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.
linktake 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
Thank for the info. Because try download their brochure illustration is still using 80/20 %
however notice the appendix 5 stated: allocated premium to purchase the unit actually is based on years i.e. 1st year 45%, 2nd years 50%, 3rd and 4th year 76%, 5th and 6th year 90%, 7 years and above 100% ....
rm5 monthly policy fee and still need to pay yearly fund management fee between 0.25-1.30% ... probably take back their guarantee bonus unit and guarantee additional allocation already ... hmmm
Jul 23 2014, 12:04 AM
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