Hi All,

I am HLA agent too.
Let me state an example for you all for clearer understanding about the Income Builder


EG: Female, Age 27
Save with HLA Income Builder for 6 year

Saving: RM5,186 per year or RM453 per month
Total saving in 6 years: RM31,116
Guaranteed Yearly Income: RM1,000 per year up to 40 year (Female, Age 66 by then)

2 options available for the Guaranteed yearly income:
1) Accumulates with HLA with compounding interest 5.5% (by age 66 Female will have RM195,039 as retirement fund based on Scenario A return of 6.5% with HLA)
2) Withdraw yearly income - RM1,000 cheque sent to Female yearly (by age 66 Female will still have RM58,434 as retirement fund based on Scenario A return of 6.5% with HLA)

HLA sticks to Scenario A for all our product for more than 10 years in history with proven memorandum.
Personally i think this is a really good plan but in the end still coming back to the real purpose of the client before start committing.
This plan definitely won't make you richer, however it can give you peace of mind if you start with an affordable premium and planned what the fund is meant for in the end.

Main Benefit: Short saving period, long term guaranteed return.


PS: Of course if you comparing with EPF, RM195k sure not enough for retirement. But bare in mind, you only save for 6 years here, just treat this as a reserve fund. Unlike EPF which you save month by month, until age you can withdraw EPF. That of course will become alot of money


Best regards to all and happy saving,
Flora

U wanna know more??

---

Added on March 22, 2012, 4:43 pmRM195,039 is not guaranteed.
The only thing that is guaranteed in this plan is the GUARANTEED YEARLY INCOME which is the RM1,000 per year x 40 years.

and this RM195,039 includes Guaranteed yearly income, accumulated interests (5.5% at Scenario A), Yearly Dividend (Scenario A)

**For those who wondering what is Scenario A
- Its an assumption on the dividend payout and compounding rate from Hong Leong Assurance company performance
- Hong Leong Assurance attain Scenario A every year for all previous and current saving product.


That'll be real difficult for 1 to meet the retirement fund amount if you only require to save 3 years of money.
Unless this 3 years you can save at least RM100k per year (total RM300k), perhaps.

By 30years later (with compounding interest and non withdrawal) the account will have around 350% in total of what you save in, that makes the account RM1,050,000. Should be enough for 15 years of retirement.

But 3 years saving plan really sound attractive to everyone. We as agent might get more sales from it.

---

Added on March 22, 2012, 5:24 pm I think there must be some misunderstanding. Cash builder is in fact a great account. What support do you have to say that FD rates are better? In what way? Can FD generates you 250% total return after 30 years? Definitely no. Even at 4% rate of FD can only go up to roughly 224% of total return in 30 years period.

And we agent just work for a living, same like you. I bet you wouldn't like people to say what you're working as now is a crime and you should be shot. Its not nice to give such comment in the public. Please respect others.

No we don't get that much Way lower than what you stated here. But its not nice to tell to public as this commission is the only income that we get and need it for living.

Completely agree with you on the lower sum assured. But you cant compare an apple with orange. Life insurance and Cash Builder is completely different thing. We will not recommend Cash builder to client that needs a Life protection, same on the other hand, for saving purpose, we cannot recommend Life insurance to them. Life insurance dont save them much money in the end. But it protects the family as a whole if the bread winner no longer around. Its totally different thing. Please dont compare a saving plan with a life insurance plan.


I am just imagining how much you have to save now to make sure you can retire for another 15 years after age 55.
$300000 x 15 = RM4,500,000

As for Fixed deposit (which you say the returns is so much better), at age 25 you have to save RM1,400,000 with rate 4% and let it be compounding for 30 years.
By age 55 you will have your retirement fund ready RM4,500,000

This is just pure example. Of course with Cash Builder don't require 1 to save as much to attain this retirement figure.


I hope i don't offense you in anyway and hope this clears your doubt.
Peace.

This post has been edited by flora02: Mar 22 2012, 05:24 PM

Agree totally.

Yes what you saying here is somewhat true but not 100%. If there are really 3 years plan, the comparison table might be like this.
15 years annual premium Rm 3000
6 years annual premium Rm 5000
3 years annual premium RM 8,800

To get the same Guaranteed Yearly Income, this should roughly be what the premium payment amount looks like.

Tired of going on with this over and over again, you must be feeling the same. I am sure you as a moderator of this forum know more than me for the answer to this question.
Of course you can get back your lumpsum of money (aka 100% withdrawal) at any period of time, but we will advise the client when should be the best time of withdrawal.
When client sign up for this plan, its meant for retirement or education purpose.
Unlike FD, which has more flexibility like you mention, and of course returns are lower. Why dont then you compare FD with property returns? of course property returns are higher, but izzit flexible? definitely not.
Can you treat FD as a retirement fund? 1 must have really strong discipline when come to this. I am sure alot of people will withdraw their EPF before age 55 if there's a need of emergency & nothing stopping them to do so. But what will happen to these people is they will have RM0 retirement fund in the end. And force to work after retirement age.

All plans have pros and cons. Our plan serve its purpose well.