Letter of the Day | NCB unfair billing practices
THE EDITOR, Sir:
I note with keen interest that NCB Financial Group Limited have recorded a 33 per cent third-quarter profit amounting to $20.9 billion. This has so far exceeded last year's annual profit.
I write to express my disgust after receiving my Omni Educator Anniversary statement. This is the first anniversary statement for March 2017 March 2018. I am appalled at the fees being taken from this policy, namely, cost of insurance, $782.08 monthly (up until January 2018 when it was increased to $833.08 monthly) and expenses, $500 monthly.
My contractual premium is $7,000 monthly with an automatic 10 per cent increase yearly. The statement shows total contractual premiums, $77,000; total expenses, $15,486.96; and total interest $790.46 (laughable). I am now left with a balance of $62,303.49 for the policy year when my total contractual premiums were $77,000.
This is a deficit of $14,696.51. The NCB Insurance regional manager, who was quite cordial, tried to convince me of the policy's long-term effect. She explained that the life insurance component of the policy was what was driving these enormous fees. I explained that I had several life insurance policies and did not need any more, but was told that this was "fixed" to this Educator policy. I requested a future projections of the policy, which was furnished to me. To my surprise, every single year projected showed a deficit, unless I added lump sums of $500,000 or $1 million, then I would see a negligible net increase.
To be fair, I had two other NCB OMNI Educator policies where two of my children had benefited from the grant portion of the policies. Back then, the policies had increases every year which I was comfortable with. These policies were from 2004. I understand this present OMNI Educator policy has some changes to it, but they are not to my benefit.
I have since surrendered this policy and my balance was $92.000 after 16 months of premiums totalling $115,000 This is a deficit of $23,500. I also had to pay a surrender fee of $5,600. In effect, I have handed NCB $29,100 over 16 months without getting any benefits. I guess they are smiling all the way to the bank.