Whole life and endowment policies sold by NTUC Income

Dear Mr Tan

I read your blog form some time. You now advise consumers to avoid the insurance products with high charges, such as endowment and whole life plans.

During the years that you were in NTUC, your agents actively sold these products. Were these products costly for customers?

REPLY:

The commissions paid to the agents on the life insurance products from NTUC Income were about 40% lower than the market.

The premiums were lower, the cash values were higher, and the return on maturity were about 10% to 15% better than similar products in the market.

Most of the products marketed by NTUC Income in the past gave reasonably good value to the consumers. They were much better than similar products offered by other insurance companies.

The conditions have changed today. I now recommend consumers to invest in low cost, diversified investment funds that give a better long term return. Read my FAQ in www.tankinlian.com/faq.