Standing Arrangement on Policy Loan

LETTER TO BE SENT TO POLICYHOLDER OF NTUC INCOME

Dear Policyholder

POLICY XXXXXXX - LOAN BY TELEPHONE

You have taken a life insurance policy with us for more than 5 years. It has
accumulated a large cash value.

We wish to offer you an attractive arrangement:

- you can take a loan against this cash value by giving us a telephone call
- the loan will be credited to your bank account immediately
- interest will be charged at the prevailing rate, which is currently 5.5% per annum

To benefit from this arrangement, you have to open a "standing arrangement" with
us, as follows:

- you have to sign and return the attached agreement
- the fee of $50 is waived, if you sign up within 1 month of this letter.
- you do not pay any fee, apart from interest on any sum that is drawn down

For more information, call XXXXXXXXX

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WHY WE ENCOURAGE OUR POLICYHOLDER TO TAKE A LOAN?

We want to make it easy for our policyholders to take a loan from us.

Many are not aware, and they take a loan from credit card which carries 18% or 24% interest. Borrowing from loan sharks is higher. If they borrow from other insurers, they pay 6 to 8% interest.

If they take a loan from us, they save on the interest. It makes our insurance plans look much better.