3 years ago, I bought HONG LEONG INCOME BUIDER from a friend. RM6K / year. with LOCK IN PERIOD of 9 years
After I bought a few days, I regretted but didn't plan to revoke (grace period) since it is a friend deal...

Recently, I received a letter stating my friend has quit.
I felt that I have no reason to continue such scheme,SUPER LOW INTEREST, LOCK UP CAPITAL. (My salary NOT HIGH..)

However, the surrender value is NEGATIVE -35% if I take the money NOW..

Any idea? I don't mind lost all the interest ? CONSUMER COURT ? whatever method...

** I have no problem saving money ... I save most of my incomee(>50%) into saving, house & investment.

This post has been edited by cutepet: Sep 24 2014, 08:40 PM

Just go with it untill 9 years

You already bought it for 3 years..

3 x 6k = 18k

My advise is continue the scheme

You are not the first, definitely not gonna be the last.

The surrender value is always bad early on... Especially those insurance plans that payment short term for a long term policy.

You can try complain to HLA, and see if you can get a full refund. Not worth it for them to go to court for some small customers like you. 6k per year is peanuts to them compared to those customers paying 5-figure premium a year.

You can ask this 'friend' of yours on how to make a complaint effective, if your 'friend' knows how. Putting you in a better position to get a full refund.

If me, i will discontinue. Cause i rather cut-loss. Though i like to remind you, in the long run, you are most likely to get slightly better than FD return.

Your money is locked-in for more than 9 years. I rmb this is quite a long term plan. Premium payment is for 9 years or 6 years? Usually, it's 6-years for HLA. i think 9-years is the premium payment period, which means you are still not gonna be having positive returns after 9years. You get the most return at maturity. I have no idea when it matures.

Moral of the story, don't simply buy savings plan. Check and re-check

u should terminate in grace period... I know it's your friend deal, but when comes to money matter u should do the best thing for yourself..

Anyway better to continue now, because u already paid for 3year.. I don't think consumer court can help

Haiz....

Force saving plan.... While I have no problem saving...

Its 9 YEARS PLAN ! Newer plan is 6 years... Mine is 9 YEARS lo..

This can claim INCOME TAX ? (Under EPF & insurance, right ?)

Ya, I can get a FEW HUNDREND THOUSAND at the age of 90 ...

Nowadays, those friends selling things, I AVOID TO SEE THEM lo...

This post has been edited by cutepet: Sep 22 2014, 01:51 AM

yup, u can claim Income Tax..

"I can get a FEW HUNDREND THOUSAND at the age of 92"? I dun understand

-deleted-

This post has been edited by nexona88: Sep 21 2014, 11:06 PM

Adoi....forced saving is better than no saving. I tell you, if I don't have insurance and all the other stuff from Pru, GE, etc....I have money in hand....then I go spend buying car la, bike la, laptop la....better they take from my account annually.

6K per annum is quite small leh...just stick with it.

go bank negara complain, say agent misell, you might get a full refund, anyway its 3 years already I am not sure whether it works or not. For what I know, somebody do that before the 2nd year payment and got their money back

By accumulating interest RM6K X 9 years (RM54K) untill age of 90 (not 92), I can get a BIG SUM ! (Projected return )

This post has been edited by cutepet: Sep 22 2014, 01:51 AM

I plan to do that lo.... U know the method to do so...

Do u I need to inform the agent first ?

Thanks

I m stingy type of people... I think I can save very well....

Though I admit I earn little... JUST BIG PORTION of money go to Investment/Saving..

This post has been edited by cutepet: Sep 21 2014, 11:51 PM

Easiest way out, stipulate in your will who gets the money. At least people will be nice to you for that, and someone will be able to inherit some good money

Someone tried to sell that to me last year. I know it's unfavourable to consumers the moment the lock-up period terms was in it.

If you plan to bring this to court, i reckon that the odds are stacked against you. The agreement papers that you signed when you first purchased this will most probably has lines such as "you fully understand the product and agree to all other terms and conditions(the lock up period)". Having said that, you could try but you have to consider also the costs($$ & time) to undo everything.

If 6K/year is too tough for you, I'd say just cancel it and accept the losses. You could then use those to invest in some other stuffs like mutual funds to recoup your losses in the next few years.

why not just continue saving? is good to have a saving then none. i have pay this plan almost three years.. your situation are almost similar to me, thought of surrender it but value i get back is waste, so i just continue with it...

Friend is friend.
Your financial issue is yours, never mix money and friend together.
Never buy or commit anything just because friend.

You need to calculate the advantage and disadvantage in between from now onwards.
Look the past (-35%) is not going to help you at all and irrelevant.

Ask yourself if you put 6K/year how much you can get next year or following years as compared to premature cancellation that loss -35%.
Are you financial stressed due to 6K aka need to resort personal loan, credit card loan etc.

eg. (I don't know your plan, just illustration)
cancel now get, recoup 8K
vs
continue to commit 6K, then next year become how much.

Can you be better financial or whatever with recoup the 8K and no commit 6K which total 14K in hand?

So need to dissect the number and situation, I believe you have the projection number of premature surrender and total possible return when your first signed up time.
Look at those table.

Some people think it may be better to cut loss. this income builder is an INSURANCE 'savings' plan. For some, it might be better to cut-loss. the returns given is yes, under most scenario, is better than FD rate. I don't know if there's statistics, but probably over the long-run, it may be 100 to 200 basis point above FD, which is a lot when you compound it over the many years. Insurance companies have good (and also lousy) fund managers too so the return can be actually quite ok.

However, in most cases, your money gets locked up for VERY VERY VERY LONG. which is why i dislike it. for those really lousy at saving money, it may not be a bad tool to leave it for their next generation or next next generation.

cutepet

I have heard of HLA giving full refund after 1-2 years. Not necessary income builder, but other similar savings plan. After all, it's not that THEY don't know their AGENTS are MIS-SELLING.

think about it, what words did your agents tell you?
interest is it? insurance got no interest.
savings? this is not savings account, it's insurance.

But yes, complaining to bank Negara might help as well. But better have some proof and arguments to support as well. I don’t think BNM will simply entertain complaints without some backup. After all, they need to be fair to the insurance company as well. Can still be argued that one is ignorant.

ya... consider points given by the person before as well.

this is a very common scam by banks.

nothing much you can do, there are a lot of similar victims with you.

yup.. i agree with you but i have pay half way there. such a waste if i surrender now. wait till i'm old then enjoy. LOL

Saving plans are great if you are those itchy-hand type.. see money only must spend wan. No discipline wan....

Other than that... stay away from it. Its IRR is lebih kurang FD rate nia...

Xuzen.