Tan Kin Lian's Blog: Get the Benefit Illustration

Tuesday, February 09, 2010

Get the Benefit Illustration

Someone asked my views about the SAIL policy that is capital guaranteed. I do not know the features of this policy. I ask her to send the benefit illustration to me. I recall reading some negative comments about this policy but I do not know why.

4 comments:

Anonymous said...: This SAIL is yet another near-scam lousy value product. It is a single-premium endowment with minimum tenor of 10 years. SAIL is NOT capital guaranteed. Most Income agents will encourage you to sign up for 20 yrs or even 30 yrs. Upon maturity, the company will entice you to roll over the matured proceeds into a 20-year annuity, further prolonging the agony of lousy returns disguised as regular annual cashback.

If you analyse the benefit illustration you will find that SAIL is high cost and has high penalties for early termination. 99.99% of Income agents will not calculate the costs taken from you the customer, even if you ask them. They will smoke you, saying the costs are transparent, already included in the single premium, and please trust Income becoz it's a Co-op and previously give high returns blah blah.

When Income first launched SAIL, they had gigantic posters saying customers can get 6X the initial premium upon maturity. When you pick up a magnifying glass to see, you will see the fine print (in 2mm characters) saying that this is not guaranteed, just projected figure, based on healthy 30-yr old, investing for tenor of 30 yrs followed by 20-yrs annuity payout. And 99% of Income agents will not know how to calculate the percentage compound returns for you.

Wow, 6X of your initial capital based on hope and ideal conditions over 50 years. That's locking up your money for 50 years in exchange for 3.65%pa with high penalty for early termination. You might as well transfer to CPF Special Account if you really have such money to lock away. Somemore got extra 1%pa for the first $60K.

Ex-Con; February 09, 2010 4:04 PM
Anonymous said...: What do you expect of the new management whose salary is on the rise. Therefore NTUC must rise and expenses are rising. To play with your premium make sure you are locked till you forget so that they can manipulate the special bonus. Now the casino is opened they can put your special bonus there to see it can double triple to give you the return as projected otherwise blame it on the poor investment climate.
Ask the ntuc agents to calculate?
They will fumble with shaky hands but won't give you an answer and they only can regurgitate the figure as taught by the training department.Please tell them to call themselves Financial Salesmen, Senior Financial Salesmen or Executive Financial Salesmen and don't insult and disgrace other financial consultants.It is real insult to the titles and I wonder why MAS is not doing anything about this company misrepresenting their salesmen and women.
About the sail. these agents will sail to your doom.; February 09, 2010 5:51 PM
Anonymous said...: Ntuc agents used to peddle the SAIL as a product which earned better than bank FDs. It is gross misrepresentation of the product and recent MAS's released paper bans such comparison. SAIL is NOT and never has any of the features of FDs.
If you should know of any ntuc agents peddling SAIL this way you can report to MAS for infringing the misleading statement guideline.; February 10, 2010 3:19 PM
Unknown said...: I am currently aged 31 and would like to take up the SAIL policy as well. I have about 0.25m death coverage and about 100k for death and TPD. Of course I do not have enough retirement plans, so what policy do you think is good?

Tony; May 18, 2011 1:05 PM