Dear Mr. Tan,
I know that you are a fair and open minded person. The new INCOME management wants to change the bonus structure to achieve greater flexibility, solvency and earn a higher yield. So far, you have written in your blog against this decision. Can you identify some positive reasons for their action?
Every system will have its advantages and disadvantages. The new bonus structure may attract a certain group of policyholders. But it is not suitable for other policyholders.
If NTUC Income wants to introduce a new bonus structure with low annual bonus, they should launch a new product and attract customers to buy it. They may even approach the existing policyholders to switch to the new product. If the customers are convinced about the benefit, they will accept the change.
NTUC Income said that the new bonus structure allows greater flexibilty of investment to achieve a higher yield. This remains to be seen. They can set aside a separate fund for the new bonus structure and put the new policies into this fund. If it can indeed earn a higher yield, the policyholders are entitled to the benefit. But it carries greater risk.
It is not correct to impose the new bonus structure on existing policyholders who were sold earlier on the old bonus structure.
In my personal opinon, the old bonus structure is more suitable for the current policyholders. Those who prefer the new bonus structure already have the choice of investing in investment-linked products (ILPs).
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05/04 - 05/11
- Buy Term Insurance directly
- Register a Google account
- Posting in this blog
- Jakarta 11-14 May
- Signature for Collective Protest
- Difficult questions
- Well done, DBS
- NTUC Income is a cooperative
- A philosophy in people management
- New management style
- Post comments in this blog
- Choosing options in a Shield plan
- Pre-existing condition
- Endowment or Limited Pay Whole Life?
- Non-core business has been profitable
- More than Insurance
- Delay in notifying affected policyholders
- High departure of staff
- What is my motive?
- The Truth About Life Insurance
- Continue with the Ideal (ID2)
- Write to email@example.com
- My life insurance policies
- Effect of deduction
- Exotic Terminal Bonuses
- Lack of transparency and accountability
- Fair distribution of bonus
- Annual and special bonus
- Views from the management of NTUC Income
- Bad name to the life insurance industry
- Charges of unit trusts
- Invest to earn 5% to 8%
- Saving for a child's education
- Reasonable Expectation
- Transfer back to retirement account before 62
- Nearly 3,000 visits on Tues 6 May
- Get several quote on your motor insurance
- Buy a life annuity
- Write to ask the CEO of NTUC Income
- Insurance agents of NTUC Income
- AGM of NTUC Income
- Lack of reply to a letter
- Guts and honour
- Reply to Today: Cut in Annual Bonus
- Prepared to lose the premiums paid
- Is there room for welfare in Singapore?
- Buy unit trusts with Fundsupermart
- Personal attack
- Right and just will prevail
- Increase in motor insurance premiums
- Restructuring of bonus
- Give fair value to consumers
- Leadership - lesson from India
- Apply new bonus structure to new policies
- Prefer higher annual bonus
- Terminal bonus is not guaranteed
- Bonuses reduced by a significant amount
- Does the Growth policy still give good value?
- The less I drink, the more drunk I get
- Silent majority and bonus cut
- More than 1,000 visitors on Saturday
- Letter on Bonus Cuts
- Annual General Meeting of NTUC Income
- Indexed funds or unit trust?
- Smoothing or bunching
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