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Monday, October 26, 2009

Break-even point for old NTUC policies

Dear Mr. Tan,
When you were in charge of NTUC, did your products have a breakeven point of 5 years?
REPLY
If my memory was correct, most of the products have a break-even point of 5 to 8 years. They also provide a good yield to the customer, after 20 years, i.e. 5% or higher. So, most customers who bought the NTUC policies in the early days obtained a good deal. The high yield was possible due to low distribution cost, and a high rate of bonus distribution.

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