NTUC Income rolled out Capital Plus on 11 July and has closed the subscription on 13 July, 5pm.

The plan is a simple 2 year single premium endowment that gives a fixed 2.82% absolute interest (or 1.4% annual compounding). Down side is that withdrawal any time within the 2 years suffers a definite loss.

As can be seen, funds are still available in the market. People are hungry for short term plans that are relatively safe and give a fixed return higher than fixed deposits.

I believe this is a win-win-win situation that insurers can learn from.

First WIN, customers. People are happy with the plan. It is simple, straight forward and no hidden funny business. Returns may not be fantastic, but it is a risk-reward that people find acceptable given the current interest rate environment and duration of the plan. The plan also would not fall into ......