Tan Kin Lian's Blog: Good return from policies taken in the past

Friday, September 11, 2009

Good return from policies taken in the past

Hi Mr Tan,
I am a FISCA member. I have some Income policies that have matured or will be maturing soon, as follows:

a) Growth (SP endowment) taken for 15 years, invested $25,000, maturity sum $53,591
b) Growth (SP endowemnt) taken for 15 years, invested $14,430, maturity sum $21,435
c) Growth (SP endowemnt) taken for 15 years, invested $21,645, maturity sum $32,151
d) EIS Endownment taken for 16 years, annual premium $6,213, maturity sum $158,052

Am I getting a good and fair return?

LHY

REPLY

The return is as follows:
15 year Growth (case a,b, c): 5.2% p.a.
16 year EIS endowment (case d) 5.3% p.a.

The return is good. You've got a good deal. The return is better than similar policies taken with other insurance companies (based on other examples that I have seen).

However, this attractive return is for policies taken with NTUC Income in the past. I understand that the return for policies taken now are much lower.

Please ask many people to join FISCA

8 comments:

Anonymous said...: Remember this, you get these returns because MR.Tan Kin Lian was in charge.
But sorry to say, you WON"T get these returns if you buy the new Growth. Why? you should know, it is because of bonus cut wchih they took it to gamble in the special bonus.
It is NOT the same NTUC, the cooperative. It has just been 'rebranded' like those cattles in the wild wild west. Please don't trust them. They have ONLY new clothing. They are the same product pushing salesmen and women,; September 11, 2009 11:18 AM
Anonymous said...: Mr. Tan, don't let the new management use your good track record to mislead the public. They are misleading the public that their products can give the kind of returns you acheived.MAS must stop them because it is not possible.The new mangement shamelessly talked about honesty being the best policy but is dishonest to use and claim waht it is not yours, right? Also nowadays, the product illustrations don't provide yields unlike the your time. Is it because the returns are so obscenely low that they are shy and scared to show them. So what is this talk about transparency? Bullshit.
I know, to further bullshit is best left to the salesmen with misrepresenting titles to do the bullshitting and lies.The salesmen and women are really CON-inSULTANTS, SOME ARE SENIOR AND SOME ARE EXECUTIVE.They are all craps.; September 11, 2009 12:09 PM
Anonymous said...: Mr Tan, I am a FISCA member. I have a few policies which I have bought many years ago too. Instead of asking you to work out the returns for us, do you think you can provide a a table where we can key in the premiums and maturity/ surrender proceeds so that we can work out the yield ourselves? It would be very helpful to some of us who are hopeless where figures are concerned. As you know, the FIs take advantage of our poor understanding of yield calculations etc when they sell us the products. Thank you .; September 11, 2009 12:47 PM
Anonymous said...: It is easy to calculate the return, actual or projected. But please see a financial planner and not ntuc agents. They can't hold the calculator properly even let alone compute for you.; September 12, 2009 12:46 AM
Anonymous said...: This guy is damn lucky; September 12, 2009 6:51 AM
Raymond T said...: I am getting about 4.94% (projected) for a 25 year Endowment policy. I wonder whether NTUC can actually achieve the figure when the policy matures in 8 year's time.

I am in my 17th year.; September 12, 2009 7:29 AM
Anonymous said...: You might get lesser with the bonus cut. They claim they will give you more . Yes ,provided they win a lot at the casino with the special bonus account. Just cross your fingers and hope for the best. Meantime don't jump into one by whatever exotic names.; September 12, 2009 11:34 AM
Anonymous said...: before i decided to diversify my portfolio with a land banking product, i was told by my consultant this "we're looking at doubling your money in 5 years" and he went on to say "...but I can't guarantee that, as well as the waiting period for exit...". And so after about 5 years, the project i invested in exited, and my profit was about 27.31% (simple annualized) before tax. I've got to chat with other clients under my consultant at a hotel seminar recently, and they invested in another project and exited earlier this year during March - April, getting about 17% (simple annualized). I'm sorry I have to bring this up, as I realized this blog is so pro-(ex)NTUC and the non-hesitant nature of the myopic readers and fans of Mr Tan to step on other investment vehicles as scamming. For the time frame of 25 years, with a starting investment amount of SGD25K equivalent, do some math and count what you might have lost if you were to consider other investment options. Yes i still have lands in my portfolio, but i also have other items. My friends too. Aren't we all skeptics to begin with? I took a risk, not being rich to begin with (we're talking about 10 years ago), and now, despite losing a little bit of money in Mini Bonds, I'm so confident of my portfolio right now. And I'm happy to see that the company I'm investing with is doing so well, according to Sunday Times, and came to realize that credibility of an investment firm comes with itself being debt-free. So where's the scam? I feel insulted as there's a good proportion of non-investors who are claiming that I'm stupid as I'm with a scamming company!; September 15, 2009 11:36 AM