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NTUC INCOME Introduces Premium Relief Scheme (1998)

Oct., 1998
(Source: Co-op Dialogue, Vol. 8, No. 2, July-Sept, 1998, pp.34)

NTUC INCOME Introduces Premium Relief Scheme
Innovative scheme will help policy holders facing temporary financial difficulties

On 1 April 1998, NTUC INCOME implemented a new Premium Relief Scheme which allows policyholders to apply for up to two years relief from paying their life insurance premiums. Policy holders who opt for this scheme will still continue to enjoy full protection under their policies by paying a small one-time premium. The premium varies depending on the sum assured and entry age of policyholder.

Under the premium relief scheme, the policy is temporarily suspended and does not increase in cash value or bonus during this period. However, it can bring great relief for some policyholders who face temporary difficulties in continuing the normal premium due to retrenchment, loss of job, business failure or prolonged illness. “It is during difficult times that our policyholders would need insurance most,” said NTUC INCOME’s Chief Executive Officer Mr. Tan Kin Lian. “We want to take care of them by providing them with good insurance cover even when they cannot afford their premiums.”

The premium relief scheme is specially for policies that are in force for less than two years, when there is no cash value yet. If a policy is more than two years old, there is an existing scheme where the premiums can be paid by an automatic loan taken against the cash value of the policy.