Frequently Asked Questions

Bonus encashment

  • Q:What are types of bonuses issued on traditional life policy?

    A:

    We may issue two types of bonuses to our policyholders:

    • The annual bonus is an amount distributed yearly to all our participating policies1.
    • A special bonus (sometimes called a terminal bonus) is an extra bonus which we pay at the time of a claim, or upon maturity, or if you surrender the policy.

    1 Participating policy refers to the policy that is managed in the Participating Fund (“the Fund”). The policy shares in the profits or losses of the Fund, through bonuses added to your policy. For more information, please refer to this guide: Understanding Your Participating Policy.

  • Q:What is the annual bonus?

    A:

    The annual bonus is an amount distributed yearly to all our participating policies 1.

    The annual bonus declared each year is determined by the Appointed Actuary and approved by the Board of Directors. Once the annual bonus has been declared, it is guaranteed. The annual bonus is accumulated annually and will be payable upon maturity or death.

    1 Participating policy refers to the policy that is managed in the Participating Fund (“the Fund”). The policy shares in the profits or losses of the Fund, through bonuses added to your policy. For more information, please refer to this guide: Understanding Your Participating Policy.

  • Q:What is special bonus?

    A:

    A special bonus (sometimes called a terminal bonus) is an extra bonus which we pay at the time of a claim, or upon maturity, or if you surrender the policy.

  • Q:What should I do if I want to encash the bonus?

    A:

    You may send us an enquiry to obtain a copy of Bonus Encashment voucher. The voucher is valid for 14 days from the date of your voucher.

    Documents required:

    • Bonus Encashment voucher
    • Personal identification document
    • Documentary proof of admission to a tertiary education institution or a copy of marriage certificate of the Life Assured (required for bonus encashment with enhanced benefit)

    You may request a direct credit to your personal bank account by providing a copy of your recent bank book/statement which reflects the Bank Name, account holder’s name and account number. 

    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; and
    • 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.

    Please the completed forms with your personal identification document by any of the methods below. We will process your request after we have received the completed documents. 

    • Branch: Find an Income branch
    • Emailing: csquery@income.com.sg
    • Post to: 
      Income Centre
      75 Bras Basah Road
      Singapore 189557

  • Q:What happens if the policy is assigned under absolute assignment 1?

    A:

    If the policy is assigned under absolute assignment1, only the assignee can give the instruction to encash the bonus and proceeds will be paid to the assignee.

    1 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 happens if the policy is a trust created under Section 73 of the Conveyancing and Law of Property Act?

    A:

    We need consent of all trustees plus beneficiaries (at least age 21) named under the policy. Proceeds will be paid to all trustees, or all beneficiaries (at least age 21).

  • Q:What happens if a policy is a trust (Irrevocable Nomination) created under Section 132 of the Insurance Act, 1966?

    A:

    Proceeds will be paid to the trustee (who is not the policyholder), or all beneficiaries (at least age 18). Parental consent is required if any of the beneficiaries is below age 18. The parent who gives consent must not be the policyholder.

  • Q:What if I am no longer residing in Singapore, and I do not have a bank account in Singapore?

    A:

    If you are residing overseas, you may send us your request via our online form and we will send you the bonus encashment form. The form has to be witnessed either by an Official from the Singapore High Commission/Embassy of the Republic of Singapore (for Singaporeans) 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 common 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 this official witness, you may submit the documents here (Select “Manage” → "Request for waiver of notarisation"). 

    Please submit your completed bonus encashment form with a copy of your Singapore NRIC or a valid Passport and bank statement (dated within last six months). If your identification document or bank statement does not contain your address, please provide an additional document which shows your residential address (e.g. a utility/credit card bill issued within the last six months).

    If you do not have a bank account in Singapore, you can request for a telegraphic transfer (TT) of bonus encashment proceeds to your personal bank account overseas. Your TT request is subject to approval and bank charges will have to be borne by you. TT may take up to 14 working days, from the day we receive complete information from you.

    We need the below information to facilitate the TT. We may contact you if additional information is needed.

    Telegrahic Transfer
    Remittance currency
    Intermediary Bank for remittance in SGD
    Name of Account holder
    Bank Name
    Bank Account number
    SWIFT code*
    IBAN Number
    BSB code (for Australia only)
    Fedwire/CHIPS Universal ID/CHIPS Participant ID or ABA (for USA only)
    IFSC code (for India only)
    Bank Address
    Country and State
    • *SWIFT code: It is a standard format of Bank Identifier Codes (BIC) and a unique identification code for a particular bank. You may contact your bank to obtain the SWIFT code.

  • Q:My Foundation policy has an Enhanced Benefit. What is this benefit?

    A:

    There is an option for you to encash the accumulated bonus for the purpose of the Life assured’s tertiary education and legal marriage. We will pay the enhanced discounted value of the accumulated bonus at a rate which is 25% more than the normal discounted value. It must be encashed within six months after marriage or entry into/graduation from a tertiary institution.

  • Q:What are the consequences of encashing my bonus?

    A:

    Unless there is a real need, we do not encourage policyholders to encash their bonuses (even with the enhanced option) because of these possible consequences.

    • The discounted value of the bonuses may be smaller than the face value of the annual bonuses given up.
    • Future annual bonuses earned on the policy will be reduced due to the loss of the compounding effect of annual bonuses.
    • A reduction in the face value of the annual bonuses means lesser bonuses (both annual and terminal) for a claim or maturity event in the future.

    You may approach your advisor if you wish to evaluate this option.