FYI: it IS linked to the same CIMB islamic investment plan that pink spider brought up.

it's like A -> B -> C

A is HLB, B is Hong Leong Assurance, C is CIMB Islamic

Really.

And i do research...

1) your agent lied. it's ILP. your first year premium, only 40% (or 45% i don't remember, HLA increased it) goes to the investment... from that investment, insurance company will deduct the charges (insurance, admin, fund management)

2) And the 80% 20%... also wrong info... 80% of that 40% will be invested into EverGreen fund (the unique feature applies to the FUND NOT the insurance product). 20% of that 40% will be invested into low risk fund for deduction of the charges stated in 1).

The unique feature, no doubt is great cause there's minimum unit price that they guarantee for you at maturity.

3) so i just visited the cacated website... and got some figures from it. the below are from the website, if you look properly. LOL. i just happened to know which figures means what.

link

take the example of the one maturing in 2023, in 9 years time...

current price 0.9014
Current guaranteed price 1.2358 (this can be higher but not lower, if fund perform good, then higher lo)

I buy this at 0.9014... 9 years later i cash in at 1.2358

so... 0.9014*(1.0357)^9=1.2358

so compounding get about 3.57% p.a return. (approximately, just to illustrate)
this is purely on the investment side. you need to factor in the cost of the entire insurance policy.

4) So... i like the feature... say if i have a kid, i'm saving for his/her education, i want a relatively low risk investment, then i go for something like this but if FD giving similar return, well, hmm... but... you need to understand is... this is INSURANCE, INVESTMENT-LINKED POLICY.

5) the returns will definitely be lower from what i illustrated because of other charges. Of course, if investment return is good, then maybe can earn more, but... this will depend on how CIMB because ultimately, the investments is invested with CIMB Evergreen

of course, other investment also got charges and risk...

Questions?

Edit: wrong used of ^ previously. Fixed

This post has been edited by adele123: Jul 23 2014, 11:19 PM

It's almost similar because it is essentially the same thing. I have explained the 'mechanics' in previous post, up there.

But fyi the person who asked.... This investment has not been performing well since inception... Though it's better now... Only slightly...

Ya. You notice appendix 5, the point I was trying to highlight. 80/20 is how your investment is allocated. My point was NOT all the money you pay goes to these investment, as you have already notice the illustration under appendix 5. I was afraid you didn’t know about the conditions in appendix 5.

For ALL investment-linked insurance, all insurance/takaful companies will charge monthly policy fee of RM5. I’ve seen RM6, if I remembered correctly, it was Etiqa. I don’t remember hearing any insurance companies not charging it.
Fund management fee is normal like any investment fund. The fund with the ‘unique’ feature, charges 1.30% p.a.

HLA Cash Fund charges 0.25% p.a. It’s those low risk, low return fund that invest in money market or similar type la.

this, you have to ask HLA whether you are paying double the charges or not, implicitly to CIMB and explicitly to HLA? i'm afraid agents are not likely to know the answer of it.

Well, this is an insurance plan. There isn't an exit fee. Well, not in the way you would think.

as you probably can understand by now... not all the premium paid is allocated towards your investment fund. it's only 100% from year 7 and after... what you pay over the 1st 6 years, those not allocated towards your fund (which is quite high), those are like your 'exit fee'... YOU will almost certainly lose some of the money your have paid earlier on to HLA. Highly unlikely to break even during the first few years, after all, we are talking about investment funds.

That is why there's always a warning on... "Life Insurance is long term commitment... you will lose more than you have paid if you cancel ..."

I need to know which insurance plan they are talking about.

anyway... no such figures of return is remotely possible. LOL

example

Please read my previous post and do some homework.

Quick note
1) this is an investment-linked insurance plan. Not pure investment. if you want pure investment this is not it.
2) if you already have existing insurance plan, suggest you to not get this as well.
3) PROS: if you hold to maturity, they have something called minimum guarantee unit price
4) CONS: it's insurance plan, you might not need it. they deduct charges cause insurance company do need to charge you by providing insurance coverage.

My take? No. not worth it. i rather take my money put in FD.

the evergreen thing, it's managed by CIMB. HLA just feed into them.

hope you won't be confused.

Like any investment-linked insurance plan, there is flexibility to pay or not to pay premium for the whole of life of the insurance coverage term. the insurance plan will sustain provided there's sufficient money inside to deduct insurance charges.

in reality, the premium for this HLA plan is meant to be payable every year, and not meant for 6 years only. the option is there to convert to a 6-year premium payment.

without punching calculators or being technical at all, and i'm pretty sure i'm 99% correct...

no, you can't break even by year 7.

why you ask?

HLA Brochure

Please refer to page 11, #4.

in the initial 6 years, 173% of your annual premium is gets burnt...

how do you break even to earn back this portion?

Long story short for the average layman
1) this is an insurance product with investment element, not a pure investment product
2) before you say HLA is bad, every insurance company out there do charge you something, else how can they earn money?
3) insurance... break even is possible... but hold long term... and long is very long...
4) if you want pure investment product, don't buy investment-linked insurance.

if you have more questions, i can answer in detail. after you study what you have bought.

you will definitely get something back. just not much. insurance is meant for long term.

you give 100k for 6 years... total 600k

you get back 22000 for 6 years... total 132k...

need i explain further?

like i said, you need to read the brochure and understand first, then maybe read my post here

https://forum.lowyat.net/index.php?showtopi...post&p=76757524

This post has been edited by adele123: Oct 7 2015, 07:09 PM

if current price is 0.82 and minimumly you will get at least 1.42 12 years later, then...

0.82*(1.0469)^12=1.42

So... 0.82, earning 4.69% every year and compounded, 12 years later you get 1.42. sounds good?

Now the problem is this...

1) you lock your money for 12 years minimum (based on what your agent is telling you). can go for 4.5% FD lately... lock in 1 year only...

2) this is the price you buy, and the price you can sell. but those are NOT your actual returns...

let's use simple examples with simple numbers

Now over say 12 years, assuming you buy 1000 units per year, you should have 12000 units... correct?

BUT... over 12 years, some of these units will be deducted to pay for insurance coverage, say 50 units per year...

so at the end your balance is say 11400 units... so... your actual return has to factor in these too...

So... 4.69%? no not really...

Yes. because HLA is an insurance company.

and yes... but bear in mind THIS IS NOT investment product. if you are looking to invest and get something in return in 3 to 5 years, THIS IS NOT the way to go.

Venture Invest Plus is a single premium investment-linked insurance plan.

In layman terms, it works almost the same as a normal unit trust product... you put in premium once and ONCE only... (you can top up like unit trust product, as well) Except that if say the customer passed away, the insurance company will pay either the investment fund value OR the basic sum assured, whichever is higher.

SO... explanation aside... i am 99% sure what your friend recommended is this:
HLA EverGain Plus

To be honest, what your friend said is rather misleading...



Being an insurance product, and especially within the first few years, the money that you get back will be very much less the amount that you have paid. So, my personal opinion is that if you are looking for investment product, not HLA please.

IF you looking for insurance product, NOT this HLA EverGain Plus. The way they sell their insurance products, is rather misleading and not to your advantage.

This post has been edited by adele123: Mar 11 2016, 07:35 PM

PIDM protects 2 things that i know of. one is savings account, one is insurance policy. PIDM doesn't pay out when the depositor die. i think most people don't see that pidm doesn't just protect savings, it protects insurance too.

Pros 2...

HLA EverGreen Fund 2023: Current price as at 08/03/2016 is 0.9183. Price at maturity at Dec 2023 is 1.2358. Using excel i can tell you the compounded return over 7.5 years is 4.04%. I used 7.5 year as an approximation.

HLA EverGreen Fund 2035: Current price as at 08/03/2016 is 0.8451. Price at maturity at Dec 2035 is 1.4221. Using excel again, the compounded return over 19.5 years is 2.71%, using approximation of 19.5 years.

All these information are obtained below, except of return percentage.
HLA EverGreen Fund

Now, the above calculation assumes that every single cent you put with HLA is used to buy the funds and there are no charges. truth is there are charges.

even assume that all the money you paid in, goes to the investment fund, because it's an insurance product, it deducts monthly charges to pay for the cost of insurance. also for the first 6 years of the premium payment, which means not all the premium you paid goes into investment. part of the premium you paid goes to commission. so... factoring all these expenses, the actual return will be lower than the one i calculated above.

the numbers shown are actual numbers, not even based on past performance. assuming current performance.

the example i showed at number 4 is to illustrate what it means when it says price is guaranteed, doesn't mean capital guaranteed. two very very different scenario that brings very very different results.

I already explained, using excel. One can use financial.calculator.

0.9183*(1+0.0404)^7.5=1.2358

Invest? No.. this is an investment-linked insurance plan. Not a pure investment plan. Start from the most basic first. And... alreeady so many post for you to read, please start asking constructive questions.