New products from NTUC Income

COMMENT POSTED IN MY BLOG

The extravagant splurging on ads and rebranding is going to make REVoSAVE the most expensive product ever launched.

PAYMYuni has already gone south. Going by the reception by the public it looks it was doomed from its birth. Why? It is a redressed up product with no real benefit. It's a wolf in sheep's clothings. (High commission)

An agent was promoting to me of the flexible options revosave has. I told her, money in my hand is far more flexible. I have more options.

For liquidity I can put into a money market which earns up to 3.5%
If I want to be locked away for many years I can buy a plain vanilla endowment for higher return and higher insurance coverage.

For even higher return I can invest into a RSP which charges 3% but with all my premium invested and not just 36% of my premium as in what I would have paid for revosave.

You see, I can have more to spend on my sunny days and also plenty to meet my rainy days and not forgetting to mention the insurance coverage which is higher than revosave for same premium. I have real freedom and peace of mind.

Thanks to Doc. Money, without his advice I would have been a prey also.

REPLY

Revosave is similar to (but offer a slightly better return) compared to another product that sells very well in the market.

The popularity of the earlier product may suggest that there are some features that appeal to the consumer. Some people may not be driven entirely by the return on the product.

PayMyUni is an endowment product. It gives insurance protection and a fairly satisfactory rate of return (maybe 3% or higher). It was designed during my tenure as CEO.

However, parents now have another option, i.e to invest in a low cost fund, such as the combined fund, and to buy a decreasing term insurance. Read this FAQ.