tag:blogger.com,1999:blog-11702093.post6103759813924255363..comments2024-03-28T22:56:40.743+08:00Comments on Tan Kin Lian's Blog: Bonus projections of life insurance policiesTan Kin Lianhttp://www.blogger.com/profile/00617069056914635271noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11702093.post-25519347177888589112008-04-18T23:25:00.000+08:002008-04-18T23:25:00.000+08:00Now ntuc is manipulating the bonuses.Now ntuc is manipulating the bonuses.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-87012622593312959582008-04-10T22:04:00.000+08:002008-04-10T22:04:00.000+08:00This is tantamount to holding the policyholders ho...This is tantamount to holding the policyholders hostage to the full term. <BR/>Unlike during Mr.TanKl's time, the breakeven point was short and anyone who wished to surrender would not have to lose out or in need of cash there was substantial to make a loan.<BR/>It seems traditional products are no longer suitable as a protection or saving plan for those who might need in the early years.<BR/>There are reasons now to buy term and invest the rest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-81781375852520115152008-04-10T19:38:00.000+08:002008-04-10T19:38:00.000+08:00If a higher annual bonus is vested on a policy, it...If a higher annual bonus is vested on a policy, it becomes part of the guaranteed portion. As it becomes guaranteed, the insurer has to invest it in safer asset classes due to the risk-based capital framework stipulated by MAS. This in effect brings down the overall yield.<BR/><BR/>For the insurer to improve the yield, a way will be to hold back declaring high annual bonus and shifting it to the terminal bonus. Hence, IF the insurer is ethical, these accumulated amounts can be invested in higher risk asset classes thereby improving the overall yield eventually.<BR/><BR/>The problem boils down to TRUST. Do you trust your insurer? History has proven that in times of bad investment climate, the insurer can cut the terminal bonus. <BR/><BR/>Those with policies from the American or British insurers can ask for a post-sales illustration either this year or next. I say this because these policies are quite mature. <BR/><BR/>You can judge for yourself if the projected cash values has dropped drastically. Please keep readers of the blog updated.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-5052268410059893002008-04-10T15:33:00.000+08:002008-04-10T15:33:00.000+08:00Mr Tan,A very insightful comment and point well ma...Mr Tan,<BR/>A very insightful comment and point well made. Can never find this anywhere. Keep it up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11702093.post-89052748741516167522008-04-10T09:43:00.000+08:002008-04-10T09:43:00.000+08:00This is what NTUC is doing now. Look at the Vivoli...This is what NTUC is doing now. Look at the Vivolife and revosave both have very low bonus in the early years just like many commercial companies.In the early years should one for some reason have to surrender the proceed will be a LOSS. This is departing from the cooperative value which made NTUC one of the most caring companies. <BR/>NOW WHERE IS THE COOPERATIVE VALUE THAT THE AGENTS ALWAYS TALK ABOUT? WHERE IS THE 98% RETURNED TO<BR/>POLICYHOLDERS? <BR/>Policyholders are NOW forced to hold till maturity which many may not and therefore lose out. <BR/>DO YOU NEED MORE MONEY WHEN YOU ARE BRINGING UP THE FAMILY OR WHEN IT IS OVER.WHEN IS THE MOST crucial PERIOD?Anonymousnoreply@blogger.com