What are the penalty charges for OCBC Maxgrowth Enhanced?

I signed up with OCBC Maxgrowth Enhanced for 4 months to date. If I surrender, what would be the penalty charges? Is the penalty charges equivalent to 4 months premium I paid only? My premium is SGD8,000 per year for 5 years or monthly about SGD696 and the sum assured at maturity is less than the principal. I am not good at financial products and later found I made a mistake when I signed up.
Posted on: Apr 26, 2017 Share Share

Answers written by financial consultants represent general information only. For advice on specific life insurance or investment products, please contact a licensed financial consultant.

The penalty will be basically your premiums paid and if you have received gifts, there may be further clawback if it does not fulfill the contract addendum you will have signed.

I believed that you may have intepreted the benefit illustrations wrongly as no savings plans will be in a situation whereby you lose money right from the onset. So maybe you should take the contract and speedily seek advice from a reliable and experienced advisor.

This has only happen before to a small group of people who happen to have purchased from a particular insurer but even then, the projection was with returns.

It just so happen for that tranche of policies that the policy was done in such a way that the entirety of the projection return is based on the terminal bonus and it is that year that the world went into a crisis which I forgotten was the Asian Financial Crisis in 1997 or Dot-Com Bubble in 2000.

Other policy holders of the same product with maturity year before or after that ill fortune year did not have losses.

So I strongly suggest you seek proper advice asap to prevent more premiums losses if you still decide to terminate. Or you could have a better understanding and feel assured that your funds will be earning returns with clearer information on the product.
Apr 28, 2017