When people buy policy, they will think to themselves, what kind of the policy do they want so that they can insure themselves with some protection. Are you looking for an investment plan, life long plan, maturity time or a flexible plan?
Investment plan allows one to do investment and get back the money at the end of every year. You might not need to do it yourself as there is a banker who helps you to monitor your investment and inform you when to buy it or sell it. However, there’s a price for that, the bonuses that you get back at the end of the day will be lesser as you need to pay some charges to the banker for monitoring your investment. The advantage is that you do not need to do the check on your own and will not miss any great deal. The disadvantage is there is some price you need to pay to the banker in order for the investment to grow.
Life long plan allows you to be insured with policy that gives you the protection of coverage. If one suffers any illness, they will still be able to have money for them to tide them of the bad times. It will lighten their burden if they need to have frequent medical checkout or need to take long leave from their work.
Flexible plan enables one to withdraw the amount that he put in initially at any time. There is no restriction of how many years would one need before he can surrender it.
Currently, there is a new plan on the market that gives a hybrid of both investment and insurance protection. For example, NTUC recently has just launch Revosave Savings Plan which is also known as the Erosive. It’s a 3 in 1 flexible saving plan, it allows one to save, invest and at the same time get insurance protected. For example, if one saves $500 a month, every year one would get back at least $2000 guaranteed. Starting from the third year, one can withdraw out on a yearly basic and still able to get back capital guaranteed which had been put in initially. One can also choose to redeposit the yearly cash-back given at 3.5% per annum with the company or reinvest it at 9% per annum returns without any charges.
If the insured suffered any critical illness, NTUC INCOME will still give the insured $2000 yearly based on the $500 that one saved and one does not need to come up with any single premium anymore.
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