Hi Mr Tan
An agent from NTUC showed the advertisement on "Best Kept Secret" to me. The return of 6% on endowment plan is attractive. If I buy this plan, will I get 6% return for the next 20 years? This is better than other types of investments and give life insurance cover to me as well.
The return of 6% was achieved during the past 25 years. Interest rate was high (say 6%-8% p.a.) during most of the past years, and the economy achieved high growth rates. The return on the life insurance fund averaged about 8% during these years.
Looking forward, I expect the investment yield to be more modest, maybe 6% p.a. After deducting for the cost of insurance and charges, I expect the return on whole life and endowment plans to be more modest, maybe 3% to 4% per annum. (But, I could be wrong!)
Still, the return from NTUC Income should be better than similar plans from other insurance companies, due to their lower expenses and higher bonus distributed to policyholders (remember: Income is a cooperative).
However, I usually advise people to invest in a flexible plan, such as the Ideal plan. You can read more about it in my FAQ: Financial Planning for the Young.
- ► 2013 (310)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
- ► 2008 (2105)
04/29 - 05/06
- Investment linked plan under NTUC Income
- Are my policies worth to keep?
- No need for Medishield insurance
- Spend less on insurance; invest the rest
- Life Insurance for College Students
- Talk to LTA
- Different methods of calculating interest
- Employment for seniors
- I strongly agree
- Discrimination in the workplace
- Save for a child's education
- Liability insurance
- Moral Hazard and Adverse Selection
- Payment to accident victims
- Insure my co-payment
- Call me on my mobile
- Save $600 a month?
- Structured Investment Products
- Car Navigation System
- Sad aspect of market liberalisation
- Small workshops like the tender system
- An alternative to Downtown Lines
- Better to have a standard taxi fare
- Whole life policies from NTUC Income gives better ...
- Two views of the stock market
- Poor return on whole life policies
- Term to 99 years
- What has Science got to offer?
- Difference between wishful and positive thinking
- Power of marketing
- Motor claim by third party
- Water for Life
- Surrender value of Living policy
- Financial Tips for the Young and for Seniors
- Avoid lock-in investment products
- Restructuring of public transport
- Senior Employment Guidance
- My personal asset allocation
- Refinance your housing loan
- Capital guaranteed products give a poor return
- Some structured products are good?
- Discount on motor insurance
- Singapore Dance Theatre - Impressions
- A salute to the earlier generations!
- Making the incredible credible
- Renting your car
- How to control spam mail
- Feeder service in Hong Kong
- Role of an agent
- Pyramid scheme
- Asset allocation in a nutshell
- Ranking of Products
- Investment Tips, April 2007
- Term insurance up to age 65
- More moderate return in the future
- Shall I continue Eldershield?
- Capital guaranteed product
- Increase the investment in a life annuity
- Simplify the feedback form
- Encashing my life insurance policies
- Yield of 3.41%
- Term Insurance
- Senior Housing
- Natural disasters
- Pay a fixed fee to a broker
- What is a broker?
- Insurance course at a local university
- Invest in large, well diversified fund
- ▼ 04/29 - 05/06 (69)
- ► 2006 (696)
- ► 2005 (159)