iamsuccess,

1. Yes, if you paying every month, you should have a substantial amount in your policy by age 55-60. However, the amount is depends on the investment performance of the fund you chosen.

2. Fund switching is just the same like unit trust. Change to "high risk high return" fund in good year and change to "low risk low return" fund in bad year. The right time of switching is the difficult part, you will need to monitor the market very well. However, no one knows when is the perfect time for it.
Not doing switching does not means that you will lose your money. Take PRUlink equity fund as example, if you just leave it there for the past 10 years without making any switch, you still have about 9.4% of return rate. And this 10 years is included with losses in 2 times of economy crisis.

So conclusion is, if you are really good in investment, you can:
- Switch fund according to the market.
- Buy term invest the rest.

if you are not good:
- Don't care the fund performance, just pay and apply the Ringgit Cost Averaging rules.
- Learn up how to invest.

TS, i felt sorry for your mom. Honestly I feel like wanna 'maki hamun' that agent for taking advantage at your mom.
They only think about themselves. *Sigh*

Its not the agent actually.

Its the nature of unit-linked product. There is risk involved.

Well, based on what TS wrote:

The agent told her she would get back 60K++ upon maturity

The agent didn't tell her that the investment would have risk..
Hence, the agent is taking advantage at her mom..
A devilish agent..

That's the dark part of insurance revealed. When agents come to approaches, thousands of promises made just to persuade us to join them. Once joined, you'll see the dark part.

Well, I'm agree on that.
Years back, people buy insurance because they "give face" to their friends when they come selling.
End up they bought the lousy policies and never let others review their policies. My parents the same too.

Now I'm checking the surrender values of our policies, consider switching to other policies with far better protection and coverage.
It isn't easy to meet a good agent nowadays, or it just people unwillingly to go and find appropriate person (ignorance perhaps, just stick with their agents [friends, relatives] )



am_eniey, it is the dark part of insurance agent......not the insurance.
Insurance is good actually, and we as consumer must also refer the policies clearly before commit to it.
I believe most of us here are well educated, simple english on a policy shouldn't be something tough?

..but it is your 'simple post' that gives everyone impression that 8%-9% return (yearly) is achievable.

Anyhow, wasn't meant to offence you.

And why wouldn't you consider explaining to your prospect how unit trust works, let them aware of the fact that UT is very much based on market condition and how they manage it. Giving a projection to a naive person is as bad as 'misleading' someone , and he /she will hold your statement true if he ever purchase the plan..

ILP doesnt guarantee a return ... its all depends on the up n down of a market.
The amount agreed earlier may be just an estimation. Or it should be traditional LIFE INSURANCE.

But plz check if its ILP or traditional life insurance.( TS havent specify on that YET)
If its ILP and not traditional... upon maturity have TS checked the unit value b4 withdrawal ??whats the mortality rate ?

Usually nowdays insurance agents doesnt simply open their mouths and guarantee u after 20 or 30 years u'll get the amount..unless the policyholders asks,then the agents will explain if ILP certain amount will be invested in unit trust's managed fund under certain insurance company(which is saving apart from amount quoted for protections n etc.)
Eg.RM 200 premium / month.
RM 150 - protection/medical..etc <--- will be changed to unit values as well.
RM 50 - savings. <--- this is the cash tht will be the units and invested in funds.

Plz take note..

The advantage in unit Trusts is the spread of investments open to unit holders. In addition, Unit trust have lower risk when compared to shares. Professional investment service is provided by the fund managers and minimises paper works to the investing unit-holders.Income from dividend can also be reinvested.

But may be insurance agents doesnt tell all the policy holders this thing..
The administration fee,insurance charge,fund management fee,etc., of an investment-linked life insurance policy are usually not guaranteed. They are subject to regular review and they can be changed by the insurance company after giving a written notice over a specific period eg. 3 months.

But Diversification is good.. coz it spreads the risk.
DOnt ever put all the eggs in 1 basket.

Ps: Traditional life insurance Policies does not allow policyowners the option of choice of investment portfolio.


This post has been edited by 4lenAngel: Sep 1 2009, 02:34 PM

adding up to what I've mentioned earlier, telling a naive prospect as to how much the fund makes in the past 10 years may well lead to a misleading understanding. For example, C.o.o.l mentioned PRUlink equity as about 9.4% (p.a i presume) return rate for the past 10 years. But as an agent it would be nice if you could tell the client that this 9.4% is merely the fund's performance, NOT their 'investment''s performance per se. They paid 3K a year for an ILP, it does not mean they could get back 9.4% on their 30K investment after 10 years. Very often the payor is not aware of the % portion that is being 'taken away' by insurance company for the first 7-8 years. 'Taken away' meaning portion of your premium is not going into funds purchasing fully. ie. only 30% of your premium in first year is used to purchase units; 45% on the 2nd year; 70% on the 3rd year; etc. In total i think is is something like 100% or 200% of your annual premium over the 7 - 8 years period are deducted by insurance company as an 'administrative charges'. ... You can only hope that a break-even will happen soon after 10th year of premium paid.

Check in the daily finance pages.. refer to ur agent or any UT consultants.
When the time is right.. diversify ur portfolio.
But make sure its accurate info.

Which is why my recommendation. Insurance should be insurance, investments as investments. Do not tryo to mix the two and sell them together with misguided information.

Hmm that, u have to ask who introduced the ILP.. If u are not satisfied u can write a memorandum to them.
agents juz doin the works..

Anyone heard of the Super Wealth Plan?

Super Wealth Plan

I know it is offered through Jupiter Securities as a hybrid Investment+Insurance.

Guaranteed 4.5% - 9% dividends a year. Bonus payment of 10% every 3 years. Any withdrawals will be imposed an interest of 4%.

Is it any good?

almost all stand alone Health Insurance have this term:



Worst case scenario, get hit by CI and next year the plan has been stopped.

Correct.. CI or TPD.. u wont have anything..

---

Added on September 2, 2009, 11:55 amJuz got the sum assured..after that ur acc is terminated.

This post has been edited by 4lenAngel: Sep 2 2009, 11:55 AM

Somehow I do have a policy where if I being hit by CI/TPD/OAD, I will collect my sum insured but my rider attach will continue. Eg. my medical and CIWP.
I do feel the extra premium paid for the protection is worth it.

hmm, your H&S rider is attach to ILP?

can u verify that your H&S policy writing don't have this term:

This policy is renewable at the option of policyholder until the occurrence of any of the following:

(g)termination of coverage for all policies in a certain market and the Company withdraws this policy completely from the market accordance with the Portfolio Withdrawal Condition’.

Oops. Mine is traditional plan. H&S rider attached to it. Not an ILP.

I need to read my policy to verify that, I bought HLA Premier Life for myself and my siblings.


I will try check if any of the HLA unit-linked product comes with such feature as well.

This post has been edited by allenultra: Sep 2 2009, 05:57 PM

HLA website seem not working properly~

Thanks, really appreciate if you can verify the renewal term on HLA H&S.
coz currently I'm searching for stand alone H&S.

I would not explaining to you what GE can offer as standalone medical plan. We have H&S plan that is quite all right.