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*