How to decide whether to terminate or continue?

(a) continue paying. X years later, how much will u get?

(b) stop now. take back RMx,xxx. Use the RMx,xxx and invest elsewhere. Use the money that u would be paying to Hong Leong had u not terminated the plan and invest. X years later, how much will u get?

If u not financial savvy, ask an accountant friend to calculate for u.

What is past is past, when making financial decisions, u consider only the future.

This post has been edited by Pink Spider: Sep 22 2014, 01:58 PM

This is foolish.
The agent that sells you this, will use any trick he can think of/ sell you any confidence or assurance (after all, thats what people want to hear in conjunction with their greed).

he will use friendship as a way to get in. then give u assurance that it will definitely make you a lot of money or whatever.

So, when your greed + confidence in him is strong enough. you bought it.
this is all sentimental decision.
Wanna know the facts?
Here they are, the inconvenience truth:
a. The uncertainty - Your Gain on your investment
whatever they say you will gain (it is not certain) and what data/statistic he shows you is definitely biased. After all, its the investment into the future we are predicting. The sure thing is, its definitely going to be lower than what he shows. It all depends on the fund manager's and the bank's decision and the future development of what they invested in.

b. The certainty
Your friend will definitely get a cut of your investment as commission. Mind you, this is a 100% gonna happen. And god knows how many % of your investment is going be end up in the sales team hierarchy pocket. Well, from your statement, probably not lower than 35% goes into their pocket.

c. Yea, Right?
If everything is as good and as firm as what they say. Why don't they put any minimal investment return/ dividend on the Terms and Condition? They sell you all the sweet talk, in the end what puts in writing/agreement is the protection towards themselves.

You want to get back 100%? Do you think the entire team is going to give you back what they have as commissions? Think logically, if the bank is gonna pay you back, that means the bank gonna have to collect back from whoever that got the commission (might not be even working in the bank anymore), which is highly unlikely. They don't have to worry anyway, since you already signed the terms and condition. Read it through and get through your denial phase.

woah, so deep but true

This is so true, especially the commission part.

I am looking for a solution lo...

Hope I can really get back my money wit little losses... I can accept minimal loss

Hi.. I also bought the exactly same plan that u had. HLA income builder.

Actually besides complaint n surrender. You may reduce the plan to the minimum amount with the guaranteed yearly income of rm500. This plan actually have 6 years, 9 years & 12 years.

The agent sell to u 9 years plan just to earn higher commission. You can actually reduce the premium lower instead of paying 6k a year and also change the term from 9yrs to 6yrs. the premium can be reduce to roughly 2k - 3k according to you age.

Actually this plan is good for retirement because you're just paying/saving for 6yrs/ 9yrs/ 12yrs but the guaranteed interest payable to us up to age 90. But of cos we will not wait until age 90. You may withdraw the interest like maybe 5 years once or 10 years once or maybe when in future for any emergency use.

Since you have save for 3 years d. Not worth it if you cancel now.

The latest plan they had is minimum 6k. Paying / saving for 6yrs but interest only payable up to 25 years only.

The best way, I think you reduce the premium or change the term to 6 years if u felt 9 years was too long for u.

[QUOTE]

Can simply change plan one ?? Mine one, yearly income RM1,000

This post has been edited by cutepet: Sep 23 2014, 08:59 AM

not change plan, reduce sum assured. you are allowed to do it. but check the calculations. but this is better than total loss.

CAN NOT !

CHANGE OF PLAN ONLY ALLOWED ON FIRST YEAR . Check wit customer care already...

you are right.. i believe not many agents know how to calculate IRR...

they show you the return is so great such as 7-8% which is misrepresented.

Change of plan, yes only allowed for first year. What you are doing, is NOT change of plan. This is called reduce sum assured.

Change of plan means change different product. I already said it's NOT change of plan.

Total Money Paid 3 x RM6000 = RM18000

Value of Investment NOW (woi -35% NEGATIVE) meaning == RM18000 x 65% = RM11700

Next year 215 throw another RM6000 into sea

Value of Investment 2015 (woi -45% NEGATIVE) meaning == RM24000 x 55% = RM13200

TS cannot be Future Millionaire sure GOT Ghost

Reduce sum assured? The customer care said can not.. I will try again...maybe she blur blur one..


Actual loss is bigger than 35%. Need to wait next year cut off date only .... DON't know what to do lo..

Yes you can reduce to yearly income of rm500(minimum). So that your premium will be lesser d.

What u need to do is, told the customer service that u wish to reduce the sum assured and they will let u sign a request change form to do so. One of my fren did this too.

For me, this is better than surrender and u lost your money and den go for other investment and few years later again u withdraw your investment/ saving. Ended up , didn't save anything but lost even more.

You get what I mean? 😁

I understand... Thanks...

I will try complain to Hong leong, after tht BNM . After tht, court...

I don't recall seeing any positive threads about any Hong Leong income, builder, savings, wealth products (apart from agents trying to argue otherwise).

Ultimately, there is no one else to blame apart from the buyer.

Caveat emptor.

Actually nothing much to complaint. Because u did receive the policy contract. And at the moment, u did cancel with the period for full refund. Just because of support your fren. Unless u got any prove. Else agent still will fight for their right. To me, I feel this plan is not bad la.. U may deeply consider about it. This type of plan is for long term. Include whatever saving. Unless those high risk investment or share.

regret interest going up?
this funds only good if interest rate down...if u compare FD vs them....HLBB better.....if u compare ASB....ASB better
the IRR only 4.5% overall if you calculate. Only upper side, you get some life insurance coverage for your family

To be fair, when one is satisfied, one wouldn't come to this forum and will forget about this forum. when one is angry and pissed, then one will visit to this forum.

all these plans, are LONG LONG term. if one is in the insurance plan say, for 25-30 years and maybe one's child is just less than 5 years old. maybe one can use this insurance 'savings' plan for the child's house downpayment or something.

interest going up yes, but that doesn't mean their returns from this savings plan won't go up as well. to be fair to the insurance companies. they can manage investment well enough too.

i don't know if there are actual statistic but one should take ACTUAL returns for comparison. remember that what they show in the table is for illustration based on their projections. could be more (and also less) in reality.

cutepet There are only 2 reason why you want/should to terminate.

1. You have CONCRETE plans to ensure the money can instead be put to immediate use for higher gains investment.
2. You WANT to spend the money.

If it's not because of reason no. 1, then continue with it. It forces you to save. Many people think they can save without a plan. In many cases, most actually can't, especially those who do not earn much. It hurts them to see the little that they have going away into a fund they cannot use for 9 years, in your case, 6 more years. But unless you can guarantee a higher return if you terminate, then my suggestion would be to continue with it. The returns are generally higher than Fixed Deposits.