Hi Mr Tan,
I had an ideal plan with monthly payment of $400. If I had a lump sum payment of $5000, do you think it would be beneficial to top up this amount to the ideal plan?
I am currently also looking at Revosave. I am thinking of having a monthly premium of $250 for 15 years. The idea of cashback annually meet my objective - saving and able to use the amount after the 2nd year.
However, the comments I read so far are not really impressive. What would be your advise.
REPLY
You should check with NTUC Income about the topping up in the Ideal plan. If the topping up is made as a single premium, then you incur the upfront charge of 3.5% only. You should check if they can give you a bonus to reduce this upfront charge. If not, it is all right to make this investment.
It is better to invest in the Ideal plan, rather than through Revosave, as the charges are much lower.
Mr. ,trying to use the cashback to reinvest is like trying to touch your mouth with your hand going around your neck. I think this must be the insurance agent's suggested idea.
ReplyDeleteI take my hat off to this kind of agent who would dare and would do anything just to earn a commission.
Mr., go direct and get the best return for your hard earned money. You will regret. I think this agent should be sent to the firing squad. Friend, get one decent and competent agent to help you.
Wah lau!!!! agents are getting very innovative and customers are getting more gullible these days. What is happening? Too much money?
Economy is upbeat? Salaries getting higher? Time to squander away your retirement funds.
Do you know that you get less 2% for your cashback AND YOU GET IT ONLY IF YOU HOLD TO MATURITY? What if you can't make it half way for some reason?Do you know you will lose a lot? Do you know the last cash back at the 15th Year is about 5 times of your yearly cash? NTUC is not dumb. This is to make sure you hold your baby to maturity. You miss this one and you lose a big hole. If you buy revosave you can bid your freedom goodbye.
ReplyDeleteIf you invest in the ID2,you have cash value on the 4th month and your break even point is about 3 years if the fund you chose is doing decently. You have complete freedom and liquidity and no loss even you decide to stop and take a breather.You have flexibility.
Your agent will be laughing all the way to the bank and you will be stuck with a huge revosave load of rubbish in your hand. If your agent is honest and competent and think of your interest he or she will NEVER recommend you this product. But if you die die WANT it but don't NEED it, nothing can be done. You are the santa clause and Christmas is just round the corner and in the spirit of gifts.
Gosh!!!! they are now selling revosave to old people, 60year old people. The product will hasten them to the grave.Where do they get money to pay for 15 years?
ReplyDeleteMy uncle is 65,lucky he is out of the range,and he was approached by NTUC agent who told him that old people can buy revosave now.
Hey, what is going on. How does the product benefit old people? The cashbacks as income? Indeed NTUC is running out of ideas and desperate for business. They are going for old people and bluff them that revosave is some kind of annuity.
Stop in the name of love!!!before more damage is done agents.
People above the age of 54 years old could not get themselves Revosave, even if they want to.
ReplyDeleteIdeal Plan is a pure investment plan + insurance.
Revosave is different.
Revosave is a lifestyle plan.
Revosave is a combination of protection,savings,investment and even the way you spend your money!
For the young, Revosave is a good plan for them to start with.
Save for the future, and after second anniversary year, they have the autonomy to either spend the money if they need it,save with NTUC Income @ prevailing rate of 3.5% per annum,or invest in ILP with no sales charge, no policy fees.
They also gets insurance coverage for themselves.
The bottom line,is the profile of the client itself.
The agents assist the client in the decision making :)
Helmi Hakim
http://www.helmihakim.com
I think you have not been updated.
ReplyDeleteOld people at age 60 can buy revosave.
I agree revosave is a mixture but a lousy mixture and the buyers are SHORT CHANGED in the areas you mentioned. They are a lot better off buying seperately all those components.There is NO WAY you can have all of them and get the best.
Protection is very poor....don't get mixed up with saving. Please refer to Dr. Money's analysis.
Leaving with NTUC you MAY only get 3.5% WITH YOUR CASHBACK ONLY.
I can show you can get ALL YOUR MONEY INTO A 3.5% INVESTMENT WITH VERY LOW RISK.(this is same as what Ntuc invests in) and so is the same as the investment in the ILP with ALL your cash in them and get the best return.
Life style? this is rubbish. It will be rainy days all the bearing the premium.You get cashback after you pay only. Saving for the future there are many better ways to save and get the most of your protection too.
The profile of the client? Life style? Don't be fooled by the marketing department.
Obviously no financial check up is done.If you CARE FOR YOUR CLIENTS' financial future you will not recommend this, there is no such need.It is just sell, sell and sell, product selling because commission is good and clients pay your commission.
TRUE TRUE..its e viewer's choice aka e buyer's decision to buy. Even $50 can buy it..
ReplyDeleteI would like to add a view on Revosave.
ReplyDeleteCan anyone assume that the man in the street is as knowledgeable as Mr. Tan in investing or some of you chaps who knows so much about different insurance products that can do this and that?
NTUC Income has a name and it is a cooperative. The good management, used to be run by Mr Tan, probably the same ones who created the other products, must have thought that this plan is suitable for certain categories of people.
For some of the consumers who has no time or not that interested in unit trusts or fund or whatever investment tools, maybe cashback plans provide an alternative to meet some basic needs for them - ie, got some savings, protection, etc.
There is no such thing as a best plan. There is no such thing as a perfect plan either. for consumers who have simple needs, such products may address their concerns and yet simple enough for them to understand.
As long as the advisor highlight the benefits, together with the constraints of the plan clearly to the consumer, I don't see anything wrong with selling this product.
Different people have different profiles, different personalities,different needs, different point of views.
ReplyDeleteIts subjective after all.
Its the agent duty,to convey the need, the suitability, the risk and advantages of his or her recommendations to the client.
And the onus lies in the client to accept or reject the proposal.
Helmi Hakim
http://www.helmihakim.com
Yes, Income is a co-operative, but it is not behaving like a co-operative lately. The good managment? Yes, it used to be good, until now.
ReplyDeleteTheir marketing efforts and costs must have significantly went up. Even bus stops advertising panels are seeing NTUC Revosave ads!
ReplyDeletehongjun
NTUC Income maintains its standing as a cooperative since its inception till today,the present.
ReplyDeleteAs we know,cooperative is different than commercialised company.
Commercialised company,profits distribute as dividends to shareholders.
NTUC Income profits,98% of it,distribute as bonuses to policy holders.
NTUC Income prides itself with valued financial instruments.
1)We have VALUED whole life insurance
http://www.askdrmoney.com/Ins_Whole.htm
2)We have VALUED investment plan
Regular Premium: http://www.askdrmoney.com/Ins_ILP_RP.htm
Single Premium:
http://www.askdrmoney.com/Ins_ILP_SP.htm
3)and now...we have a hybrid instrument which is the best in the market.
Encompass on
-Protection
-Investment
-Savings
and even the way you spend your money.
So you see,by any forms of comparison,NTUC Income maintains itself as a cooperative by offering VALUED financial instruments in the market.
The agent duty is to identify the needs,risk profile of the client and recommend accordingly.
We propose recommendations, providing our client with rationals and educated explanations.
The onus and choice is still with the client.
Helmi Hakim
http://www.helmihakim.com
How is recommendation to be made without the need analysis?.This is not possible.
ReplyDeleteIn product selling, yes, the onus of choice is with the clients.It is caveat emptor. It is client's luck whether he or she has made a good choice.This is suitable if you are selling an equipment. The defects or suitability can be discovered immediately or very soon. If it is bad choice , the suffering is once only.
In financial products the damage done can be far more wide ranging. Financial products cannot be tested for its efficacy immediately. You cannot test run the product and it is only many years down the road that you know whether you have bought the right product. It will be too late.
Secondly, financial products are complicated. It is unfair that the client has to make a choice between products.. Why pay high commission to the insurance agent when the onus falls on the client? If agents provide only information which can be gotten from brochures or website.Customers are not trained to distinquish the features and benefits. Why pay commission? This is absurd.
Thirdly, financial product is not sold but recommended after the needs of the client are examined.
Recommendation is advice with reasons. It is to guide and help the client to make that decision. This also includes adviser's opinion, that is, whether he thinks this product is suitable or not to the client. The adviser puts his head on the chopping block and bears that responsibilty. The onus is with the adviser. Anything goes wrong he is held responsible.
That is the difference between a salesman and an adviser.
Revosave is sold and not recommended and will not be recommended if a need analysis is conducted.
Please check out my statement by seeing an agent or a few NTUC agents at any of the roadshows.
Life insurance is definitely important to all of us. commission is nothing for insurance agent. agent always mistaken as the greedy lots. But actually client is the one who benefits the most from insurance. no more rubbish comes out from the mouth of ignorant people and please buy an insurance... From a company insurance agent.
ReplyDelete