Capital adequacy ratio of 170%

Dear Mr Tan
I do not understand why Income change its policy?

1) Does it mean they are not making enough to pay like the old system?

2) Is it still safe to buy insurance from Income which I am consider Growth plan despite the bonus change which is lower in return? I read Saturday May 31st in Straits Times reported that such scheme was to improve Income solvency position. Will they go burst for year to come?

3) If there have decided to change the bonus plan. Why not take effect from 1 June 2008 after the AGM instead of from year 1993 which is not fair for those who bought during that year onwards. A vote for this to all policyholder to decide.

4) Yearly AGM, should they declare the special bonus that is put aside at Income but is not payable. This will give policyholder a peace of mind when their policy is due for payment as a form of some guarantee.
JT

REPLY
Income is still financially strong with a capital adequacy ratio of 170% (2006), compared to a minimum of 120%. It is quite safe to invest with Income, from this standpoint.

I hope that they will be able to earn a good yield in the future, and distribute it to the policyholders. The chairman had made a statement that the board is committed to give the best value to the policyholders. I hope that this means that the policyholder will get a better yield, compared to similar policies in the market.