Ranking

Insurance Company

You must pay premiums for this long

in order to pay the distribution costs

1

Do It Yourself (DIY)

-- buy insurance and investments separately

0 months

2

Aviva

6 months

3

NTUC Income

10 months

3

HSBC

12 months

3

Manulife

13 months

3

GreatEastern Life

14 months

4

Prudential

17 months

4

Asia Life

19 months

4

AIA

20 months

N.A.

UOB Life

N.A.

Average

for All Insurers

14 months

Important Information

1) Distribution costs are selling expenses paid to the insurance company and sales agent.  It is a "dead weight" cost. It does not contribute to the insurance or investments which the policyholder purchases with the endowment policy.

2) "Time needed to pay distribution costs" is calculated as distribution costs divided by the $200 monthly premium.

3) Policies are standardised as: "A 20-year regular-premium endowment policy charging $200 per month for a 30-year old non-smoking male."