Poor return from Umbrella policy

Dear Mr Tan

I purchased the Umbrella policy in 1992, with a death/ permenant disability benefit of $50,000. My quarterly premium was $185.65. At that time, it was a popular product with good value for money.

However, 15 years on, I am a little disappointed with the value, as the policy bas not reached the break-even point. I have paid $11,000 in total premium, but the cash value to date is $10,009. This figure is lower than that projected in the quotation given to me at that time.

I would like to hear your comments on this policy.

PS. Last but not least, let me commend you for building Income into one of the most successful Insurance big boys it is today. Such is my confidence in Income that I had bought 3 other life policies and 4 Incomeshield Shield policies for myself and 3 dependents. Your impending departure would indeed be a loss to Income.

M

----------------------

Dear M

The Umbrella policy has a long break even point as it provides a relatively high coverage, compared to the premium.

Actually, the break even point should have occurred earlier, but this was extended due to the reduction in bonus rates during 2003 and 2004. The bonus rates have since been increased on two occasions. There will be a further increase in bonus rate this year.

I hope that, going forward, you will see the cash value increase at a faster rate.

With best wishes to you.

Tan Kin Lian