income has launched SNACK Investment, which it bills as the industry’s first micro investment-linked plan (ILP), on Sept 20.
Available on the SNACK by Income mobile app, SNACK Investment allows consumers to build their investment portfolios with “bite-sized” premiums ranging from $1 to $10 while providing insurance coverage. Users have the flexibility to adjust their premiums on the app.
SNACK Investment also provides withdrawal flexibility at no additional fees and accidental death coverage with the sum assured pegged at 105% of the net premiums paid.
According to NTUC Income, the plan is designed for consumers who are keen and eligible to invest but have not done so due to high barriers of entry, as well as those who are looking for options to diversify their investment portfolios.
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Users can create an account on the SNACK app, link their desired micro-premium to their selected lifestyle activities such as grocery shopping, taking public transport or topping up petrol and start to build their investment portfolio and purchase units of the fund at the start of each week.
“The current economic climate has made consumers more aware of the need to explore alternative ways to expand their sources of income. A recent survey revealed that 88% of young adults are considering investing in at least one investment product in the next year, and an offering like SNACK Investment – an industry-first micro investment-linked plan for digital-first consumers - is extremely timely. Consumers can now build up their investment portfolio seamlessly and almost invisibly via their lifestyle activities,” says Peter Tay, chief digital officer at NTUC Income.
“With SNACK Investment, we are breaking down the conventional approach to purchasing an ILP by keeping the benefits that consumers desire, while at the same time increasing accessibility and lowering the minimum initial investment amount to just a dollar. When customers have bigger risk appetites or have more liquidity in future, they can also supplement and further diversify their portfolio with conventional ILPs,” Tay adds.
In the coming months, SNACK Investment will be expanded to allow greater flexibility to customers with the ability to customise their portfolio through fund switching and partial withdrawal.
Photo: NTUC Income
