NTUC Income recently changed their bonus scheme leaving many of their holders unhappy because they feel that they will be getting lesser returns from their policy. Though I do not own any NTUC policies, I do have several endowment and life policies and I empathize with them. Below are the views of 2 bloggers on this change.
By: Adrian Khiat
NTUC Income recently sent a letter to all their Policyholders with regards to a change in their bonus scheme. They are reducing the Annual Bonus and increasing the Special Bonus. This change will affect how bonus are allocated to their participating life insurances.
What is it about?
* Annual Bonus are given to the policyholder on a yearly basis.
* Surrender/Maturity Bonus are given to the policyholder when he/she surrender the policy or on maturity.
* NTUC Income will give lower yearly bonus and therefore policy will show a lower value.
* However on maturity or surrender, NTUC Income will give a surrender bonus to boost the amount before the Policyholder get his surrendered amount. Read more...
By: Tan Kin Lian
Hi Mr. Tan,
I have been a loyal policyholder of NTUC for many years. I am really disappointed with the bonus cut, affecting several of my policies, including the policies taken for my children. I am considering to cancel all of these policies and to invest in unit trusts. Do you advice this move?
Do not cancel your existing policies, as you will suffer a financial loss. You can lodge a strong protest against the bonus cut to the board of directors and to the MAS. It is a serious breach of contract. Read more...