Dear Mr Tan,
I read some of your blog. You said that the whole life policies have up front charges of up to 18 months of the premium. Does this also apply to the whole life policies sold by NTUC Income? I have bought some of these policies from your agent.
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REPLY:
The upfront charges of up to 18 months apply to the other insurance companies.
In the case of NTUC Income, the upfront charges are much lower. This is due to lower commission paid to the agent.
This is why NTUC Income was able to offer a much better return to the policyholders over the past years. For a 20 year policy, the return usually is 20% more, in the case of NTUC Income.
With greater awareness about the upfront charges, I hope that all insurance companies will reduce their upfront charges on their whole life and endowment policies, so that the customer can get a better return on their insurance premiums.
I have a Prudential Wholelife signed in 1985.
ReplyDeleteI compared this with Protection Policy that I took up in 1990 with Ntuc Income.
Prudential cash value is far off what NTUC INCOME policy cash value is today in term of yield.
Prudential longer term with lower yield, Ntuc Income shorter term with higher yield.
This is true facts from my own policies with two insurers.
I am still holding the policies.
Pru yield is 2% plus
Income Yield is 3% plus
- Thomas Phua