Is NTUC income investment guaranteed by the government?

[lordofthering]

For example they have annuity of 4% too and fixed deposit (3 years at 2.2%). If it is guaranteed by the government it should make it risk free and a better investment than fixed deposit by bank because the credit risk is removed

 

[limster]

For example they have annuity of 4% too and fixed deposit (3 years at 2.2%). If it is guaranteed by the government it should make it risk free and a better investment than fixed deposit by bank because the credit risk is removed

Pls send them your query and post the reply here. If you are investing your hard earned cash, better get black and white from NTUC instead of trusting anonymous internet response:

https://www.income.com.sg/contact-us#send_an_enquiry

 

[BBCWatcher]

For example they have annuity of 4% too and fixed deposit (3 years at 2.2%).

The government managed Singapore Deposit Insurance Corporation's Policy Owners' Protection Scheme protects most insurance policies sold in Singapore, including NTUC Income's, up to applicable limits. For example, the applicable limit for annuities is S$100,000 "for the aggregated commuted value of guaranteed benefits (i.e. annuity payments, death or surrender benefits) per life assured per insurer."

If it is guaranteed by the government it should make it risk free and a better investment than fixed deposit by bank because the credit risk is removed

Singapore dollar fixed deposits at banks in Singapore are also SDIC protected under the Deposit Insurance Scheme, up to S$75,000 aggregate per depositor per institution.

Although the SDIC limit is higher with insurance policies, what's protected can be lower (the surrender value) depending on the policy. So it's not correct as a generalization to say that one form of SDIC protection is better than the other. "It depends."

 

[tangent314]

Please name this 4% annuity product.
I've got a feeling it's a participating fund product...

 

[lordofthering]

Please name this 4% annuity product.
I've got a feeling it's a participating fund product...

Sorry 4% is historical return. Guaranteed is very low. My bad for not stating

 

[JuniorLion]

NTUC Guaranteed Life Annuity had been removed as of Nov 2018.

 

[BBCWatcher]

Sorry 4% is historical return. Guaranteed is very low. My bad for not stating

The SDIC definitely doesn’t insure non-guaranteed returns, and, depending on the product and sum assured, it might not insure all guaranteed returns either. But the SDIC does offer substantial protection.

 

[BBCWatcher]

NTUC Guaranteed Life Annuity had been removed as of Nov 2018.

Sadly, yes, from the general market. There are some existing NTUC policyholders that might be able to convert certain policies into their Guaranteed Life Annuity.

 

[world7134]

NTUC charge quite high fees of 3.5% for their funds. Please do check properly with others such as banks and other brokers that may have lower fees