No, it is not a substitute of FD.

You cannot compared it with FD.
Apple and orange comparison.

Endowment plan is forced saving, miss the annual premium, be prepare to burn the previous premium paid, disregard how difficult your financial situation or whatever situation you are facing.
Also, even you have million worth of saving plan, but you have no cash in hand (FD can be instantly converted in cash whenever you like just lose some interest only), you also can "die" because of starving due to no cash to buy you foods. 

does endowment worth better than FD?

Well... you can always surrender..

Anyways, pure endowment/endowment can be comparable to bond to a certain extend.. But it's really difficult to compare it with FD.

I believe Endowment is good plan to help savings and perhaps good to have a token sum of consolation prize after years of savings.

FD could be shorter term.

Well... you can always surrender..

Anyways, pure endowment/endowment can be comparable to bond to a certain extend.. But it's really difficult to compare it with FD.

After years of savings u will realise u shouldn't have used both Endowment policys or FDs - both get eaten up by real inflation! just look at compounded annual  growth rates of homes in the last 10 years vs endowments or FDs!

Just to share some thoughts - when compared to bonds & bond funds:
1. statistically i think bonds' & bond funds' returns pa CAGR is effectively higher than endowments which i've seen
2. bond funds are generally more liquid and flexible than endowment plans

what endowment plan ur refer to? hongleong assurance saving plan or maybank etika is endowment plan?im HLA newbie as saving plan seller

Hongleong assurance

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Added on December 18, 2011, 3:50 pmIs this a endowment?

Hongleong assurance

Year 1 save RM28000 ---------------------------guarantee yearly income RM 3600(wont affected by interest rate, can be cash out on next year or
Year 2 save RM28000 --------------------------- RM 3600 accumulate into account to hv 5.5 % interest for GYI)
Year 3 save RM28000 --------------------------- RM 3600
Year 4 save RM28000 --------------------------- RM 3600
Year 5 save RM28000--------------------------- RM 8400 <--------------GYI increse to RM8400 on 5th year
Year 6 save RM28000 --------------------------- RM 8400
Year 7 save RM28000 --------------------------- RM 8400
Year 8 save RM28000 -------------------------- RM 8400
Year 9 save RM28000 --------------------------- RM 8400
Year 10 save RM28000 --------------------------- RM 8400
Year 11save 0 -------------------------- RM 8400<------- no need to save in money, but still hv GYI on year 11 onward
Year 12save 0 -------------------------- RM 8400
Year 13save 0 -------------------------- RM 8400
'' RM 8400
''
''
''
year 30save 0-------------------------------- RM8400
------------------------------------------------------------------------------------------
total capital = RM280000 total GYI RM 232800
bonus + RM100000 + 5% interest if accumulate in accont
-----------------------------------------------------------------------------------------------------
RM38000 + RM520000
TOTAL for money for 30 year accumulate= RM900000                       
plan selection: 1 lot RM 28000
                          half lot 14000~ 28000
                         RM5000~ 14000

---

Added on December 18, 2011, 3:50 pmIs this a endowment?

Buy insurance for PROTECTION only!!!

Buy insurance for PROTECTION only!!!

problem is many people are uninformed and agents go around promoting such crappy policies like there's no tomorrow. These agents are thinking of the HUGE PREMIUMS thus the HUGE COMMISSIONS.  Majority of these agents are UNQUALIFIED and have NO PROPER FINANCIAL TRAINING OR BACKGROUND.

to be an insurance agent, all you need is 18 years old and SPM. the PCE exam to be an agent is about rubbish, even standard 6 students can do it. Now imagine an 19 years old kid with no experience and no financial training selling to you a plan for your financial future. That's absolute rubbish. (Evdenice by the posting of dreamerkid1986, I assume he's 25)
These agents know nothing about the economy, inflation, unemployment, interest rates and even simple stuff like unit trust. And these are the agents who commits the worst sins as they put others people's life in deep shit, like selling education plans and retirement plans where by the time the money is needed, the returns are  peanuts compared to the premiums paid and compared to money in the bank.

We have a seller ask whether this is an endowment plan or not..., speak the situation.

I wonder how accurate the info can be passed to potential customers then.

It is speaking the situation. .a seller asking about his products. Shouldn't the seller knows his own products? Given he is asking in a public forum shows his lack of knowledge.

What knowledge u expect from a seller if he want to promote u a saving plan?

lesson 1 - Endowment policy is NOT savings plan and savings plan is NOT endowment policy.

lesson 2 - Investment linked policy is NOT savings plan and savings plan is NOT investment linked policy.

lesson 3 - Education policies and Retirement policies are NOT savings plan and savings plan is NOT education policies and Retirement policies.

lesson 4?example for endowment policy?

Hongleong assurance

Year 1 save RM28000 ---------------------------guarantee yearly income RM 3600(wont affected by interest rate, can be cash out on next year or
Year 2 save RM28000 --------------------------- RM 3600 accumulate into account to hv 5.5 % interest for GYI)
Year 3 save RM28000 --------------------------- RM 3600
Year 4 save RM28000 --------------------------- RM 3600
Year 5 save RM28000--------------------------- RM 8400 <--------------GYI increse to RM8400 on 5th year
Year 6 save RM28000 --------------------------- RM 8400
Year 7 save RM28000 --------------------------- RM 8400
Year 8 save RM28000 -------------------------- RM 8400
Year 9 save RM28000 --------------------------- RM 8400
Year 10 save RM28000 --------------------------- RM 8400
Year 11save 0 -------------------------- RM 8400<------- no need to save in money, but still hv GYI on year 11 onward
Year 12save 0 -------------------------- RM 8400
Year 13save 0 -------------------------- RM 8400
'' RM 8400
''
''
''
year 30save 0-------------------------------- RM8400
------------------------------------------------------------------------------------------
total capital = RM280000 total GYI RM 232800
bonus + RM100000 + 5% interest if accumulate in accont
-----------------------------------------------------------------------------------------------------
RM38000 + RM520000
TOTAL for money for 30 year accumulate= RM900000                       
plan selection: 1 lot RM 28000
                          half lot 14000~ 28000
                         RM5000~ 14000

---

Added on December 18, 2011, 3:50 pmIs this a endowment?

No, it is not a substitute of FD.

You cannot compared it with FD.
Apple and orange comparison.

Endowment plan is forced saving, miss the annual premium, be prepare to burn the previous premium paid, disregard how difficult your financial situation or whatever situation you are facing.
Also, even you have million worth of saving plan, but you have no cash in hand (FD can be instantly converted in cash whenever you like just lose some interest only), you also can "die" because of starving due to no cash to buy you foods. 

Each product got its purposes.. Diversify your $$$, make sure you earn money, not loss money

Endowment plan as below.
Do you know why your Agency Manager ask you to promote this blindly as in your case?

Cuz the HUGE PREMIUM = HUGE COMMISSION = HUGE OVERIDING COMMISSION + you need to look for water fish. When your water fish understand how this works, guarantee they will curse you HKC.

lesson 1 - Endowment policy is NOT savings plan and savings plan is NOT endowment policy.

lesson 2 - Investment linked policy is NOT savings plan and savings plan is NOT investment linked policy.

lesson 3 - Education policies and Retirement policies are NOT savings plan and savings plan is NOT education policies and Retirement policies.

as i see, FD could not fight inflation, inflation risk remains bro.
current market highest 3.6% which lock in a year
even RM10,000 x 3.6% = 360 A Year, which is only RM0.98/Day only.
it's morel likely you put the ten thousands under your bed O.o

endowment is something like PENSION
cos majority of us working in private sector...we have EPF but not PENSION
thus buy endowment only if you wish to get "paid" each month after your retirement age(eg; 55-75)

ps : you also get few times lump sum amount of $$ + insurance protection

if you are someone who can manage your finance well in your younger age, then endowment not SUIT you!!

does endowment worth better than FD?
Lots of people are comparing Fd and saving plan, this good that bad whatever.
Either long term or short term, to all forumers, which one you prefer if you have a 50k right now?

Will you diversify or will you just Save ALL IN FD?

endowment is something like PENSION
cos majority of us working in private sector...we have EPF but not PENSION
thus buy endowment only if you wish to get "paid" each month after your retirement age(eg; 55-75)

ps : you also get few times lump sum amount of $$ + insurance protection

if you are someone who can manage your finance well in your younger age, then endowment not SUIT you!!

You think I m wrong, do your homework. 

i m having an endowment plan from GE...so wat u think?

So endowment can? 

you have 50k on hand or want to save 50k?

If 50k on hand, i will go for a property
If want to save 50k using endowment, forget it...not worth it as i found out. just buy a PA & save it in FD better.

Almost all endowment do not give you a guarantee return, just a indication of return.

Mine case are 30K 10 years endowment & every year instalment around RM4200. But get back around RM42k but when i signed it on the first day said can projected RM50k at least. Even the customer service girl also can't said anything except maybe their Actuaries got wrong & get a longer term will do better.
will be visiting them next few years for my 20years & see how they response to it.

and so? does it mean you truly understand it? 

Endowment plan as below.
Do you know why your Agency Manager ask you to promote this blindly as in your case?

Cuz the HUGE PREMIUM = HUGE COMMISSION = HUGE OVERIDING COMMISSION + you need to look for water fish. When your water fish understand how this works, guarantee they will curse you HKC.

i still cant get ur point. whats so much different this saving plan/ cash builder compare with fix d? the return between these 2 can be almost same, except the fixd interest is vary by market. so whats wrong buying a saving plan?

You seriously need to take a crash course on financial studies.
Understand the concept and see where the flaw is on endowment. Not to say that it doesn't work. But you as an agent need to know the pros and cons.

Fix Deposit interest rate doesn't vary by market. If the contract is signed as xx% p.a. for xx term, then the contract is fixed. Endowment however doesn't guarantee that return. Or rather, once you signed up with one; if opportunity comes, you might not have the liberty of extracting your cash flow to dump into another instrument which might gives you better return. Thus with endowment, one has to "commit" for long term. Who knows what will happen 20 years from now. Like someone mentioned; what if hyper inflation got the better of us. Then how do you counter?

so many financial word there, cash builder, endowment. an aunty without knowledge on these can see all the detail when sighning the policy, know she will bear loss if closing account earlier,as long as she satisfied with what written on policy , then she sign and buy the plan happily, whats wrong?

---

Added on December 21, 2011, 10:52 am
i mean this year ur fix d interest is 3%, then u put ur fixd for a year. next year the interest may drop to 2 %. anyone know whats the interest for longer fix d? 5 year 10year fix D rate?

---

Added on December 21, 2011, 10:57 amconcept sound like u get a 2 year contract base job oppurtunity. when a better oppurtunity comes to u, u were bond with contract, have to make a compensation if annul the contract

As an agent, do you brief your customer on circumstances on what if situations?
eg. if customer can't commit during the 1st year, how much they are losing as well as what happened if subsequent years he/she can't commit? "Losing" meaning he/she can't even get back what he/she had "invested".

I doubted so. Most agent will only briefly explained that one will need to commit until the end but will not drill into the details on this what if situation. Heck, most agent will even qualify themselves as financial planner which if one does attend CFP/CFA courses, most lecturers will not encourage insurance as an investment instrument for starters. That just goes to show how in the financial world people reacts to the notion of insurance as "investment".

Obviously like you say, normal aunties and uncles will not have that knowledge. And how responsible is heck he saw the terms and conditions and signed it?!

Again like I say, there's nothing wrong in signing up with the plan. But was the pros and cons being advised clearly? Every investment instrument had their pros and cons. Nothing is perfect.
p/s: I've seen more informative insurance agents deliberating this issue much better than yours. Which I personally felt that you had yet to qualify to be one.

---

Added on December 21, 2011, 11:04 am
If 2nd year interest is not to be my expectation, I can pull out with all my money and 1st year interest intact. Can a "saving plan" do that?
You totally missed my point on "if opportunity comes, you might not have the liberty of extracting your cash flow to dump into another instrument which might gives you better return.".

i still cant get ur point. whats so much different this saving plan/ cash builder compare with fix d? the return between these 2 can be almost same, except the fixd interest is vary by market. so whats wrong buying a saving plan?

am i a insurance agent? just pass PCE, selling HLA saving plan only

property was an asset, an investment bro. Lets seperate investmenr and savings k? I think it you who don't understand between investment & saving, try read those few post above

FYI, do you know property market bubble going to burst soon? i aware of it but doesn't anyone here. Is future we are talking about, so don't be so certain it will burst. As long you can handle the instalment in worst case scenario, is a good liabilites.

Unlike real estate, the most valuable thing is you own a land instead of a property. sorry, that not true. the most valuable thing is your goodwill. Do you know, some guy can just walk into bank & get loan straight away & i don't talk about small amount.


I see, endownment projected return no matter how, the worst case scenario they'll also hve a guarantee return and you won't lose your capital bro.
yours is TOTAL 10 yrs RM42k.. in how many years time you will get projected return 50k? before you save in an endowment plan, you have to read properly instead of letting agents mislead you.
I've been there before =/


This also you are wrong. There are no guarantee return, only the insured sum. You try not pay yr instalment few months & see can you get back what you put? The most is the puny surrender value, so where is my capital that i put in?
As for the projected amount are from the horse mouth(in these case computer). I was a partime Insurance agent then, I study how they calculate it & doing biz. Not many Agents really go question their principal cos there is no proof it doesn't work until my case.
If you really do studying their way of calculation, they are dead wrong on that. They always calculated return % above FD(painted a rosy picture) but didn't give any indication a BIG "IF"

at least there's a chance for endowment to fight inflation?
likewise FD rates are fluctuating, no ones guarantee what ius the rate in the future, even japan is only 0.15% OMG

The biggest threat to the value of a endowment insurance policy is hyperinflation. A million dollar policy may look big, but a sudden hyperinflationary event may turn it into a piece of worthless paper. I have posed the question of hyperinflation to many insurance agents, but no one can give me any answer.

Many people just cannot understand that it is possible that a cup of coffee may cost RM1,000,000 one day.

That's because many people just can't imagine how such an event can ever happen. Many countries around the world have experienced hyperinflation before, including us. Once a government can't control its deficit and start printing more money, a runaway inflation can start and basically nothing can stop it until the currency is totally replaced.

Only physical wealth such as land, buildings, businesses and jewellery can prevent the erosion of wealth by hyperinflation.

Previously, I was approached by a friend who is selling endowment plan. When I compare to real estate with the same money invested, real estate will give you 2-3 fold upwards

its pretty obvious from the replies here that some are totally clueless. 

am i a insurance agent? just pass PCE, selling HLA saving plan only

Hi,

I currently struck in one situation that I can't really make decision and its so confusing    I bought this great eastern GJA3 plan at year 2010. First I was mislead by the agent where this plan will have a return of RM2500 per month after 10 year down payment, but on this few day my bro somehow readed his policy and founded we been cheat. My wrong for not reading through the policy during the first day of purchase as I'm not familiar with insurance(I was advice by my mum to get this kind of saving plan). After I calculate properly I found that in a long run FD would provide me a better saving return than this plan, my bro already surrender his policy that have been pay for 6 years(he lost 6k+).I still in a tough situation, if I surrender this policy I would have lost 6k+ as well (I been paying about RM400 per month). Don't get me wrong that after I surrender this I won't have any protection, as I own another insurance which is sell to me by the same agent (a investment link program with medical card) which cost me RM150 per month which provide me most of the protection that the GJA3 provide. I'm not rich but I'm a person that don't spent a lot. To all expert out there, should I surrender this plan and cut the loss short(so that I could invest in something better) or should I keep the policy while prevent the 6k+ from getting burn. My last day is on 28 Dec 2011, so it a tough call for me.

Thanks,
Steven

Good..
Brother, nothing is easy going. To be a successful agent, strive and persevere on it only can see result. It is a tough challenge in front of you.
If got hamtam like this from other people and cannot take it, then you lose already.
Just make sure that you project the thing that is of the customer needs and wants, and should the customer need it, then get it for them..

For those who strongly oppose saving plan, not saying that you guys are no good.. Well, this is fair market, everyone have everyone say.

Hope u all the best..

shows you are 

Previously, I was approached by a friend who is selling endowment plan. When I compare to real estate with the same money invested, real estate will give you 2-3 fold upwards

investment does have it's risk too
for saving plans
some of you are correct here
miss one year of premium and you'll suffer loss during the lock in period
roughly the figure you'll get back is 60-70% of your premium
you'll suffer loss
but then again,as what i'd advise my clients
dont over commit it,if you have extra money to put into saving plans
by right do so for long term
but if you barely can make enough money to support yourself
please dont
alot of agents are focused into the commission as of what lunchtime said
it's true
thats why they can never pay you back the capital if you take surrender the policy during the lock in period

the return are good if you let it roll until the maturity date
i wouldnt compare with investment or business
both comes with risk which you cant foresee at times
NOW
saving plans comes with a risk if you cant commit during the lock in period
after that,your capital is secured
the only thing that matters are how much the plan generated by the year you surrender
if you want more flexibility i wouldnt suggest you to get this plan
afterall,you'll suffer loss during the lock in period

Hi Benny-T,

I have no problem supporting the saving plan of mine, but the major issue is I been mislead by the agent that FD are worse than this saving plan as the return are bad. I'm focusing on saving, not investment as I agreed that I dunno about investment, but as conclusion what I found is the saving return is worse than FD with addition that agent get me to buy an investment link package which also come with the rider protection + medical card. As conclusion, I feel cheated and this what I call overprotect which is a burn off. I'm in a very confuse situation now.... the worse part is the agent cover up so many things....if it was an saving plan, according to saving definition is I could withdraw it anytime, but for this case it was not!

Hi Benny-T,

I have no problem supporting the saving plan of mine, but the major issue is I been mislead by the agent that FD are worse than this saving plan as the return are bad. I'm focusing on saving, not investment as I agreed that I dunno about investment, but as conclusion what I found is the saving return is worse than FD with addition that agent get me to buy an investment link package which also come with the rider protection + medical card. As conclusion, I feel cheated and this what I call overprotect which is a burn off. I'm in a very confuse situation now.... the worse part is the agent cover up so many things....if it was an saving plan, according to saving definition is I could withdraw it anytime, but for this case it was not!

that the problem dealing with insurance agents.
After many brainwash meeting sessions by their principal, they lost the dictionary

saving = investment
repeat it 1000 times & voila

Sometimes, I wish to scold those seller in shopping mall, claimed they have a saving plan that give you 10% interest every year, while the actual fact is cash back 10%, not interest 10%.

Any uninformed people especially elderly can easily misled by this kind of statement, and fall into this kind of misleading statement.

---

Added on December 22, 2011, 3:51 pm

by saving into a fd account
you commit lesser time
3 months to a year
low commitment low return,because banks couldnt secure your money in long period of time for them

now
saving plans force you to commit 6-9 years time depends on plans
in that case they could secure your money for a long period of time to actually do their investment
let me repeat again,saving plans are not investment,period.
high commitment high return because they can utilize your money for a much longer time
if you chose not to sign up for pay out for the GYI
by right your GYI (compounding interest) + dividend + capital should be ready for you upon maturity date
or minimum break even at the end of the premium lock in period
now,again if you choose to withdraw anytime you want
please do not choose this plan

what i'm trying to make a point here,save early (locking system) and reap later
there's only gain and no loss IF you do not surrender within the lock in period

I first time heard people said saving plan - high commitment high return.   

Bro, do you know what we are talking about in my previous post?
We are talking about agents/seller in shopping mall telling people this or that saving plan gives 10% interest, it never gives 10% interest, it only gives 10% cash back.

by consumer context saving = saving
but to be frank
when banks got the money they're using it for investment as well
same goes for normal banking account or fd
thats why you got agents telling you that saving = investment
but they never really told you why
hence you felt cheated

HLA can give such high return because you're committing 6-9 years of premium
unlike fd you only commit much lower than that period of time

1st time heard then 1st time learn
now,enlighten me
who are the agents and seller representing?

yes, i agree bank will use it for investment.
But our money in bank are guarantee with interest up to Rm250k per bank at any point of time by 3rd party.
http://www.pidm.gov.my/About-Deposit-Insur...ons-(FAQs).aspx
Where else do HLA provide guarantee on which basis? Sum Insured or with Interest?
High return, how high is high? 1% above FD rate?
btw FD also CAN mid to long term investment 
http://www.maybank2u.com.my/mbb_info/m2u/p...l/ACC-Accounts/
If you can find the GUARANTEE RETURN in writing. Then I really interested on the plan.

Just walk to some shopping malls, you can easily meet those fella that sell saving plan one.
I encountered not less than 4-5 times in a month time, sometimes, wish to record what they said, and report to BNM.  

Saving plan high return? I learned 100 years, see left, right, up, down, upside down, turnaround, still do not understand how it can be "high". 
With effective return that could be comparable and best scenario a few notch higher than FD rate. 
Or you mean money lock in for 20 years, and get 3-7% (which only known after 20 years later) is considered high? 

set an appointment and i can show you GUARANTEED RETURN in the policy
By right if you think it's an infringement of the law,pls do so by reporting to the BNM
all the plans by HLA are monitored by BNM and insurance act
lock in only 9 years but you enjoy GYI for 40 years/30years/20years
the figure varies

sure you can compare to fd
assume FD interest at 3%,100k each year
9 years of saving could only give you rm135,017
with each year interest varies
while saving plans 9 years could give you rm270000
with each year GUARANTEED 30k income at every year

set an appointment and i can show you GUARANTEED RETURN in the policy
By right if you think it's an infringement of the law,pls do so by reporting to the BNM
all the plans by HLA are monitored by BNM and insurance act
lock in only 9 years but you enjoy GYI for 40 years/30years/20years
the figure varies

sure you can compare to fd
assume FD interest at 3%,100k each year
9 years of saving could only give you rm135,017
with each year interest varies
while saving plans 9 years could give you rm270000
with each year GUARANTEED 30k income at every year

9 years 100k FD each year, I have 900k + Rm135,017 (I no count, I used your number)
I have 1.x millions now.

Do you have 1.x millions with your plan after 9 years?   
The plan only give me 270k.

Those so called 30k income, some chunck are my own money, not interest/return alone.

Why compare PURE return from FD (RM135,017) vs income (cash back) of 270k?
One is pure return, one is pay myself + return.

LOL, I don't know can do comparison in this way. 

you have 1.x millions - capital savings
how much do you got?
if you're talking about both surrendering at 9th or 10th year
pls CHOOSE FD.seriously if you're looking for short term saving in 10 years
you have much better value with that

and i believe i've already told you that
missed any premium you'll only get back 60-70% of your premium
the main point of the whole saving plans are the compounding effect
sure you can surrender at 10th year,but i can tell you that it's lesser than fd by your context
i dont have to be dodgy =)
if you want to know,then please i would want to meet you and show you all these
nothing to hide

pay 100 get 30 until 20/30/40 years with compounding interest and dividend
if pay 100 only get 30 and nothing else,and please by god's will struck me to death

btw,you're right by calculations if surrender in 10th year you'll only get break even

even by your context during the 9th year you're getting cash back
but 10th year onwards are you still getting cash back or pure income?

9 years 100k FD each year, I have 900k + Rm135,017 (I no count, I used your number)
I have 1.x millions now.

Do you have 1.x millions with your plan after 9 years?   
The plan only give me 270k.

Those so called 30k income, some chunck are my own money, not interest/return alone.

Why compare PURE return from FD (RM135,017) vs income (cash back) of 270k?
One is pure return, one is pay myself + return.

LOL, I don't know can do comparison in this way. 

---

Added on December 22, 2011, 5:46 pmA sincere, honest agent will show client, the most important fact that is,
what is the net return of the money, after 20/30/40 years
what is the consequence, you miss the premium.

Not how much GYI,
how much cash back,
how much this and that.

I feel a bit funny about the term "income" when some of those money may come from us in the first place.
Pay 100, get back 30, then 30 is income?

Bank, financial institute all very kaninie one. Miss one, or defaulted one, the whole thing get into a big pile of mess. It is only when you can get discipline, pay up in time, then only you can enjoy the kind of promised return.

In Mortgage loan, you might be seeing bank offering BLR -2.4%, nice to see nice to hear, but that is only for good payer only. Miss one time, you will not only don't get to enjoy that -2.4%, and you will get a penalty period of 6months, not able to enjoy that kind of percentage, while some banks will give additional 1% to that daily rest.
In short, if you always default, late payment, you will end up paying an extra 10 more years from the already very long period of your loan commitment.

Same for policy... Miss one, delayed, and the cash value touched, the whole return will get boomed. Cannot short term, must lock you gao gao for more than 10 years.

Saving plan will only see a good picture if keep for 20-30 years. Shorter than that, the return is really not attractive at all.

set an appointment and i can show you GUARANTEED RETURN in the policy
By right if you think it's an infringement of the law,pls do so by reporting to the BNM
all the plans by HLA are monitored by BNM and insurance act
lock in only 9 years but you enjoy GYI for 40 years/30years/20years
the figure varies

sure you can compare to fd
assume FD interest at 3%,100k each year
9 years of saving could only give you rm135,017
with each year interest varies
while saving plans 9 years could give you rm270000
with each year GUARANTEED 30k income at every year

Hi Bonescythe,

I was able to pay the premium without any issue, but here comes the problem. The cash value is non guaranteed, lets say the worse case I add in cash value 5% for my current saving plan policy. The end game still FD return will be higher in a long run even with 2% FD rate. The table in my policy stated very clear what is the SV value. 

If you are so sure of the return, why not just put the figure here on the forum, saying how much you need to pay and what is your returns. Mind you please separate the guaranteed part and the non-guaranteed part. From then we can easily calculate if indeed this saving plan is so good as you have claimed... 

---

Added on December 22, 2011, 6:53 pm

Mind posting the table here.. we can analyze together... 

Those who bought these cash builder / wealth builder plans and other similar 'save 6/8/10 years' plans, thinking its a great savings plan for your retirement, I wish you all the best in your retirement years. Hope you have other backup plans as well.

Do remember to keep in touch with the agent till the day you die because you are gonna to        the agent for CONsulting you into a        so called  forced savings plan.

And as for the agent who sold these plans, after year 7 of the policies sold, do a disappearing act, save your skin. Make damn sure you are no longer reachable by year 11.

For those in the dark, here's a bit more,

Year 1 commission paid to agents who sold you these so called savings plan is a min 17.5% of your premium paid to the cash/wealth builder plans.

Now agent CONsult you to 'save' $500 per month, 17.5% or $87.50 per month goes into agent's pocket, this excludes overriding commission paid to agency managers and what have you expenses of the insurance company. Easily 60-70% of your premium paid is gone for all these expenses. That's $350 per month gone. So you actual start savings with close to ZERO ringgit. And this will go on for 6 years on a reducing basis. (Now you know why the minimum period for such plans is 6 years.)

Ever wonder why agents tell you NEVER TO WITHDRAW within the 1st 6 years? Cuz in your so called savings plan, its EMPTY/KOSONG. Notice that if you surrender with 1-3 years, its ZERO meaning NO MONEY BACK.

Now ask yourself this when the GOVT increases the service tax from 5% to 6% or when your local mamak increase your fav teh tarik from $1 to $1.30, you bising like no tomorrow, the hell with the govt, fxxk this mamak, i never coming back again, but when your agent CONsult you a so called savings plan which quietly eat 60-70% of your so called savings premium, why you never bising?

If these cash / wealth builder are so good, why take 30 years to mature? Why lock your own money and subject it to others placing terms & conditions on your own money? Ever heard of APL and how much it can charge you interest for late premium payments? Nice for some companies to charge you interest on your own money, just nice.

And use your brain for a moment, can an insurance company ever paid interest higher than a bank on the capital sum with a guarantee? If yes, why isn't there a queue at every insurance company with people signing up such cash wealth builder plan? Why do insurance companies still need the agents to CONsult you? Similar to buying iphone 4s, so damn good that people auto queue, you see any agents CONsult the queue?

By the way, why isn't Warren Buffett and Jim Rogers queuing as well for the great savings plan? 

Now look at this from another thread, save 28000 per year, get back 8400 till Year 30.
Ask yourself and use some sense,
1) how much is your salary today? close to $28000 per year?
2) how much is your expenses today? close to $28000 per year?
3) can you live on $8400 per year?

If you cannot afford $28000 premium per year, that's means the you can only lower premiums which directly meaning your GYI is lower as well. Say you can afford $6000 premium per year, your GYI is probably around $1800 per year. Now, in your retirement, can you survive on $1800 per year? What a great reCONmend from your best buddy agent for your retirement.

You only want to meet your INSURANCE agent, SLL or otherwise, for PROTECTION policies and CLAIMS, and not for any other reasons apart from these.
HAHAHAHAHAHA 

you have 1.x millions - capital savings
how much do you got?
if you're talking about both surrendering at 9th or 10th year
pls CHOOSE FD.seriously if you're looking for short term saving in 10 years
you have much better value with that

and i believe i've already told you that
missed any premium you'll only get back 60-70% of your premium
the main point of the whole saving plans are the compounding effect
sure you can surrender at 10th year,but i can tell you that it's lesser than fd by your context
i dont have to be dodgy =)
if you want to know,then please i would want to meet you and show you all these
nothing to hide

pay 100 get 30 until 20/30/40 years with compounding interest and dividend
if pay 100 only get 30 and nothing else,and please by god's will struck me to death

btw,you're right by calculations if surrender in 10th year you'll only get break even

even by your context during the 9th year you're getting cash back
but 10th year onwards are you still getting cash back or pure income?

Buyers beware.

If you don't understand in the first place, you need to do homework before investing your hard-earned money.

The ones that needs agents to explain to you what it means are the ONES TO AVOID.

Make sure you understand and agree with what the agent is saying before you invest. Don't let the agent bully you. If you don't understand, put your money into FD.

set an appointment and i can show you GUARANTEED RETURN in the policy
By right if you think it's an infringement of the law,pls do so by reporting to the BNM
all the plans by HLA are monitored by BNM and insurance act
lock in only 9 years but you enjoy GYI for 40 years/30years/20years
the figure varies

sure you can compare to fd
assume FD interest at 3%,100k each year
9 years of saving could only give you rm135,017
with each year interest varies
while saving plans 9 years could give you rm270000
with each year GUARANTEED 30k income at every year

1) for Guarantee Income 30k per year, how much premium (so-called savings) must Steven83 pay for 6 years, assuming he is 28 today?

2) "100k each year 9 years of saving could only give you rm135,017" 
- are you trying to say save 100k EACH YEAR?  or saying 100k one time savings?
3) while saving plans 9 years could give you rm270000
with each year GUARANTEED 30k income at every year
- how did the 100k become 270k and from this 270k, HLA will payout GUARANTEED 30k income every year?

for 100k to become 270k in 9 years, interest would be at 11.66% per annual, and for 30k to be paid from 270k, the yield is 11.11% per annual.

Did you manage to sell this brilliant plan to Warren Buffett and Jim Rogers? You should pitch to the Governments of Europe, Japan & US since their interest rate is close to 0. They will buy a shitload from you. And since your commission is close to 18%, hey, that R8 is dirt cheap.

All this assuming I understand correctly what you have written. Dem, I should sell my HLFG (1082) tomorrow since its dividend yield was only 2% last year.   

Speaking of infringement of the law, funny you should bring this up. Your company where got infringe the law, like you said BNM approved mah. ITS THE AGENTS, AGENCY MANAGERS, TRAINERS WHO ARE SMARTER than the ACTUARIES by putting a marketing spin to the product, who are infringing the law. No marketing spin, you think your product can sell?

Look at Eqita Maybank, you see them everywhere some years ago, promoting 10% interest, better than FD,etc etc.. its basically an investment linked policy, but without that marketing spin, you think they will sell. Whose brilliant idea was that? Who infringed the law? Agents or Eqita? By the way, where are they now? 

He tells you to pay premium 100k for 9 years loh.

Pay 100k one year premium then can get 30k guaranteed every years.
I pawned myself to get the plan.