Our projection are conservative!

A contributor to another web forum made tihs report on our Flexi-Cash plan: "NTUC Income usually has high non-guaranteed rates giving a false sense of security to consumers

I sent the following reply to that forum:

Flexi-Cash is invested in our money market fund. Currently, the fund earns an average return of about 3%, after deducting the management fee of 0.25%. As the market interest rate is likely to increase, the return on the money market fund is also likely to be higher. This is not a projection. It is a description of the working of the money market fund.

For our other insurance products, NTUC Income adopts a conservative projection of our future bonus rates. They are based on an average yield of 5.25% on our life insurance funds over the long term. This is much lower than the projection used by some insurance companies.