Hi all,

Is there any Annuity insurance product that can get a tax relief in market? Prime minister just said it in 2012 budget to give RM3000 tax relief for this product. You input much appreaciated

Regards

from 2012; not for 2011.

so far i guess from Prudential we have . . . It's
PRURetirement Reward

2011 was RM1,000



This post has been edited by Colaboy: Dec 30 2011, 02:39 PM

Is this product still applicable to new tax structure?

Sounds like you are a Prudential agent. But you are GUESSing PRU has PRURetirement Reward which qualifies. PLease confirm first only then let us know.

bad english . . . this is the only product which qualify for tax relief

ya . . . definately

I have include an Illustration of Return base on a person age 30, class 1 or 2, non-smoker, yearly premium RM3,400
The premium are allocated to RM3000 for annuity / retirement & RM 400 for life(RM22,000 sum assured)



This post has been edited by Colaboy: Dec 31 2011, 08:51 PM

Is there a letter confirming pruretirement is an annuity plan? The least we want is after purchase and claim tax relief, irb questoon n fine us when it is found not annuity

Colaboy, just to clarify your attached illustration:
1. Payment is from year 1 to 25 only - RM3,400 per year?
2. The projected X% and Y% - what is the X% used and Y% used?
3. If i get/take the projected total income per year, at 70 if i die, will i still get the "Total Death Benefits"?

This post has been edited by wongmunkeong: Jan 2 2012, 10:23 AM

ya . . . every year around feb/march company will send you a copy for tax relief

Example: Life RM6000 / Medical RM3000 / Annuity RM3000

---

Added on January 3, 2012, 4:15 am1) Payment is 25 years . . . cause base on age 30 individual & most likely will continue working up to age 55 before retire.
Ya RM3000 goes into a retirement account, the balance RM400 is the sum assured

2) Consist of PRUEquity Fund & PRUBond Fund - X is base on 6% and y is 2%. The percentage of equity and bond fund allocated will defer as one person grow older ==> bond fund will be higher

3) The sum assured of RM22,000 only covors up to age 55, main purpose is for tax relief

This post has been edited by Colaboy: Jan 3 2012, 04:15 AM

What is max age limit to be able to buy this product?

Danke for the clarifications Colaboy.
Hm.. can the $400pa for life insurance be negated?
ie. i pay $3,000pa for just purely annuity since my EPF deductions already above the allowable tax relief amount pa

My apologies for all these detailed Qs - i'm calculating whether worthwhile to get into annuities for the tax relief + the returns, as a cash / fixed income class diversification.

Thanks in advance.

here is the brochure for PRUretirement_reward:

http://prudential.com.my/export/sites/defa...rochure_eng.pdf

thats the minimal you need to purchase . . .I'm affraid NO

good job with the brochure . . . should have a lot of information inside

This post has been edited by Colaboy: Jan 3 2012, 05:11 PM

Hi Colaboy,

Is the sumassured is fixed for various range of premium? i mean it always 22K Sum Assured?

Mind sending me the sales illustration for men age 30, soker, want to do 25 years payment, but only 15 year annuity.

thanks

what's the difference between this PRUretirement_reward and other endowment plans such as HLA cash builder that's being promoted in the other threads?

It's not fix . . . will defer a little according to age & we design the plan with the min sum assured as
to maximize the returns for customers when retire.
After 55 they can choose to surrender the policy & withdraw the cash value just like EPF or
they can maintain the policy to receive yearly guaranteed & non - guaranteed returns as projected in pg 7. Btw whats your e-mail address?


Traditional endowment plan is basically a term savings plan . . . which fall under life insurance category
the plan usually are 10 years, 20 years & some might even be as long as 88 years for 3G plan.

PRUretirement_reward is an annuity product . . . which the purpose is for saving(retirement) & can be
calculate for additional tax relief up to RM3,000. The product consist of a very minimal life insurance +
unit thrust. Compare to endowment, this plan is have very high allocation of premium as for the RM3,000 paid
yearly, 95% will be allocated to the plan / 2% for mgm fees / 3% agents commision

Some simple calculation
RM3,000 tax relief if we calculate on 26% would be RM780 tax yearly

This post has been edited by Colaboy: Jan 5 2012, 12:32 PM

Thanks Colaboy.
In return, just to share my calculations based on your sharing and my income tax relief (at 26%). I was hoping that it'll be more worthwhile than the previous time i tested an annuity product.



For fellow forumers interested in calculating their own expected returns based on the above (ie. tweak your tax and specific stuff), attach is also the Excel file in ZIP format.

This post has been edited by wongmunkeong: Jan 5 2012, 01:21 PM


Attached File(s)
 Prudential_s_Annuity_based_on_Colaboy_s_sample.zip ( 17.46k ) Number of downloads: 94

very nice calculation you have done . . . well this is a quotion on the minimal you will received if
X = 4.51% return & Y = 2.2%

Historical Actual Annual Returns of the Funds

Golden Equity Fund
2006 = 19.80%
2007 = 27.80%
2008 =-31.30%
2009 = 42.50%
2010 = 21.45%

Golden Bond Fund
2006 = 6.40%
2007 = 4.40%
2008 = 2.40%
2009 = 6.20%
2010 = 5.67%

Colaboy, hm... does those returns bulat bulat get into the annuity holder's value?

OR
those are excluding cost (service charges on top of NAV)?

Looks good the Equity fund, though the Bond fund is ok-ish. Annuity holder can choose which Fund to ride? My apologies if this Q was asked before - i only awake when i see numbers & %


This post has been edited by wongmunkeong: Jan 5 2012, 05:13 PM

of course bulat bulat ma . . .

The fund is already determine by company, cant be selected

Example:
Year 1 to 2 45% in GEF* 55% in GBF*
Year 3 to 7 40% in GEF* 60% in GBF*
Year 8 to 12 35% in GEF* 65% in GBF*
Year 13 to 17 30% in GEF* 70% in GBF*
Year 18 to 22 25% in GEF* 75% in GBF*

Is this PruRetirement only available this year for income tax relief purpose?

---

Added on January 5, 2012, 11:41 pmI thought Annuity relief is only up to 1k?

This post has been edited by echoesian: Jan 5 2012, 11:41 PM

running thru quickly, this is an investment linked policy. now why should i place money here when i can place it with unit trust, apart from the small insurance coverage and some tax relief? and there are plenty of charges.


how does Prudential guarantee the monthly income when it is a fund invested in equities and bonds? can Prudential still pay when the market crashes?


below is what i picked up from the PDF file.


Introducing PRUretirement reward, a regular premium investment-linked insurance plan
that kick starts your financial independence after retirement!

Annuity Tax Relief
You now have the option to claim up to RM1,000 for your PRUretirement reward plan
under the newly introduced annuity income tax relief. This is in addition to the RM6,000
personal insurance tax relief provided for other life insurance plans you may have.

The projected values are for illustrative purpose only. These values are neither guaranteed nor based on past
performance. The projected values assume current law, tax and prescribed investment returns (per annum), which are based
on the weighted average of the current prescribed projected rates for investment-linked insurance policies. The projected
remaining fund values for PRUretire saver also assume that there are no withdrawals done during the whole policy duration.

Even when the market performs poorly, we will guarantee to pay you the Monthly
Guaranteed Income we had set earlier. During the whole duration that you are receiving
the Monthly Guaranteed Income, the money you have saved will continue to be invested
in PRUlink golden managed fund. This gives you a chance to reap even more returns at the
end of the policy duration.
In order to fully enjoy the Monthly Guaranteed Income benefit, you should ensure that
all your premiums are paid up to date.

meaning i pay Prudential in order for Prudential to pay me back?

COLABOY: Would like to find out more, pls pm me. Male 40 years old, non-smoker.
1. guarantee for 100.8% for 10 years, means only 0.8% more... and this not include the various charges right?
2. The investment illustration of RM3200 per year inclusive the insurance?
3. I would like to leverage the RM3000 tax relief but, what is the other charge/ product I need to park/ purchse??
4. I am now utilizing the max RM3000 tax relief for SSPN, Skim Simpanan Pendidikan... for my daughter, will this affected the tax relief entitlement for the anuity?

Aside from this PRUretirement reward from Prudential, is there any other insurance products from other insurers that gives the annuity tax relief ?

Is Manulife's MaxShield Retirement or AIA Retirement Account 2 considered annuities?? Any agents from both companies can help clarify this??

Not sure about those product . . . its better to clarify from their agent

It's available since 2011. Those who purchase last year will entitle for tax relief up RM1000 in 2012.
For next year 2013, it will be increase to RM3000 as highlights from Malaysian budget 2012

This post has been edited by Colaboy: Jan 7 2012, 04:15 PM

Is there any Annuity plan from Great Eastern?

Tax relief of rm1000 for Year of Assessment of 2011 and
Tax relief of rm3000 for Year of Assessment of 2012

I heard there is a new annuity plan from Great Eastern coming soon??

any new on GE annuity plan?

I recently checked the Pru-Retirement Reward out. The IRR of this product is only around 3.XX % p.a for the whole duration of the program.

So the only saving grace if you want to participate in this product is the RM3k tax relief.

Other than that, this product sux big time.

Check out their massive hidden charges.... It made me cringe.

I have also inquire with Manulife, GE, HLA & Allianz but none of them had a annuity product that qualify for the RM3k tax relief.

This post has been edited by xuzen: Mar 4 2012, 02:03 PM

can i know where do you get the 3.xx% from???

Btw we only charge:
PRUlink golden equity fund 1.5% fund management fees (actual return on year 2010 21.45% )
PRUlink golden bond fund 1% fund management fee (actual return on year 2010 5.13% )
Agent commision is 3% out of total sales

Please dont flame a product before you find out more details about it . . .

Using my trusted friend aka Texas Instrument BAII Plus Pro series financial calculator. I have the quote in-front of me and the premium quoted is RM 3,054 x 15 years, and I used the most optimistic pay-out scenario to calculated the IRR.

Further more,

There is a 1% guarantee charge, RM 25 admin fee if you do some alteration to you plan, including top-up.

There is also a 1% "guarantee charge" on your premium whatever that means.

There is a RM 5.00/mth = RM 60.00 p.a for service charge again whatever that means.

I got the above from their brochure.

Not flaming sir, just stating the facts.

Xuzen.

I don't quite understand this plan, let say if we opt to pay premium for 10 years, each year is 3k, do we get any interest on the premium paid or we only get paid after 55 years old?

of course you get interest every year for the premium you paid, but because this is a retirement plan
the plan needs to lock your money in it till age 55 (just like your epf account)

does anyone knows if prudential's "prulink one" qualify for tax relief, if got which part do i fill under the income tax part, D17, D18 or D19?

refer to your annual LAPS - life assurance premium statement
if you did not receive a copy, you may always get a copy from any branch nearby
or get your agent to mail/fax you 1

This post has been edited by Colaboy: Apr 24 2012, 11:16 AM

No, but from what I saw from the sales illustration, the monthly guaranteed income is only payable once the insured's age is 55 years old... so meaning every year we just pay the premium without any interest at all until we reach 55?

The premium or money you contribute will be allocated into our Prulink Golden Equity & Bond fund.
So if the fund value increase from RM1 to RM2 in the future, the same does to your savings.
The guaranteed income is an option for you to receive monthly base on the capital . . . but you can
choose to surrender the policy after 55 to withdraw the cash value inside.

After reach age 55, if we continue with the plan, does the premium still invested in the bond/equity fund?

What is the historical average yearly return for this plan?

Is it true that 5% of the premium paid every year will be deducted for admin, management and sale commission?

Aside from Prudential, is there any other Insurance Companies that offer the similar plan?

bond is average 5.1% equity is 7-12% on average


yes

This post has been edited by Colaboy: Apr 25 2012, 07:50 PM

I got to know Uni Asia Life has a new plan called Uni Smart Income, looks interesting as you just need to pay premium for 10 years only...but I need to find out more...

Just a note to check. The product must be approved for annuity deduction. For PruRetirement reward the agent needs to tick the option "Claim Annuity Tax Relief" to enable you for income tax rebate.

Hi Colaboy,

Since you said this product is already available since 2011, are you able to produce one sample of the premium statement that shows it qualifies for the tax relief annuity (hide the client's name)

Thanks.

the statement is directly mail to customer . . . well its clearly written in the policy
there is no need to trouble post it here

Private Retirement Scheme (PRS) from FSM.

http://www.fundsupermart.com.my/main/resea...?articleNo=2911

For those annuity sales personal in Penang ...

My Plan : I just want to invest just for tax purpose for next 5 years ...

PM me your proposal .. Thanks.

wa!!!40 years cannot move my money? @@

there is a minimum tenure years for this plan . . . it's for retirement purpose
which mean you cant withdraw the money until you are 55

Take out all my money at year 26. All interest gone?

hi Colaboy, a few things to double confirm with you:
1) so this plan that u showed is need us to pay the 3400/yr for 25yrs? meaning we have contributed 85k, and the cash value is 51k if we choose to cash out, rite?

2) i heard the 3k annuity tax relief is only applicable for premium contributed from yr 2012-2021 (10 yrs) even if we pay for 25yrs. cayou confirm on this?

3) based on your quotation, does it mean we can only get the income for 10 yrs (guaranteed + projected)? after that the plan will cease and we still can back the cash value projected there?

4) what does your insurance cover? death? disablement? 36 disease?

sorry for asking so many questions, this annuity is new to me, and not many people is well versed in it including my insurance agent. thank you.

---

Added on November 19, 2012, 5:57 pmcan you show your quotation as well so that can do comparison?

This post has been edited by hongxiaoling: Nov 19 2012, 05:57 PM

The quotation is simple, you pay for 10years, you get back the money from 55-65.(10years). I can't post the quotation as I'm using iPad.

Just found out more info on Great Eastern annuity plan (Great Retirement Plan) for a 35-year old.

1) Pay RM3,000 per year for 10 years (to claim income tax)
2) Guaranteed Income payable every year for 15 years (starting at age 55) - RM 4,365.00 per year
3) It is not an insurance plan. From illustration, "In the event of death, TPD or being diagnosed with any one of the covered events, the cash value (which is equivalent to Surrender value (SV)) will be payable in one lump sum. The cash value payable to you may be less than the total premiums paid."
- From the illustration,it is my understanding that you have to PRAY that nothing happens to you at least for the first 16 years before your surrender value is more than the total premium paid.

Worth it? Any other plans from other insurance companies?

This post has been edited by kmarc: Nov 28 2012, 01:25 PM

i also did a rough calculation on the GE based on the data on the website... in only translate to about 4.x% interest PA.. though is guaranteed, but is quite low for something that i have to freeze my money for 35yrs assuming i buy at age 35.

btw, i don't see GE is part of the approved PRS provider in the PPA website. sure can claim the 3k tax relief?

The GE agent claimed that it is already approved when asked regarding one of the description on the proposal (i.e. This product may qualify for annuity tax relief of up to RM3,0000 yearly for premium paid during year 2012 to 2021, subject to approval of the IRB).

Does your calculation factor in the tax relief per year? If so, which tax bracket did you use for calculation?

For me, the only attractive thing is the tax relief.

BTW, assuming you buy at 35, your money is only "frozen" for 20 years la..... Your money will start "thawing" at age 56....

Looking at this whole PRS funds, the best bet should be those unit trusts fund approved for prs. At least if you couldn't afford to set aside rm3k per year, those savings in unit trust won't be burned as compared to insurance where a lapse in the policy will see almost all your money gone down the drain.

Like some mention here, you better pray nothing happen to you within the 15 years if you invest in those insurance prs fund.

So, if a person passes away at the 10th year, does that mean there is no payout at all? Then all the premiums paid gone?

I think I mentioned the "pray" thing leh....

You still get some money back. From their illustration, at the 10th year, you would have paid the final yearly dividend (total of rm3,000 x 10 = RM30,000). If you die on the 10th year, the cash value payable to you is RM25,177. Someone with the policy need to die at year 15 to get back the total premium paid....

Totally opposite of insurance. Insurance = good to die early. Retirement funds = better to die later....

That's my crude understanding anyway. Don't quote me on that....

This post has been edited by kmarc: Nov 29 2012, 11:14 PM

will it be posted in PPA website?
i still confuse with PRS and deferred annuity.
I assume PRS is like unit trust package with is monitor by PPA and approved by PPA.
Deferred annuity is like insurance package which might not related to PPA but can be used for tax relief (might need approve from LHDM) - BuT the annuity package from ING recently is not covered insurance at all which is weird.

Besides that, just wonder how about the old annuity package which is valid for previous 1k tax relief? is that valid be part of the 3k tax relief too??
If not, what is the different between the old annuity package with deferred package?

This post has been edited by lee1234: Nov 30 2012, 01:31 PM

Anybody has a sample of Smart Income Plus (UniAsia) quotation/ sales illustration?

I have the ACTUAL in hand hehe - signed up for this early last year.
Unfortunately, have to dig out to scan (and no scanner @ home, just office).
Choto-mateh kudasai Fri can?

Would be marvelous to have that bro!!

aiyak - overslept (so nice the rain.. to zzz), didn't bring the doc to office for scanning.
Snapshot via phone later tonight can? Worried too "blur" can't see properly though

This post has been edited by wongmunkeong: Jan 25 2013, 09:30 AM

Ok thanks. May i know what is the commission charges

huh? whatcha mean by commission charges?
this is not PRS nor mutual funds wor...

What i understand is every insurance product will have commission charges, paid using our premium. It is the portion of our premium, but guided by certain guideline by BNM/Insurance regulator. Furthermore, the agent has to brief the client on the thing as it is stated in guideline for insurance product transparency.

You may ask your agent on this and he/she obligate to answer.

Here ya go - are these the stuff U are looking for?
erm.. U may have some pains understanding it, thus i've attached a ZIPped Excel which i've calculated & confirmed with the agent earlier. Match the schedule to the "payouts" of pages 2 to 4. Page 5 are some T&Cs for reading.
I didn't scan the kakaload of general legalese

This post has been edited by wongmunkeong: Jan 25 2013, 09:53 PM


Attached File(s)
 UniAsia.pdf ( 1.48mb ) Number of downloads: 136
 Annuity_UniAsia.zip ( 8.95k ) Number of downloads: 115

Dear wongmunkeong,

Thank you for your very effort to upload the items. Really appreciate it!

Regards,

Yes, currently @ Great Eastern Life, called Great Retirement Plan

i just got one from Great Eastern ..

Hi Felicia,

I have just downloaded the latest list of registered Financial Advisor List from BNM dated Feb-2013. Your name not in the list wor, so how leh?

You written your name wrongly izzit or are you under a noms-de-guerre?

Xuzen