Policyholder is unhappy with lower maturity value

REPLY FROM MY LIFE INSURANCE MANAGER

My colleague informed me that you are unhappy with the maturity benefits you will be receiving under your Growth policies. The amount fell short of the projected figure.

Your two policies were bought in Aug 2001. At the time we sold you these policies, we gave a projection based on our best estimates. It was not possible for us to foresee the unfortunate events that followed in that year.

The investment climate had been extremely difficult and we had to cut our bonuses. Subsequently, we did better and were able to restore the bonuses, but only partially.

You invested a total of $110,000. You will be receiving $127,600. This represents a return of 3.01%. I think that is fairly attractive. It is higher than what you would have received if you have kept your monies in your CPF Ordinary Account.

AS THE POLICYHOLDER DOES NOT ACCEPT THE REPLY, I GAVE THIS FURTHER REPLY

Dear

Thank you for your feedback. I will ask my head of Life insurance to check that your policy has been treated fairly, similar to other policies of the same group.

Under our participating contract, we share our financial results fairly with all policyholders. If we earn more, we increase our bonus. If the investment climate is poor, we have to reduce the bonus, but it has to be applied fairly to everyone in the same group.