NTUC Income has launched SNACK, an innovative, industry-first insurance proposition that integrates into daily lifestyle activities and revolutionises the way consumers engage with, purchase and obtain insurance protection in Singapore.
With SNACK, the insured gradually builds or stacks his insurance coverage by paying micro-premiums at either S$0.30 (21.6 US cents), S$0.50 or S$0.70 and accumulate micro-policies that offer a specified sum assured — based on the insured’s profile — that corresponds with the premiums paid. The SNACK insured can decide when and how frequent premiums are paid by linking them to his preferred lifestyle triggers, such as ordering a meal, exercising or simply by taking public transport.
More significantly, each micro-policy, which is issued when a micro-premium is paid, covers the SNACK insured for 360 days. This means that the insured stays protected by insurance coverage that has been accumulated over time even when he stops using his lifestyle triggers or if the weekly cap is reached.
Typically, an insured is required to pay insurance premiums at a fixed quantum either monthly or annually, and sometimes over a fixed duration of time, in order to be covered for a specified sum assured. Insurance made flexible by paying micro-premiums.
Mr Peter Tay, Income’s chief digital officer, said, “Today’s consumers are empowered individuals who are well informed, and seek choice, convenience and personalisation in the products and services they engage with, and insurance is no exception."
He added, “By reimagining insurance, SNACK is offering consumers new freedom and flexibility in protecting themselves, just by going about their daily activities. This makes insurance more accessible and relevant to everyone, keeping it easily adaptable to lifestyle needs and personal financial situations.”
Insurance embedded in insured’s lifestyle
Currently, SNACK partners contactless smart card company EZ-link, fitness wearable company Fitbit and food app company Burpple to enable insureds to accumulate Term Life (TL), Critical Illness (CI) and Personal Accident (PA) insurance coverage on the SNACK mobile app each time they pay for their public transport using their EZ-link card, clock 5,000 steps a day on their Fitbit or redeem a dining/ takeaway deal on Burpple Beyond.
Building insurance coverage
To make insurance more accessible via SNACK, new partners, such as Visa, will come on board this first-of-its-kind insurance model to enable retail, entertainment, transport and grocery triggers for all local Visa cardholders whenever they make a purchase online or offline. This means that a SNACK insured will be able to stack his insurance coverage in TL, CI and PA insurance more accessibly, and potentially reached maximum sum assured quicker, with more lifestyle trigger options.
Additionally, SNACK offers insureds the flexibility to build insurance coverage at their own pace by setting a weekly cap of up to a maximum of S$50 on payment triggers, if they wish to ease cash flow. SNACK is also looking to enhance its insurance offerings by offering options that help insureds save and invest for their future.
Insurance made simple and convenient
The application process for TL, CI and PA insurance is simplified with SNACK as one only needs to fill up a simple underwriting questionnaire on the app and get the insurance coverage approved instantly. To sign up for SNACK, one can also set up an account via SingPass (an authentication system for citizens to transact online with public-sector agencies) in less than three minutes.
SNACK also promises insureds ease of use and convenience at their fingertips as they can view, update or amend their premium payment triggers or amounts, or even stop premium payments, anytime. To make a claim, users simply need to submit online and receive their payment via the electronic fund transfer service PayNow.
For those who already have existing insurance plans, SNACK can complement or enhance their existing coverage without adding any financial burden, Income says.
More from NTUC Income:
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Singapore: Singtel partners NTUC Income to bundle prepaid data plan and mobile remittance service with personal insurance
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