NTUC is currently having a promotion for some of their products.
They will be rewarding customers with choice of vouchers (ranging from $120 to $300) from either Fairprice or CapitaLand when they sign up for any of the following plans from 15 May to 31 July 2010 (policies must be incepted by 31 August 2010 to qualify for the promotion)
Reach & Harvest
Such promotions are good for marketing purposes but in general, we should never be induced into buying an investment/insurance products due to a promotion (offering freebies) or discounts.
Make sure the product fits your needs in the first place. If it does and there is a promotion going on, then treat it as an extra bonus.
Some products even have promotions or bonuses that seems to last forever. You can be sure that these extras have been priced into the product in the first place.
Consider the same product that is priced at :
B) $1000 but with a discount of 20% (ie $800)
It doesn’t take a genius to figure out that B will sell better.