If you are a fresh graduate or well into the first job of your career, one thing you’ll hear repeatedly is that it is about time you start getting some protection from life’s uncertainties.
But getting started with insurance can feel like quite the commitment; signing on the dotted line to pay a lump sum of premiums somehow doesn’t seem as fun as buying that new gadget you’ve been eyeing.
I won’t judge if the above perfectly describes how you make decisions because it applies to me too.
However, seeing as I’m now earning my own keep, it was high time I started trying to be a bit more responsible with my finances.
One intriguing option for getting on the bandwagon was SNACK by Income — a new insurance product that seems to be the perfect way to get your feet wet — so I decided to take a closer look.
So how does it work?
SNACK embeds insurance purchases into your everyday routine by offering policies at premiums of S$0.30, S$0.50 or S$0.70.
These premiums are automatically paid as you go about your daily lifestyle activities — thus triggering a policy of your choice to be issued.
How exactly does this happen? Through SNACK’s app, you have the option to link several activities — be it paying for online purchases with a credit card or paying for your bus rides with your EZ-Link card — with a merchant partner. Whenever you complete these activities, SNACK automatically issues the policy you’ve picked at the premium you’ve selected.
Sounds confusing? It’s actually much easier than it sounds.
Let’s say you link your public transport activity with SNACK merchant EZ-Link. This means that whenever you use your EZ-Link card to pay for a bus trip, you’ll also be paying for a SNACK insurance policy.
This premium (ranging from S$0.30 to S$0.70) will be deducted from your choice of credit or debit cards linked to the app.
This gives you the prospect of continuing to go about your life while still experiencing the warm fuzzy satisfaction of doing something remotely responsible, all at the price of your spare change.
Not bad.
But how easy is it really, and how much value can I get out of SNACK?
Let’s take a regular day out — perhaps a Saturday where you catch a movie in town.
How much insurance coverage could you automatically accumulate from a weekend day’s worth of normal living?
Say before heading out you decide that you want to get yourself some personal accident coverage — SNACK’s offering provides a safety net for you in the event of an accident and helps with medical expenses — at S$0.50 premium (though you can also choose S$0.30 or S$0.70 premium options).
Your regular day out will probably involve taking public transport from home to town — paying for the trip with your EZ-LInk card will result in the automatic purchase of S$390 coverage at a premium of S$0.50.
You’ve got some time to kill before the movie starts, and your friends are late, so you decide to grab a meal from your favourite fast-food joint. Using your Visa card in the purchase will trigger yet another policy to be issued.
Image by Louis Hansel via Unsplash
Tasty meal completed, it’s now time to meet up with your friends and catch that movie.
Honest opinion on the film? Maybe it wasn’t as good as the first one — not enough zombies, too much drama.
But hey, purchasing the tickets with your Visa card means that yet another S$390 coverage is added to your now-burgeoning portfolio of micro-insurance policies — not the worst consolation ever.
On the way back home, your mum calls you and asks if you can pick up a bottle of milk; they’re running low at home.
Your purchase at the supermarket also comes in tandem with SNACK issuing another policy.
Now on the bus ride home, you’re feeling guilty about that burger and fries you had earlier. So you decide to get off a stop or two early and walk the remaining distance.
Checking your Fitbit once you’re back in the house, all that walking up and down Orchard Road and to and fro the bus stops helps you clock just over 5000 steps — enough to trigger yet another policy purchase.
Let’s do the math
Image by Kelly Sikkema via Unsplash
Ok, now it’s time to really figure out what we’ve achieved. How much did a regular day out and about in town get you in insurance coverage?
The activities that triggered insurance purchases were:
- Bus trip to town
- Buying lunch
- Watching a movie
- Buying milk
- Bus trip back home
- More than 5000 steps
Each activity triggered a S$390 personal accident insurance plan with a premium of S$0.50 each.
So that’s S$2,340 more coverage than you started the day with. All with just S$3 of premiums paid out. Not bad for just a day out where your main goal was to enjoy a movie.
Flexible insurance customised to your lifestyle
A quick look through the SNACK app shows there is quite a variety of activities that can be utilised as triggers for insurance purchases.
Activities include:
- Taking public transport
- Paying for entertainment
- Buying groceries
- Getting a meal
- Retail shopping
- Paying your utility bills
- Filling your vehicle up with petrol
- Walking more than 5000 steps
In addition, SNACK has partnered with the following merchants to make the process even more seamless with your day-to-day activities:
- Visa
- EZ-Link
- Burpple
- Fitbit
It means that whatever your lifestyle, there’s an easy way for you to get started on or supplement life, personal accident, or critical illness coverage at bite-sized prices.
What’s more, you have the flexibility to decide when to start, stop, or adjust your premiums through the app — great if you’re a commitment-phobe like myself.
Being responsible with your money couldn’t be easier.
SNACK by Income is currently giving away S$500 Personal Accident coverage to celebrate its latest update.
All you have to do is download the app, link your preferred lifestyle trigger with the Accident product and key in promo code MSA500 at the check out.
More information can be found here.
You can start your SNACK journey here.
Writing this SNACK sponsored article made the author pause to think about being more responsible.
Top image by Andrew Koay and Jonatan Moerman via Unsplash