Yes, normally if a company offers a 6 year premium, the contract could be 15, 20 or 25 years. Your returns might only come in after 15 years of saving.

They've shortened your premium collection which was supposed to be 25 years to 6 years hence you're paying a higher amount in 6 years in order to reach the projected value at 25 years later.

Hope this helps.

If I already paid rm 10kx2 year. Should I continue payment till 6 year or surrender? Feel want to stop it since many negative feedback.

Hello, why would you want to stop it? If you stop for first 2 years, you are probably gettign back 30~40% of the amount you hve paid for. It's not worth it. Negative feedback because people do not understand the purpose of this product. It is a concept, a peace of mind savings that can offer the best of both of world, FD and Investment.

It offers higher value against FD whilst being a low risk investment.

The BreakEven for your plan if Im not mistaken is about 15 years. Don't worry, you wont go wrong, you set aside an amount for your future. And the rests you want to gamble (invest), or do something else its up to you.

If you need assistance, do not hesitate to contact your agent. If your agent is not doing his/her job, you can look for other agent to help you out.

Thanks

Saving plan is not "investment" actually.

The name of "Saving" already speaks itself what it is about.

This statement may be deemed as misleading as well.

If im not mistaken, his plan is an investment-linked plan right? I might be wrong, please forgive.

Btw, I just joined HLA, I know there are many negative feedbacks here. But my main principle is to be transparent to all my clients.

Also what people misunderstood is putting your money in insurance company vs in local back got pros and cons. liquid vs non liquid.
Liquid but you do not get any benefit. Thats the money you need to keep for emergency use, the amount that you think you will need anytime ready.
Non Liquid is an amount that you set aside for your own future. Dont commit too much in this savings / investment link plans if you do not have spare cash. But rather start small.
It comes with protection, I know its not much compared to pure life insurance. But at least there are some coverage. It also comes with higher IRR, usually around 4~4.5% or more depending on the market situation.

But Mr Cherroy, if you are interested to learn more about our Investment link product (or give me an opportunity to present to you!), can PM me. I accept any question, and pledge to be transparent at all times. After all, its an opportunity for me to meet people and receive feedbacks, thus learning and gaining experience.

ps.: I know you are God-level in investment, finance world! and You probably already knew everything I told you above even better than I do!
I always look up upon people who are pro in investments and earn big bucks from trading. So, do let me know when you are convenient, we can have a yumcha session. Not necessary need to talk about money, insurance, investment. We can make friends too

This post has been edited by Michaelbyz23: Nov 11 2014, 11:46 AM

Hey, the negative feedbacks may be due to a bias view.

More likely a person is to come to the forum to complain rather to say he/she is happy with her insurance plan. Mainly due to mislead by agents.

Secondly, the regulars in forum, tend to be more financial savvy. The idea of insurance savings (endowment) plan is neither good nor bad, as it is a tool. But those financial savvy will go for investment product with potentially higher return, and more flexibility. In this case, the downside of insurance savings plan is the lock-in period (25 years in this case) and lower potential return compared to those investing in equities.

Do keep in mind that at the same time, insurance company is also providing insurance benefit (albeit lower) compared to non-endowment products.

for insurance, in this case more so because it's a limited premium payment term endowment policy, it is highly disadvantageous to surrender as you do lose quite a significant amount.

Saving plan /= investment linked.

Investment linked cannot guarantee any return one.

If there is no misleading fact given by (just a small number may be definitely not all) irresponsible agent, then there won't be any negative feedback.

Saving plan has its own usage and purpose.
But definitely for not investment that looking for return nor a alternative to FD.

It is not a FD, it is not an investment, as long as agent doesn't promote saving as FD or investment, but explain properly what is saving plan is, then it is another financial product that may serve purpose to some.

I not able to pay. Any possible option can be select beside stop installment?

insurance has reduced paid-up option. basically it's about stop paying premium and continue your insurance policy.

but benefits will be reduced and limited. you need to discuss with customer service. then weigh your options. surrender vs reduced paid up.

Hi , how much percentage for every year they can guarentee you?

Mine here start from 1-5 year 5.75% , 6-10 year 6.75% and 11-24 year 7.75% 25th year get 7.75% + bonus

U interested can let me know... I can ask my fren to help u on this

Wah so good got gurantee return min 5.75% till max 7.75% please pm me asap!

So stupid I go open hlb junior fd 4.1% only and still need queuing at the bank.

copy paste my post from another thread for discussion here:

For simplicity i'm going to assume i reinvest all the yearly cash coupon.. i have done more complicated calculation where i withdraw those cash coupon, rate of return dropped by ~1%

i was quoted 21600 premium for 6 years (total 129600), at end of year 30 i m getting back between 285160 (assuming funds earn 4.75%) and 473400 (assuming funds earn 6.75%)

again for simplicity i'm going to ignore the interests earned from year 1 to year 6 and calculate returns using 129600 input and 285160-473400 at year 24 (30-6)

this gives a return of between 5.5% [ 129600(1.055)^24=~473k ] and 3.3% [ 129600(1.033)^24=~285k ]

but now that i typed it out, i see the negative point in this, the market (fund) perform 6.75% and I m only getting 5.5% and market perform 4.75% i only get 3.3%... this means hong leong uses my money to invest and takes a cut of around 20% of the profit!

bloody hell!

so it depends on individual i suppose, do you think you can get involved in the market and match hong leong's performance of 4.7-6.7% returns?

There are a few points you might have missed out... though most people ignore it
1) i've calculated... under low scenario the IRR is 2.905%. under high scenario the IRR is 4.811% (i use actual year of in and out. so payment spread over 6 years)

2) unlike normal investment, insurance is guaranteed by PIDM. and the interesting thing is once the dividend declared by the insurance company, it is yours... you can't lose it. normal UT, your paper gain can become paper loss. insurance.. the dividend is not just on paper, it is yours.

3) the investment made by insurance companies par fund, is managed by themselves, mostly invest in low-risk stuff... like bonds or something... i think this is semi-guided under some BNM guidelines. i don't know how insurance company do their asset-liability matching but they have people who oversees and BNM always looking.

4) the profit that they make, from the participating fund is distributed to (dividends) shareholders AND policy owner... 10/90 basis.

5) the least remembered point... this is an insurance policy after all... when one dies... one gets quite a bit of money too, because of the insurance portion. normal investment, you get back the investment value.

So... good or not? well... maybe other insurance company can give better returns?

PS: i'm not an insurance agent.

1. yea, numbers are close enough.
2. guaranteed in the sense that you cant "lose" previously declared returns. not in the sense that the returns will match their predictions.
5. in any endowment/savings plans the insurance portion is small to the extent its negligible.

2. i do not disagree. but i just want to point out some pros.
5. usually death benefit is still quite a sum... it's not negligible when you are paying 20k a year. LOL. just nobody cares.

EDIT: at the end of the day... i would still think it's crazy to pay 20k for the savings plan. LOL

This post has been edited by adele123: Dec 3 2014, 08:54 AM

in my case, the death/tpd minus the surrender value is only about 50k in the best scenario at end of 30 years. at the begining it's about 17k... i think thats very small..

Guys, so this thing once you commit you cannot withdraw your money for 25 years??? Also if you withdraw b4 25 years you won't get back the full amount you put in???

Is this correct???

Hi guys, sorry I'm not the smartest guy around here. I can't really see the catch you all see.

From the chart So after 25 years you get 160k++ from your capital 60k? Isn't that a profit...

Pretty nice oercentage i would say...

What amount is not crazy to pay for a savings plan?