Free look period

Dear Mr Tan,

Recently, I bought the Revosave after meeting a NTUC agent in a shopping mall. She was very persuasive and told me all the good features of the insurance policy. I signed for the policy.

Later, my friend told me that the return on this policy is poor, compared to other products from NTUC. I want to cancel the policy. What is your advice?

REPLY

If you have bought the policy within the last 14 days, which is the free look period, you can ask to cancel the policy and get a full refund.

The return on this policy is about 2% to 3%. It is lower than the return on an ordinary endowment policy, which should give about 4% p.a. Due to the annual payout under this policy, the period of investment is short. After deducting the commission payable to the agent, the return to the policyholder is quite low.