Dear Mr. Tan
I wish to seek your advice as to whether I am getting a fair share of the maturity sums I obtained from two policies maturing with two different companies.
For a 25 year term endowment policy with sum assured of $15,000 with AIA, I was paid the maturity sum of $30,271.95 which was $5,233.05 short of the projected amount in their original quotation when the policy was first taken up in 1983. On my appeal, they paid a further $2,469.63 making it a total of $32,741.58.
As for the NTUC Income Education Policy with a sum assured of $10,000 for a 20 year term, I was paid the maturity sum of $19,432.50 which was $2,137.50 short of the projected amount in their original quotation first taken up in 1988.
I have appealed to NTUC Income to pay the sum as projected originally but they have rejected this. They did not exercise understanding and flexibility as did AIA.
What I cannot understand is its agents have been telling Singaporeans that they charge lower premium and makes higher payout mainly becaused NTUC Income is a co-operative as against commercial Insurance companies like AIA, Prudential and Great Eastern. Instead, I now find AIA to be more compassionate, understanding and flexible while NTUC Income does not even bother to consider my appeal.
I seek your kind understanding and assistance on this matter. Hope you can advise whether what NTUC Income claims about giving me a better yield as compared to AIA is true.
REPLY
The yield on the AIA policy is 4.69% p.a. (25 years) and the yield on the Income policy s 5.44% (20 years). The yield from Income is better than AIA, although the policy was taken for a shorter period. In both cases, the yield has been satisfactory, as you get more thn 4.5% p.a.
AIA
25 year policy,
Premium: $57 monthly
Maturity benefit: $32,742
Yield 4.69% p.a.
Income
20 year polcy
Premium: $44.30
Maturity benefit: $19433
Yield 5.44% p.a.
So it looks like what they promised they cannot deliver. NTUC Income still expect us to believe them this time round by saying they will pay the reduction in annual bonus when the policy matures or when you die. Now we see a policy maturing and still get reduced payout. Co-operative my foot!!!
ReplyDeleteWhy can't they pay you their projection which is only 5.5% if I am not mistaken. Ntuc Income made 10.7% last year and 10.8% before that. We can understand if they have a bad year and profits dropped below 5.5% and so cannot pay the promised projection. If they can earn more then they should honour the projection. Do we have a legal case here? Mr. Tan?
ReplyDelete5.44% yield is Mr.TanKL's best kept secret but was used for facial skin grafting by the new management. But don't be fooled . Past performance is not indicative of the future.
ReplyDeleteCan it be repeated in the future? I doubt.With the bonus restructuring it is make or break.It is a gamble. The likelihood is break.
Dear Kin Lian,
ReplyDeleteOnce again NTUC Income failed to take the opportunity to explain to the policyholder that he has earned 5.44% yield on his policy. They appear to be too arrogant and snobbish and push the policyholder away.
For AIA they have used their PR skill very well without the policyholder knowing that he was in fact getting a inferior return on his policy compared to that of NTUC.
NTUC Income really "chak-lat"!!!!
That is why NTUC prefers more to be in special bonus. Can play with it. They call it smoothing. We call it shortchange. You saw it, right? Why make high projection when you KNOW full well that you will not meet it.
ReplyDeleteIs this cheating?
The best is to avoid whole life and endowment products from NTUC and the others.
make high projection is to promote sales. Once sales target reached, come out with smoothering reasons to further their own interests. I just saw a book, the rich dad poor dad series that teaches you how to use other people's money to make yourself rich. Perhaps the new management have read the book?
ReplyDeleteI just checked my education policies which were also taken out in 1988. Why is it that yours cost only 44.30 while mine cost 49.80 per month? A difference of more than 10%. Anyone know the reason?
ReplyDelete