The Official Helmi Hakim Website

There is a Q and A about ILP.

…and I will just post it here for your reference

1) I invested $50,000 a year ago in the Growth Fund. The returns are 9%. In January 2006, I invested another $100,000 using my CPF in Growth Fund.

Should I realise my profits from the first investment or should I leave it in your Fund?

I hope to grow my CPF money and be exempted from Estate Duty.

Answer :

I would advice you to choose a right time and invest half of your money in Life Annuity and the keep the rest in the fund.

2) I sold my fund last month with some profit.
Can I reinvest again? Is it against the CPF law?

Answer :

I do not advise you to move in and out of the fund as the difference is 3.5% (the initial charge).

In your case, if you do not have better alternative, you may want to consider investing your money back to the fund or purchase a Life Annuity.

3) I invested $15,000 in the Dynamic Guaranteed Fund (DGF) in 2001.

However, as at 31 July 2005, the value was only $15,064.11, which is lower than if I had left it with the bank.

Can you explain the returns for DGF and what can be expected? Is there any charges for switching to the Combined Funds?

Answer :

DGF is managed by a French bank.

They invest in mostly Bond so as to keep the capital protected.

Therefore, the returns are very low.

We offer our DGF policyholders an option to switch to our Combined Funds at no additional charge and a waiver of the initial charge of 3.5%.

4) What are your views on the increasing insurance charges especially in higher age band for regular-premium Investment-Linked Plan (ILP)?

Answer :

We do not charge for insurance cover for our regular-premium ILP. We offer a 5- year insurance for our Ideal Plan.

If you need higher insurance coverage, you may consider taking up a low cost insurance (Level or Decreasing Term Assurance).

5) Previously, a bonus (dividend) was declared on the Unit Trust.

This is better than the present system where no bonus is declared. For retiring folks, a bonus declared yearly is useful because the bonus can be encashed.

Will NTUC Income consider the previous practise of declaring a yearly bonus?

Answer :

We do not declare bonus, but our investment grow by 15% a year.

If we declare a bonus of 5%, the growth will be 10% and it will amount to the same 15%.

You can withdraw your investment simply by giving us an instruction.

For example, you may request to withdraw $200 every month from your investment and transfer it to your bank account.

6) Who are the 9 top Fund Managers?

What are the Top 10 holdings of the Global Equity and Singapore Equity?

Answer :

You can find this on our website at www.income.com.sg/fund/coopprices.asp

7) The Global Equity and Singapore Equity Funds are doing much better than the Bond Funds.

Would it be better for me to choose these funds for my ILP as compared to the Combined Funds?

Answer :

We recommend long-term investors to invest in the Global Equity which will give you higher returns but it comes with higher risks.

My question is pertaining to the increase in policy fee to $50 with effect from

1 March 2006. I am a housewife and I have invested in the Balanced Fund using my CPF SA in December 2005.

My present investment has not breakeven. I am also not able to top up to $15,000 by the said date.

Is there any way NTUC Income can help me?

Answer :

Our policy fee after the increase is still lower as compared to other insurer who is charging $60.

9) Between Flexi-Link Policy and Ideal Plan, which will give the same amount of returns in a shorter period of time?

Answer :

If you invest single premium of $5,000 and above, Flexi-Link Policy will be a better choice.

For investment of $15,000 and above, the policy fee will be waived.

10) My fixed deposit has recently matured. I am thinking of investing in Unit Trust.

What is your advice?

Answer :

Unit Trust often has hidden costs.

Therefore, the charges for Unit Trust is usually higher as compared to NTUC Income investment products.

I would recommend you to invest in our funds as we managed our funds very strictly and all our charges are ‘transparent’ to our policyholders.

11) If I invest $100,000 in the Combined Funds, is there any insurance coverage? Or, is it just another Unit Trust?

Answer :

Yes, we give free insurance coverage if you invest in our Combined Funds.

The coverage given is based on the insured age and is about 25% of the invested amount.

However, if you require additional insurance, I advise you to take up our low-cost term insurance where the premium is fixed.

12) If I have $100,000 cash, should I invest in an Annuity Plan or invest in Bond for 15 years?

Currently, I own two policies with NTUC Income with a total surrender value of $60,000.

What should I do with this amount?

[The above is based on the assumption that I will be retiring in a year time at the age of 62 and have invested $100,000 in 3 Combined Funds]

Answer :

I advise you to speak to your Insurance Adviser if you already have one, or speak to our salaried Insurance Consultant.

My general advice is to look at the total amount you have.

You may want to invest a portion in an Annuity Plan and the remaining in the Combined Funds.

However, it all depends on individual risk tolerance and investment objectives.

13) You said investment is long term for 10 to 20 years.

I am already past 60, do you think it is advisable for me to invest for another 10 or 20 years?

Answer :

The life expectancy for a male at age 60 is about another 15 to 20 years.

I encourage you to invest in the Combined Funds.

14) Can I purchase Combined Funds like Unit Trust?

Is the Combined Funds flexible enough to allow me to switch?

Is there an additional fee for switching?

Answer :

We allow 2 free switches every year. However, we do not encourage investors to make use of the switches to speculate the market.

15) As Combined Funds is also invested in Core Funds, does it mean that you charge twice the annual fee if I invest in the Combined Funds?

Answer :

No, you are only charge one time.

16) What is the maximum age for Term Insurance?

Answer :

The premium for Term Insurance will be higher as your age increases.

If you are interested to take up the plan after age 50, we can work out the premium for you.

My other related posts that may interest you:

• NTUC Income Ideal Plan: Just Some Questions And Answers
• Some Questions & Answers On NTUC Income Flexi-Cash
• What to Look For In an Investment Linked Policy?