NTUC Income, an insurance cooperative based in Singapore, recently revealed that it has introduced a micro investment-related plan (ILP) via the SNACK by Income mobile app.
SNACK Investment has reportedly taken a stackable approach that enables clients to create their investment portfolios with bite-sized premiums while also offering insurance coverage as they conduct their everyday lives.
It has been specifically designed for consumers who may be keen and are eligible/qualify to invest but have not been able to do so, because of high entry barriers, as well as those clients who are seeking options to effectively diversify their investment portfolios.
SNACK Investment’s minimum premium is $1 and it also offers withdrawal flexibility with no extra charges along with accidental death coverage with the sum assured fixed at 105% of the total premiums paid.
Clients are able to link their preferred micro-premium, which can range from $1 to $10, to their selected lifestyle activities like grocery shopping, taking public transport or filling up gas (petrol) and begin working on their investment portfolio and purchase units of the fund every week.
In the next few months, SNACK Investment will reportedly expand in order to support more flexibility for clients with the option to customize their investment portfolios via fund switching and partial withdrawal.
Peter Tay, Chief Digital Officer, Income, stated:
“Consumers are usually attracted to conventional ILPs because of their higher projected returns and the promise of diversification due to the underlying funds. While they are keen to start investing early, we understand from research interviews that often, they must wait till they have more disposable income to hit the minimum investment amount.”
“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.”