Wednesday, October 31, 2007

Free look period

Dear Mr Tan,

Recently, I bought the Revosave after meeting a NTUC agent in a shopping mall. She was very persuasive and told me all the good features of the insurance policy. I signed for the policy.

Later, my friend told me that the return on this policy is poor, compared to other products from NTUC. I want to cancel the policy. What is your advice?

REPLY

If you have bought the policy within the last 14 days, which is the free look period, you can ask to cancel the policy and get a full refund.

The return on this policy is about 2% to 3%. It is lower than the return on an ordinary endowment policy, which should give about 4% p.a. Due to the annual payout under this policy, the period of investment is short. After deducting the commission payable to the agent, the return to the policyholder is quite low.

6 comments:

Khiat Han Hwee Adrian said...

The returns of the policy is 2% only if the person choose to receive the payout yearly. Else the returns you can expect is about 3% to 3.45% basis the premium put in and term chosen. If investment option is chosen yearly, the returns is potentially higher.

Comparing with an Endowment Plan, the returns are lower, but this plan gives some liquidity which some people wants.

If comparing to investment, investment expects to give higher returns, but not guaranteed.

Anonymous said...

I don't think you understand the meaning of liquidity. Obviously, the word is used to mislead the unwary customers. Liquidity means you can access your money ANYTIME. Putting your money under your bed is liquid. You can reach for it whenever you wake up idn the morning. This is called liquidity.
Revosave has NO LIQUIDITY. It has refunds, yes after 25 months and after end of every year. So don't mislead. You have redefined liquidity?
Return from any of the options is far below those if invest into a simple plan. Put your money in money market and get 3.5% and get liquidity too.That is stupid to leave it with the company. Why get locked up,enslaved for long period without the real value?

Anonymous said...

Perhaps too much of exotic overseas trip and high commissions have released too much endorphins into his mind and hence it has become liquid, liquidi, liquidit, liquidity.

Khiat Han Hwee Adrian said...

NTUC Income did not increase commission to anyone.
They did have some incentive trips for their top advisers but only to nearby countries.

Their strategy seems different. Instead of giving freebies(MP3, Camcorders, etc) to policyholders in the past, the savings from giving such freebies are now given back to advisers to motivate them.

Its business strategy. I think NTUC Income is still a responsible and public oriented company as a whole.

Anonymous said...

abuse of the word is intentional as you can see from the brochure. surely there is no lack of poeple in ntuc who command good english. it is intended to misslead and also train the agents to mislead. this is brain washing... agents now talk like parrots

Anonymous said...

I hope you have returned the revosave to NTUC. if you have, you are free now; free of those rubbish so called
liqidity flexibility and options to commit financial suicide. Go and invest into funds, but first get one adviser who is competent and honest and not insurance salesman from NTUC
who even have no idea of the products
they try to sell to you.

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