Monday, July 31, 2006

Is it possible to buy direct and enjoy a bigger discount?

A visitor read my blog that the commission rates paid to our advisers are 30% to 50% lower than the market. He asked if it is possible to buy directly from NTUC Income and get a further discount?

MY REPLY:

Our premium rates are already much lower than the market for similar products. This is possible due to the lower commission rates paid to our adviser.

If you come directly to us, we still need to pay the salary of the consultants at our business center. This is barely covered by the savings in the commission. So, we are not able to give a further discount.

If we are able to enjoy further savings, we will use the savings to give a better return to all policyholders, through higher reversionary bonuses.

Some customers are willing to come to the business center for the same premium, as they feel more comfortable about talking to a salaried consultant. They do not feel under pressure to buy the product.

Actually, our advisers are also not pushy. They are willing to give advice to customers by e-mail and telephone, and to refer them to the internet website for information. This is just as good as visiting the business center.
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1 comment:

VivaRevolution said...

Tan Kim Lain , I would also like to buy direct from your company but your discounts are not attractive enough. You need to justify why having gotten rid of the middleman, you are still unable to bring down your premiums.

I understand you would pay between 50% to 100% of the premium to the agent or broker as commission. So why not return this commission which is already costed for to the consumer like myself.

If we buy life insurance direct from Income , I would expect nothing less than Income paying for me my premium for at least 1 year.

August 08, 2006 4:09 PM

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