NTUC Income Insurance

[sohguanh]

Cannot find same thread in Money Mind so moderator if found please close this thread.

I have an Income savings policy started in 1993 for 36 years. At the 28th year mark all the years accumulated bonus I take a check wow basically this locked-in bonus has helped to pay for my premium for past 28 years!!! On top of that I am getting extra.

No wonder during that time I still cannot understand the agent say policy can earn monies but come on that time I going to start my NS so buy in case I die inside who will think of earn monies. Lucky I did not terminate and continue paying. Coming to 36 year mark mature got one tidy sum (of cuz need to factor in inflation). Hope I don't die before it mature.

Anyone hold Income policy for so long ? Human life got how many 36 years ?

PS that agent quit or had passed away so now my policy under a "generic" agent? The name of the policy is called Endowment haha

 

[reddevil0728]

Cannot find same thread in Money Mind so moderator if found please close this thread.

I have an Income savings policy started in 1993 for 36 years. At the 28th year mark all the years accumulated bonus I take a check wow basically this locked-in bonus has helped to pay for my premium for past 28 years!!! On top of that I am getting extra.

No wonder during that time I still cannot understand the agent say policy can earn monies but come on that time I going to start my NS so buy in case I die inside who will think of earn monies. Lucky I did not terminate and continue paying. Coming to 36 year mark mature got one tidy sum (of cuz need to factor in inflation). Hope I don't die before it mature.

Anyone hold Income policy for so long ? Human life got how many 36 years ?

PS that agent quit or had passed away so now my policy under a "generic" agent? The name of the policy is called Endowment haha

what do you mean human life got how many 36 years?

 

[sohguanh]

what do you mean human life got how many 36 years?

What I mean is will anyone hold and keep paying annual premium for an insurance policy for so long? 36 years? It is a super long commitment. Human assume live until 100 you got only two cycle of 36 years. This is what I mean. Assume you start work around age 20+ one cycle of 36 years is age 50+. The other cycle most likely retired no longer working. So just seeking ppl opinion of holding policy that long.

 

[ctan84]

What I mean is will anyone hold and keep paying annual premium for an insurance policy for so long? 36 years? It is a super long commitment. Human assume live until 100 you got only two cycle of 36 years. This is what I mean. Assume you start work around age 20+ one cycle of 36 years is age 50+. The other cycle most likely retired no longer working. So just seeking ppl opinion of holding policy that long.

What so special about 36 yrs? I have 3 policies from 1995, 2 from Income and Im still servicing them. The returns are reasonably good, so why surrender ?

 

[Shion]

Likely your policy is being servied by no one other than NTUC directly.

Email them for the latest benefit illustration and surrender value then decide whether to continue to pay or not.

 

[reddevil0728]

What I mean is will anyone hold and keep paying annual premium for an insurance policy for so long? 36 years? It is a super long commitment. Human assume live until 100 you got only two cycle of 36 years. This is what I mean. Assume you start work around age 20+ one cycle of 36 years is age 50+. The other cycle most likely retired no longer working. So just seeking ppl opinion of holding policy that long.

So long as the annualised yield is better than other alternatives, why not?

 

[sohguanh]

Likely your policy is being servied by no one other than NTUC directly.

Email them for the latest benefit illustration and surrender value then decide whether to continue to pay or not.

The surrender value is now over my total premiums paid so far so I am definitely keeping only left 8 more years to go.

 

[sohguanh]

So long as the annualised yield is better than other alternatives, why not?

What I am trying to say is that agent told me buy insurance savings policy can make monies I don't believe. Now nearing 50 I verified myself. If he is still alive I would like to thank him. But catch is you must be alive throughout the 36 policy years lah.

 

[reddevil0728]

What I am trying to say is that agent told me buy insurance savings policy can make monies I don't believe. Now nearing 50 I verified myself. If he is still alive I would like to thank him. But catch is you must be alive throughout the 36 policy years lah.

Not exactly leh. Can be much faster than 36y

 

[CrashWire]

The surrender value is now over my total premiums paid so far so I am definitely keeping only left 8 more years to go.

I wouldn't be surprised if most policies will turn positive close to maturity, especially since most insurance products won't invest in "moonshot" products.

The more important question to ask is probably how much opportunity you missed out on if you had bought a term policy instead, and invested the rest yourself.

But catch is you must be alive throughout the 36 policy years lah.

Strictly speaking, since the policy has only just turned positive, the policyholder's estate would have gotten more (the full sum assured) if they died far before 36 years.

 

[LexusIS]

Actually the old school insurance policies are really good (high crediting rate) especially if you get from a good insurer, like NTUC Income, Tokio, Great Eastern.

For my GE life insurance, it is at the 27-28th Year and compounding at based on my calculation - 4.6%, based on current surrender value. But my prudential policies sux big time, both the savings (Prucash) and (Prulife) - yet to break even after coming to 20 years

Anyway if u get a good insurance it really helps to supplement your investment & retirement journey. But sadly hard to see such good old school policies already. Anyway i learn from my mistake and similarly I advice relatives and frens to go for NTUC income, Tokio or even GE, and to try to avoid Prudential and AIA (feedback from bros here).

 

[a4973]

I wouldn't be surprised if most policies will turn positive close to maturity, especially since most insurance products won't invest in "moonshot" products.

The more important question to ask is probably how much opportunity you missed out on if you had bought a term policy instead, and invested the rest yourself.


Strictly speaking, since the policy has only just turned positive, the policyholder's estate would have gotten more (the full sum assured) if they died far before 36 years.

Agreed and we still have not heard from TS what is the annualized return yet so still debatable whether the policy is a "good" policy or not.

 

[sohguanh]

I wouldn't be surprised if most policies will turn positive close to maturity, especially since most insurance products won't invest in "moonshot" products.

The more important question to ask is probably how much opportunity you missed out on if you had bought a term policy instead, and invested the rest yourself.

When you say opportunity cost I think I need to give you the whole picture of my situation.

The year I purchase I am still not working so no monies to invest. That year 1993 is I was going to be drafted into NS 2.5 years after finish then go local University. My parents actually bought for me scared I do NS die inside. Furthermore the first few year premiums are paid by them not me since I still studying in Uni part-time job monies so little. Only when I finish Uni start work then take over to pay the annual premium.

 

[sohguanh]

Agreed and we still have not heard from TS what is the annualized return yet so still debatable whether the policy is a "good" policy or not.

Ok I share the lump sum amount after 28 years you all do your own calculation of annualized returns.
start 1993 bsa: 20k <- I know very little but 20k for the premiums paid at that time by my technician father and he still got my elder brother and younger sister insurance premium to pay
after 28 years
total premium paid: 15,992.2
total bonus (locked-in): 17,457
total cash value: 34,259.30 <- not sure how they calculate this

 

[sohguanh]

Anyway if u get a good insurance it really helps to supplement your investment & retirement journey. But sadly hard to see such good old school policies already. Anyway i learn from my mistake and similarly I advice relatives and frens to go for NTUC income, Tokio or even GE, and to try to avoid Prudential and AIA (feedback from bros here).

Long time ago I hear rumors/jokes for Prudential and AIA you must die then get big sum of paid out as for Income,Tokio,GE(this I not sure), the assured sum is much lesser but premiums also lesser.

I was thinking I die the big pay out is not to me so rugi. It is more for your spouse and children (if any). But when buy that time you single your beneficiary will be parents correct? So during my early years when I am single I quite against insurance despite agents tell me die still ok wait is kena terminal illness want to die cannot die, keep dragging then cham so must buy lest the ppl around you suffer together with you.

 

[GordonLiew]

Actually the old school insurance policies are really good (high crediting rate) especially if you get from a good insurer, like NTUC Income, Tokio, Great Eastern.

For my GE life insurance, it is at the 27-28th Year and compounding at based on my calculation - 4.6%, based on current surrender value. But my prudential policies sux big time, both the savings (Prucash) and (Prulife) - yet to break even after coming to 20 years

Anyway if u get a good insurance it really helps to supplement your investment & retirement journey. But sadly hard to see such good old school policies already. Anyway i learn from my mistake and similarly I advice relatives and frens to go for NTUC income, Tokio or even GE, and to try to avoid Prudential and AIA (feedback from bros here).

I am curious to find out why avoid AIA? Is it the company or the person handling the Insurance Policy from AIA?

 

[Mephist0pheLes]

if u spent that money to buy term insurance and invested the rest into some index fund instead, i guarantee u would have more than 34k today tho.

 

[BBCWatcher]

Let's run the numbers with the following assumptions:

Premium: $571.15 per year
28 years
Current surrender value of policy: $34,259.30

That works out to an effective interest rate of just shy of 4.87% (compounded annually). Eyeballing it, it looks like this'd be about the same growth as CPF Special Account deposits, factoring in the higher CPF interest rate (above 4%) during the first part of this period and bonus interest that came later. Of course the CPF alternative wouldn't have provided a death benefit. (Was a death benefit even needed?)

What's the death benefit for this policy? It doesn't look like it offers much insurance value if the surrender value is like that. By the way, you shouldn't judge whether to continue paying premiums based on what you've already paid. You simply look at whether it makes financial sense to pay the next premium.

Is 28 years a long time? Yes, and no. I started dollar cost averaging into a low cost, well diversified index fund when I was very young. That was just over 27 years ago, as it happens. More than 324 months of dollar cost averaging through the Asian Financial Crisis, "Dot Com" bust, Global Financial Crisis, and COVID. What a trip.

 

[LexusIS]

I am curious to find out why avoid AIA? Is it the company or the person handling the Insurance Policy from AIA?

Ah this is just "my own opinion" which is supplemented through reading through some of the posts by Bros in HWZ here. But you need to do you own research and reading.

For Prudential i learnt it the hard way, by being its policy holder, big regret when compared to other insurance i have. Which taught me to start researching before buying which i did for my girl.

Anywhere just to share one of the posts on AIA/Pru - you can go read / research for the rest:
https://forums.hardwarezone.com.sg/threads/insurers-par-fund-cagr-fy2008-onwards.5430385/page-40

 

[lavive_gp]

Does anyone find it a pain in the a$$ to make a payment for their single premium products ?