Several insurers (not NTUC Income) sold large numebrs of Prime Life policies about 20 years ago. They paid a low rate of annual bonus, but promises special bonus of 300%, 400% and 500% of the accunmulated bonus on the 20th, 25th and 30th year.
They were not able to meet their projection. In reality, special bonus rates were something reduced to 100%, 150%, 200% respectively.
The policyhoholders who bought these plans suffered several cuts in their expected bonus payouts.
NTUC Income refused to issue this type of policy. We prefer to pay a higher rate of annual bonus, and to keep our special bonus at 25%. Our policyholders have enjoyed much better bonus compared to Prime Life plans.
I also have 2 policies.
ReplyDeleteThe logic to me is very simple, just like compound interest.
I want my bonus upfront.
In good years like 2007's bull run, I expect a larger payout of bonus.
INCOME is a co-operative, for the workers, by the workers. Now they are trying to "smoke the workers". This is a very sad day.... sigh, sigh... sigh.
Mr. Tan Kin Lian, sir shall I surrender my policies (for someone who is long in history but short into the future).
Dear Mr Tan, I am very upset by the change in ntuc income's new bonus policy. When I bought my policy and my family's policies, it was based on the illustrated revisonary bonus & the terminal bonus payout rates (though not guaranteed) that I bought those policies. Bonus, once declared, will be guaranteed from that year onwards. Now, the guaranteed amount has dropped so significantly!
ReplyDeleteHow am i going to know whether they will pay out the special terminal bonus rate for the new scheme which will result in equal or more superior payout to me as compared to the old scheme? Can NTUC Income guarantee the payout will be better?
How about apple to apple comparison? For the same policy under the old and new scheme, will the new scheme pay better if I surrender the policy at 10, 20 and 30 years? Can they guarantee it will be equal or better?
I have 3 policies with NTUC Income that were bought less than 3 years. I have lost faith with NTUC Income.