A consumer told me about his personal experience. He took an endowment policy with NTUC Income and a similar policy with another company. Both policies matured. The total premium paid was $25,000 for each policy. The Income policy returned $40,000. The other policy paid $27,000. The difference was $13,000.
Here are my observations:
a) I have heard about similar experiences from other policyholders.
n) It is possible for an insurance company to give poor returns, due to high expenses and low bonus payout
c) NTUC Income gave a good return in past years, but the future will be different
Lesson: buy term and invest the difference. Read here:
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
That is why the present NTUC is now shy about using your record as thiers and it is changing its color from blue/red to diarrhea color.
ReplyDeleteBut they forgot it is only an outer skin and consumers can see through the cover. Below the new skin or new clothing is the same old product pushing company and agents.Old dogs and bitches cannot be taught new tricks. Old crooked trees cannot be straightened. So it is wolf in sheep's clothing, right?
The future is buy term and invest the rest. Whether you like it or not it is the BEST to get the best protection and high return. It is the best way to ensure your family have money when you are now around.It is the best way to accumulate wealth or fund to ensure your retirement.
Never see an insurance agent or a salesman for help in personal finance.Never trust agents with mdrt or cot or tot titles or self given titles, they the cheats who have cheated a lot of people into buying par products to qualify for those dubious titles. So, be careful.
The current NTUC cannot give this kind of return. It is no longer the cooperative you used to helm.
ReplyDeleteNtuc has joined the rest and adopted their best practice and the their best practice is to short change the consumers.Restructuring the bonus is only one example of hiding the increase in the whole operating cost . It is in this component of the life fund that manipulation and magic show is conducted.
The products are the result and evidence of this manipulation. Which regular premium product
gives more than 3% after 30 years? The future belongs to the insurance agents and management if consumers and policyholders continue to dumb and stupid because they the consumers will be the ones funding them .
Prudential, my insurance company converted my few years's (around 3, 4 and 5 years old at that time) policies to investment link format (Sorry that I don't know the exact names to describe all these insurance terms). I then have to deal with unit based return and cost. I didn't know what to do and have little knowledge about the new structure adopted by Prudential. The agent whom I bought my policies had also left the company. I have not done anything to my policies till now. The cost seemed to be high from statement but I don't have a benchmark to compare with so I just keep everything untouched.
ReplyDeleteMr. Tan, can you tell me what I should have done at the point the scheme was implemented by Prudential? The policies are 2 X Life and 1 X endowment. Thanks