Saturday, July 30, 2005

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.

11 comments:

  1. Hi Mr Tan, I have to make a complaint regarding to NTUC's ideal plan. Personally, I like the structure of the plan as it allows me to make regular savings and invest in various funds. However, I am rather dissapointed that in Aug, NTUC Income will launch a new version of the Idieal plan, that allows 100% of the premium to be invested. This is unfair to me and other customers who have bought the product before Aug as we need to pay 15% of our premium per annum as cost. So I hope you can address this inequality which I think is unfair to us policy holders. If you want to contact me directly, you can mail me at henchkman@gmail.com. Thank you. Interesting blog.

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  3. hi, why everything is insurance ? nothing but insurance ? boring lei

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  4. Perhaps you should try making your blog look more visually pleasing.

    Get somebody to help with the layout, as no matter how high the quality of the contents of your entries, the plain and boring layout design just turns people off.

    I'm sure there's many talented staff in the NTUC IT department who would be able to do that.

    Something classy would be nice, not too flashy though as that'd be a turnoff too.

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  6. Dear Henry Jacob,

    You should discuss with the insurance adviser and see how he can help you to convert to the new plan.

    There are some cost involved, so you have to make sure that the conversion is really in your favour.

    The Ideal plan that you have bought has an initial charge of 15% of the premium for each of the first 3 years, making a total of 45%.

    Similar products from other insurance companies levy a total charge of between 150% to 190%.

    So, you are getting a good deal. If you invest for 10 or 20 years, the inital charge of 45% is quite small.

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  8. Mr. Tan, no need to make your blog look more visually pleasing. Just keep it as it is. What matter most is the contents you put in and the value you create for policyholders. If anyone still finds your blog boring, he/she can visit your bigtrumpet website.

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  10. http://tankinlian.blogspot.com/2005/07/standing-arrangement-on-policy-loan.html
    https://shortterminsurancepogarae.blogspot.com/2017/10/short-term-insurance-north-carolina.html?showComment=1601279228642#c8163180820472364930

    ReplyDelete
  11. Thank you for sharing such great information.
    It has help me in finding out more detail about accident insurance singapore

    ReplyDelete