Tan Kin Lian's Blog: Higher bonuses for policyholders

Saturday, April 19, 2008

Higher bonuses for policyholders

Dear Mr. Tan
I bought several life insurance policies from X. In recent years, it started to spend a lot of money in advertising and in paying high commission and incentives to its insurance agents. I heard that it will be reducing its yearly bonuses, to be compensated by higher bonuses in the later years. I am not sure if I can trust X to pay a high return on these policies. Should I continue these policies or cancel them?

REPLY
The investment gain for 2007 is high. Life insurance companies should be paying higher bonuses for this year, rather than reducing the bonuses. If your insurance company reduces the bonuses for 2007, you can lodge a complaint to the Monetary Authority of Singapore. It is not correct for the company to manipulate its bonuses and deny a fair return to its policyholders.

Most life insurance companies in Singapore give a poor return to their policyholders, due to high marketing expenses. It is best to avoid buying these life insurance policies in the first place. You should consider cancelling your policies and take a loss, if you find that the company cannot be trusted to take care of the long term interest of its policyholders.

Lesson: Do not buy any life insurance policy that has high upfront charges. Do not keep your policy with a company that does not take care of the long term interest of its policyholders.

17 comments:

Anonymous said...: Yes, last year was a bountiful year for investments. It was easy to make money even investing in Shares. Annualised returns reach triple digits or even over a thousand percent for my stocks in the stock market.
I am also very concerned about the latest moves by Income. In fact, I tried to get more information from Income about the bonuses but to no avail.
Since your departure from Income, I am slowly but surely noticing changes in Income that does not work in Policyholders favour.

1. Fitness centres to look after our health as a co-operative social responsibility of NTUC Income is being taken away.

2. Big Trumpet newsletter has degenerated from a bee-hive of activity of social mingling and forum discussions to now just an advertising platform to take advantage of policyholders value. The only discussion was a message by a former forummer criticising and lamenting the present state.

3. Bonuses are now being manipulated at the disadvantage of policyholders in favour of the company.

These disrespect for policyholders must be stopped even though it is done subtlely. Otherwise NTUC Income will attract accusations of its high handedness and arrogant treatment of its policyholders. And because of its NTUC affliations, our government's good reputation will also be affected. This may translate into votes lost in the coming elections, which will work against Singapore long term interest.; April 19, 2008 12:03 PM
Anonymous said...: i hear us treasuries are your instrument of choice, can you advise how do i go about acquiring these assets?; April 19, 2008 7:22 PM
Anonymous said...: What should the policyholders do?
Just watch helplessly and let the new management do whatever it wants, cut our annual bonus, delay paying the bonus until we forget or cannot tahan anymore and surrender prematurely and forgo the terminal bonus?
Please feedback and together take the necessary actions to protect our rights or take the agents who sold us for not disclosing this change to court. This is getting out of hand and we must put a stop to it. The agents don't care as long they get the high commission. They are now in Ho Chin Ming with the senior management celebrating and toasting each other for the successful collaboration last year for convincing the customers to buy the lousy products.MAS must be informed of this.; April 19, 2008 7:36 PM
Anonymous said...: i kena too. i am complaining to CASE
about this suka suka change our bonus. this ntuc new management cannot trust anymore. i buy this policy during mr. tan time, why still the new managemnt can change. It is unfair. i ask the agent he also told me to complain. He is not happy about it.; April 19, 2008 8:27 PM
Anonymous said...: This is shocking. Never thought it could happen. I am waiting to see how it goes before taking legal action.
I hope those who are affected will take concerted action against the company.I can't believe it. It is arrogant.; April 19, 2008 8:45 PM
Anonymous said...: My agent hung up on me. afraid to explain? I am at wit's end. I guess wait for the rest to see what is happening. I heard the ceo scooted off , unable to reach.; April 19, 2008 8:56 PM
Anonymous said...: Maybe it would be better if some of those affected can group together for a class action of sorts when finding Case or MAS.

I believe the management must have already got approval from their board of directors, which has roots from their patron, the N**C.

Not sure if MAS can do anything too, for high terminal bonuses is in fact a common feature for participating products sold in other companies (A,P,G,T etc).

In my opinion, don't be rash first. Look and see if newspaper will start reporting this before taking action.; April 19, 2008 11:06 PM
Anonymous said...: This new management is really too arrogant. As if we policyholders owe them a living. Complain to CASE no use, they may just drag on and move on. Write to the press, it seems the new CEO only act when it becomes a public issue. Better still write to MAS and cc to the press and government.; April 20, 2008 2:01 AM
Anonymous said...: Yes , writing to press to give it a bad publicity. Many still don't know what is happening. How can they do to the old policies.If it is new , we can decide whether to take it up or not. But to force it on us is illegal. Yes, it is illegal and unethical. Take class action against both agents and the company.Report to CASE or MAS.
How can NTUC do this to us.We are stuck. If ntuc compensates us, we don't mind cancel the policies.
I will cancel my single premium endowment, growth and capital plus.
I am pissed off by ntuc new policy.; April 20, 2008 1:47 PM
Anonymous said...: My agent asked me to report to MAS or sue the company. He said he couldn't do anything.; April 20, 2008 2:00 PM
Anonymous said...: If it is a feature with new plans, it is ok but should not do the policies which we bought many years ago. This is unfair and it is breaching the contract. Anyway, i am referring case to my lawyer.; April 20, 2008 3:42 PM
Anonymous said...: Policies bought just before Mr. Tan left can be considered for termination if the new management is adamant in implementing the new bonus cut.The loss is lower. For those who have taken up long time ago will be a fight to the end. This is absurd and a daylight robbery, a practise unexpected of a cooperative.; April 20, 2008 5:39 PM
Anonymous said...: Mr. Tan Kin Lian is well connected. Can he kindly find out from his friends who are lawyers whether a class action suit can be initiated to stop this arrogant new management of a co-operative from doing what it likes without any due regard to the feelings of Income loyal customers?
To hear that he is still enjoying the high life at our expense is the last straw. Where is the fairness, and all those nice things they say on their pledge and vision? Stop treating us policyholders as morons. It is our money that you are taking every month. At least treat us decently. Hope Mr. Tan Kin Lian can lead us through this as we bought our policies since we believed in him.; April 21, 2008 3:30 AM
Anonymous said...: You can lodge a complaint with CASE or Fidrec for a very small fee.; April 21, 2008 10:22 AM
Anonymous said...: Income is a cooperative in name..

#1. It is not a caring company anymore. You can from the number of cases taken out by it.
#2. It has withdrawn some of its non core businesses which were set up to benefit the policyholders as extra perks.
#3The products are expensive and not value for money. Eg. vivolife and revosave. The worse is revosave. it is more like retro saving product.
#4.The agents are now more money minded and greedy. They con their customers without batting an eyelid.
#5. They are not professional and are now resorting to unethical means.
#6.Now the 98% which used to be distributed to policyholders will not be given but delayed to very far in the future until you forget or miss it. This is the new trick.
It is behaving like all other companies but still claiming it is
a cooperative. The fact is policyholders are now asked to be cooperative.
#7.It is very extravagant.It spends
money like water but not on policyholders. Posh hotel meeting for agents, cocktail party and splurging on themselves.; April 21, 2008 12:53 PM
Mike Dirnt said...: Luckily all of my insurance are term insurances. so i dont need to worry about these bonues and sum at maturity.; April 22, 2008 3:10 AM
Anonymous said...: Hi All,

I just read through Mr.Tan's blog and intend to paste the URL link and send it to my Income adviser. Guess what! They filtered off the email which content "Tan Kin Lian" this magic word!
My Income adviser received my test email with "test" word but didn't receive my email which contains the word with "Tan Kin Lian".

I'm working in IT industry and I know they can do such a filter. I wonder why Income wanted to block this TKL's blog and doesn't want to let the agent knowing the truth!!; April 29, 2008 11:34 AM