Tan Kin Lian's Blog: Benefit Illustration of new plans

Thursday, March 11, 2010

Benefit Illustration of new plans

Dear all,

Below are the benefit illustration and policy summary for the 4 newer products since 2008 for ntuc income. They are all based on 30 yr-old male customer. Do note that all figures are projected and "hope for the best", unless stated unequivocally as Guaranteed.

1. Vivolife $100K sum assured & pay for 20yrs

2. Revosave $50K sum assured & pay for 25yrs

3. Sail $50K single premium & tenor of 30yrs

4. Vivolink regular ILP $500/mth

Consultant

9 comments:

Anonymous said...: Thanks for sharing.
I am always interested in single premium policies and have looked at SAIL briefly.
It takes about 7 years for the guaranteed surrender value equals to invested amount.
I think this is too much to swallow!; March 11, 2010 8:04 AM
Tan Kin Lian said...: The consumer should NEVER give up an exsiting life insurance policy to buy a new policy, as the consumer have to incur an expensive front end cost a second time (amounting to 18 to 24 months of your savings).

If an agent tries to get you to "switch" to a new plan without telling you about the upfront cost, the agent is failing in its duty to disclose this fact, and also the conflict of interest. You have grounds to lodge a complaint against the agent to the company, and later to FIDREC.; March 11, 2010 8:54 AM
Anonymous said...: I heard ntuc agents did that and encouraged too by their manager to boost their production to become number one.I guess being #1 was an obssession. No good company which puts their customers interest first should resort to this at the expense of their cleints. I also heard that ntuc became #1 through last minute dumping of the losing capital plus and also through staff purchase.
Is it necessary? What does it prove? Who benefits from this? Anything changed as a result?
My advice to ntuc is get your insurance agents to change from product pushing to planning/advisory. This is professionalism and NOT trafficking in products to become super duping salesmen and conmen and women.; March 11, 2010 9:37 AM
Consultant said...: To 8:04am,

The Sail product is a semi-con thing. It gives a very very low guaranteed amount. Most of the returns are all projected and non-guaranteed. Also, if you surrender within the first 5-6 years, confirm lose money.

Frankly if you are able to chuck aside a sum of money for 20-30 yrs, you are better off investing into low-cost ETF. Dollar-cost average over 1 or 2 yrs. I even tell customers they can split their capital into 2 parts --- 1 part DCA into ETF, the 2nd part transfer to CPF-SA (acts like a bond).

Of course, most important of all is to have sound money mgmt. At least 6 months of emergency funds in liquid savings deposits and some in money market funds.
Cover for hospital & medical insurance.
Use term to provide sufficient coverage if people rely on your income. Make use of group term if possible.; March 11, 2010 11:16 AM
hongjun said...: Mr Tan,

If someone has paid the first year premium in full, it is advisable to stop the plan and go into buy term and invest the rest strategy?

I am referring to Revosave.

hongjun; March 13, 2010 12:50 AM
Anonymous said...: Revosave is a horrible protection plan and a cut throat saving plan.
You are better off buying term similar to the revosave term and put the rest of the money in a saving account, though low return, and you are still better off. Meantime you can do whatever with your money in the saving account, right? You can touch , see and do instead of waiting for years or every year to touch ONLY HALF of your OWN money.
This is a scam.
You can lodge a complaint with the company and claim that you have been mis-sold and misrepresented and you had no idea of this rubbish saving plan. If the company refuses to refund your premium lodge it with MAS or FIDREC. Why should you lose money becuase of a malpractice?
Check the fact find form called "My Financial Portfolio" for facts to incriminate the agent. You will find evidence of misrepresentation definitely.I am very sure your agent isn't a qualified adviser but a salesman or woman who conned you into buying.; March 13, 2010 10:34 AM
Anonymous said...: Those agents who push Revosave definitely have no conscience and they will end up no relatives.It is down right scam product.; March 13, 2010 5:59 PM
Anonymous said...: You kenna conned already. Revosave is con product from ntuc. many after kenna conned canceled it and reported.; March 13, 2010 7:07 PM
Jos & SL said...: Hi Mr Tan,

It seems that I can't access the linked document from google. Appreciate if you could send me the link again. Thanks; February 07, 2011 2:53 PM