Policyholder got an attractive return

AN INSURANCE ADVISER SENT THIS MESSAGE TO ME

I am writing on behalf of my prospect whose NTUC policy is about to mature on 24th June 2006.

When she bought the policy 19 yrs ago, her son was 2 yrs old so based on him going to University at age 21, the NTUC adviser recommended her the 19 year endowment.

She has been quite happy with NTUC having paid quite good bonuses over the years, even during the SARS, Sept 911 & various other difficult periods.

However, recently she was very disappointed when she received your company's letter advising her of her maturity benefit.

Her disappointed was in the vast difference between her gross maturity benefit of $41,458 and the total projected maturity of $45,012. This represents a hefty 7.89% less than the projected $45,012.

Hence, she has expressed her extreme loss of confidence towards NTUC.

-------------

HERE IS MY REPLY.

The policyholder paid a monthly premium of $102.70 for 19 years. Total premium paid for 19 years is $23,416. The maturing benefit of $41,458 represents a yield of 5.8% per annum.

You can tell the policyholder that the return of 5.8% per annum is quite attractive.

Our payout is about 10% to 15% higher than the payout offered by other insurance companies under a similar plan.