Any one heard of GE GJA3, pay for 10 years and collect annual return from year11th to age 87. Best for baby age 1 as you will be collecting money from 11 to 87 years old.

PM me for more information

OK lets do some maths:

You need to put in RM 295.00/mth for 6 years.

Thereafter you get back RM 700.00/year + 5.5% on the dividend = RM 738.50/p.a for the next 30 years.

Part 1 of the calculation (The accumulation phase)
Mode = Begin, since your payment is paid at the beginning of the period
PMT = -(RM 295.00)
Period, N = 12mths x 6years = 72 periods
Present Value ,PVi = 0 meaning you start accumulation from zero
Interest rate, since you are not getting anything during this accumulation period, you are losing money because inflation is working against you. Therefore, I = (Growth - Inflation)/(1+inflation). I am using the conventional 5% inflation for calculation purpose. Therefore effective I = (0-5)/1.05 = -4.7619% p.a. or divided by twelve = 0.3968% per month.

Using these values I presented above I key in the figures into a financial calculator, your get a Future Value (FVi) = RM 18,433.48

Part 2 of the calculation (The distribution phase)
I will use Begin Mode as well, since I assume you will get your annuity due (payment) at the beginning of the period.
PMT = RM 700.00 + 5.5% = RM 738.50/p.a
Period, N = 30 years
Let the Present Value (PVii) equal to the above calculated FVi i.e. = RM 18,433.48
Let Future Value (FVii) = 0, since after 30 years you will get nothing back.
Now keying these new sets of figure into the financial calculator to calculate the Internal Rate Return or Return on Investment (ROI) for the whole 36 years tenure. (from start of the program until the end of distribution phase)

And....

...

...

IRR or ROI(I) = 1.32% p.a.(annualised)

Taa Daa.....

Are you happy with this ROI?

Even FD is consistently hovering above 2%

Xuzen

i heard the plan will withdraw.. mayb sold out soon

Good Calculation by Xuzen.

My personal experience, I've been approached by my fren with this plan and was guaranteed by such 'high' return.
At first another friend of mine was very interested but after I did the calculation similar to xuzen's (minus the inflation) and explained to my fren, he was discouraged. The effective return was less than 2%.
Therefore, you have to differentiate between effective and book return.

FYI, insurance companies paid a lot to the agents and also the ACTUARIST/ACTUATORS. They are well-paid to give a formulation of decieved return so that the general public (which they're not trained to spot the hidden truth) can't detect.

Well, all in all, if you think that you're risk tolerance level is low and you'd like to do some investment with this scheme, the decision is totally up to you because the money is yours.

There are better investments out there that are yielding a better return. It just depends on whether you're ready to take the risk.

Peace.
cheez

no wonder the agents use plenty of bombastic words to confuse ppl like me

got a memo from manager,this plan gonna withdraw soon on 10th february..

If it's another one of those insurance schemes, we've already done due diligence on these things -- the money they pay you is the money you pay them if you REALLY calculate it, their best estimate (best case situation) is something like 2%

But i can sure that such policy provide better return than banks in long term.

If you calculate it properly(I'm from GE so i do not know bout other company's plan).  I have a program which can compare between banks and saving plan. Besides, what can you get back from banks? Savings plus interest. Insurance saving plan provide a protection for the life assured. This banks will not be able to do it.