Insurer NTUC Income are pleased to declare an additional special anniversary bonus to complement your annual bonus. As well as a cash bonus1 for our long-standing policyholders.
Once again, NTUC Income has resolutely published thier yields for one reason – to be transparent.
Actual Yield: Endowment
| Policy Term | For males & females, entry age: 25 years old, S$100 monthly premium2 | |
| Maturing in 2010 | Average Maturity Yield (2006 - 2010) | |
| 20 | 5.47% | 5.88% |
| 25 | 5.95% | 6.03% |
| 30 | 5.90% | 5.92% |
Actual Yield: Whole Life
| Gender | Entry age: 30 years old with Sum Assured of S$50,000 | |
| At age 55 in 2010 | Average Yield (2006 - 2010) | |
| Male | 4.72% | 4.72% |
| Female | 5.41% | 5.41% |
1 This cash bonus is paid out on your oldest policy, which must have been in force for at least 10 years as at 31 December 2009. If you are residing overseas, or if the policy has been placed under a trust or is under the care of the Official Assignee, this cash bonus will be credited to your policy to offset future premium payments; or if no premiums are payable, the cash bonus will be paid out when the policy matures, is surrendered or if a claim is made. This cash bonus is not included in the calculations for actual yield.
2 Yields are calculated based on annual premium equivalent to S$100 monthly. Yield calculations are audited by Towers Watson. Actual yields may not be indicative of future policy yields.
Income will distribute a bumper $415.5 million in bonus payments to 746,000 policyholders to celebrate its crossing $3 billion in premium revenue last year.
Chief executive Tan Suee Chieh said yesterday that the payouts reflected the company's philosophy as a social enterprise.
'We distribute very little to our shareholders because we are not a commercial company... Our job is to maximise value to our customers, consistent with sound practice,' he said.
This year's payout has three components: the regular annual and special bonus of $283.9 million, a $123 million 40th-anniversary bonus and a one-off special cash bonus of $8.6 million. An anniversary bonus is paid every five years.
NTUC Income is maintaining the yield on the regular annual and special bonus, which is slightly more than 5 per cent.
The cash bonus will go to the 250,000 or so policyholders who have been customers for 10 years or longer. These customers will be mailed cheques of between $25 and $500 each over the next three to four weeks.
Unlike the regular annual and special bonuses, the value of the special cash bonus will depend on the length of a customer's relationship with NTUC Income rather than the size of policies held.
Source: NTUC Income, STI (30 Apr 10)
