Lower Guaranteed Benefits Likely

[FP_IFA]

Okay, here we go. Be happy of your current plans because it is going to get worse.

http://www.straitstimes.com/business/lower-guaranteed-benefits-likely-under-new-insurance-rules

 

[Perisher]

Noted. Thank.

 

[wts2013]

"More offerings of less capital-intensive products, such as term, investment-linked insurance policies (ILP), and personal accident plans are also likely to go on the market.

That is because these products require insurers to set aside less capital to ensure solvency, for example.

The trend for such products is emerging as more insurers are tweaking their product offerings in the face of upcoming stricter risk requirements for insurers, under a more robust capital framework for insurers."

hahaha, now moi know why so many people buy term insurance, hahaha

 

[Shion]

"More offerings of less capital-intensive products, such as term, investment-linked insurance policies (ILP), and personal accident plans are also likely to go on the market.

That is because these products require insurers to set aside less capital to ensure solvency, for example.

The trend for such products is emerging as more insurers are tweaking their product offerings in the face of upcoming stricter risk requirements for insurers, under a more robust capital framework for insurers."

hahaha, now moi know why so many people buy term insurance, hahaha

 

[doody_]

Waiting for more competitive terms insurance premiums.

 

[djchris]

The insurance market will ultimately correct themselves.

If they lower guaranteed benefits and consumers don't like them, consumers will shift to term insurance which are less profitable to insurers.

In order to earn more profits, insurers will eventually tweak their plans to lure consumers back again.

Consumers need not worry.

 

[bibu00]

Or they can turn to misrepresentation and sugar coat hard selling to make ends meet.
Just saying.

 

[wts2013]

"More offerings of less capital-intensive products, such as term, investment-linked insurance policies (ILP), and personal accident plans are also likely to go on the market.

That is because these products require insurers to set aside less capital to ensure solvency, for example.

The trend for such products is emerging as more insurers are tweaking their product offerings in the face of upcoming stricter risk requirements for insurers, under a more robust capital framework for insurers."

hahaha, now moi know why so many people buy term insurance, hahaha

hahaha, what the newspaper article is telling us: selling policies such as term, investment-linked insurance policies (ILP), and personal accident plans help insurers make more money cos they need not set aside risk capital to comply with new regulatory requirement released since 2004 n will be effective soon, hahaha, they are going to push these products more. Selling wholelife policies where the sum assured increases overtime is less or not profitable for them cos their capital will be tied down to comply with regulatory requirement, so they are going to tweak these plans by not offering increasing sum assurred, etc.

ie term is pau chiak for them, hahaha

 

[Mecisteus]

wts is very lucky because his auntie already got a whole life policy with the best returns. then he told everyone why they should also buy whole life policies because if his auntie can get good returns, other whole life policy holders also can.

 

[Shion]

wts is very lucky because his auntie already got a whole life policy with the best returns. then he told everyone why they should also buy whole life policies because if his auntie can get good returns, other whole life policy holders also can.

I kind of remember this...the NTUC Living policy ?

 

[wts2013]

hahaha, fast hand fast leg lor, before they change, hahaha, but your term already down the drain, hahaha

 

[Mecisteus]

I kind of remember this...the NTUC Living policy ?

should be. he refused to repeat the name despite repeated and kind queries from forummers.

this is 1 of the risks of a whole life policy. i already mentioned this before. the main objective of the insurance company is to maximize profits to their shareholders. they are unlikely to maximize your life policy bonuses. they will give you minimal bonuses. with this new regulation, current policy holders will be affected too. their guaranteed portion will not change but their future bonuses will be reduced further.

 

[wts2013]

hahaha, ntuc living policy no longer offered cos they losing money, continue to guess lor, hahaha

even TKL wrote in his blog "people dun know my insurance company sell policies which give 5% returns" hahaha

 

[wts2013]

hahaha, what the newspaper article is telling us: selling policies such as term, investment-linked insurance policies (ILP), and personal accident plans help insurers make more money cos they need not set aside risk capital to comply with new regulatory requirement released since 2004 n will be effective soon, hahaha, they are going to push these products more. Selling wholelife policies where the sum assured increases overtime is less or not profitable for them cos their capital will be tied down to comply with regulatory requirement, so they are going to tweak these plans by not offering increasing sum assurred, etc.

ie term is pau chiak for them, hahaha

hahaha, let me explain above with a story:

This is how the story goes:

“we know it is more profitable for them to sell more Term policies to survive, what should we do to convince the customers that Term Plan is also best for them? Ok, tell the customer it is cheaper to buy Term policies, then the money they saved they can invest in STI ETF for say 25 years, by then they would have made enough and will not need to depend on the Term policies, they can stop paying the premiums by then, better than wholelife where they have to continue to pay to claim.

Hahaha, customer believe the story, we pau chiak all the term policies premiums and no need to pay a single cent cos the policies will be terminated by then, hahaha

Hurray, this was tested with success, so now we can continue to push out more Term Policies n tweak the wholelife plans with the coming implementation of new regulations, we can surely comply liao with the increase in risk capital requirement cos more money coming from Term Policies, hahaha”

(first para adapted from ex-insurer's article)

 

[Mecisteus]

we have an actuary speaking.