Date: For Parliament Sitting on 4 November 2026

Name and Constituency of Member of Parliament

Dr Choo Pei Ling, Chua Chu Kang GRC

Question:

Dr Choo Pei Ling: To ask the Prime Minister and Minister for Finance (a) whether MAS has assessed how welcome bonuses and bonus-linked premium tiers influence purchases of investment-linked policies; (b) when legislation to require insurers to disclose advertised bonuses, the cumulative charges and surrender values over the minimum premium commitment period will be introduced; and (c) whether MAS will require standardised illustrations that show the net financial benefit after accounting for associated charges.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), and Chairman of MAS:

1. MAS’ Guidelines on Fair Dealing make clear that a customer’s primary attention should focus on whether a financial product meets his needs. For investment-linked policies (ILPs), financial institutions (FIs) and their representatives should assess holistically if the product is suitable for a customer, taking into account its features, costs and risks, as well as his needs and financial circumstances. Promotional incentives should not overshadow these considerations.

2. MAS already requires insurers to disclose relevant information on ILPs. Policy illustrations show the net financial benefit policyholders may receive if they surrender their ILP, based on premiums paid-to-date and assumed rates of returns, after taking into account contractual bonuses and all relevant fees and charges. These illustrations show the projected surrender values and cumulative effect of deductions over the policy term, including beyond the minimum commitment period. FIs and their representatives must explain the illustrated benefits and costs, including any conditions attached to promotional incentives and when these may be forfeited or clawed back. This is important because ILPs typically impose surrender charges in the early policy years, and losses from early surrender can outweigh the promotional incentives, which may be invalidated in the case of early surrender.

3. MAS will further strengthen disclosure by shortly introducing a Product Highlights Sheet (PHS) that apply more specifically to ILPs. The PHS will provide a standardised summary of key features, risks, fees and charges to help customers assess the overall costs and benefits of an ILP and its suitability for his needs. Customers should consider these factors beyond promotional incentives that accompany the product. MAS is working with industry to implement the PHS, and will announce details in due course.

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