OK, does Insurance Bonds pay coupons like those statutory bonds available in Singapore?
The statutory bonds in Singapore are coupon-paying, with interest paid every half yearly. Therefore, they do not give you the option of compounding the coupons. Insurance Bonds on the other hand, are non-coupon paying bonds with average returns between 3% to 5.9% per annum, depending on the tenure. Before investing, you have to choose the tenure which corresponds directly with it return i.e. the longer the term, the higher the coupons Qn: I know that there are quite a number of different types of Insurance Bonds. How are they like? There are generally two classes of Insurance Bonds. The first type has returns that are totally guaranteed. The second type has returns made up of a guaranteed portion, plus a boost of bonuses. Guaranteed cum bonus bonds provides higher returns than totally guaranteed bonds. Our local insurance company Asia Life has such a product called the Asia Capital Plan. It 5 years bond has a yield of 4.28% p.a., While NTUC Incomes Capital Plus 5 years bond that has re
Related Questions
- Insurance companies have mostly made windfall bonuses from the 1979 Act. Why isn’t the polluter being made to pay more to the sufferers?
- How will the state be able to afford the debt service to pay off the bonds, given the current budget crisis?
- Does the insurance company have to pay "punitive damages"?
