Plans powered by NTUC Income

• Cash Plan
• The Young Ones
• Protection Plan

Cash Plan
1. What is Cash Plan?
It is an investment-linked plan offered by NTUC Income. Your savings is invested in the money market fund. Most of the money are lent as short term deposits to banks and well-rated corporations. You can earn a return on your savings that is quite close to the short term interest rate in the money market.

2. Does the plan operate like a bank account?
Yes. You start with a minimum investment of $5,000*. You can put in money at any time, subject to a minimum of $500. You can also withdraw your savings at any time - with no penalty. There is no lock-in period. The minimum withdrawal is also $500.

3. How is the interest rate calculated?
Your money in Cash Plan earns interest daily. The interest rate is indirectly reflected in the bid price of the units of the money market fund. The bid price is likely to grow at the average rate of interest earned by the investments in the money market fund.

Currently, the average interest rate is around 3% to 3.5%. At present, the fund deducts 0.25% to cover our expenses each year. This is a very low charge. The net return on the fund, after deducting the charge, is currently around 3% per annum.

The interest rate will change with the money market. Many people expect the interest rate to increase in the near future. If this happens, you will get more than 3% return.

4. Do I have to incur a front end charge for my investment?
During the promotion period, the front end charge is 0.1%. This is built into the offer price of the units. After the promotion, the front end charge may increase to 0.25%. This is still very low, by market standards.

The front end charage is to pay for our expenses incurred when we invest your savings. As you incur this charge, you should try to keep your savings for at least six months, so that the additional interest that you earned is more than sufficient to pay for this front end charge.

5. How is the 0.1% front end charge deducted?
The front end charge is showed in the difference between the offer and bid prices (also known as the spread). We use the offer price to purchase units under your policy when you invest. The standard spread is 0.25%. During the promotional period, we will credit 0.15% bonus units to your policy to bring the spread to 0.1%

6. How long does it take for me to recover the 0.1% front end charge and make some profit?
For every $10,000 invested, the front end charge is $10. The rest is invested to earn interest. It would take about 10 - 12 days to recover this front end charge. After that, your money continues to earn interest.

The front end charge is a slight disadvantage of Cash Plan. You have to wait for 10 - 12 days to recover the charge. For a normal bank fixed deposit, there is no front end charge and you earn interest immediately.

However, fixed deposits have a lock in period and penalty upon early withdrawal (forfeit all interest earned). Over a longer period (e.g. 12 to 24 months), Cash Plan still has a greater potential to earn a more attractive interest.

7. Will the annual charge be changed in the future?
We will try to keep the charge at 0.25% per annum.

We reserve the right to change the annual charge, so that it is sufficient to cover our cost of managing the fund. If we wish to change the charge, we will give at least three months of notice to our investors. Any change is likely to be small.

8. Is there any charge on withdrawal?
There is no charge on withdrawal. You can withdraw a minimum of $500 each time.

9. Can I withdraw money through the ATM machine?
You can ask us to transfer the money from the Cash Plan into your bank account. We do it through GIRO. It can appear in your bank account within 3 working days. You can withdraw the money through the ATM of your bank account.

10. What is the risk of losing my capital?
The risk is very, very small. In any case, if there is a loss, it will only affect a small part of your savings.

The fund is invested mainly in the interbank market, ie the money is lent to banks. A small portion of the fund is invested with well rated corporations. The fund is well diversified with a large number of borrowers.

The money is invested in short term deposits, with a maximum duration of three years. The average duration is likely to be around six months. This ensures that the investments will not be adversely affected by a large change in the interest rate.

11. Do I have to keep a minimum balance in Cash Plan?
You can top up or withdraw anytime, but you have to keep a minimum balance of $5,000.

12. Is there any insurance cover?
There is a minimum death benefit of 105% of total investment amount. This is given to you at no extra cost. In the event of death, we will pay the cash value of the investment or the minimum death benefit, whichever higher.

You can buy a term insurance or accident rider to provide the additional insurance coverage. You will pay a separate premium for the rider. The premium is kept at a very low cost to you.

13. Why is the Cash Plan able to provide an attractive return?
We offer to you the attractive rate of return available in the money market. This return is higher than the interest on fixed deposits. We only take away a margin of only 0.25% per annum to cover our expenses. The rest of the return is given back to you.

Most banks take away a margin of about 1.5% on the money market return. They will offer you less than 1.5% on your fixed deposit. Although the return is guaranteed, it is very low.

14. Can NTUC Income provide a capital guarantee?
If we provide a capital guarantee, we are likely to take away an additional 0.75% per annum on your return. This will reduce your return by 0.75%.  It is better for you to take the very small risk, and earn 0.75% more.

If there is demand, we will offer this option at a future date.

15. How is Cash Plan better than fixed deposits?
Fixed deposits currently offer 3% or higher, but at most for the first 12 months only. You get a lower return or no interest if you withdraw early. When you renew, the interest is often less than 1.5%. You also need to put in at least $50,000.

For Cash Plan, you can start earning an attractive interest with $5,000. There is no lock in period and penalty for early withdrawal.

16. I have an endowment policy which is maturing. I wish to reinvest my money. Should I invest in Cash Plan?
You may wish to take some time to look for an alternative investment. Meanwhile, it is better for you to put it in Cash Plan. Your money will still earn an attractive interest while you choose the next investment.

When you have made your choice, you can withdraw anytime to reinvest. If you keep your money in a fixed deposit, there is a penalty for early withdrawal.

17. I am waiting for a right time to invest in NTUC Income's Combined Fund. Should I still invest in Cash Plan?
Yes. You get to earn an attractive interest while you wait for a good time to invest in Combined Funds or other investment funds. If you make a good return on your fund, you can also encash your profits and put them back in Cash Plan.

*A $30 renewal fee is applicable if you invest less than $10,000.

Information correct as at 13 June 2006. We reserve the right to revise any terms and conditions or charges of Cash Plan  by giving sufficient notice to policyholders.

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The Young Ones

1. Why do I need to buy Young Ones?
Young people may be safeguarded against illnesses but there is no telling when accident and death can strike.

If budget constraint is your concern, Young Ones is the plan for you. With Young Ones, you can get up to $100,000 in protection for as low as $0.27 per day.

2. Who is eligible to take up The Young Ones plan?
This plan is available for person aged 1 to 29 years. Singaporean, PR, Foreigners with working pass will be eligible to take up this plan.

3. What does this plan cover?
The benefits available in this policy are fixed at the following throughout the policy term:

4. What's the premium I have to pay for this plan?
The premium for this plan is fixed at either $10 per month or $100 per year.

5. How can I make payment after I have submitted the online application?
For yearly mode, you can pay by cash, credit card or GIRO.
For monthly mode, only GIRO is allowed.

6. Can I increase the sum insured for the benefits?
No. The coverage is standard for all ages.

7. When will I receive the policy document?
You will receive the policy document 7 days after you have made your first payment.

8. Can I buy and pay for an The Young Ones policy on someone's life, other than for myself?
No. There must be a formal relationship (insurable interest) between the proposer and the life-assured at the time of taking up the policy, example parent and child.

9. Can I buy more than one The Young Ones policy?
No. There is a limit of 1 policy per insured person.

10. Is there any cash value for this policy?
No. The Young Ones is meant to maximise the protection with low premium. There is no cash value. If you're looking at long term saving, you can invest in our ideal plan.

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Protection Plan

1. How do I apply for Protection Plan?
You can visit www.income.coop/insurance/paid to apply online, call 62Income (62462663) or visit any of our branches.

2. What is the age limit if a person wishes to insure under this policy?
The age limit for this insurance is below 75 years old. For persons over 75 years of age, our underwriters will access your condition and contact you on their decision.

3. What is the maximum coverage for student/housewife/retiree?
For the category of customers without earnings e.g students, houswives, retirees, unemployed, the max Plan allowed is Plan 2.

4. Can foreigners and permanent residents (PR) buy Protection Plan?
Singapore PR, Malaysians residing in East/West Malaysia and foreigners with employment pass or work permit can purchase Protection Plan.

5. I met with an accident before, can I still buy Protection Plan?
You will have to provide us with the details of your accident, such as when it happened, the cause of the accident and the medical treatment that you received. Our underwriters will access your condition and contact you on their decision.

6. I have an existing Personal Accident Plan, can I still take up Protection Plan?
The total sum insured for all your existing Personal Accident Plan including Protection Plan should not exceed 10 times your annual salary. You may reduce your sum insured for existing Personal Accident Plan to take up Protection Plan.

7. Would I be covered for Avian flu if I travel to an overseas country and get infected?
Yes, you receive worldwide cover (for the duration of the policy).

8. If a country is declared as experiencing a pandemic infection, would my cover for infectious diseases still be effective?
No. Under General Exclusion Para 4, the World Health Organisation (WHO) would be the authority to declare a pandemic crisis. In such situations, the infectious diseases cover will be temporarily excluded. The rest of the cover in the policy will continue. When controls are in place and the infection reduces to a safe level, the infectious diseases cover will resume.

9. Does it mean that if a new infectious disease is detected, I am not covered?
Only the specified infectious diseases mentioned in the policy are covered.

10. How does a pandemic declaration in South America or Africa affect my policy?
We expect WHO to state the nature of the disease. If the transmission is remote and is not carried by birds and the probability of reaching this part of the world is considered remote, we are prepared to continue providing the cover. If the transmission mode is a clear and present danger, we will follow the precautions recommended by the government and the cover will be suspended.

11. Would I be covered for infectious disease as defined before the declaration of a pandemic situation?
Yes, those infected before the declaration by WHO or Singapore health authorities will be covered.

12. How can I make payment?
For online application, you can pay credit card - Master/Visa, cheque or giro if you have an existing account with us. If you visit any of our branches, you can pay by cash, cheque or NETS.

13. If I change my mind after taking up this insurance, can I cancel it?
Yes, you may cancel this insurance by notifying us via email or calling 62Income (62462663). The cancellation will take effect from the date we receive the notice of cancellation. If the cancellation is effected before the commencement date of insurance, we will refund you the full premium less $10. If the cancellation is effected after the commencement date of insurance, the refund will be calculated as:

14. How do I make a claim?
You can submit a claim online, print the claim form from our website or visit any one of our branches to lodge a claim.

15. How does the temporary disablement benefit apply?
"Temporary disability" means temporary and continous disability preventing you from the date of accident from performing every duty pertaining to your profession or occupation.

For category of customers who are not working (infants, students, housewives, retirees, unemployed), medical certificate have to be produced as well in the event of claim.

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