Etiqa launches endowment plan amidst volatility fears

The product spreads exposure across United States equities, bonds and commodities.

Etiqa Insurance Singapore has launched Enrich Index Income, a non-participating endowment plan that combines index-linked returns with capital protection at maturity. 

The plan allows customers to earn non-guaranteed yearly cash benefits linked to the performance of either the Barclays RADAR 6% RC SGD Index or the Barclays RADAR 6% RC USD Index. 

Customers can choose to receive the payouts as income or reinvest them to build long-term savings. 

According to Etiqa, the Barclays RADAR 6% RC Index dynamically allocates investments across US equities, bonds and commodities to adapt to changing market conditions. 

The insurer said the product is designed for customers seeking exposure to market growth whilst benefiting from capital guaranteed at maturity. 

"Today's investors are seeking solutions that can help them grow their wealth without exposing their savings to the full impact of market volatility," said Claudia Soh, acting CEO and CFO of Etiqa Insurance Singapore.

She said the plan gives customers the flexibility to receive yearly cash benefits or reinvest them depending on their financial goals. 

Stephane Goursat, head of EQD Institutional Sales, Asia at Barclays, said the index uses a regime-aware investment framework that adjusts allocations across equities, bonds and commodities as market conditions change, with the aim of balancing growth potential and risk management. 

The product also includes a 0% floor rate, meaning yearly cash benefits will not turn negative because of poor market performance. 

Customers can pay through a single premium or over three years. The plan also provides death, accidental death and terminal illness benefits and does not require a medical assessment for purchase.