Low cost products

Dear Mr. Tan,

Why are you recommeding "Buy Term and invest the remainder" now, when you are no longer heading NTUC Income. Why did you not recommend this approach earlier?

REPLY

NTUC Income introduced the low cost investment fund, called the Combined Fund in 2003. It introduced the family insurance plan, which provides low cost riders (to cover death, critical illness and medical benefits) earlier. The low cost term insurance, called i-Term, was introduced around 2005 or 2006.

These products were sold by the insurance agents who wanted to give good value to the policyholders.

The traditional insurance products, such as whole life and endowment policies, introduced during my tenure offered reasonably good value, compared to similar products in the market. This was possible because of our low cost structure.

These were done during my tenure as CEO. I left NTUC Income on 1 April 2007. I am not sure if the new management of NTUC Income still abide by these values. You have to judge by yourself.