FWD Invest First is a comprehensive investment-linked insurance policy designed to cater to individuals’ unique needs. With the ability to customize premium amounts, payment durations, and coverage for multiple individuals, this plan offers flexibility and personalization.
Throughout the policy term, FWD Invest First rewards policyholders with bonus units, including Booster Bonus and Loyalty Bonus. These bonus units enhance the growth potential of investments. Additionally, policyholders gain access to a curated selection of funds managed by renowned global fund managers.
The plan features four core components to simplify the investment journey
Cost-Efficient Structure with Bonus Rewards
By keeping charges to a minimum, FWD Invest First ensures that policyholders maximize the benefits of their investments. Early rewards are provided and continue throughout the policy term.
Flexibility to Match Finances
The plan offers financial flexibility, allowing policyholders to take breaks from premium payments, make adjustments to premium contributions, and withdraw funds without penalties. This flexibility eases financial strain and adapts to changing circumstances.
Complimentary Auto-Rebalancing Services
FWD Invest First utilizes advanced auto-rebalancing technology, eliminating the need for policyholders to monitor and adjust their investment portfolios. The system automatically aligns with the desired investment allocation, saving time and effort.
Curated Funds
Policyholders gain access to exclusive investment opportunities offered by renowned fund managers. A wide range of asset classes covering key markets worldwide is available, including dividend-paying funds that provide growth reinvestment or passive income withdrawal options.
During the policy term, FWD Invest First credits two types of bonuses: Booster Bonus and Loyalty Bonus. The Booster Bonus is paid for the first three years and is based on the annualized regular premium and selected premium payment term. The Loyalty Bonus is credited annually starting from the 5th policy year and continues as long as the policy remains active. Please note that the Booster Bonus does not apply to recurring single premiums or top-up premiums. Bonus rates are subject to change, as determined by FWD.
Key Product Highlights
Tailored to Your Needs
FWD Invest First is fully customizable, allowing individuals to align their investment goals and meet the financial objectives of their families.
Bonus Rewards, Cost-Efficient Structure
The plan offers early rewards that continue throughout the policy term, along with minimal charges, maximizing the benefits of investments.
Flexibility to Match Finances
Policyholders can take advantage of premium payment breaks, adjust contributions, and make penalty-free withdrawals to accommodate their financial situations.
Curated Funds with Dividend Cash-Out Option
Access a diverse range of asset classes across global markets, including dividend-paying funds that enable growth reinvestment or passive income withdrawal.
Complimentary Auto-Rebalancing Services
Opting for auto-rebalancing ensures investment portfolios align with desired allocations without active management.
Stay Financially Protected
Benefit from death coverage equal to 105% of the policy value, providing peace of mind and financial protection for policyholders and their loved ones.
Other things to note
How is FWD Invest First structured?
FWD Invest First is structured with two investment accounts: the Initial Units Account and the Accumulation Units Account.
- Initial Units Account:
- This account holds units purchased using regular premiums paid within the first 18 months.
- Units acquired through the Booster Bonus are also credited to this account.
- Deductions for the Initial Account Charge and Policy Charge are made from this account.
- Accumulation Units Account:
- This account contains units purchased using regular premiums paid from the 19th month onwards.
- Units acquired through top-ups and recurring single premiums are allocated to this account.
- Units obtained via the Loyalty Bonus are also credited to this account.
- Deductions for the Policy Charge are made from this account.
The policy value is determined by the combined value of units in the Initial Units Account and the Accumulation Units Account.
If I take a break from paying regular premiums for my FWD Invest First policy during the first three years, will the Booster Bonus payment be extended when regular premium payment is resumed?
No, if regular premiums are missed during the first three policy years, the Booster Bonus payment will not be extended to accommodate subsequent regular premium receipts.
Must I have insurable interest in the new person insured to make a change to my FWD Invest First policy?
Yes, you must have insurable interest in the new person insured in order to make a change to your FWD Invest First policy.
I have missed a regular premium payment. What will happen to my FWD Invest First policy?
After the 60-day grace period, the following outcomes can be expected if regular premium payment is not received within the specified timeframes:
- During the first 18 months of the policy, it will end. If there is any value in the Accumulation Units Account, those units will be liquidated, and the amount will be paid to you in your policy currency. However, you can apply to reinstate the policy if it ends due to missed regular premium payments.
- From the 19th month onwards, the policy will continue, with applicable charges and fees being deducted. If the policy value falls below S$1 (or the equivalent in your policy currency), the policy will lapse. It’s important to note that we reserve the right to impose a charge if regular premiums have not been paid continuously for 24 months during the premium payment term. You can apply to reinstate the policy if it ends due to insufficient policy value.
How does the FWD Invest First surrender charge work?
The surrender charge is calculated by multiplying the Initial Units Account value by the surrender charge percentage corresponding to the policy year at the point of surrender. This charge is deducted from the policy value before the payout is made.
For example, let’s consider Mr. Lim, who purchased a 25-year premium payment term FWD Invest First policy and decides to surrender it in policy year 9, month 10.
- Policy year in which policy was surrendered: Year 9
- Applicable surrender charge: 83%
- Initial Units Account value: $50,000
- Accumulation Units Account value: $220,000
Surrender Charge = Applicable surrender charge x Initial Units Account value = 83% x $50,000 = $41,500
Surrender Value = (Initial Units Account value – Surrender Charge) + Accumulation Units Account value = ($50,000 – $41,500) + $220,000 = $228,500
* Please note that the information provided on this website is of a general nature and does not take into account the specific investment objectives, financial situation, and individual needs of any person. All insurance applications are subject to underwriting and acceptance by FWD. To obtain the exact terms and conditions, specific details, and exclusions applicable to the policy, please refer to the policy documents available through authorized product distributor. It is advisable to consult a financial adviser representative for a comprehensive financial analysis before purchasing a policy that suits your needs.
As the purchase of a life insurance policy entails a long-term commitment, terminating the policy early usually incurs high costs, and the surrender value, if any, may be zero or less than the total premiums paid.
This policy is protected under the Policy Owners’ Protection Scheme, administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic, and no further action is required on your part. For more information on the benefits covered by the scheme and the coverage limits, where applicable, please contact us or visit the websites of the General Insurance Association of Singapore (GIA)/Life Insurance Association (LIA) at www.gia.org.sg or www.lia.org.sg, respectively, or the SDIC website at www.sdic.org.sg.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
