Thursday, July 14, 2005

Ideal plan - best plan for an uncertain world

I wish to recommend the Ideal plan from NTUC Income as the best plan for an uncertain world.

It allows you to make regular savings when you are employed. You can top up with adhoc savings, out of your annual bonus or occasional income.

If you have a cash flow problem, you can stop your savings for a short period. There is no penalty.

Your savings can be invested in the Combined Fund from NTUC Income. It is a large, well diversified fund, have $3,500 million of assets, and is managed by 9 top fund managers.

I expect the fund to earn an average of 6% per annum over 10 years or longer, but this is not guaranteed. As it is a large and well diversified fund, the risk is reduced. A few bad investments will not affect the long term return of the fund.

Here are two additional advantage:

- you can buy insurance protection in a separate policy and pay a separate premium
- 100% of your savings is invested from the first month
- our charges are probably the lowest

To know more about this plan, you should attend our educational seminar that is held every two weeks. Call 6788 6636. Website: www.income.coop

3 comments:

Anonymous said...

Hi Mr Tan,

Regarding your ideal plan, i think you need to improve on it before it is appealling.

Firstly, it should be pointed out that it is afterall, an investment linked insurance plan.

I have made some enquiries and realise that if your investment is less than 8000, you will need to pay annual fee of $30.

Secondly, there is bias towards lump sum investment so it cannot be considered as a mean to save. For those who want to save on a monthly basis, they will be penalised if they want to realise within the first 3 yrs. There is only a 50% refund within the first 3 yrs of the total premium paid. I think this has to be changed if it is to be called and sold as a saving plan.

Lastly, the ideal plan does not allow policy holder to stop at a certain timepoint after 3 yrs. Upon stopping, all units have to be realised. If it is meant to be a saving plan, it should allow for customer to stop contribution and let the units grow in value, similar to unit trust. However, currently, there is no such provision.

Agents selling this seem to be bias to asking for monthly contribution. I am not sure why. Perhaps, agent earns more for selling it as a monthly saving plan than lump. In fact, my agent lies to me that there is no lump sum for ideal plan.

Anonymous said...

Dear song kin san

You may want to attend NTUC Income's free investment talk:

Date 23 July 2005 (Saturday)
Time 2pm to 4pm
Venue 7th Floor Conference Room
NTUC Income Centre
75 Bras Basah Road
FREE ADMISSION

http://www.income.coop/seminar/

"Join us at our Educational Talks and you will get a chance to ask
Mr Tan Kin Lian, CEO of NTUC Income."

Tan Kin Lian said...

Dear Song Kin San,

You have the wrong information about our Ideal plan.

Our charges are modest, and are much lower than similar plans from other insurers.

After deducting the charges, you can get a good return on your savings, if you invest for 5 years or longer.

The plan allows flexible withdrawals. You should visit our office and talk to our insurance consultant.

You can also attend my educational talk.

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