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

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....

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