Frequently Asked Questions

Insurance matters

Change of payment frequency

    • Q: What are the payment frequencies available for a regular premium plan? A:

      The premiums can be paid monthly, quarterly, half-yearly or yearly.

    • Q: Which payment frequency can I enjoy the biggest saving in premium? A:

      You can enjoy the highest saving if you opt to pay your premium yearly.

    • Q: Is the discount applicable to all policies? A:

      No, it is not. For some policies such as Dreamsaver and Investment Linked Policies, there is no discount for the various payment frequencies. Thus, if you pay $100 per month and change to yearly, your yearly premium will be $1,200.

    • Q: Can I ask for more discounts? A:

      The premiums and discounts are fixed. We are unable to give you further discounts.

    • Q: Can I change the payment frequency anytime? A:

      Yes, you can request for the change anytime. However, the effective date of the new payment frequency will depend on whether you are changing it to a more or less frequent one.

      Changing to a More Frequent Payment
      If you are paying more frequently e.g. from yearly to monthly, the revised premium will effect from the next premium due date.

      Example 1
      Request to change from yearly to monthly, quarterly or half yearly

      Next premium due date: 01 Jan 2013
      Revised premium will effect on 01 Jan 2013

      Changing to a Less Frequent Payment
      If you are paying less frequently e.g. from monthly to yearly, the revised premium will effect from the policy’s anniversary.

      Example 2
      Request to change from monthly to yearly premium  

      Policy entry date: 15 Nov 2011
      Policy’s anniversary: 15 Nov every year
      Next premium due date: 15 Aug 2012
      As the policy’s anniversary date is on 15 Nov, you will need to pay a pro-rated yearly premium for premiums due from 15 Aug 2012 to 14 Nov 2012. The full yearly premium will be payable every year from 15 Nov 2012.

      Example 3
      Request to change from monthly to yearly premium  

      Policy entry date: 15 Nov 2011
      Policy’s anniversary: 15 Nov every year
      Next premium due date: 15 Nov 2012
      As the next premium due date coincides with the policy’s anniversary, the full yearly premium will be effective from 15 Nov 2012. There is no need to pay any pro-rated amount.
    • Q: How do I make the request to change the payment frequency? A:

      You can send us the request by completing a “Change of Payment Frequency” form or submit your request via me@income.

      For a copy of the Change of Payment Frequency form, please click here.

    • Q: Can I have different payment frequencies for my basic policy and riders? A:

      Every policy can only have one payment frequency. The riders’ payment frequency will follow the basic policy.

    • Q: How many times can I change the payment frequency? A:

      There is no limit on how many times you can change your payment frequency.

    • Q: Do I need to pay any administrative fee to change the payment frequency? A:

      No, you will not be charged.

    • Q: If I am paying my premiums by GIRO, when will my deduction for the revised / pro-rated premium take place? A:

      If your change of payment frequency request is received between the 1st and 23rd of the month, the deduction of the pro-rated / new premium will take place on the 6th of the next month. If your request is received on or after the 24th, the deduction will take place on the 6th of the following month.

      Examples
      Request received on 23 Aug 2012, GIRO deduction will be on 06 Sep 2012
      Request received on 30 Aug 2012, GIRO deduction will be on 06 Oct 2012

Adding or removing riders

    • Q: What are riders? A:

      Riders (also known as supplementary benefits) are additional covers that you can add to your basic policy to provide a more comprehensive coverage.

      Example
      You buy a Vivolife and attach a Hospital Benefit and a Personal Accident Benefit. Vivolife is your basic policy and Hospital Benefit and Personal Accident Benefit are the riders.

    • Q: When can I add the riders? A:

      You can add the riders when you are applying for your basic policy. Once your policy is issued, you can also add them provided all of the following are satisfied:

      • Your basic policy is still in force for at least another year
      • You are still paying premiums for the basic policy for at least another year
      • You have not exceeded the maximum entry age of the rider
    • Q: How do I add riders after my policy is issued? A:

      You can approach your Insurance adviser to help you with your request. If you do not have one, you can visit any of our Income branches for assistance.

    • Q: Do I need to go for medical examination when I add the riders? A:

      Yes, you may be required to go for medical examination. We will send you a letter to inform you if medical examination is required.

    • Q: When will my riders be effective? A:

      Your riders will be effective on the next premium due date. If you would like them to be effected earlier, we can do so but the effective day must be the same as your basic policy entry day.

      Example

       
      Payment frequency: Yearly
      Policy entry date: 15 Jun 2011
      Premium next due date: 15 Jun 2013
      Received add rider request on: 01 Sep 2012

      As your request to add rider was received on 01 Sep 2012, the earliest date we can effect your rider is on 15 Sep 2012. You will then pay the pro-rated premiums from 15 Sep 2012 to 14 Jun 2013. The full yearly premium of the rider is payable from 15 Jun 2013.

    • Q: Can I make changes to the riders once they are in force? A:

      Yes, you can but it depends on what type of changes.

      If your request is to increase the rider’s cover such as increasing its sum assured or coverage term, you can make the changes provided the rider is within 1 year from its entry date. If the rider is more than 1 year, you have to take up a new rider and premium will be based on your current age.

      For changes that decrease the rider’s cover such as decreasing its sum assured or coverage term, you can do so anytime.

      Any changes are effective from the next premium due date. For changes that involve increasing the rider’s cover, you will be subjected to underwriting. This means you have to declare your health and we will assess whether the changes can be accepted.

    • Q: Can I keep my riders in force once my basic policy is terminated? A:

      Once your basic policy is terminated, all your riders will terminate. For example, you have a dread disease policy with a hospital benefit and you submit a dread disease claim. We will pay you the claim under your basic policy and Keep your basic policy will be terminated. Since the basic policy is terminated, its hospital benefit will be terminated also.

    • Q: If my basic policy were converted to a paid-up1 policy, will my riders remain in force? A:

      No. Your riders will be terminated.

      1 A paid-up policy is a life policy with its premiums fully paid. The policy remains in force but at a reduced sum assured.

    • Q: Can my riders’ cover be extended beyond the basic policy’s payment term? A:

      No, you cannot. If your basic policy’s premium payment term is five years, then your riders can only be covering the Insured for five years.

    • Q: Can I remove the riders? A:

      Yes, you can. Your riders will be removed with effect from the next premium due date.

    • Q: Do I get a refund of my premiums if I were to remove the riders? A:

      As the riders are removed with effect from the next premium due date, you will not receive any refund since you are still covered under them.

Review of Special Terms

    • Q: What are Special Terms? A:

      If you are offered an insurance cover that is out of the standard terms and conditions, a Special Terms Agreement will be prepared for you. The Special Terms detail the excluded cover and/or health extra (additional premiums which are charged due to the increased risk the insurer is taking on) that are imposed on the policy. Once you accept the Special Terms, they will form part of your insurance contract.

    • Q: If my policy is accepted with Special Terms, when can I request to review them? A:

      You may request to review the Special Terms if you have fully recovered or there is a significant improvement in your medical condition. In addition, there must be no further deterioration in your health or diagnosis of new medical conditions.

    • Q: If I want to request for a review of the Special Terms, what documents do I need to submit? A:

      You have to submit the following:

      • Review of Special Terms Form
      • Your attending doctor’s report on your medical condition
      • Any laboratory test, radiology, screening reports which support your review

      For a copy of the Review of Special Terms Form, please click here.

    • Q: Do I have to pay for the supporting medical reports? A:

      Yes, you will have to pay for them.

    • Q: Do I need to go for another medical examination? A:

      Yes, you may need to go for another medical examination.

    • Q: When will I be informed of the outcome of the review? A:

      We will review the Special Terms and reply to you in writing within one month upon receipt of your request.

      If we need further clarification on your medical conditions, the review decision will take more than one month. This is because we may be waiting for the medical report from your attending doctor. If the report is not clear and we need to seek clarification from the doctor, the review decision will be delayed again.

    • Q: While I wait for the review outcome, how will my premiums be calculated? A:

      Your premiums will remain the same until the review is completed.

    • Q: How will I be informed of the decision? A:

      Once the review is completed, you will receive a letter from us informing you of the outcome.

    • Q: What are the possible outcomes for my Special Terms review? A:

      The review decision can be any of the following:

      • No change in original decision
      • Some improvements in the Special Terms e.g. reduction of the health extra
      • Special Terms are completely removed
    • Q: If the health extra imposed on my policy is removed, when will my revised premium start? A:

      If the review can be completed within one month, your revised premium will be effective from the next premium due date of the policy.

      However, if the review takes longer than one month, the effective date of your revised premium will be effected in the month we receive the complete reports.

      Example
      Assuming the yearly premium of your policy was paid from 01 Jan 2012 to 31 Dec 2012 and you requested for a review in Feb 2012. Full supporting medical reports required for the review were received in Apr 2012. The review is a success and health extra can be removed. The effective date of the removal will be on 01 Apr 2012. The health extra paid from 01 Apr 2012 to 31 Dec 2012 will be refunded.

Creation of vesting in third party policies

    • Q: What is vesting? A:

      Vesting is the transfer of absolute ownership of a life policy from the policyholder to the Insured when the Insured reaches the vesting age. Upon vesting, the Insured becomes the absolute policy owner and has full control of the policy.

    • Q: Is vesting applicable to all policies? A:

      Vesting is only applicable to a third party policy whereby a parent as the policyholder, effects a life policy on the life of his child.

      For some policies such as Children’s Education, Education and Family Insurance, vesting is not allowed.

    • Q: What is the vesting age? A:

      The parent can select the age at which the absolute ownership of the policy will transfer to the child. This age is known as the vesting age and may be between 21 to 25 years old. For example, if the vesting age is indicated as 23 years old, the policy will transfer to the child on his 23rd birthday.

    • Q: Is vesting included in a policy automatically? A:

      No, it is not. You have to specify that you want the policy to vest in your child by filling up a form. However, some policies come with a vesting provision. One such policy is a Foundation Policy. If you have bought a Foundation Policy, it will vest in your child when he reaches the vesting age which is 21 unless you have specified a different vesting age. Thus, for such a policy, you do not need to specify the vesting.

    • Q: How do I know whether vesting is included in my policy? A:

      If your policy has vesting, you will know from the following:

      • an endorsement on the vesting is attached to your policy document;
      • vesting age is printed on your policy’s schedule; or
      • an endorsement letter on the vesting is sent to you (this is applicable when you ask for the vesting after a policy is issued)
    • Q: What is the main advantage of vesting? A:

      A clear benefit is the ease at which your child will take over the policy (at vesting age), if the policyholder were to pass away unexpectedly. Without vesting, your child would have to seek legal help and incur legal fees in order to assume ownership of the policy.

    • Q: What is the main disadvantage of vesting? A:

      As vesting creates a trust in the child’s favour, you cannot remove or change the vesting age. You can only remove or change the vesting age unless the policy is yet to vest and the child is of legal capacity (i.e. at least 21 years old and of sound mind) to agree to the removal of or change in the vesting age.

    • Q: How can I apply for vesting? A:

      To apply for vesting, you have to complete the Declaration of Trust form. After the vesting is created, a confirmation letter will be sent to you. When the policy is transferred to your child, we will send a letter to inform him that he is now the policy owner.

      For a copy of the Declaration of Trust form, please click here.

    • Q: Can I create vesting in a life policy that is insuring myself? A:

      No. Vesting is meant for a life policy whereby a parent is insuring his child.

    • Q: Can my child surrender or take up policy loan once the policy is vested in him? A:

      Yes, he can because he is now the policy owner. He can do what he likes with the policy.

    • Q: If there are any insurance payouts, who will you pay after the policy is transferred to my child? A:

      If the policy is transferred to your child, we will pay to him.

    • Q: Who will you take instruction from on policy matters if the policy is transferred to my child? A:

      We will only take instruction from your child once the policy is transferred to him. Any letters or documents relating to the policy will also be sent to him.

    • Q: If I cannot decide whether I would like to create a vesting, what will happen to the policy? A:

      You should only decide on vesting if you are prepared to give away the policy completely to your child. If you cannot decide, then the policy will continue as it is.

      In future, if you wish to transfer the ownership to your child, you can still request for the vesting. But if he has passed the maximum vesting age of 25 years old, you will have to do an Absolute Assignment (meaning to transfer the policy to your child immediately, no vesting age is available for you to choose).

      For more details on Absolute Assignment, please click here.

Absolute assignment of life policies

    • Q: What is an absolute assignment? A:

      An absolute assignment is the transfer of a life policy to another person. The person who transfers the policy is called the Assignor. The person who takes over the ownership of the policy is called the Assignee.

    • Q: What are the types of life policies that I can assign? A:

      Most life policies can be assigned except the following:

      • CPFIS/CPFS/ASPF/SRS/CPFMSS policies
      • annuity policies
      • policies effected under Section 73 of the Conveyancing and Law Property Act or policies with Irrevocable Nomination
      • policies which are assigned to banks or Official Assignee unless the bank or Official Assignee has discharged their interest in the policies
    • Q: If I assign my policy to another person, do I still have any rights over my policy? A:

      No, you do not have any rights over your policy after you have absolutely assigned it.

    • Q: Can I specify certain condition to be attached to the assignment e.g. if the Assignee were to pass away before me, the policy will be transferred back to me? A:

      We only accept absolute assignment of insurance policies i.e. assignment with no condition attached. We do not accept conditional assignment.

    • Q: Can I assign my policy to my child anytime? A:

      Yes, you can assign but your child needs to be of legal capacity i.e. of legal age and be able to make decision on his own.

      For policies that are effective before 01 Mar 2009, both Assignor and Assignee should be at least 21 years old. For policies which are effective on/after 01 Mar 2009, the Assignor and Assignee should be at least 18 years old.

    • Q: Can I assign the policy that is insuring my child to another person? A:

      Yes provided that your policy is one with no vesting.

    • Q: How can I effect an assignment? A:

      The assignment must be in writing and notice of assignment must be received by us with complete documentation. You can submit your assignment by completing the Absolute Assignment of Life Insurance Policy. The form also states the documents you need to submit and the assignment will be effective on the date of our receipt of the notice of assignment.

      For a copy of the Absolute Assignment of Life Insurance Policy form, please click here.

    • Q: What happens to my nomination which was made before the assignment? A:

      Once you have made an assignment of the policy, any existing nomination made by you will automatically become invalid.

    • Q: If a policy is assigned to me, can I declare the policy as a trust? A:

      Yes, if the assignment is an absolute assignment. You can assign the policy to trustee/s of the trust.

    • Q: If a policy is assigned to me, can I take a policy loan or terminate the policy? A:

      As you are now the policy owner, you can take a loan (if this is allowed under the policy terms) or terminate the policy.

    • Q: If my policy has been assigned to another person, will I still be receiving any insurance payouts? A:

      No. Once your policy is assigned, we will pay to the Assignee who is now the policy owner.

    • Q: If I were to assign my policy to another person before I am made a bankrupt, will my assignment still be valid? A:

      Generally, the Official Assignee has the rights to all property belonging to the bankrupt. In certain situations, the Official Assignee is likely to have rights over any policy that the bankrupt has earlier assigned. For example, if the assignment were done without any payment from the Assignee or to defraud the Assignor's creditors.

    • Q: When the Assignee dies, what happens to the policy? A:

      Upon the death of the Assignee, the policy will remain with the Assignee's estate. If premiums are paid, the policy will remain in force. For insurance payouts, they will be paid to the legal representatives of the Assignee’s estate.

    • Q: My parent who is the original policyholder has assigned the policy to me, the life assured. I am now the policy owner as well as the life assured. Can I make a nomination? A:

      With effect from 18 April 2013, under the Insurance Act, you are allowed to make a nomination if you are the policy owner of a life policy or accident and health policy that insures your own life. As an assignee who takes over the policy as a policy owner by way of an assignment, you can make a nomination if you are also the life insured under the policy.

    • Q: If I were to specify in my Will that my policy be assigned to a named person/ company when I pass away, can this be accepted? A:

      Yes, this can be accepted if your intention is expressed clearly in your Will. The executor of your estate will act according to your instruction in your Will.

    • Q: The original policyholder is mentally disabled/ disordered. Can I request for the policy to be assigned to me to help him manage the policy? A:

      If a person is mentally disabled/disordered, he has no mental and legal capacity to assign the policy to someone else. For such cases, the next of kin can apply to court to appoint a person or persons (usually the next of kin) to manage his property and affairs on his behalf. The appointed person/s will be known as the Deputy. We will then take instruction from the Deputy on the policy assignment.

    • Q: Can I ask for the policy back after I have assigned it? A:

      Yes provided the Assignee agrees to it. You will need to submit the Absolute Re-Assignment of Life Insurance Policy form.

      For a copy of the Absolute Re-Assignment of Life Policy form, please click here.

    • Q: Can I take up a life policy and later assign it to a company, association, or religious body like a church? A:

      Yes, you can. You can refer to the Absolute Assignment of Life Insurance Policy form to check the documents that are required for such an assignment.

      For a copy of the Absolute Assignment of Life Policy form, please click here.

    • Q: If my company is closing down, can I request for the policies which were taken under the name of the company, to be assigned to me? A:

      Yes, but the assignment must be done before the company ceases operation.

Non-payment of life insurance premiums

    • Q: Is there a period of grace for me to pay the premium? A:

      Yes. You have 30 days period of grace to pay the premiums that are due on your policy. If we need to pay you any benefits during this period, we will deduct any unpaid premiums from the benefits.

    • Q: What happens if I still have not paid the premium after the period of grace? A:

      If you still have not paid the premium after the period of grace, we will activate the non-forfeiture option provided for under your policy. Depending on when your policy was taken up, we will either activate the Automatic Premium Loan (APL)1feature, or the Automatic paid-up2 feature.

      1 Automatic Premium Loan (APL)
      We will advance the premiums on your behalf so the basic policy and its riders can continue at their original coverage amount (called the sum assured). We will only do this if the policy has enough cash value*. We treat this as a loan (called APL) and charge you interest. If there is not enough cash value, the policy will cease. We will deduct these loans and interest from any amount we may be due to pay under the policy. If at any time the amount of the loans and interest is more than the cash value, the policy will cease.

      * Cash value means the amount available upon cancellation of a policy that has a savings feature, before it becomes payable upon a claim event (e.g. death), or maturity as in the case of an endowment type of policy.

      2 Automatic paid-up
      We will reduce the sum assured of your basic policy so that you will retain some form of minimal coverage. We will only do this if the policy has enough cash value. You will not pay any further premiums. You will keep any bonuses added to this policy before the date we convert the policy to paid-up. If we declare any subsequent bonuses on paid-up policies in the future, they will be based on the reduced sum assured (called the paid-up sum assured). Once paid-up, any riders attached to the basic policy will cease.

    • Q: What is the default non-forfeiture option provided for in my policy? A:

      For policies taken up before April 1994 or purchased with CPF funds or assigned to Official Assignee / Insurance Company / Bank, the default option is “Automatic Paid-up”. For all others, the default option is “Automatic Premium Loan (APL)”.

    • Q: Can I change the default non-forfeiture option? A:

      Yes. You would need to complete an application form. You may request for the form by emailing to csquery@income.com.sg, contact Income hotline at 6788 1122 or at any of Income branches.

    • Q: How am I kept informed about the activation of the non-forfeiture option? A:

      We will send you at least two premium notices on the outstanding premium before activating the non-forfeiture option. Once the option is activated, we will also send you a notice.

      If the non-forfeiture option is APL, we will send you a notice each time we advance premiums on your behalf. Because APL is treated as a loan, a specific loan statement showing the transactions in your policy loan account will also be sent to you every year. On top of all these, the annual Policyholder Statement which summarises the policies and loans you have with Income will also be available in me@income.

Policy loans

    • Q: When can I take a loan on my policy? A:

      Depending on the terms of your policy contract, you may take a loan from your policy if you are at least 18 or 21 years old, and your policy has acquired a cash value1. Generally, a policy will have a cash value after premiums have been paid for at least two years. In the case of a single premium policy, cash value is available immediately.

      1 cash value means the amount you will receive when you cancel a policy that has a savings feature, before it matures. Its calculation is determined by us.

    • Q: Is there an interest charged on the policy loan? A:

      Yes. The current interest rate is 5.5% per annum. We may change the interest rate at any time by giving you 30 days’ notice at your last known address. This interest will start on the date you applied for the loan, and is calculated daily and compounded every year end. You are encouraged to repay the loan as early as possible to avoid interest accumulation.

      Besides, this loan and interest will also reduce any subsequent payouts from the policy. And if at any time the amount of the loans and interest is more than the cash value, the policy will cease.

    • Q: What is the minimum and maximum amount of loan that can be taken on my policy? A:

      The minimum amount is $100 per policy provided that your policy has sufficient cash value for us to grant you this minimum amount.

      The maximum loan that can be taken is a certain percentage of the cash value. This percentage will differ depending on the policy type. And for certain policy types, no loans are allowed at all. This table below sets out the limits and criteria.

      Policy Type Maximum Loan
      a. Life Policy (except VivoCare, VivoSave, Regular or Single Premium SAIL) 95% of cash value
      b. VivoCare, VivoSave, Regular or Single Premium SAIL 80% of cash value
      c. Life Policy under Premium Relief Scheme (PRS) 75% of cash value
      d. Investment-Linked Policy  
      • FlexiCash
      No loan is allowed
      • FlexiLink or Ideal
      50% of cash value (based on bid price)
      • GrowthLink and VivoLink
      50% of cash value or 80% of Net Investment Amount (whichever is lower)
      e. Annuity Policy 90% of cash value
      f. Policies bought with CPF funds No loan is allowed
      g. Life policy assigned to Income No loan is allowed
    • Q: Can I take a policy loan if the policy is assigned under absolute assignment? A:

      No, only the assignee can take a policy loan.

    • Q: Can I take a policy loan from a trust policy created under Section 73 of the Conveyancing and Law of Property Act? A:

      A policy loan can be granted with the consent of all trustees plus beneficiaries (at least age 21) named under the policy. If any of the beneficiaries is below age 21, no policy loans will be granted.

      All trustees plus beneficiaries (at least age 21) are to give this consent by signing on the Policy Loan Agreement.

      The recipients of the policy loan will be either all the trustees, or all the beneficiaries (at least age 21).

      However, if the Policyholder would like the policy loan monies to be paid to him instead, we will provide a Letter of Consent and Indemnity which must be signed by all trustees plus beneficiaries (at least age 21).

    • Q: Can I take a policy loan from a trust policy (Irrevocable Nomination) created under Section 49L(2) of the Insurance Act? A:

      A policy loan can be granted with the consent of any one trustee (who is not the Policyholder); or all beneficiaries (at least age 18) named under the policy. If any of the beneficiaries is below age 18, a parent (who is not the Policyholder) can give consent on the particular beneficiary’s behalf. This trustee (who is not the Policyholder); or all beneficiaries (at least age 18) are to give this consent by signing on the Policy Loan Agreement.

      The recipients of the policy loan will be either this trustee (who is not the Policyholder); or all the beneficiaries (at least age 18). If any of the beneficiaries is below age 18, a parent (who is not the Policyholder) can receive the monies on the particular beneficiary’s behalf.

      However, if the Policyholder would like the policy loan monies to be paid to him instead, we will provide a Letter of Consent and Indemnity which must be signed by this trustee (who is not the Policyholder); or all beneficiaries (at least age 18).

    • Q: Will I be informed of the outstanding loan amount? A:

      We will send you an annual loan statement showing the transactions in your policy loan account every year. To safeguard policyholders’ interest against possible fraud, we do not accept requests to suppress any statement, or send it to a different address other than the official address in our records. If your policy has been assigned to a third party, then you will not receive these statements. They will be sent to the assignee instead.

    • Q: How do I apply for a policy loan? A:
      1. Please check how much policy loan you may take by contacting us via any of the methods below:
        Email: csquery@income.com.sg
        Phone: 6788 1122
        Branch: Find an Income branch

      2. Complete the Loan Agreement Form (one form for each policy)

      3. Return us the completed form with your personal identification document by any of the methods below:
        Email: life.health@income.com.sg
        Fax: 6338 1500, attention "Life Insurance"
        Branch: Find an Income branch 
        Post:
        Income Centre
        75 Bras Basah Road
        Singapore 189557

      4. Do provide a copy of bank book or recent bank statement showing your name, bank name and account number (if you opt for direct crediting to your personal bank account).
         

        If you are residing overseas, the loan agreement form has to be notarised. Please refer to the frequently asked questions below on "Policy loans (application from overseas)".

        The following personal identification document is needed for verification purposes.

        For Singaporeans or Singapore permanent residents
        • Clear copy of NRIC (front and back)

        For Foreigners staying, studying or working in Singapore
        • Clear copy of passport showing validity dates, passport number, photograph, nationality, date of birth and name;
        • Clear copy of Singapore employment pass, S pass, work permit, student pass or dependent's pass (front and back); and
        • Clear copy of a document (issued within the last 6 months e.g. utility bills, phone bill) that shows your name and address. The passport, passes or permits must be valid for at least 6 months.

      Only one policy loan is allowed per policy per day. You may choose to receive a crossed cheque or direct credit to your bank account. You will receive your preferred form of payment within six working days from the time we receive your completed documents. For cheque payment, please ensure that you NRIC/identification number registered with us is the same as the bank's record. The cheque would be rejected if you open your bank account with a different identification number.

      As information provided to you (on the maximum loan available) is relatively fast moving, it may have changed by the time we receive your loan application. In situations where your policy's cash values are not sufficient for us to process your loan, we will process it based on the next available amount your policy can accommodate.

    • Q: Is there a faster way for me to receive my policy loan cheque? A:

      This special service is only available for policy loans not exceeding $100,000. Please call Income hotline at 6788 1122 to make this request. The cheque will be ready for your collection at our Bras Basah Branch (Income Centre) after two working days. Any loan request received after 5.00pm will only be ready after three working days.

      For example, if you applied on a Monday before 5.00pm, you can collect your cheque on Wednesday after 10am. But if you applied on a Monday after 5.00pm, you can collect your cheque only on Thursday after 10am. You have to come down personally to sign the Loan Agreement Form and collect the cheque. Please bring along your personal identification document.

      The following personal identification document is needed for verification purposes.

      For Singaporeans or Singapore permanent residents
      • Original NRIC

      For Foreigners staying, studying or working in Singapore
      • Original passport showing validity dates, passport number, photograph, nationality, date of birth and name;
      • Original Singapore employment pass, S pass, work permit, student pass or dependent’s pass; and
      • Document (issued within the last 6 months e.g. utility bill, phone bill) that shows your name and address.
      The passport, passes or permits must be valid for at least 6 months.
    • Q: How do I repay my loans? A:

      You may make a full or partial repayment towards your policy loans. There is no fixed repayment amount. Please quote the Loan Repayment Number (LRN) (not your policy number) to ensure that your loan records are updated accurately. LRN is an 11-digit reference number unique to each individual policy. You may call Income hotline at 6788 1122 to obtain the LRN and the latest loan figure.

      You may repay the loan by any of the methods below:

      • Cash or Nets at our branch (Find an Income Branch)  
      • AXS by selecting "Life Policy Loan" and quote LRN
      • Internet banking (DBS, OCBC & UOB) by selecting "one-time bill payment" and quote LRN
      • Cheque made payable to "NTUC Income"and quote LRN, policy number and your contact number on the reverse side of the cheque. Please post the cheque to us at:
        Income Centre
        75 Bras Basah Road
        Singapore 189557
    • Q: Can I arrange for a regular loan repayment plan? A:

      Yes, if you are currently paying your policy premiums through GIRO. You can give us a one-time instruction to deduct a specific amount (minimum of $50) from your GIRO account every month. This GIRO account must be the same GIRO account that is being used for your premium deduction.

      Policyholder and Bank Accountholder are required to complete and submit the Original “Application for Policy Loan Repayment from Existing GIRO Account” form.

      On the sixth of every month, we will deduct this loan repayment amount together with your premium. If the loan deduction is unsuccessful, we will attempt to deduct again on the sixth of next month. Do note that if your premiums are outstanding for more than two months, GIRO deduction will be deactivated for both your premiums and loan repayment. You will then have to settle all outstanding amounts with Income directly.

    • Q: What happens when the policy loan amount exceeds the cash value of my policy? A:

      At any time the amount of the loans and interest is more than the cash value, the policy will cease. Therefore, it is important for you to monitor your policy’s cash value in relation to the loans and interest. You are encouraged to repay your policy loans as soon as possible to reduce the interest charged on your policy loans.

    • Q: My policy has regular payouts. Would a loan taken reduce the payouts I receive? A:
      • For a policy with cash benefits payable, if the cash value cannot support the policy loan, we will deduct from the cash benefit to repay the loan. We will send you the details in a separate letter when the cash benefit is due.
      • For an annuity policy, a loan repayment amount will be deducted from each annuity instalment you are receiving. The loan repayment amount may be revised regularly. If the full annuity instalment is used to repay the loan, you will not receive any payment. The full annuity instalment amount will be paid to you only when the loan is fully repaid.
    • Q: Can policyholder (or Assignee) that is an organisation take a policy loan? A:

      The persons who are authorised in the Latest Board of Resolution may apply for the loan. The authorised persons must sign the loan agreement form and state clearly their name and designation with the organisation’s stamp. We also need the organisation to furnish the below documents.

      • Business Profile obtained from the governing body dated no more than three months prior.
      • Latest Board of Resolution
      • Proof of the authorised persons’ identity e.g. clear copy of NRIC (both sides)

Policy loans (application from overseas)

    • Q: How do I apply for a policy loan if I am overseas? A:

      If you are residing overseas, the loan agreement form has to be notarised. When you provide documents that are signed in another country, it is common for most institutions to require them to be witnessed by an official from the Singapore High Commission/Embassy of the Republic of Singapore, or a Notary Public before they can be used for official purposes. This is a matter of prudence to ensure that the person signing the documents is actually who he purports to be.

      1. Please check how much policy loan you may take by contacting us via any of the methods below:
        Email: csquery@income.com.sg
        Phone: (+65) 6788 1122

      2. Complete the Loan Agreement Form (one form for each policy)
        An official from the Singapore High Commission/Embassy of the Republic of Singapore, or a Notary Public must witness the form. The witness must state clearly his/her name and designation with the official stamp.

      3. Email life.health@income.com.sg the completed form with your personal identification document

      4. Do provide a copy of bank book or recent bank statement showing your name, bank name and account number (if you opt for direct crediting to your personal bank account)

      5. If you have difficulty in obtaining an official witness, you may submit the documents through our secure on-line platform me@income (Select "Service Request" à "Waiver of Notarisation") 
       
      The following personal identification document is needed for verification purposes.

      For Singaporeans or Singapore permanent residents
      • Clear copy of NRIC (front and back)
      For Foreigners staying, studying or working in Singapore  
      • Clear copy of passport showing validity dates, passport number, photograph, nationality, date of birth and name;
      • Clear copy of Singapore employment pass, S pass, work permit student pass or dependent's pass (front and back); and
      • Clear copy of a document (issued within the last 6 months e.g. utility bill, phone bill) that shows your name and address.
      The passport, passes or permits must be valid for at least  6 months.
       
      As information provided to you (on the maximum loan available) is relatively fast moving, it may have changed by the time we receive your loan application. In situations where your policy's cash values are not sufficient for us to process your loan, we will process it based on the next available amount your policy can accommodate.

       

    • Q: What details do I provide to receive a bank draft or a Telegraphic Transfer (TT) to my overseas bank account? A:

      Please provide us the below details:

      If you are requesting a Bank Draft If you are requesting a Telegraphic Transfer
      Currency Currency
      Country and State Name of Account holder
        Bank Name
        Personal Bank Account number
        SWIFT code*
        Bank Address
        Country and State

      * SWIFT code: It is a standard format of Bank Identifier Codes (BIC) and it is unique identification code for a particular bank. You may contact your bank to obtain the SWIFT code.
    • Q: How long will it take for a bank draft to reach me? What about Telegraphic Transfer? A:

      After we receive the complete information from you, a bank draft or TT arrangement may take up to 14 working days.

    • Q: What are the charges I would need to bear for requesting a bank draft or a telegraphic transfer to my overseas bank account? A:

      The charges may change from time to time depending on the paying bank. The currency exchange rate will depend on the prevailing rates at the actual time of transfer. These are the current charges:

      Charges for Bank Draft Charges for Telegraphic Transfer
      0.125% of the loan amount (minimum SGD25, maximum SGD150) Cost of cable (minimum SGD20, maximum SGD40); plus
        Local bank charges of 0.0625% of the loan amount (minimum SGD20, maximum SGD100); plus
    • Q: What is a Notary Public and where can I find one? A:

      A Notary Public is a state appointed officer who can witness and authenticate documents. The Notary mainly acts as an impartial and legally trained witness. You can locate a registry of notaries by conducting a search on the internet.

Deceasing sum assured and premium

    • Q: Can I decrease my policy’s sum assured and premium? A:

      Yes, you can but it is subjected to a minimum sum assured value and premium amount. Any change is effective from the next premium due date.

    • Q: What happens when I decrease my policy’s sum assured and premium? A:

      Your policy’s coverage would be reduced accordingly and if your policy has a maturity payout or cash benefits payable, these payouts would be reduced too.

      If your policy has an existing cash value, a portion of the cash value would be refunded to you accordingly.

    • Q: How do I decrease my policy’s sum assured and premium? A:

      You may email to life.health@income.com.sg and we will provide you the documents required. Alternatively, you may also call Income hotline at 6788 1122 or visit any of our Income branches.

    • Q: What if I am no longer residing in Singapore? A:

      If you are residing overseas, the documents required are to be witnessed either by an Official from the Singapore High Commission/Embassy of the Republic of Singapore or a Notary Public. A Notary Public is a state appointed officer who can witness and authenticate documents.

      When documents originate from or are signed in another country, it is a common practice for most institutions to require them to be notarised before they can be used for official purposes. This is a matter of prudence to ensure that the person signing the documents is actually who he purports to be. The Notary mainly acts as an impartial and legally trained witness. You can locate a registry of notaries by conducting a search on the internet.

      If you have difficulty in obtaining an official witness, you may submit the documents through our secure on-line platform me@income (Select "Service Request" - > "Waiver of Notarisation")

Paid-up policy

    • Q: What is paid-up? A:

      Paid-up is an option provided to policyholders who wish to stop paying the premiums on their policies. It helps a policyholder to retain a reduced policy coverage.

    • Q: What happens when I convert my policy to paid-up? A:

      In exercising this option, the policy’s basic sum assured will be reduced and you need not pay any further premiums.

      You can keep any bonuses which were added to your policy before the date you convert your policy. Currently, we do not declare any bonuses for paid-up policies. If we do declare any bonuses on your paid-up policy in the future, they will be based on the reduced paid-up sum assured.

      The main insurable events stated in your policy contract will still be covered but at a lower paid-up value. This paid-up value consists of the paid-up sum assured plus existing policy bonuses.

      However, some additional policy benefits (for example, accidental death benefits, minimum death or terminal illness benefits) would no longer apply once your policy is converted to paid-up. Please refer to your policy’s contract for these additional policy benefits that will be affected by a conversion to a paid-up policy. If your policy pays a regular cash benefit, these cash benefit payments would cease upon conversion to a paid-up policy as well.

    • Q: How do my policy’s values change after it is paid-up? A:

      A paid-up policy’s cash value accumulates slowly each year. However, its paid-up protection value would likely remain the same. You may request from us an illustration which projects the future protection and cash values if you were to convert your policy into a paid-up policy at the next policy anniversary.

    • Q: Can I convert my policy to paid-up? A:

      If your policy provides a paid-up option, you may convert it to a paid-up policy after the policy has accumulated a cash value. Most policies accumulate cash value when premiums have been paid for at least two years. However, some policies do not accumulate cash value.

    • Q: How do I convert my policy to paid-up? A:

      You can submit to us the completed and signed “Life Policy Alteration” form with a clear copy of your NRIC (both sides) via the following methods.

      • By email – Send the documents as attachments to life.health@income.com.sg; or
      • By fax – Fax the documents to 6338 1500 and attention to “Life Insurance”; or
      • By mail – Post the documents to “Income Centre, 75 Bras Basah Road, Singapore 189557”.

      When we receive the required documents, we will handle your paid-up request.

      For a copy of the “Life Policy Alteration” form, please click here. “Life Policy Alteration” form is found on page one of the document.

      For assistance, you can contact us at csquery@income.com.sg. Alternatively, you may also call Income hotline at 6788 1122 or visit any of our Income branches.

    • Q: What if I am no longer residing in Singapore? A:

      If you are residing overseas, the “Life Policy Alteration” form is to be witnessed either by an Official from the Singapore High Commission/Embassy of the Republic of Singapore or a Notary Public. A Notary Public is a state appointed officer who can witness and authenticate documents.

      When documents originate from or are signed in another country, it is a common practice for most institutions to require them to be notarised before they can be used for official purposes. This is a matter of prudence to ensure that the person signing the documents is actually who he purports to be. The Notary mainly acts as an impartial and legally trained witness. You can locate a registry of notaries by conducting a search on the internet.

      If you have difficulty in obtaining an official witness, you may submit the documents through our secure on-line platform me@income (Select "Service Request" - > "Waiver of Notarisation")   

    • Q: Can I terminate my policy after it is paid-up? A:

      Your paid-up policy will still have a cash value and you may terminate it to receive its cash value.

Customer Knowledge Assessment (CKA) and risk profile questionnaire

  • General

    • Q: What is the new requirement for Customer Knowledge Assessment (CKA)? A:

      In an effort to safeguard the interest of Singapore retail investors, the Monetary Authority of Singapore has introduced a new measure that requires all financial institutions, including Income, to carry out a CKA for retail customers who wish to invest in an unlisted Specified Investment Products (SIPs) for the first time; or who wish to make post-purchase transactions for purchased unlisted SIPs after 1 Jan 2012.>/p>

      If you are an existing customer, you can continue to hold or sell the existing unlisted SIPs that you bought before 1 Jan 2012. However, you will need to undertake the CKA if you wish to invest in more unlisted SIPs or make post-purchase transactions after 1 Jan 2012.

      For Income customers, an unlisted SIP includes an Investment-linked Life Insurance Policy (ILP).

    • Q: What are Specified Investment Products (SIPs)? A:

      There are many investment products offered to retail investors today. Some products are more complex than others, and have features that may be difficult to understand.

      To alert consumers of these complexities, the Monetary Authority of Singapore (MAS) has categorised such products as Specified Investment Products (SIPs). Some SIPs are listed on an exchange, and others are not.

      Examples of SIPs listed on an exchange Examples of SIPs that are not listed on an exchange

       

      • 1Selected exchange traded funds and notes
      • Structured warrants
      • Futures
      • Certificates

       

       

      • Structured notes (e.g equity linked structured notes, credit linked structured notes)
      • * Selected unit trusts
      • * Selected investment-linked life insurance policies

       

      1Note: Currently, all exchange traded funds, unit trusts and investment-linked life insurance policies are SIPs. With effect from Oct 2012, some of these products will not be considered as SIPs provided they meet certain requirements. For more information, refer to MAS' press release (www.mas.gov.sg) on 9 May 2012.

      SIPs are derivatives, or may contain derivatives, and these usually add complexity to a product’s features and risks. For example, if you invest in a product which contains a derivative, you are exposed to more factors which can result in a loss for you. An SIP may involve many counterparties in the structure of the product, and your investment can be affected if any one of these counterparties failed. It may also be difficult to understand how the derivative can fully impact the performance of the product at the outset. The eventual returns or losses on a product may be determined by complicated formulas that may not be easy to understand.

    • Q: Which Income products are classified as Unlisted SIPs? A:

      Under Income, our ILPs are classified under the category of Unlisted Specified Investment Products (SIPs).

      Customers are required to complete a CKA before purchasing or proceeding with post-purchase transactions of the following products:

      1. GrowthLink
      2. VivoLink
      3. FlexiLink
      4. FlexiCash
      5. IdealPlan (withdrawn ILP)
    • Q: What does the Customer Knowledge Assessment (CKA) consist of? A:

      The CKA is a questionnaire which consists of four questions where you will be required to provide factual information regarding your

      1. Education qualifications
      2. Investment experience and
      3. Working experience

      If you qualify for the CKA criteria, you are recommended to receive advice from one of our insurance advisers or consultants before you proceed with the transactions outlined in Q5. However, you may still do so without seeking any advice and you will be informed that it is your responsibility to ensure the suitability of the product chosen or post-purchase transactions made.

      If you do not qualify for the CKA criteria, we would require your co-operation to seek advice from one of our insurance advisers or consultants before proceeding with any ILP purchase or activating a post-purchase transaction for your existing ILP(s).

    • Q: When do I need to complete a CKA questionnaire? A:

      A CKA questionnaire is applicable under the following circumstances:-

      1. Purchase of a new ILP
      2. Post-purchase transactions such as premium top-up, premium increase for regular and recurrent single premium, sub-fund switching, change in premium allocation, activation of a RevoSave ILP account option.
    • Q: What information do I have to provide in the CKA questionnaire? A:

      Please provide factual information relating to your education qualifications, investment experience and working experience.

      To qualify for CKA, you will need to satisfy at least one of the following:-

      1. Education qualification
        • Diploma or higher qualifications in one of the following :

          • Accountancy
          • Actuarial Science
          • Business / Business administration / Business Management / Business Studies
          • Capital Markets
          • Commerce / Economics
          • Finance / Finance Engineering / Financial Planning / Computational Finance
          • Insurance; or

           

        • Professional finance-related qualification such as

          • Chartered Financial Analyst Examination (conducted by the CFA institute, USA) or
          • Association of Chartered Certified Accountants (ACCA) qualifications.

           

      2. Investment experience
        • Have at least 6 transactions in the last 3 years on Investment-linked Life Policies (ILPs) or Collective Investment Scheme (CIS) such as Unit Trusts.

          Examples which qualify as one transaction :

          • Purchase of ILP / Unit Trusts
          • Single premium Top-up / Regular premium increase
          • Change in Fund allocation
          • Sub-Fund switch within ILP / Fund Switch of Unit Trusts
          • New Recurrent Single Premium application

           

          Transactions that would not qualify :

          • Subsequent investment(s) into a regular premium of ILP / regular savings plan of Unit Trusts after the first premium / savings installment
          • Shares listed in the Stock Exchanges

           

      3. Working Experience
        • Minimum of 3 consecutive years of working experience in the past 10 years in any of the following :

          • Development / Structuring / Management / Sales / Trading / Research and Analysis of Investment Products
          • Provision of training in investment products
          • Accountancy
          • Actuarial Science
          • Treasury
          • Financial Risk Management

           

    • Q: If I have completed the CKA with another financial institution, do I still need to complete another CKA with Income? A:

      Yes. In line with the authority requirements, all financial institutions including Income are responsible for conducting their own CKA. Hence, the outcome of the CKA conducted cannot be transferred to other financial institutions.

    • Q: Can I still purchase or transact in ILP if I do not qualify for CKA? A:

      Yes, you may still purchase or transact an ILP on the condition that advice has been provided by one of our insurance advisers or consultants and the product or the post-purchase transaction is deemed suitable for you.

    • Q: What shall I do if I was advised that ILP is not suitable for me? A:

      If our insurance adviser or consultant advises that the product is not suitable for you, you should carefully consider whether you wish to proceed. If you still wish to proceed, do ensure that you fully understand and accept the implications of the transaction. You will need to provide a written confirmation to Income indicating that:

      • You intend to proceed with the transaction despite not qualifying for the CKA criteria; and
      • You will be responsible for ensuring that the product is suitable for you.

      As an additional safeguard, an approval by our senior management is required before an Income insurance adviser or consultant can proceed with the transaction.

    • Q: What is a risk profile questionnaire? A:

      The risk profile questionnaire helps you in assessing your risk tolerance level.

      It consists of six questions that draw information on your investment objective, investment time frame, investment return expectations and tolerance to potential loss.

      Understanding your personal risk preference is important as this will enable our Income insurance advisers or consultants to make appropriate recommendations on product suitability.

    • Q: When are the CKA and risk profile questionnaire introduced? A:

      The risk profile questionnaire was included in My Financial Portfolio form. It forms part of the Know Your Client process in assessing customer’s risk tolerance level. The CKA was introduced at the start of year 2012.

      Starting from 1 Aug2012, the completion of a Customer Knowledge Assessment (CKA) and risk profile questionnaire will apply to post-purchase transactions such as top up to your existing ILPs, sub-fund switching or change in fund allocation that are done with our Income insurance advisers or consultants.

      With effect from 3 Aug 2012, this will also be applicable when you do an online ILP top up at me@income.

    • Q: Can I choose not to complete the CKA and risk profile questionnaire? A:

      It is a requirement that Income conducts a CKA with our customers before they proceed to do any ILP transactions. In order for us to provide appropriate recommendation and advice to our customer, the information collection through CKA and the risk profile questionnaire is necessary.

    • Q: Why do I have to complete CKA and risk profile questionnaire for post-purchase transactions if I have already provided my information in My Financial Portfolio? A:

      Your risk tolerance level and investment knowledge may change over time. Before taking up an ILP, the corresponding information is collected so as to enable our Income insurance advisers or consultants to provide suitable product recommendations based on the most current information together with your financial priorities, situation and needs.

  • me@income

    • Q: What is the process for an ILP top up at me@income? A:

      You can access your me@income account through www.income.com.sg. When you select “Top Up” for an ILP, you will be prompted to complete both the CKA and Risk profile questionnaire before you can proceed with the top up.

    • Q: What is the validity period for my completed CKA and risk profile questionnaire at me@income? A:

      When you have completed the CKA and risk profile questionnaire for a top up transaction at me@income successfully, the information you provided for both the questionnaires will be kept.

      If you are assessed to have the relevant experience and/or knowledge from the CKA, the positive outcome will be valid for one year from the date of assessment. After a year, you will need to complete a new CKA before you can proceed with an ILP top up at me@income.

    • Q: What is the possible reason for unsuccessful ILP top up at me@income? A:

      If the outcome of your CKA shows that you do not have the relevant experience and/or knowledge, you will need to seek advice from one of our Income insurance advisers or consultants if you wish to proceed to do a top up.

      This is an additional safeguard for our customers who have limited or no relevant experience and/or knowledge. By liaising with our Income insurance advisers or consultants, we can ensure that our customers are provided the necessary information and advice before proceeding with the ILP top up.

    • Q: Can I proceed to do an ILP top up at me@income after consulting my insurance adviser for advice? A:

      If the outcome of your CKA shows that you do not to have the relevant experience and/or knowledge, your insurance adviser will have to provide you with the necessary information and advice for your decision. He/she will then follow up by submitting the application for an ILP top up to Income.

      Only customers who are assessed to have the relevant experience and/or knowledge through the CKA questionnaire can proceed to with the ILP top up at me@income.

    • Q: If I do not have an insurance adviser assigned to me, how do I proceed to do the ILP top up? A:

      You can visit one of our Business Centres to speak with an insurance consultant.

      Alternatively, you may email to csquery@income.com.sg or call our Income hotline at 6788 1122 to request for assignment of an insurance adviser.

    • Q: Who can I contact for more information? A:

      You may wish to contact your insurance adviser or call our Income hotline at 6788 1122.

Investment-Linked Plans – change of regular premium

    • Q: What is the minimum premium required to start a regular premium Investment-Linked Plan (ILP)? A:

      The minimum premium for your regular premium plan will depend on the type of plan you had signed up. For example,

      Type of ILP Plan Minimum Regular Premium Maximum Regular Premium
      VivoLink – VL1

      $150/monthly
      $450/quarterly
      $900/half-yearly
      $1,800/yearly

      $500/monthly
      $1,500/quarterly
      $3,000/half-yearly
      $6,000/yearly

      Ideal – ID2, ID2S

      $50/monthly
      $150/quarterly
      $300/half-yearly
      $500/yearly

      -
      Ideal – ID5, ID6, ID7

      $100/monthly
      $300/quarterly
      $600/half-yearly
      $1,200/yearly

      -
    • Q: Can I reduce my regular premium? A:

      Yes, you can decrease your regular premium provided your policy is in force with at least 12 months of initial premiums paid. The minimum regular premium allowed will be according to your plan type.

      If the regular premium had previously been increased, the premium must have been paid for at least 12 months before the decrease in regular premium is allowed.

    • Q: What are the charges incurred for the reduction in my regular premium? A:

      There will not be any additional charges incurred for the reduction in regular premium. However, the charge (advisory charge, mortality charge1, policy fee, rider premiums) on the policy remains payable until it is fully paid as per policy terms and conditions.

      1Mortality Charge is the amount charged every year by the insurer to provide the life cover to the Life Insured of the policy.

    • Q: How do I request for a Change of Regular Premium? A:

      You could complete the “Investment-Linked Plan Policy Regular Premium Change Form” and submit it to any of our Income branches, by fax to 6338 1500 or as an email attachment to life.health@income.com.sg. Alternatively, you may approach your Insurance Adviser for more details on the policy plan.

      For a copy of the Investment-Linked Plan Policy Regular Premium Change Form, please click here.

      Important information to note-
      For policies that are on GIRO, the process of deduction takes place between the 21st of the month to the 8th of the following month. During this period, no changes to your premiums can be made.

      If this form is received during this period, your request will be handled after the GIRO deduction process is completed.

      Example-
      If the form is received on 20 Oct, it will be effective from Nov.
      If the form is received on 21 Oct, it will be effective from Dec.

    • Q: If there is an increase in regular premium, are there any charges? A:

      There are charges incurred for the increase in regular premium depending on the ILP type.

      For example, for ID2 policies, a 45% advisory fee will be deducted upfront for the annualised portion that is in excess of the highest regular premium paid before the increase.

      For ID6 policies, there is a monthly advisory fee equivalent to 25% of the increased portion charged for a period of 12 months, in addition to any prevailing advisory fee being paid.

      For ID7 policies, if the policy is sold through an Insurance Adviser, for any increase in regular premium, there is a monthly advisory fee equivalent to 15% of the increased portion charged for a period of 12 months.

Investment-Linked Plans – fees and charges for existing plans

    • Q: What is a policy fee under the Investment-Linked Plans (ILPs)? A:

      A policy fee is a charge on your ILP, which is the cost required to maintain the records of your policy, handling transactions, providing half-yearly statements, etc.

    • Q: What are the policy fees for Income's ILPs? A:

      The three plans available are-

      • Flexi-Link Plan (IB4) for CPF investment only
      • GrowthLink Plan (GL1) for cash and SRS investment
      • VivoLink Plan (VL1) for cash investment only

      The policy fee is deducted from the ILP fund balance at the beginning of each policy year. With effect from 01 Mar 2007, the policy fees are indicated as follows-

      Plan Initial Policy Fee Subsequent Policy Fee
      Flexilink (IB4) No charges $50
      GrowthLink (GL1) No charges $50
      VivoLink (VL1) $150 $60
    • Q: Can the policy fees be waived? A:

      For IB4, with effect from 01 Mar 2007, if Net Premium Paid is $15,000 and above, the $50 annual policy fee will be waived.

      For GL1, with effect from 01 Jun 2010, if Net Premium Paid is $25,000 and above, the $50 annual policy fee will be waived.

      For VL1, there will be no waiver of policy fees regardless of the investment amount.

    • Q: Were policy fees imposed for ILPs only? A:

      We charge policy fees for traditional policies. These fees are used to pay for the cost of maintaining the policy. It is usually factored into the premium and the actual amount is not transparent to you.

      For Income, the policy fee for our traditional plans is $2.50 per month. It is our principle to make our charges transparent to our policyholders. However, you should note that there also are other charges built into the policy.

    • Q: What are the other charges? A:

      The other charges are as follows:

      1. Annual Management Fees
        The annual management fee is factored into the bid price of the fund. There is no separate deduction from the policy.
        You can refer to the relevant Fund Report for each ILP management fee via our website. Click here to enter.

      2. Fund Switching Fees
        All IB4 policies are entitled to two free switches each calendar year. A fee of $30 or one percent of transacted value (whichever is higher) will be charged for all subsequent switches.
        All switching fees are payable in cash and not deducted from the transaction amount.
        For GL1/VL1 policies, the fund switches are free.

Investment-Linked Plans – fees and charges for withdrawn plans

    • Q: What are the policy fees for Income's ILPs? A:

      The withdrawn ILPs are-

      • Four Flexi-Link Plans (IB1/IB2/IB3/IB4 - cash and SRS investment only)
      • Two Old Ideal Plans (IP1/IP2)
      • Five Ideal Plans (ID1/ID2/ID5/ID6/ID7)

      The policy fee is deducted from the ILP fund balance at the beginning of each policy year.
      With effect from 01 Mar 2007, the policy fees are indicated as follows-

      Plan Initial Policy Fee Subsequent Policy Fee
      IB1 $100 No charges
      IB2/IB3 $100 $50 per annum
      IB4 No charges $50 per annum
      IP1/IP2 No charges $25 per annum
      ID1 $100 $50 per annum
      ID2 $100 $50 per annum
      ID5 $90 $50 per annum
      ID6 No charges $4 per month
      ID7 No charges $4 per month

      If there is a second and subsequent Flexi-Link Policy or Ideal Plan taken up, we charge $50 in the first year.
      Fees before 01 Mar 2007:

      • ID2 – the subsequent policy fee was $30 per annum.
      • ID5 – $80 per annum.
    • Q: Can the policy fees be waived? A:

      With effect from 1 Mar 2007, if Net Premium Paid is $15,000 and above, the $50 Annual policy fee will be waived (except for ID6/ID7).

      For ID5, we will charge $50 lesser. Example: From 1 to 20 year, we will charge $40 per annum ($90 - $50) if Net Premium Paid is $15,000 and above. From 21 year onwards, the fees ($50 - $50) will be waived.

      Before 1 Mar 2007, the annual policy fee is charged at $30 if Net Premium Paid is less than $8,000 (except for ID5/ID6/ID7).

    • Q: What are the other charges? A:

      The other charges are as follows:

      1. Mortality Charges - with effect from 1 Aug 2005, the charges had been waived except for the older series of ILP (IB1/IP1/IP2).

        Mortality Charge and other Benefit Charges for Flexi-Link (IB1) and Old Ideal Policies (IP series)

        For the older Ideal policies (IP1 and IP2), the mortality charge is known as annual benefit charge for the sum assured of the policy.

        This charge is deducted at policy anniversary via the cancellation of units at the prevailing bid price.

        It is calculated based on the policyholder's attained age and either

        1. the difference between the sum assured or cash value (incremental basis) at policy anniversary, or
        2. the actual sum assured (fixed basis).

        Note: The choice of fixed or incremental basis was made by the policyholder when the policy was bought.

        For older Flexi-link (IB1) policies, mortality charges are applicable to the premium invested from age 60 onwards. This charge is deducted from the single premium and/or ad hoc top up premium. Depending on the premium amount, we can waive the mortality charge on a case to case basis.

        Mortality charge:

        Age (last birthday) % of Premium Invested
        59 and below 0%
        60 to 64 1.0%
        65 to 69 1.5%
        70 and above 2.5%

        Mortality and benefit charges are still applicable for these ILP policies because the minimum death benefit payable is different (and often higher) than that offered in the later series of Flexi-Link and Ideal Policies.

         

      2. Fund Switching Fees - All policies (except ID5) are entitled to 2 free switches each calendar year. A fee of $30 or 1% of transacted value (whichever is higher) will be charged for all subsequent switches.

        For ID5, a switching fee of 0.2% of transacted value applies for each transaction.

        All switching fees are payable in cash and not deducted from the transaction amount.

      3. Annual Management Fees - The annual management fee is factored into the bid price of the fund. There is no separate deduction from the policy.

        You can refer to the relevant Fund Report for each ILP management fee via our website. Click here to enter.

      4. Advisory Fees - applicable to ID2/ID6/ID7 and Old Ideal Policies (IP1/IP2).

        ID2 - There is an advisory fee of 15% of the initial annual premium charged for the first 3 years. Only 85% of the premium paid is invested.

        To any decrease of regular premium within the first three years of policy inception, the advisory fee on the initial regular premium will still be payable.

        To any increase of regular premium, a 45% advisory fee will be deducted upfront for the annualized portion that is in excess of the highest regular premium paid before the increase.

        ID6 – There is an advisory fee of 20% of the initial regular premium charged for the first 36 months.

        To any decrease of regular premium within the first three years of policy inception, the advisory fee on the initial regular premium will still be payable.

        To any increase of regular premium, there is a monthly advisory fee equivalent to 25% of the increased portion charged for a period of 12 months, in addition to any prevailing advisory fee being paid.

        ID7 – For policy that had been sold through an Insurance Adviser, any increase in regular premium, there is a monthly advisory fee equivalent to 15% of the increased portion charged for a period of 12 months.

        IP1 – 50% of first year premium

        IP2 – 80% of first year premium

      5. Surrender Penalty – applicable to ID2/ID5/ID6/ID7.

        For ID2/ID6 policies, if the policy is fully surrendered within the first 3 years of inception, the balance of the advisory fee will still be deducted from the cash value as a surrender penalty.

        For ID5 policies, if the policy is surrendered within the first 20 years from date of inception, a surrender penalty will be deducted from the cash value. The penalty is based on $40 per year, multiplied by the remainder of the 20 years.

        E.g. If you surrender your ID5 policy in the 5 policy year, we will deduct $40 x (20-5) = $600 as a penalty.

        For ID7 policies, if the policy is fully surrendered within the 12 months from the date the premium was increased, the balance of the advisory fee will still be deducted from the cash value as a surrender penalty.

        There is no surrender penalty for partial withdrawals.

Investment-Linked Plans – Premium Holiday

    • Q: What is meant by Premium Holiday? A:

      Premium Holiday is an option for the policyholders to suspend premium payment for a definite period, due to financial reasons. This is a feature for our regular premium policies that had been purchased by our policyholders.

    • Q: When can I apply for Premium Holiday? A:

      Premium Holiday is allowed for all in force regular premium policies. However, there are certain criteria that need to be met before the application is allowed.

      • There must be positive units in all the funds of the policy.
      • There must be minimum premium payment for 12 months.

      If the application is successful, we will send you a letter indicating the period of Premium Holiday applied.

    • Q: What happens when the policy is placed on Premium Holiday? A:

      The policy will remain in force as long as there are positive units in all the funds of the policy. During the period of premium suspension, no payment notice will be sent. However, the policy will lapse once the units fall to zero or negative.

      The fees and charges (renewal policy fee, advisory fee, mortality charges1 and rider charges) will still be applied even when the policy is on Premium Holiday. Therefore, please ensure that there are sufficient units in the policy to prevent the lapse of your policy during this period.

      1 Mortality Charge is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the Life Insured.

    • Q: How long is the period of premium suspension? A:

      You can apply for a maximum of six months each time.

      For policies on GIRO arrangement, premium payment will automatically resume upon the expiry of Premium Holiday.

    • Q: Can I apply for a longer suspension? A:

      Yes, you could submit an Investment-Linked Policy Premium Holiday form before the expiry of the current Premium Holiday. We will send you a letter two months before the expiry date of your Premium Holiday, informing you that the premium suspension is over and premiums will be payable.

    • Q: How do I apply for Premium Holiday? A:

      You could complete the “Investment-Linked Policy Premium Holiday Form” and submit it to any of our Income branches, by fax to 6338 1500 or as an email attachment to life.health@income.com.sg. Alternatively, you may approach your Insurance Adviser for more details on the policy plan.

      For a copy of the Investment-Linked Policy Premium Holiday Form, please click here.

      Important information to note-
      For policies that are on GIRO, the process of deduction takes place between the 21st of the month to the 8th of the following month. During this period, no changes to your premiums can be made.

      If this form is received during this period, your request will be handled after the GIRO deduction process is completed.

      Example-
      If the form is received on 20 Oct, it will be effective from Nov.
      If the form is received on 21 Oct, it will be effective from Dec.

Life insurance application

  • Application

    • Q: Do I need to complete the application form by myself? A:

      You are encouraged to complete the application form personally so that you can have a better understanding of the information required and provide the corresponding replies. Your insurance adviser will guide you throughout the process.

      Please check the application form to ensure that all information is correct and complete if your insurance adviser is completing it on your behalf.

    • Q: When will my life insurance coverage commence? A:

      Your insurance coverage is effective once we have accepted the risk, received the premium and issued your policy.

      You may call our hotline at 6788 1122 to check on your application status.

    • Q: Is there any insurance coverage while you process my life insurance application? A:

      Yes. There will be interim coverage if we have received your first premium payment.

      We will pay the basic sum assured or $500,000, whichever is lesser, if the Insured dies as a result of an accident while we are processing your application.

    • Q: How long will you take to process my life insurance application? A:

      We will be able to process your application within seven working days, provided:

      • We have received full documentation;
      • We have received the first premium payment; and
      • You are not required to go for a medical examination.

      The time required to process your application will be longer if there is incomplete documentation or the need for a medical examination.

    • Q: How will you deliver the policy document to me? A:

      Our standard practice is to send the policy document to you by normal mail.

    • Q: Can I request for my policy document to be hand-delivered? A:

      Yes. Please indicate “By Hand” on the top right hand corner of your application form if you want your insurance adviser to hand-deliver your policy document.

    • Q: What does the “14 days Free-Look Period” mean? A:

      The 14 days Free-Look Period allows you to evaluate if the policy meets your needs after receiving the policy document. The premiums paid, less medical fees and other expenses incurred (if any), will be refunded if you decide to terminate your policy within the Free-Look Period.

    • Q: When does the 14 days Free-Look Period start? A:

      The 14 days Free-Look Period will start seven calendar days after we have mailed out the policy document.

      The Free-Look Period will start from the day you receive your policy document if it is hand delivered by your insurance adviser.

  • Backdating of policies

    • Q: Can I backdate my regular premium policy? A:

      For regular premium plans where the premium rate increases with age, we allow back dating subject to the following conditions:

      1. The cover start date is set at 1 day before the insured’s birthday;
      2. The cover start date cannot be before the year of product launch; and
      3. The back dating cannot be more than 6 months.

      Please note that the premiums of the following plans does not increases with the age of the insured, hence back dating is not allowed:

      1. DreamSaver
      2. FlexRetire
      3. RevoSecure

      The above list of products is not conclusive and we will be updating the list regularly. Please email life.health@income.com.sg for the details of applicable products for back dating.

    • Q: Why are you charging interest for backdating? A:

      The premium collected is usually invested to achieve a certain rate of return in order to deliver yield on a policy. Interest is therefore charged to cover the loss in investment earnings arising from backdating.

    • Q: How is interest calculated for backdating? A:

      Interest is calculated based on the prevailing interest rate of 5.5% per annum on the premiums to be paid to backdate your policy.

  • Premium payment

    • Q: Why is there a need for me to make premium payment upon application? A:

      Your policy will commence after we have completed the risk assessment of the insured and received the first premium payment. Your application will therefore be expedited if you submit the first premium at the same time.

      There will also be interim coverage if you have made the first premium payment upon application. We will pay the basic sum assured or $500,000, whichever is lesser, if the Insured dies as a result of an accident while we are processing your application.

    • Q: How can I make payment for my premiums? A:

      You can make payment of your first premium by GIRO, cheque, cash, NETS and credit card. Credit card payment is restricted to the first premium payment for regular premium life insurance.

      Subsequent renewal payments can be made by GIRO, cheque, cash, NETS, internet banking, AXS, ATM or phone banking. We encourage GIRO deductions for policies with regular premium payments as it is hassle free and reduces the chances of missing any payments.

    • Q: When will the premium be deducted from my credit card? A:

      The premium will be deducted within five working days once your life insurance application is approved and your credit card details are entered into our system.

  • Underwriting/ assessment of risk

    • Q: What is underwriting? A:

      Underwriting is the process of assessing the risk of the Insured, and making the decision to decline or accept the risk at an appropriate premium.

      We always encourage people to get insurance while they are young and healthy.

    • Q: Do I need to inform you if there is a change in my health status while my application is being processed? A:

      Yes, you need to inform us of any changes in your health status so that we can make a decision on whether to accept the risk at the appropriate premium rate.

      Our underwriting is based on the information declared in your application. Your insurance policy may not be valid if we discover the non-disclosure of material information in the future. It may be more beneficial for special terms1 to be imposed on your policy instead of not having any insurance coverage.

      1 Special terms are terms offered by insurance companies that are outside the standard policy terms and conditions.

    • Q: What are the possible outcomes of underwriting? A:

      These are some of the possible outcomes of underwriting:

      • Accept the application with standard terms of the policy;
      • Require additional information on the health or financial status of the Insured if there is insufficient information to make a decision;
      • Charge a higher premium or impose special terms1 appropriate to the level of risk involved;
      • Defer the application and reassess the risk later;
      • Offer a lower sum assured for the same product or another product; or
      • Decline the application.

      1 Special terms are terms offered by insurance companies that are outside the standard policy terms and conditions.

    • Q: How do I know the outcome of my application? A:

      Your insurance adviser can help you monitor the progress of your application and keep you updated. Alternatively, you can call our hotline at 6788 1122 to check on your application status.

    • Q: Why are special terms1 such as premium loading and exclusions imposed on some policies? A:

      Special terms1 such as premium loading and exclusions are usually imposed on Insured with pre-existing medical conditions or a family history of illnesses that are likely to be hereditary. This group of Insured usually has a higher probability of making an early claim. The special terms1 are therefore necessary to cover this higher risk.

      1 Special terms are terms offered by insurance companies that are outside the standard policy terms and conditions.

    • Q: What can I do if I disagree with the underwriting decision? A:

      Our intention is to provide you with prompt and fair underwriting decision based on the information declared in the application form.

      If you have new information that is favourable and may change the underwriting decision offered i.e. extra premium, and / or exclusions, please inform us so that we can do a review.

  • Medical examination

    • Q: Do I need to go through a medical examination? A:

      We will inform you if there is a need for you to go through any medical examination. This is usually due to the sum assured, Insured’s age or any existing medical condition.

    • Q: Can I use a recent test report instead of going for another medical examination? A:

      Yes, you can submit your recent test report to us. Test reports are usually valid for six months. A Chest X-ray (CXR) is valid for one year.

    • Q: Who pays for the medical examination? A:

      We will pay for the medical examination and tests fees that we request.

    • Q: Can I decide on where to do the medical examination? A:

      All medical examinations and tests have to be conducted at a clinic from our Panel.

      We will assign a clinic in our list of Panel of Doctors that is near the Insured’s home. Please contact us to make the arrangement if the Insured prefers to go to another clinic listed in our Panel.

Motor online application

    • Q: How do I get a Motor online quote to purchase online? A:

      You can visit our website at www.income.com.sg and click “Motor Insurance” under “Buy Online” on the right hand panel of the page.

    • Q: Which class of Motor Insurance can I purchase online? A:

      You can purchase both Private Car Insurance and Motorcycle Insurance online.

    • Q: What are the payment modes available when I purchase online? A:

      You can pay either via eNETS Direct Debit or Visa/MasterCard Credit Cards.

    • Q: If I am a supplementary cardholder, can I still purchase my Motor Insurance online? A:

      Yes, as long as the Credit Card is valid and is issued in your name.

    • Q: Will my policy be activated once I purchase my Motor Insurance online? A:

      Yes, as long as your payment confirmation is successful.

    • Q: How will I receive my policy document? A:

      Upon successful payment confirmation, you will receive a confirmation email which includes a link for you to view your policy document. There will not be any hardcopy mailed to you.

Car servicing workshops

    • Q: Why does Income provide car servicing referral? A:

      We would like to add value to the motoring needs of our motor policyholders.

    • Q: How reliable are these workshops? A:

      These workshops are chosen from our panel of workshops for accident repairs have been with us for many years. These workshops have good track records in providing reliable and excellent service to our policyholders.

    • Q: Why are these workshops offering different packages? A:

      While we insist that the workshops must adhere to certain service standards we do not dictate the pricing and packaging of their products. It is a commercial decision by the workshops.

    • Q: What is Income's role in this referral service? A:

      Income’s role is to identify workshops that can provide reliable service to our customers.

    • Q: Who can I approach to make a servicing booking? A:

      You may make the servicing booking with the workshop.

    • Q: How can I be sure that the workshops do not make me change parts or pay for services unnecessarily? A:

      Our workshops will seek your agreement before changing any parts or rendering any additional services. They will present all the parts that they have changed for your inspection.

    • Q: Who can I approach if I have disputes with the workshop on the servicing? A:

      You should try to resolve it with the workshop directly. If it is not successful, Income will help to mediate.

    • Q: Do your workshops offer the lowest servicing package? A:

      Our selected servicing workshops offer competitive servicing rates with our assurance of reliability and quality.

    • Q: Do your workshops offer car collection and delivery services? A:

      Yes, our workshops can collect and deliver your car to you for a small fee.

    • Q: Do the workshops provide after-service warranty? A:

      Yes, our workshops will provide after-service warranties in line with industry practices.

Nomination of Beneficiaries (NOB) framework

  • General

    • Q: How did the Nomination of Beneficiaries framework under the Insurance Act come about? A:

      Prior to 01 Sep 2009, there was no provision in the Insurance Act to govern the nomination of beneficiaries to insurance proceeds.

      Instead, nomination of beneficiaries was governed by Section 73 of the Conveyancing and Law of Property Act, and, also for Income, Section 45 of the Co-operative Societies Act.

      From 01 Sep 2009:
      The law governing the nomination of beneficiaries is consolidated under the Insurance Act
      No nomination is allowed under the Conveyancing and Law of Property Act and Co-operative Societies Act.

    • Q: Why is there a need to implement a new Nomination of Beneficiaries framework under the Insurance Act? A:

      Section 73 of the Conveyancing and Law of Property Act has generated much controversy. When a policy owner has a policy on his own life and names his spouse and / or children as beneficiaries of the policy, Section 73 will automatically create a statutory trust in favour of the beneficiaries, even though the policy owner may not have intended to create a trust. Once a trust is created, the policy owner will lose all rights and control over the insurance policy.

      The Co-operative Societies Act provides for revocable nomination of any legal entity (individual, association or corporation). However, for all other insurers in Singapore who are not co-operatives, there was no statutory provision prior to 01 Sep 2009 which govern the nomination of any legal entity. As such, the status of such nominations with other insurers is uncertain.

      Parliament thus saw a need to consolidate the law on nominations by amending the Insurance Act to provide policy owners and insurers with directions on nominations.

    • Q: Can a nomination under the Insurance Act be made for all types of policies? A:

      Nominations can only be made for policies which provide for death benefits (e.g. Life policies and accident and health policies). The policy must insure the life of the policy owner. The policy may have been purchased by the policy owner or assigned or vested in the policy owner. No nomination is allowed for a policy that insures a life other than the policy owner’s life.

      The following general insurance accident and health products in Income will be allowed for nomination.

      Travel insurance
      Personal accident assurance
      Personal accident insurance
      Personal accident infectious diseases insurance
      Personal accident rideshield insurance
      PrimeShield
      Overseas student personal accident insurance
      Overseas Study Protection Plan

      Under the Insurance Act, you have the option to make either:

      1. A revocable nomination
      2. A trust (irrevocable) nomination;
      for a policy to decide how the policy proceeds will be distributed.

      Please note however that a trust (irrevocable) nomination cannot be made for PrimeShield plans.
       
    • Q: When will my nomination take effect? A:

      A nomination, if fully and properly completed, will take effect from the date your nomination form is lodged with the registered insurer that issued your policy.

  • Types of nominations under the Insurance Act

    • Q: What is a Revocable Nomination? A:

      Any legal entity-individual, association or corporation can be a beneficiary. However, the nomination is only applicable for distribution of the death proceeds. This means that while the policy owner is alive, he continues to retain all rights and control over his policy (including changes to the policy) and any proceeds will be payable to the policy owner. After making a Revocable Nomination, a policy owner can, on his own, change his nomination at any time. This is unlike a trust nomination where any change must be subject to the consent of the trustee or beneficiaries.

    • Q: What is a Trust (or Irrevocable) Nomination? A:

      A Trust (or Irrevocable) Nomination allows a policy owner to create a statutory trust in favour of the beneficiaries. Only the policy owner’s spouse and / or children can be nominated as the beneficiaries.

      This is similar to the trust under Section 73 of the Conveyancing and Law of Property Act. The difference is that under the Insurance Act, the policy owner makes an intentional and deliberate choice to effect such a nomination by completing a form prescribed by the Insurance Act.

      Once a policy owner creates a trust nomination, he will lose all rights and control over his insurance policy including the policy proceeds. However, the advantage is that the policy proceeds enjoy protection against claims from the policy owner’s creditors unless there is an intention to defraud his creditors when the trust is created.

      Please note that under the Insurance (NOB) Regulations, trust (irrevocable) nominations cannot be made for the following policies.

      •          ElderShield Supplement Plans (ESP), i.e. PrimeShield
      •          Integrated MediShield Plans (IMP), i.e. IncomeShield, Enhanced IncomeShield
      •          Insurance policies purchased using Supplementary Retirement Scheme (SRS) funds
    • Q: What do I need to know before making a Trust Nomination? A:

      Making a Trust Nomination has many consequences, as listed below, and you should consider carefully before making such a nomination.

      1. Policy owner loses all rights and control over his policy.
      2. Proceeds under the policy, whether made during the policy owner’s lifetime or after his death, will be payable to the beneficiaries.
      3. Policy owner cannot, on his own, change his nomination. To change or cancel his trust nomination, he must obtain the consent of each beneficiary who is at least 18 years old or a trustee who is not the policy owner. In the case of a beneficiary who is below 18 years old, the parent or guardian (who is not the policy owner) can consent on the beneficiary’s behalf.
      4. Policy owner cannot on his own give instructions to change any part of the policy. An insurer can carry out the policy owner’s instructions to change the policy (including any instructions to alter the benefits payable under the policy) only if consent has been obtained from each beneficiary who is at least 18 years old or a trustee who is not the policy owner. In the case of a beneficiary who is below 18 years old, the parent or guardian (who is not the policy owner) can consent on the beneficiary’s behalf.
      5. The trust is not affected by a divorce. This may be an issue if the spouse is one of the beneficiaries.
    • Q: Do I need to name a trustee for a Trust Nomination? A:

      Yes, you must name at least one trustee for the nomination to be valid. You, your witness or a beneficiary may be named as trustee.

      If you name yourself as a trustee, you cannot:

      1. Consent to the revocation of the trust
      2. Consent to variation of any term of the policy
      3. Give a valid discharge to the insurer for monies received under the policy

       

    • Q: Why is the restriction imposed on a policy owner who is also a trustee under a Trust Nomination when there is no such restriction under Section 73 of the Conveyancing and Law of Property Act? A:

      This is to preserve the protection granted to the beneficiaries under the trust. In some circumstances, it could be detrimental to the interest of the beneficiaries if the policy owner is allowed to access the proceeds of the policy based on his role as trustee.

    • Q: How do I cancel a Trust Nomination? A:

      To cancel the nomination, consent must be obtained from either:

      1. A trustee who is not the policy owner; or
      2. Each beneficiary who is at least 18 years old or, in the case of a beneficiary who is below 18 years old, consent from the parent / legal guardian who is not the policy owner
    • Q: Where can I find a summary of the changes to Revocable and Trust Nominations prior to and after 01 Sep 2011, as well as the similarities and differences between Revocable and Trust Nominations under the Insurance Act? A:

      You will be able to find a consumer guide, by the Life Insurance Association (LIA), on the new nomination law at the LIA website. For a copy of this consumer guide, please click here.

      We have also highlighted the following in the Tables below:

      • Table 1 – Comparison of Key Differences Between Revocable Nominations under the Co-operative Societies Act and the Insurance Act
      • Table 2 – Comparison of Key Differences between Trust Nominations under Section 73 of the Conveyancing and Law of Property Act and the Insurance Act
      • Table 3 – Comparison of Key Differences between Trust Nomination and Revocable Nomination under the Insurance Act.

      TABLE 1: COMPARISON OF KEY DIFFERENCES BETWEEN REVOCABLE NOMINATIONS UNDER CO-OPERATIVE SOCIETIES ACT AND INSURANCE ACT

      Co-operative Societies Act prior to 01 Sep 2009 Insurance Act from 01 Sep 2009

      Revocable Nomination governed under S45 of Co-operative Societies Act

      Revocable Nomination governed under S49M(2) of Insurance Act

      Use of Income’s prescribed form to nominate

      Use of Form 4 of Insurance (Nomination of Beneficiaries) Regulations to nominate

      One nomination form for one or more policies

      One nomination form per policy

      Nomination form allows for appointment of Trustee to receive the death proceeds under the policy on behalf of any nominee below 21 years old at time of payout

      Nomination form does not allow for appointment of Trustee. If nominee is below 18 years old, parent / guardian (who is not a policy owner) can receive insurance proceeds on behalf of such nominee

      Nomination is not cancelled by a subsequent Will

      Nomination may be cancelled by a subsequent Will if: Written notice of the Will has been given to the insurer; and Will provides for disposition of all death benefits under the policy and contains particulars as required under Regulation 5(3) of the Insurance (Nomination of Beneficiaries) Regulations.

      Nomination is cancelled by: Another nomination Use of Income’s prescribed revocation form Creation of a Section 73 Conveyancing and Law of Property trust An Assignment / Notice of assignment, encumbrance

      Nomination is cancelled by:
      Another revocable nomination (Form 4)
      Express revocation (From 5)
      Trust Nomination (Form 1)
      Notice of assignment, encumbrance, or Will with prescribed particulars (Form 6)
      For a copy of Form 1, please click here.
      For a copy of Form 4, please click here.
      For a copy of Form 5, please click here.
      For a copy of Form 6, please click here.

      TABLE 2: COMPARISON OF KEY DIFFERENCES BETWEEN TRUST NOMINATIONS UNDER SECTION 73 OF CONVEYANCING LAW OF PROPERTY ACT AND INSURANCE ACT

      S73 Conveyancing and Law of Property Act prior to 01 Sep 2009 Insurance Act from 01 Sep 2009

      Trust created under Section 73 of Conveyancing and Law of Property Act

      Trust (or Irrevocable) Nomination under S49L(2) of Insurance Act

      Use of Income’s prescribed form to nominate

      Use of Form 1 of Insurance (Nomination of Beneficiaries) Regulations to nominate

      One nomination form for one or more policies

      One nomination form per policy

      Spouse and children (excluding illegitimate children)

      Spouse and children (including illegitimate children)

      Trustee appointed using Income’s prescribed form or policy owner is default trustee

      Trustee appointed using Form 1 of Insurance (Nomination of Beneficiaries) Regulations but no default trustee. Policy owner must appoint at least one trustee

      Consent of Trustee not required before appointment

      Consent of Trustee is required before appointment

      Trustee must be at least 21 years old

      Trustee must be at least 18 years old

      Discharge for receipt of policy money is given by Trustee(s)

      Discharge for receipt of policy money by any Trustee who is not the policy owner, or all nominees who are 18 years old and above and parent / legal guardian’s (who is not the policy owner) consent for nominees below 18 years old.

      Cancellation of trust – consent to be obtained from both Trustee(s) and beneficiaries who are at least 21 years old

      Cancellation of trust – consent to be obtained from Trustee who is not the policy owner or all nominees who are 18 years old and above and parent / legal guardian’s (who is not the policy owner) consent for nominees below 18 years old

      Use of Income’s prescribed form to cancel

       

       

      Use of Form 2 of Insurance (NOB) Regulations to cancel For a copy of Form 2, please click here.

      TABLE 3: COMPARISON OF KEY DIFFERENCES BETWEEN REVOCABLE & TRUST NOMINATIONS UNDER THE INSURANCE ACT FROM 01 SEP 2009

      Only applicable to death benefits
        Revocable S49M(2) Trust S49L(2)
      Policy Type

      Life, general insurance and accident & health policies with death benefits and the policies insure the life of the policy owner

      Life, general insurance and accident & health policies with death benefits and the policies insure the life of the policy owner

      Minimum Age of Policy Owner 18 years old 18 years old
      Making the Nomination Anytime during policy period Anytime during policy period
      Annuities under MSS Not applicable Not applicable
      Annuities under MSPS Applicable Applicable
      DPS/CPFIS/SRS policies Applicable Not applicable
      Beneficiary Any legal entity (e.g. individual, association or corporation) Only spouse / child (e.g. legitimate / illegitimate, stepchild, adopted child)
      Cancellation by Policy Owner Yes, anytime

      With consent of a trustee who is not the policy owner or consent of all beneficiaries who have attained 18 years old or their parent / legal guardian who is not the policy owner for beneficiaries below 18 years old

      Automatic Cancellation

      Automatically cancelled if:

      • Policy is assigned
      • Another nomination (trust or revocable) is subsequently made
      • Policy is covered by a subsequent Will and Will is given to insurer

       

      No
      Will made subsequent to Nomination

      Nomination is cancelled if

      • Will provides for disposition of all death benefits under the policy and specifies particulars as required under Regulation 5(3) of the Insurance (NOB) Regulations
      • Written notice of the Will is given to the insurer

       

      No impact
      Death of Nominee before Policy Owner

      If sole nominee dies, nomination is revoked. Otherwise, the deceased nominee’s share will be proportionately distributed among the surviving nominees.

      Policy proceeds form part of the deceased nominee’s estate.

      Nomination applicable to living and death benefits? Only applicable to death benefits

      Applicable to both living and death benefits for life and accident & health policies.

      Appointment of Trustee(s) Not necessary

      Yes and policy owner, beneficiaries or witnesses may be appointed as trustees

  • Nomination requirements under Insurance Act

    • Q: What are the age requirements for policy owners, trustees and witnesses named in a nomination? A:

      The age requirements for a policy owner, trustee and witness are listed in the following table.

        Revocable Nomination Trust Nomination
      Policy Owner At least 18 years old At least 18 years old
      Trustee No Trustee required At least 18 years old
      Witness At least 21 years old At least 21 years old
    • Q: What are the restrictions on nomination types for policies that are purchased with CPF funds? A:

      The table below summarises the restrictions on nomination types for policies that are purchased with CPF funds.

      Policy Type Revocable Nomination Trust Nomination
      Minimum Sum Scheme (MSS) Annuities No No
      Minimum Sum Plus Scheme (MSPS) Annuities Yes Yes
      Dependent Protection Scheme (DPS) Yes No
      CPFIS OA (Ordinary Account) or SA (Special Account) Yes No
      SRS (Special Retirement Scheme) Yes No
    • Q: Why am I not allowed to make a Trust Nomination for DPS, PrimeShield and policies purchased with CPFIS / SA and SRS funds? A:

      The reason is because a Trust Nomination will cause the policy owner (CPF member) to lose control over any insurance proceeds paid out during his lifetime. This is not in line with CPF Board’s policy that CPF members must retain complete ownership of their funds as long as they are alive.

    • Q: Why am I not allowed to make any nomination for annuities purchased under the Minimum Sum Scheme (MSS) but I am allowed to do so for annuities purchased under the Minimum Sum Plus Scheme (MSPS)? A:

      CPF Board treats annuities purchased under the Minimum Sum Plus Scheme (MSPS) like any other policy as they are paid for with cash. So nominations are allowed for you to determine how the proceeds are to be distributed.

      On the other hand, CPF Board wants to ensure that disbursement of proceeds from annuities purchased under the Minimum Sum Scheme (MSS) will be used to provide the CPF members with a monthly income to support a modest standard of living during retirement. So, no nomination is allowed.

    • Q: Is there any cap on the death proceeds an insurer can pay out when a nomination is made? A:

      There is no cap if a nomination has been made. In the absence of any nomination, the insurer can only pay up to $150,000 in total for all relevant policies issued by the insurer to proper claimant(s) and any balance proceeds will be paid upon production of letter of probate (with Will) or letter of administration (without Will). A proper claimant is defined in the Insurance Act to mean a person who claims to be entitled to the death proceeds as the executor, spouse, parent, child, sibling, nephew or niece of the deceased.

    • Q: What if a beneficiary under a Revocable Nomination predeceases the policy owner? A:

      The deceased beneficiary’s share will be proportionately distributed among the surviving beneficiaries. If there is no other beneficiary, the nomination will be deemed as cancelled.

    • Q: What if a beneficiary under a Trust Nomination predeceases the policy owner? A:

      The deceased beneficiary’s share will not be proportionately distributed among the surviving beneficiaries. The deceased beneficiary’s share will go to form part of his estate.

  • Will

    • Q: What if after making a nomination under the Insurance Act, I make a Will that covers the same policy? A:

      Your Will will have the following effect depending on the type of nomination that you have made on and after 01 Sep 2009.

      Revocable Nomination
      If after making a Revocable Nomination, you make a Will that covers the same policy and you have given written notice of the Will to the insurer, then the Revocable Nomination will be cancelled by the Will. However, the Will must satisfy specific requirements as required by the Insurance Act. For example, the Will must provide for the distribution of all death benefits under the policy and it must specify particulars of the policy. For the full set of requirements, please read the question below “What are the requirements for a Will to cancel an earlier Revocable Nomination?”.

      Trust Nomination
      If after making a Trust Nomination, you make a Will that covers the same policy, the Trust Nomination will not be cancelled by the Will even if written notice of the Will has been given to the insurer. To understand how a Trust Nomination can be cancelled, please read the question above, “How do I cancel a Trust Nomination?”.

    • Q: What are the requirements for a Will to cancel an earlier Revocable Nomination? A:

      Under the Insurance Act, the Will must:

      1. Provide for the distribution of all death benefits under the policy; and
      2. Specify particulars of the policy as required under Regulation 5(3) of the Insurance (Nomination of Beneficiaries) Regulations 2009. The Regulations require the following particulars to be specified in the Will:

        1. The name of the insurer that issues the policy;
        2. The policy number;
        3. The name of each beneficiary to whom any portion (including the whole) of the death benefits under the policy is bequeathed;
        4. Where a beneficiary referred to in sub-paragraph (iii) is an individual, the following particulars of the beneficiary: NRIC / Birth Certificate / Foreign passport number, address, date of birth;
        5. Where a beneficiary referred to in sub-paragraph (iii) is not an individual, the following particulars of the beneficiary:
          • The Singapore unique entity number of the beneficiary or, if the beneficiary does not have such a number, any other official registration number which identifies and is unique to the entity; and
          • The address of the beneficiary;
        6. The portion of the death benefits under the policy which is bequeathed to each beneficiary.

         

    • Q: I have an Income policy which I have made a nomination under the Co-operative Societies Act. Can this nomination be superseded by a subsequent Will? A:

      No, this is because the amendment to the Insurance Act does not have any retrospective effect. This means that your existing nomination will still be valid even if you make a subsequent Will.

      If you wish to cancel the existing Co-operative Societies Act nomination, you are advised to submit our prescribed form. Alternatively, if you wish to make a new nomination, you can submit a Revocable or Trust Nomination under the Insurance Act and the Co-operative Societies Act nomination will be deemed as cancelled.

      Similarly, if a Section 73 Trust Nomination has been made for a policy, it will still be valid, unless cancelled. A Section 73 Trust Nomination can be cancelled with consent from trustee and beneficiaries or trustee only, if beneficiaries are below 21 years old.

Purchase of insurance by an undischarged bankrupt

    • Q: How is Income notified about my bankruptcy status? A:

      Income is notified by the Insolvency & Public Trustee's Office when a bankruptcy order is made against any person. Upon notification, we will update our customer database with the bankruptcy order. If the bankrupt has policies with Income, the relevant policies will be assigned to the Official Assignee.

    • Q: Can an undischarged bankrupt purchase insurance? A:

      Each time an undischarged bankrupt wishes to purchase insurance, the bankrupt must obtain clearance from the Official Assignee. If a third party insurance is taken up, where the life insured is an undischarged bankrupt, the relationship between proposer and life insured has to be one of the following:

      • Spouse
      • Parent and child or
      • Employer and employee

      The Official Assignee will issue a letter of consent or approval if the request is approved. Upon approval, we will uplift the bankruptcy status temporarily to allow the processing of the insurance policy when the Official Assignee’s letter of consent or approval is produced.

      For travel insurance application, an e-filing letter of approval can also be accepted. The period of cover cannot exceed the permitted overseas period stated in the e-filing letter.

    • Q: How does an undischarged bankrupt pay his / her premiums? A:

      An undischarged bankrupt has to pay for his / her insurance premium using a third party cheque. The name and NRIC of the third party must be given to our staff to be recorded into our system.

      For cheque payment, please make the cheque payable to “NTUC Income” and indicate the name, policy number and contact details on the back of the cheque.

      Please mail the cheque to the following address:
      Income Centre
      75 Bras Basah Road
      Singapore 189557

      Alternatively, he / she can make payment at any Income branch via cash, NETS, or cheque.

      For a list of all Income Branches, please click here.

    • Q: Who can I contact if I have any further enquiries? A:

      You can approach your insurance adviser for assistance. Alternatively, please email your enquiry to csquery@income.com.sg or call Income hotline at 6788 1122.