Thursday, September 07, 2006

Thank you for supporting our insurance advisers

I want to thank our policyholders for supporting our insurance advisers.

Our advisers earn a modest commission. It is about half of the commission paid to other company's agents.

The lower commission allows us to reduce our expenses and give you a better return on your life insurance savings.

In most cases, we give 10% to 20% more on the maturity of your policy. If the maturity amount is $100,000, you can get $10,000 to $20,000 more from NTUC Income.

Some companies (not NTUC Income) make unrealistic projections of their return. They pay high commission and incur high expenses. Many years later, they are not able to fulfil their projections. Their policyholders are disappointed, but it is too late.

You can trust NTUC Income. We keep our expenses low and give a better return to our policyholders.

Once again, thank you for your support.

Tan Kin Lian
Chief Executive Officer
Posted by at

1 comment:

Justin Lim said...

I refer to The Sunday Times article "What you see may not be what you get" dated 17 September 2006.

It has been known that NTUC Income pays their agents moderate commission and in your very own words "The lower commission allows us to reduce our expenses and give you a better return on your life insurance savings". As such, why would Income's Actual Net Rate of Return ("ROR") be worse off than that of companies like AIA for 9 out of 10 years from 1985 to 2004 (except 1998) and 10 out of 10 for Asia Life, since companies like AIA pays more commission?

In fact, in the last 4 years (2001 - 2004), Income's average ROR is 4.05%, which is the same as those of Prudential's.

Even Income's 10-yr average of 4.4% is not very impressive. It is only on par with the 5th company, OAC, slight more than the Aviva (4.3%), GE (3.9%) and Prudential (3.7%). The other 4 companies' 10-yr average ROR ranges from 3% to 3.4%.

What happened?

September 17, 2006 8:46 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive