Dear Mr. Tan,
I read several comments in your blog from other people, that the new products launched by NTUC Income pays higher commission and gives a poorer return to the policyholder. Is this true?
REPLY
I believe that the new products incurs higher marketing expenses, including agent's commission.
Generally, most of the products in the market are high cost and give a poor return to the policyholder. Many products have "special features" that are really of not much use to the policyholder. It distracts the policyholder from the low return given by these products.
It is better to buy Term insurance and invest the difference. Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Additional features are deliberately included to fool the customers. They don't enhance the potency of the product instead they dilute. Example; The revosave and vivolife by NTUC. Close study by experts found that they only dabble in ambiguous words which are meaningless and confusing.It is like leading the customers into the wood and make them lost and then to lead them out to safety. Example; The customers pay a premium and then get a half refund of their premium and then they are made to believe they are recieving dividends.Isn't it stupid? But that is the revosave. It also has this confusing "save for rainy and enjoy on sunny day". The man in the street is simply stupefied .
ReplyDeleteGo for the plain simple products and get the most out of them.
NTUC will soon price themselves out of the market becuase other than the product the agents don't add any value.They are salesmen. They often boast they help out with claim, delivery of policy ,send birthday cards or gifts to clients. They are service givers.With these talents they should do well in the hospitality sector.These are non financial. Maybe they are not financially educated and try to make up with services to impress the clients.
ReplyDelete