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 What's the best option for your child saving, Got a newborn and wanna start planning

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almeizer
post Feb 28 2010, 02:47 PM

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QUOTE(kmarc @ Feb 28 2010, 02:17 PM)
I see. The agent told me that on average, it is about 5%. Even during the 2008 economic crisis, the fund still gave 3.1%, which is still better than FD.
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The 5% is from the sum insured or total premium paid? Normally it was sum insured which the amount is just half of total premium paid. So actually is was 2.5% which is almost the same or lesser than FD.

Beside that the interest is not guaranteed and only base on historical record. The advantage is, it force u to save with the policy term and good for those who are not discipline of their saving. However, the bad thing is when u having difficulties to commit for the particular policy year or month, either u have to stop the policy or u have to borrow from family or friend to pay the premium.
almeizer
post Feb 28 2010, 08:05 PM

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QUOTE(kmarc @ Feb 28 2010, 07:38 PM)
Aikes! I didn't really ask them specifically about that.

The reason was that he said whatever money I put in is my money, and the interest will be paid yearly based on how much I put in.

I just assumed that if I put in RM200/month, I will get interest of RM2400 at the end of the year!!!  sweat.gif

Damn, should have specifically asked him that.  doh.gif

Oh another thing, he said yesterday was only a one day special promotion, where the insurance comes free...... dunno how true that is....  hmm.gif
5-7% is ok for me as SSPN only gives 3+% although we can deduct that from the income tax.

No la, FD is for emergency money and won't be touched for whatever reason. smile.gif
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Normally the interest is based on the sum insured and not the amount u paid. Rarely see insurance company pay the return or interest based on premium. Maybe u should ask for more details with the agent and read through the policy when u get it. Usually there is 15 days grace period for fully refund. U must make sure it's suit u and u can commit during the policy years.

Last day promotion is the tactic they use to create urgency so that ppl will buy without think too much.

If not mistaken, SSPN return is based on premium and not sum insured.

This post has been edited by almeizer: Feb 28 2010, 08:06 PM
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