this is really fresh from the oven because we have just received an urgent email notification from ntuc-income (at approx 6pm):
Dear Valued Partners,
Over the last few years, interest rates have declined significantly. 12 months fixed deposit rates are now hovering around 0.4% p.a. compared to 0.9% p.a. 5 years ago. Similarly, 5-year Singapore government bond yields have declined from 3.2% p.a. 5 years ago to 0.9% p.a. today. As a result, it is becoming increasingly challenging to design and price this type of single premium savings plan, such as our Growth Plan. As you know, many of our fellow competitors areno longer selling such plans.
We will be _replacing_ thecurrent version of *Growth Plan (GRL3)*with a new revised version. Details of the new version of Growth Plan to replace the current version will be made in a separate announcement. The new Growth Plan will be available from 09 January 2012.
*Last day of submission for existing **Growth Plan (GRL3)**will be _09 January 2012_ at the close of business day. Application Form and BI bearing date after 09 January 2012 will _not_ be considered for **Growth Plan (GRL3)**.*
There are some letters sent to policyholders with maturities due in February 2012, inviting them to reinvest. For these cases, _if application comes in by 09 Jan 2012_, we can make an exception to issue these policies on maturity date. For maturities beyond February 2012, the reinvestment will have to be under the new version of Growth Plan.
Kindly note that all *Growth Plan (GRL3)* applications pending for payment or documentation must be completed and issued by 31 January 2012, otherwise they will be considered as ‘Not Taken Up’ (NTU).
We recognize the demand for single premium savings planand its place in the financial plans of our valued customers. We will continue to make available such plan to our customers as long as we are able to do so sustainably.
Thank you for your kind attention.
Warmest Regards
Financial Advisers, Sales Division
FA Hotline: (65) 9746 2663
www.income.com.sg
my comments:
to be really honest, it comes as no surprise to me that the current growth plan* will be repriced wef january 09, 2012.
if we look at a similar class, non-anticipated, participating single premium endowment product, it is a really near extinct animal, with tokio marine life insurance tm wealth enhancement (enrich) plan still left on the shelf.
but ntuc-income growth is probably pretty accessible to everyone, open to cpfis-oa, cpfis-sa, srs and cash payment. what's more, entry level is a very low single premium of just $5,000 whereas tokio marine life insurance tm wealth enhancement (enrich) has a much higher single premium requirement of $20,000 and is definitely not open to cpfis-oa and cpfis-sa as well.
furthermore, ntuc-income growth is also open to medically sub-standard lives.^
^terms and conditions apply.
my guess is the new revised version of growth will see the guaranteed cash value on maturity to be lower and the non-guaranteed cash value, headed north.
anyway, i do not want to jump the gun and shall await with bated breath, the new growth plan to be rolled-out this coming monday, january 09, 2012.
^mtuc-income growth plan is a non-anticipated participating single premium endowment plan.
and benefits at a glance:
■Flexible investment term
■Guaranteed1 returns on your principal sum upon maturity
■Yearly bonus2 based on financial results of the Life Participating Fund
■Payout of sum assured plus accumulated bonuses2 or cash value, whichever is higher, in the event of Death or Total and Permanent Disability (TPD before the age of 65)
■Payout of 2 times the sum assured plus accumulated bonuses2 in the event of an accident resulting in Death or Total and Permanent Disability (TPD before the age of 65)
IMPORTANT NOTES:
1 The guaranteed returns are payable only if the policy is held until maturity, on the condition that no policy alterations or related transactions have occurred during the entire policy term
2 Bonus rates are not guaranteed and the actual maturity benefits may vary according to the future performance of the Life Participating Fund.
3 Policy term of 11 to 20 years are only available for CPFIS and SRS and not available for cash investment.
4 The projected maturity benefit are based on a level of bonus rates, deemed supportable based on the assumption that the Life Participating Fund earns a projected return of 5.25% per annum in the future.
This blog is for general information only and is not a contract of insurance. The precise terms, conditions and exclusions of this plan are specified in the Policy Contract.
You should seek advice from a qualified adviser if in doubt. If you choose not to, you will have to take sole responsibility to ensure that this product is appropriate to your financial needs and insurance objectives.
Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than the total premiums paid
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