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 Hong Leong Assuarance Cash Promise, worth to invest?

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lunchtime
post Dec 4 2013, 02:07 PM

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QUOTE(rinoa_mack @ Nov 29 2013, 06:47 PM)
Hmm...maybe i heard wrongly, need to check with the leader. I keep hearing this is higher rate than FD, higher rate than FD nia...
I'm actually HLA agent, newly joined for few days nia. Just wanna make sure this plan is not cheating people if not, i'll just focus on selling life insurance and MLTA... cry.gif
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HLA don't cheat people, all policies sold must be approved by BNM 1st.

HOWEVER, it is HOW agent sell by misinforming or purposely twist the facts or leaving out certain important information, or doing creative selling that confuses the general population.

Logically, how can an insurance company pay higher interest rates than a bank? And the interest rate is paid based on which sum? The premium paid or the sum assured?

The answers to these questions will reveal the truth.


lunchtime
post Dec 4 2013, 09:00 PM

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QUOTE(JohnL77 @ Dec 4 2013, 07:22 PM)
Yes, I forgot already, but is the dividend guaranteed?

Can you really call it interest?

The way I see it, you pay a premium and you get a guaranteed income for life. I thought last time the plan was until you 99 years old? Now 25 years plan only?
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It isn't known as interest in the industry but for layman sake, let call it interest.

Such policies are neither here or there policies. Not good enough to retire, not good enough to die, not good enough to be disabled yet premium is sky high.

However it appeals to those taken by sweet talking agents who haven't a clue what they are selling. Most agents are blind sheep mislead by greedy shepherd.

Whatever happened to honest agents promoting pure life protection policies?

Well, selling such mundane life policies results in no flashy big car, no MDRT, no frequent trips, no recognition / awards. What's there to motivate to sell such policies? Besides, prospect hear life insurance sure run faster than a speeding train.

Selling savings policies sounds better to the prospect (prospect are always greedy for easy money, interest better than FD). Besides the case size can be bigger. So easy money equals to big flashy car, frequent trips, more awards and recognition and so forth.

Who want to buat kerja bodoh?

In the end, consumers are the biggest losers in this game of greed. Second to lose are the sheep agents who cannot promote to a shepherd himself and cannot tahan anymore with the situation, ala looking for new sales every year.

Not all agency are like what I described but a vast majority are. So many friends who joined the insurance and so far only 2 survived to today. The rest all hangus.


lunchtime
post Dec 5 2013, 09:20 AM

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Selling insurance has no differenation edge, usually Agent X wins over Agent Z in price/cost, as service is generally the same among Agents.

To create an edge, Agents do creative selling, eg, a friend calls himself a 'Life Engineer" and this is when the problems of misleading, misinterpretation, misinformation, lack of disclosure starts compounded with lack of training, poor training and understanding.

Really, can Agents sit in class for 1 day, answer 60 MCQ questions and next thing licensed to do a client's insurance? What more to do savings?

I have met some insurance agents who tried to sell me savings plan, they totally have no idea what is inflation and they don't know how the underlying components of the plan, simply it is stocks and bonds.

Clients who bought on the promise / expectation of a sweet talking agent have all lose when those promise / expectation don't play out. Agents and insurance company don't lose much.

Mass majority of people of blind, following the masses, lemming-like.
eg, a new born baby, quickly buy education policy because friends, parents and every Tom, d***, Harry do so.

But really what is an education policy? It is nothing more than a normal life / investment linked policy stopped at age 25 and tagged 'education'.

Most education policy cannot even fund 1 years college fees, but people buy into the 'promise' only to find out the CON when they need the money.

They would have been be off savings their money in a dividend based fund or stock.

And these Agents don't advise in these manner, probably due to their lack of knowledge or if they know, due to their personal interest.






lunchtime
post Dec 5 2013, 09:05 PM

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QUOTE(AcerDynamo2 @ Dec 5 2013, 07:34 PM)
Guys, get one thing clear, Cash Promise or any other savings plans on the market with an insurance company is exactly what it is; a savings plan. If you are expected a 20 to 30 percent margin or if you were told that kind of lucrative interest rates, then please go back to the saying 'if it sounds too good to be true, it probably is.". Some more even a typical investment cannot give that kind of projection! The jizz of a savings plan is to have your money locked down. Or take Warren Buffett's advice, he endorses 'long term'.

I personally sell savings plans and the only way to benefit from it, what I tell my clients is that the only way for them to benefit the most out of this plan is to wait for maturity, 20-30 years. Yes, 20 to 30 years. And that this is your last resort, you don't touch this savings plans whatsoever.

PS. for Cash Promise, or any other plans our there, you will not, or more properly, can not get back your investment if you were to surrender the plan after 6 years.
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Assuming a buy and hold strategy for 20-30 years timeframe .. one single stock in a quality company like PBB will make me a millionaire, whereas a super quality company like BRK or coke I will be a billionaire.

Now with the same capital, can an insurance policy make more money aka making me richer WHEN I am ALIVE?

More money means I will have a better retirement.

As for insurance having protection, savings policy sum assured amounts are peanuts compared to a true protection policy assuming premium paid is the same.

For AGENTS, ask yourselves and answer honestly, how many months can YOUR savings policies sum assured maintain your lifestyle assuming you claim today? Betcha your last dollar, it wouldn't be a year.

We haven't even talk about risks, fees and charges and liquidity of the said instruments.

All insurance policies carry RISKS, just that you are not aware of till it hits you in the face.

This post has been edited by lunchtime: Dec 5 2013, 09:13 PM
lunchtime
post Dec 5 2013, 09:16 PM

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QUOTE(xuzen @ Dec 5 2013, 08:55 PM)
BNM or Security Commission cannot catch them all. You all as member of the public should also be vigilance enough to detect misrepresentation.

Will the real Financial Planner pls stand up

and

BNM list of licesed Financial Advisor as of Sep 13 (updated twice a year)

Xuzen

p/s "Life enginners" is a very creative term and probably will not get that person into trouble. Whereas Wealth Managers, Money Manager, Wealth Advisors, Wealth Planner, Financial Manager are all regulated terms.
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When you misled others, you will soon misled yourself.
lunchtime
post Dec 7 2013, 11:33 AM

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QUOTE(furrypuppy @ Dec 7 2013, 01:37 AM)
Please ask for the Surrender Values and you will understand where the catch is.

It IS true that you will get a Guaranteed Yearly Income (GYI) of RM2020, no trick here.

It IS true that you can withdraw ALL the money you invested after 6 years, no trick here.

The trick is that you THINK you get to keep all the RM2020 x 6 = RM12,120 AND get to withdraw fully the RM10,000 x 6 = RM60,000.  You WILL NOT.  If you withdraw at year 6, the amount you get back (the Surrender Value) will be RM60,000 - RM12,120 = RM47,880 only.  You DID get your GYI the past 6 years, right?  You DID get back ALL the money invested after the 6th year, right?  Nobody cheated you.  You salah faham saja. You ingat the two sums are separate when in fact they are not.

The Surrender Value is defined as INCLUSIVE of your Guaranteed Yearly Income.  Everyone interested in this scheme thinks that the GYI is given separate from the money invested which is completely returned after 6 years.  Not true.  Ask your agent.  Baru faham.

So if you have already signed up and plan to check out at year 6 to have your cake and eat it too, well, bwahahaha, sorry-lah my friend, because you will get your cake at year 6 with 6 big pieces missing - the same ones you ate as GYI all these years.

Of course, you WILL get a small bit of interest at year 6 but it is far below FD rates.  If you want to get better rates than FD, you will need to stay the full course of 25 years.

This thing is an insurance scheme marketed as a 20% interest FD replacement - it is no such thing, especially in the short term.  It looks good because we are seeing things that are not there.  And the agents are not going to help you see the right thing unless you do your own homework.  If from the very start they told you the fact that you will get back all your money MINUS your GYI at year 6, I think you won't even bother at all with this.
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+1.

The curious issue with Agents is
When they sell own company policies, they blur blur on their own policy

But

When they compare other company insurance policies, they so smart and clever.

Makes you wonder which company should they actually work for.

 

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