AXA Early Saver Plus Review | Why it’s a GREAT Savings Plan
Singapore Financial Planners Log

AXA Early Saver Plus Review

AXA Early Saver Plus Review

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Table of Contents

Table of Contents

The AXA Early Saver Plus is a form of endowment plan offered that was specially 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

  1. To qualify for the AXA Early Saver Plus, you will need to be below 61 years old
  2. 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

  1. Coverage of minimally 101% of the total premiums invested in the scenario of:
    1. Death
      1. Additional 50% benefit payable if death was due to an accident
    2. Terminal illness
    3. Total and permanent disability
  2. Reimbursement of up to $200 per claim for outpatient medical expenses for
    1. Infectious diseases, including hand-foot-mouth disease, dengue, and chicken pox;
    2. Medical check-up costs for Zika, Ebola, or SARS
    3. Mobility aid equipment needed due to an accident
    4. Food poisoning
    5. Vaccination for dengue, H5N1, and chicken pox

 

For #2, there are 2 claims allowed per Life Assured per policy for benefits 2.1, 2.2, 2.3, and 2.4.

Hassle-free Application

There will be no medical underwriting required as all applications for the basic plan will readily be accepted, a.k.a Guaranteed Insurability Option.

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.

It is also highly dependent based on your current needs, wants, next milestone, married/single, children/no children and other specific personal circumstances.

Premium Waiver (CIUN)

Upon the advanced-stage 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. 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.

Premium Waiver (UN)

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?

AXA Early Saver Plus Illustration

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, and long term and while rewarding you with reasonable 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.

SFP Advisor’s Take on AXA Early Saver Plus

We have similar sentiments to Jaslyn’s analysis of the AXA Early Saver Plus. Generally, if you are someone who is reluctant to take risks, savings plans are good for you. Savings plans, however, are not meant to accumulate wealth like the investment plans available in the market. They are good for you if you have difficulties saving money on your own.

However, do take note that product analyses are mostly an overview and generalised. Different individuals have their own needs, desires, and goals. Not forgetting that everyone also has their own specific situations and what they can afford.

Thus, to prevent overspending and buying the wrong financial products, always ensure that you consult with a financial advisor before making any purchases.

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