Similar plan from NTUC Income likely to pay 16.9% more

E-MAIL RECEIVED FROM SOMEONE

Hello Mr Tan

I was very disappointed when company A informed me that the projected reversionary bonus were much lower than projected.

Plan : 20 year endowment
Entry date: Apr 1991
Maturity date: Apr 2011
Premium : $551.10 per annum
Projected benefit (original) : $20,080
Age Entry : 24 years old

New Projected benefit:

(a) $14,597 (3.7%)
(b) $15,172 (4.7%)
(c) $15,746 (5.7%)

J

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Dear J

If you had bought a similar endowment policy from NTUC Income in 1991 with the same annual premium, your projected maturity amount in 2011 would be $17,736.

This is 16.9% higher than the middle projected benefit of $15,172.

This difference is consistent with other polcies of 20 years duration that have matured recently. We pay about 15% more than company A.