Hi all,

I was approached by a friend to sign up a savings investment plan from Hong Leong Assurance called Cash Promise.

Basically you have to save a minimum RM6000 each year for 6 years without withdrawal if possible.
For example, if you save RM10,000 every year, there is a guaranteed yearly income of RM2020 and cash dividend of RM 202 each year.
You can withdraw the money anytime after 6 years.

The plan sounds very good.
Is this a scam or is that possible that HL Assurance not paying you when you want to withdraw all out after 6 years?

Seems like HLA has come out with a new plan. The previous old plan is called Income builder and it works similarly to this.

Every year "Pay Premium" (not savings cause this is an endowment plan, basically u are buying the plan not saving" 10k till year 6.

You have to lock up your 60k (assuming you paid 10k every year) up to year 20 only you can enjoy the maximum payout of this plan, which is 4.7x% for the old plan. I have no idea whats the new plan like so I might be wrong.

You are actually paying the premium and the guaranteed income is actually a rebate to you. In short, you are taking your own money. If you were to withdraw every single years guaranteed income, in the end of 20 years you surrender your policy, you get like 20k left only.

Unless you were to commit yourself 20 years not to touch the money, and yet you are getting just a mere 4.7% worth of interest only.

Might as well go take the money to buy REITS/ Bonds/ Unit trust, which will give you better returns and ALOT more liquidity, you can take your money out within 5 working days.

Fully agree...

is not scam
if you are type of person prefer save money then you can go for it
but don't commit too high; always have spare for buy house/marry/emergency
some person they prefer invest themselves e.g buy share, gold or property..

Yes. Is same. Wonder what the management is doing!

Hi, I am agent from Hong Leong Assurance.

This investment plan is not a scam by the way.
According what you have mentioned, the guaranteed yearly income of RM2020 is actually u can withdraw 20% of your saving.
By doing that, you will affect the return rate of maturity period which 25 years with 250% and above.

Bro.. what is the annualize return until 25 years?

this is not a scam but alot of agent misrepresented the data...

according to the HLA website, this is a 25-year participating endowment plan with Guaranteed Yearly Income...

a simple calculation shows that u get back RM50,500 (25 X RM2020) after putting in RM60000 for 25 years...
(compound interest and non-guarantee returns not factored in yet)
this yields a 3.36% return p.a. ... ironic since HLB have FD promos all the time giving 3.6% - 3.8% p.a. interest

if in doubt, ask the agent to show u the projected returns spreadsheet...

i hope the agent didnt tell u get back 20.2% return p.a. (it is true for the first RM10,000 ) a couple of agents actually told me that...

btw, the cash dividend is not guaranteed...

Sounds good, but you have to perform your due diligence
Find out what's the IRR.
Determine your own needs. It's not like the agent approach you, then you're influenced to purchase due to the "seem-to-be" attractive returns.
It is all depending on your financial needs and plan. Once you understand your needs, you can tell whether this plan is suitable for you or not.

The annualize return is different every year. The early u give up the contract, the lesser you will get.

If between 25 years you dint not take any money from your saving plan, after 25 year average 250% return rate of your saving amount.

This post has been edited by deanwong38: May 10 2013, 09:41 AM

Bro.. say didnt take out any money until 25 yrs. The annualized or IRR will be?

Deanwong,

You're the one should go back to school, there's no such thing as 250% return for a saving plan, saving do not guarantee a high yield return of portfolio, saving usually do not have high charge, that including all sorts of charge including purchasing units or properties that expect to give a better returns. agents are authorized by big corporation to utilize their banking or financial service to the public, agent are usually good in making money but not good in making you wealthy enough.

Usually it yields from 3.3-4.7% of IRR for most of the saving plan in Malaysia. Well, I'd say the guaranteed part usually falls about current FD rate which is 3.3%+

Then it not worth it, due to the lock in period.

Lock in period is forced savings, its not investment. The purpose is to keep aside some funds so that in the future, you can use it to fulfill your financial goals. For investment, better invest in stocks and equities. But higher returns come with higher risks.

Better to save a little aside than to spend it all up.

Forced savings?

bwhahaha.. pardon me, brought back a flood of memories from bullkaka-ing insurance agents from yester-years.
my "forced savings" for 12years+ came up to be less than 5%pa CAGR... and that was DURING KLSE's GOLD BULL RUN (80s) with FD rates hitting a high of 12%-13% for 1 year's tenure.
seriously.. "forced savings" should be forced in FD until one finds better things to do with the $, unless one is as stupid as me during when i was 19.

BTW, those days no Internet, nor forums, nor plentiful of personal financial planning books/magazines, thus people nowadays should be smarter UNLESS they CHOOSE to be lazy & stupid right?
Just a thought

This post has been edited by wongmunkeong: May 11 2013, 10:34 PM

U must be one of those THEY hired to count the votes or people @ Kelana Jaya stadium

Thank U for proving that nearly all insurance flers flogging HLB's products can't count.
250% for 25 years' average?
Can U provide a ZIP Excel file OR a GDOC spreadsheet to show the magic ar?

BTW, we talking about annualized return right?
Not simple total gross returns right?
U know the difference ya?
OR U are just trying to do "magic" - talk CAGR/pa compounded returns THEN SUDDENLY <lights off then on> show total simple (ie. end total/start total)?

This post has been edited by wongmunkeong: May 11 2013, 10:42 PM

I think endowment us for those with spare cash and do not want the hassle to shop for better fd rate around every year. Personally I have been approached by those bank office in uob. Verbally they say guranteed which is bs.
Always ask for quote. There will always be a scenario A and scenario b. do your calculation from there. When I did the calculation it's between 4.6% best case to 3.01% worse case. This us for investment if 10k annually for 5 years for the period of 15 years.

Put inflation into consideration .... Like getting nothing?

You can't withdraw all after 6 years. If you have extra cash then u can do so. Just an opinion.

It a cheat bro... Don buy... I experience it!

My Fren let them cheat!! The told is a FD saving plan!! But is insurance!!!

Traditional Saving Plans from Insurance/Assurance company are almost the same, only the packaging and logo that matter. Of course, some would say the handsome/beauty of the agent does matter too

The ROI % wont be lowered than 3% or higher than 8% averagely, you have to remember it is SAVING not INVESTMENT. It is not a "get-rich-quick" scheme. You have to differentiate it correctly to prevent arguing that may happens later.

>>>
If you have budget or enough $ = Well, it is 6 years of payment only, pay and forget la
~ I found it works like a "free" term insurance. You pay premium for 6 years to cover up to whole life, and it protects you til maturity. If you die your beneficiary gets compensation, if you alive you get all your "premium" back aka "returns" (Dont talk about inflation, Saving cannot overcome inflation. Some investment tools dont even can do it).

>>>
If you need serious cashflow and can't bear with "can see cannot use" = No, it is 25 years long of locking
~ A 4-wheels car can be local made price also can be continental's price. They serve the same purpose to you. In normal situation, you dont have enough $ you wont over your budget to get an expensive car right?

Since the product - Saving plan, is almost the same across the companies, so it is a concept selling. Ask what is the purpose you buying. Imagine, FUJI Apple, JAPAN Apple, CHINA Apple. I mean apple as in the fruit. Which type of apple can make you become super healthy super strong after you eat it? No, they may have minor different in outlook or some extra vitamin or whatever benefit. Afterall, it still an apple. An apple won't have a super-mixed-fruits vitamin benefit (I reserved my comment for those artificial apple )

Btw, they never cheat, *same goes to all the insurance agent. A smart salesman will only tell the advantage of the product and minimize the disadvantage. A smart buyer has to discover the disadvantage of the product by ownself and bear with it willingly or leave it. If you feel it is a cheat/con, thats only because you dont feel good that you have lost to your greediness and you wanna find someone to put the blames on. If you get cheated, ask yourself why you got cheated. Dont ask why did he/she cheat you. Dont step on people's product just because you are... erm.. not-smart-enough? or it simply doesnt fit your need? They have licensed from Bank Negara to sell, do you have license from Bank Negara to critic? Unless you can prove Bank Negara is in same gang to cheat u then that's different story. The theory of high risk high return; low risk low return will not be changed in today's world. If someone tells you, low risk high return then u should prove it to yourself that it actually does, dont ask him to prove to u. If you were told that it is limited time offer or whatever sh*t then tell him to chase up the time to get sales from other dont waste the limited time on u, but pls look for u 1st, at least 2nd la... when the next plan is launched IF the company is still operating or he/she still with the company.

This post has been edited by cs_ooi: May 16 2013, 03:36 PM

Well said Cs_ooi

Financial products are design for different needs to suit different people, and we always have to understand “
”compare apple to apple” concept.
Stocks, property, unit trust are investment. Saving plan is *SAVING*.....
You never tell people your saving account or Fd account is an investment.

What are the clause to terminate this policy? Asking for a close friend.

Is it 14 days from policy date or 14 days from my friend receiving the policy?

Now the agent giving excuse that policy has been issued for almost 2 weeks already but he did not managed to pass to my friend because she is travelling for work that time.

Anyone can advise?

The 14 days waiting period is actually counted start from customer received policy date, you may go Hong Leong Assurance branch to do report on this issues, they will settle for you.

Thanks bro, great help for me.

ya very true . . . just walk in to any branch with the policy

My friend told me that her agent said 14 days from policy issue wor. Is this true?

nola . . . from the date she received the policy
usually there is a piece of paper to acknowledge the date the agent pass the policy to her

Ok thanks, let me inform my friend

Another victim! Don't get cheated by them!

C'mon.... be fair la.... you using "get cheated" is so accusing....
takkan a person bodoh should blame the smarter person too smart??
takkan a local-made car kena smash til body teruk teruk by oversea-made car then you blame the oversea-made car body too hard ah??

if ur mindset is not greedy towards "INSURANCE", takkan you will "get cheated" ke??? everything black & white documented correctly approved by BN how to cheat??? u come to cheat me lah...

what the agent tell is 1 thing.. they are sales person of course needs to promote their product in a way that can gain advantage, the person who sign buta buta without reading the t&c properly is another thing.... so called stiupit

maybe u donno smoking is bad for health and may cause cancer... 1 day a super pretty sales girl come to you ask you to buy because they got promo selling A BIT CHEAPER than market price.... wah.... very worth lo.... cheaper than market... jgn main-main... you buy and smoke smoke smoke til kena cancer... then you go to blame the sales girl sue the sales girl cheat you ah??????? cheat you what???? cheat that never inform you smoking can kill life? takkan the sales girls hold the packet of ciggy and promo with: "Hey.. smoking killing... please buy ciggy from me, very cheap very cheap"

talk neber use blain 1.....

They told my friend it is giving more than fd return. I calculate for my friend after 25 years, put in fd also more. Haha..

Usually saving yield 3.4%(guaranteed)-4.5%(non guaranteed) of IRR, it should higher than FD. However, the lock-in-of-20-years period is up to your own judgement weather it worth it or not.

PS:so many years in insurance industry, my portfolio has less than 5 policies is endownment, all are upon request by customer theirself

The 3.4 also cant be guarantee, insurances charges will keep going up and wont know how past or slow it goes up. End of the day, the earning from the savings portion will need to cover the insurance charges.

To lock away money for 25 years to get a mere 3.4%pa, you tell me if it is worth it?!

Conservative investment will easily beat this. If want coverage, just get a simple term insurance which is more cost effective.

The guaranteed portion should have already factored in the insurance charges. Insurance charges for savings plan should be not much, cos the coverage usually low.

As Pink Spider said, the return have been factorize of all the charges, so the 3.4% is the final figure you are expected to have. After all, the decision of worth or not worth is all based on the respective individual's financial return expectation over their knowledge and the time they willing to spend in searching for the best investment vehicle for them. So, treat this as a penalty of return to those mediocre citizen who wanted to "invest" in saving plan.

Well, your judgement makes sense, buy term invest the rest. However, after so many years in insurance line, there are only 1 of my friend is practicing this. And yet, he haven't bought any term so far, he is still in buy-nothing-invest-all-stage. Maybe I'm too unlucky to know one

If his investment did well, maybe he will reach a point where he won't need insurance at all, e.g. touch wood he RIP, his family have no problem living on his estate

Hmmm... you are right, he has to pray for nothing happen to him within 10 years at least.

Nevertheless, there are many Director get themselves covered with 1 million coverage from me. The premium per year are up to 50k per year. Wouldn't be wiser if the directors spend the 50k/year in property/investment?

Hedging risk with liquid cash is priceless comparing to growing asset.

it's all down to perception of wealth.

e.g. a multi-millionaire would have no problem paying for a RM100,000 medical bill, but he feel better having an insurance company paying for him. he actually don't NEED the insurance, he can comfortably self-insure.

This post has been edited by Pink Spider: Jun 3 2013, 02:14 PM

It's not about medical bill in the eyes of millionaire. My friend's dad(not multi-millionaire, just a mediocre millionaire) just paid his RM270k medical bill in Sentosa Medical Center by cheque(but he said very heart pain ).

It's about the liquid cash that will help their family and businesses while waiting for the will to execute. That's the priceless stuff.

U just pointed out the problem, maintain enuf liquid cash in easily accessible form kaotim liao lo

Yes, you are right. However, the lack of trust between the father-son and father-wife hinders the father to put their cash into their account. Well, if this could be solve by just 50k/year, why would they put 1million into their wife account? Wife later go buy a lot of hermes/belian cincin

Most of the businessman wants a secure and proper way to solve their problem, they willing to spend money to solve problem.

This is a savings plan la, insurance coverage is not high. All money tied up till 26 years.

Ya, the topic derailed

it is a saving plan la, dun say cheat. say cheat only if u dun get the concept ....duh!

"Lengzai, this savings plan give u 10% return!"

10% of what?
10% paid every yearly? Quarterly? Monthly?

Both sides are at fault. Seller did not explain thoroughly, buyer did not bother to do his own homework and ask further.

seller opinion is always try to close sales, he/she of coz do not wan much questions from buyers....

+1 bro

Lol the bunch 126 agents fail their maths la..or they eyes only $

Plz dun simply say without any knowledge about it thx.. it can withdraw any time.. but if u reli surrender , it is 6th year bcoz u wont lost any money.. no believe call hong leong assurance and ask.. dont simply say thx..

Of course it is not high return if you compare with high risk investment this is a "Saving" a merit goods. This is for your future planning for your retirement fund or for your kids education fund.

Please check out savings definition "The portion of disposable income not spent on consumption of consumer goods but accumulated or invested directly in capital equipment or in paying off a home mortgage, or indirectly through purchase of securities.

Read more: http://www.businessdictionary.com/definiti...2XxJOYYsv"

for those who say cheat
hong leong agent here ...
how we cheat you ?
come to our branch i will fking sue you

Haha... Why so angry until bad word come out

all HLA agent won't cheat one la

SOME just conveniently forgot to mention certain important T&C upfront unless asked

inb4 as customers we are suppose to be financial savvy and know how to ask the right questions, if not it is our fault, not the agent's fault

I would like to add in my 2 cents.

People conveniently forget that saving plans, in its core is an insurance. They generally provide more than FD, but with things that other investment vehicle cannot match. So lets think in the below scenario:

1) You died/total disabled. You will have the Sum Assured and whatever extra bonus the plans offered: ie the remaining years of unclaimed guarantee cash (AIA ) will be payout. While other investments you only have what you had saved/invested.

2) You died. How long before your family can get the money back? Does that money need to go to your estate first, go through your debtors and finally what ever remains only get to your family? Insurance pay out will be in only weeks and straight to the beneficiary. While others, even your joint account will be frozen. God forbid you do not leave a will and you can expect years before your family can receive your money after paying off all your debts.

Hahaha this kind of attitude agent.. confirm 100% cheater one.

Not honest when in speaking, never honest when dealing.

Cheating or not really boils down to how the agent explained and sold this to you and if any vital information was left out. I signed up for this plan from a close friend and was told that you can withdraw the funds any time even within the 6 years, but of course if you withdraw the funds within 6 years there will be a fee. The plan last for 25 years and to not get charge a penalty by withdrawing your capital you should keep your funds for 6 years.

If you really need money within that period you can always withdraw the interest accrued, I was also told that additional interest is paid on top of the compounding interest.

Anyway I'm not an agent and I treat this as a saving plan, my advice is to only commit an amount that you know you can live without.

This post has been edited by 8181: Jul 5 2013, 01:45 PM

Pssst.... you can get better returns via longer term FD at your local bank.. and no need to lock up 6 to 25 years.

Haha didn't bother to calculate or cross check with FD interest, but the additional insurance coverage was a plus for me and mainly wanted to support my friend so a win for me either way, moreover he did offer to pay me the comm he is getting from my plan. Probably a good plan for someone as lazy as myself.


This post has been edited by 8181: Jul 5 2013, 01:58 PM

Another victim..if u dun mind the money worth u getting vs inflation rate etc, u may go ahead with the penny insurance coverage u thought u gained. Just 2 cent worth.

I wouldn't call myself a victim since I'm a willing buyer and although there are trove of plans outside that gives better returns this plan suits perfectly for the situation I'm in.

And although this might come across arrogant it's money that I can live without be it inflation or what not *touch wood*, the insurance that comes with it is just an addition to my other policies that I have and I view it as an added benefit but not to the extend that I decided to go into the plan because of it.

Agreed with 8181 and kelvblue

One question.

Why I only hear HLA sucks, HLA this and that and this ans that...

Just curious as other insurance company also got similar fund and product.

Why I never heard it from Great eastern, prudential, axa, tokio marine, ing, aia, allianze, kurnia, msig, maa/zurich and etc one?

Only hla git busuk agent like this?

Lol

bcos HL is notorious for cross-selling. I suspect that HL group openly disclose customer contact details to HLA agents.

I don't have such prob with other insurers, only my own agent approached me for such plans, NEVER unknown ones.

I sometimes wonder when those people mention invest in other financial tools like shares/bonds/unit trust/forex/property.

Yea. They are people making money from those investment. No joke, some makes million.

But I also see some go broke, bankrupt also got, stuck in property also got.... not easy as many may think.

Equity really need time and monitoring. If one day you wake up and see ur blue chip in klse become red chip, fraud account, pn17.. limit down 30% for the first day and second day another 20%.. that kind of feeling.. hahaha.. I also dunno how to express.

In fact, I am well inform that quite a number of listed klse company that I know off are actually frauding account statement big time and they are really dam high on leverage with over 1000% and waiting to burst anytime.

Of cuz, plans like this is not really for investing purposes.it diversify a bit and without needing you to headache on it, everyday monitoring n check.give you a piece of mind tat the money is well managed but dun dream of tasty return.

Those agent ask people sai lang inside also wrong. They are many other better things to invest and need not to lock so long period. I think agent greedy, thats why simply sell until busuk already.

Haha. Actually.. I think different bank different policy. But most bank practice cross selling one. But for HLA... probably they are too agressive in the market until wad also want to snatch

i recently attended a gathering, the company is under HLA
they're recruiting new ppl to enter this "insurance" business
1 of the plan that i saw they promote is this plan...and they say is is the hotter plan among all
i read most of the comment in this thread especially the ones from sillybearz at post #2
well, they're advertising it as a saving plan, not a plan where u'r paying a premium like those insurance as in the money u pay won't stay with u
they're comparing it with FD
heres what he showed me(i also would like to hear more opinions)
he say that let say if compared with FD(RM6k/annum)
FD percentage...1 year, u would only get around RM200
for this plan, u will get a guaranteed RM1.2k
and if u didn't withdraw that RM1.2k thn the total amont which is the 6k inside + RM1.2k guaranteed income will add another bit of interest
so, that mean the RM6k stays...not like what sillybearz said paying a premium and RM1.2k is just a rebate for u
and u will get that RM1.2k every year until it matured while the 6k u pay every year maintains
so in short, it looks impressive for me
i'm not easily cheated but am still finding the weakness of this plan

Saving plan is never meant to "cheat" people, it's the presentation from insurance agent that is misleading client.

The RM1,200 you withdrawing is call cash withdrawal, it's from your principal, if you surrender the plan within a year, you can't get back your RM6,000. The whole point of the "Your RM6,000 is stays in principal" provided that you don't surrender the plan before maturity.

Well, don't get me wrong, as I said earlier, saving plan never meant to cheat people. It's a good plan to people who want to maximize their Tax Relief, get low return compensated by low risk. Unless it is a planning for retirement, else liquidity is an issue here.

It is very misleading when they say rebate.. :s :s :s
Since when insurance started rebate?

With FD after 1 year, I can withdraw RM6K + Rm200 with cash.
Can the saving plan do this?
Surrender the plan after first year, see how much you got from it, already can verify the 6K inside got or not.

RM1.2K is cash back or income of your plan, RM1.2K is not an interest give on your 6K.
There is a reason, why it is called cash back or income, not using the term interest.

Look impressive?
Then what you waiting for then...

This post has been edited by cherroy: Sep 17 2013, 09:57 AM

Thats the only way people can learn I guess.

Getting burnt by putting their hard earn money into something they dont know how to calculate.

since i started viewing this LYN posting in May,..i come across many times of this or similar HLA posting.
is it possible to post some "GOLDEN replies" like this in let's say Post #1, so that if the next new lyn forummer where to ask this similar question,..
can just say,...refer post #1 point #xxx for consideration

now this the the part that they never told us clearly
they also never mention when u can take the accumulated RM6k/year u paid as well
so this plan can claim tax relief?...never knew that
my mom have a life insurance with HL....i know can claim because theres a section named life insurance
but never knew this can claim..under which section?
and this is what one of my relative told me as well...put 6k in every year thn can claim tax relief since my relative's income tax is quite high...way higher than what my mom paid every year
he said why give those money to gov when u can do this

This post has been edited by MR_alien: Sep 17 2013, 02:15 PM

this is the part that they never told us...thats why ...no wonder
like ExpZero said and as i recall 1 of my relative said
thn i think this is more to the claim tax relief part
u can put money in and at the same time, u can claim tax relief

It's under KWSP/Life Insurance's RM6,000, normally it applies to citizen who are self-employed as they can opt to contribute either to EPF or to Saving Plan or Life Insurance.

Well, if your RM3,000 part of Health/Medical part isn't fully claimed yet, I'd advise you to buy a 36 Critical Illness policy or Whole Life Participant Plan with 36 Critical Illness. The reason is you can use 60% of the paid premium to cover under RM3,000 part.

Haha, I remain neutral for your statement of "why give those money to gov when u can do this" (Later got BN-trooper then susah lo). Well, the whole idea of it is diversification.

haha....well, for them...its a l00phole
he doesn't have EPF because of his job....so thats why my relative took this plan
the 36 illness policy is insurance or medical card actually?
i have medical card but no insurance...and dn't think need one yet

36 Critical Illness is Life insurance, typically it covers Death/TPD/36CI. Due to the fact that traditional policies which covers 36 Critical Illness can be claim under "Health/ Medical" portion, it can save you plenty of money from paying tax.

36 Critical Illness is important because this is the money you are giving for yourself when unexpected event happens.

We are all work for income and we are all aware that we have a fixed expenditure which we have to fork out monthly to continue our life, be it loan or life expenditure such as meal etc...

When one diagnose with serious illness, the income level might drop to zero. But he will definitely need an income replacement to replace him as the income generator to pay for his expenses and loan apart from the medical bill is bear by the medical card.

So, if a person without adequate of 36Critical Illness. While he is recuperating in hospital he must expect that his car/house will be lelong if he isn't got the capability to pay the loan off due to loss of power to generate income.

Well, I'm offering some good tailor made 36 Critical Illness coverage, shall you interested, do give me a pm.

I referred the term as "Rebate" so it is more understandable for most people. You are actually cashing out your own premium (principle) if you were to cash out from year 1 - year 6. Since you find it good, I suggest you should purchase rm10k per year and try withdrawing the so called "interest" from year 1 - year 6, see what do you get at the end of year 6.

If im not mistaken, you get like 10k - (1.2k x 6) maybe + few hundred. If you want to see the picture clearer, get a YEARLY WITHDRAWAL QUOTATION from the agent and you will know what I mean.

This plan is crap for me, there are more substitute for this plan in this market.

Cannot say rebate.. wrong term.
Use cash out is a better term

Rebate is... agent get commission, giv u back.. and that is call rebate. But is not ethical to do so..

+1

Yea there are many kind of substitute in the market and thats right.

But each different substitute got different reward, risk and also the discipline imposed to the person.

Is up to the eyes of the beholder...

This plan comes with protection ?? as in for TPD or DEATH ?

My Agent introduced this to me last week. According to him yes there is a life insurance attached to it, but don't expect high sum assured amount, unless you commit a large sum for Cash promise plan

Hello people. anyone knows the complete list of interest earned?

- 12% for the principal invested for every annum
- how about the 7th to 25th year? Still 12% on a yearly deposit?

Thank you!

Hi All,

I've bought Hong Leong Assurance Cash Promise myself and I'm their agent. I'll do my best to explain the plan to those of you who are interested to know more. No hard-selling/BS, just info-sharing *promise*

Basically this is a savings plan, hence the returns cannot be compared to investments plans. I'd be totally honest, the "realistic" expected interest u can earn is 7.04% per annum over a period of 25 years (without withdrawal). But before you say it's low, it's still way higher than KWSP average dividend rates. Heck, the only times KWSP was able to beat this figure was during 1980s-1996. Even during 2012 pre-election (pre-elections usually lead to divident rates), KWSP announced a mere 6.15% and you saw people lining up to check their accounts! So what's more with 7.04% return?

Fixed Deposit rates do vary as well, although it's been relatively stable in Malaysia. But there's no guarantee, it can drop to 2.00% or 1.00% p.a. depending on the economic situation just like what we've seen in other neighbouring countries. Fixed Deposits definitely wins in terms of withdrawal flexibility but it has a few disadvantages as well.

So then, the decision whether to save using Hong Leong Assurance Cash Promise will be entirely up to u.

If I have earned your trust with my honesty and need more info, do PM me.

so if i can have better investment out there earning more than 7% i shouldn't bother with this CASH PROMISES?

justaregularjoe Well, as I have mentioned earlier, there's a difference between savings and investments. Investments are used to grow wealth (higher returns & higher risks). Savings are different. Plus, which investments does one need not monitor daily/weekly/monthly? And who can claim they have never lost in a single investment?

I'm not advising that investments are dangerous and should be avoided, just the difference and the stress involved. Plus, there are many other advantages that insurance savings plan have over investments.

Just sharing.