Hi, I was approached by an agent recently from one of the agency under HLA.

From the way he proposed to me, the plan is more or less like this.

It is a 6 years saving plan, for eg, if you deposit 10k/y, you will have return of 2k every year. which is 20% of it.

On top of it, on the 2nd year of your deposit, they will give you another 5.25% on top of your return. This can be explained like this:

1st year - 2k (return)
2nd year - 2k (return) + 5.25% + 1st year 2k = 2nd year total return.
3rd year - continue from above calculation.

It is basically a compound interest of 5.25% every year until maximum 30 years.

During your time of saving, if you wish to withdraw out, yes you may but it will have surrender value which means the value that you are getting back is definitely not high (exact amount is not explained)

The agent said this whole plan is covered under PIDM which even one day the company close down or anything bad happen to the company, PIDM will assure you will gain back 100% of it. As compared to plan that's not covered under PIDM, you may get back maybe 20-30% of it only.

So, I am here asking all the seniors and sifus.

Opinions?

seems interesting

You may read the existing thread.
https://forum.lowyat.net/index.php?showtopic=2723676

The 20% is not "return" or "interest" but "cashback".

Please get this understanding right for starting point.

The 2K comes from your portion of 10K. It is not 10K +2k.

+1
the agent all the way never mention where his 10k went
only how good of a return
in short, insurance is not a good way to save or invest...there are better ways

So if this is the case, if I were to quit after some period I have invested in, will I get back the "cashback" and the 10k that I have invested into?

I tot u have closed tis thread

No... Wrong concept... this is NOT investment...

anyway long story short, you will get back less than what you have paid for upfront.

Yes, it's true. the agent did explained me about "get back less than what you have paid for upfront".

Just another stupid questions of mine, as I never place any money into FD.

If you withdraw from FD during the tenure year, will I get back the exact amount as I paid for upfront? Or will it be lesser as well?

You can premature uplift FD anytime, even you have put it as 1 year or 5 years FD.
You will get back all the principal just sacrifice the interest or interest become half of the interest rate for the completed period.

Eg. you put 10k 1 year FD at 4%, after 6 months, you decided to uplift the FD lump sum, you will be getting back 10K + may be around RM100 (half of the 4% for the completed 6 months)

But in saving plan, you cannot uplift any principal, unless premature surrender the plan, and what you can get back is the surrender value of the plan on the completed period.
Look for the table, there should be a full table listed out the surrender value with year completed.

Thank you for explaining to me about the FD plan. Hmmm, it does have the table.

But the agent mentioned we can always go for monthly/quarterly/half-yearly/yearly. I am not able to "deposit" a whole lumsum of money for yearly. But for monthly I bet I am able to as the agent does not force me to have any minimum value to deposit into. So rm100 is still fine. Just that the interest would be lower.

Yearly, quarterly or monthly make no different one, 6000 per year has no different with 500 per month.

If you are not able to pay the premium due for the saving plan, it may result in premature surrender the plan.
It is not the like FD you deposit at your wish, and at whatever amount.

Once you signed to take up 15 years saving plan, you have to commit into it, disregard you have money or not.

Saving plan is not "deposit", please don't let the agent mislead you.
It is called premium that you are obliged to pay.

All the HLA agent is misleading their client through this scheme, that why you can see many 126 cars around the world. It seems like a very good scheme, but i can assure that 10/20 years later, you look back at your saving in Hong Leong, the cash value you left is not much.

It defeat the purpose is you get into this scheme. what is the purpose of saving plan? you save it and you hope that 10/20 years later, any emergency, you can use it as a retirement fund, education fund, etc.

In other words, this is more an insurance than anything?

Laddering FD certs is a better "savings plan"

Maybe we have this wrong idea about Hong leong. I will need to have this clearly calculation before I do any decision before hand then.

To me, I will just want to have some saving at the later stage as I know for sure that myself is not able to have saving if it's in my saving account. I will definitely spent it.

So only I will consider about this plan. I am going for a long term saving.

There's no 15 years saving plan as the agent told me. At most also 6 years maximum.

6 years maximum, 7th year onwards we does not need to save any further. But the interest will keep on coming in.

I know I sounds pretty stupid in writting this but I do wish some experts out there would help to elaborate or explain anything behind what the agent said to me.

1. For that time frame (15-20 years or more), unit trusts or even investment in blue chip stocks can be way more rewarding.
2. Are u 100% sure that u can commit to that plan without premature withdrawal? If no, try FD laddering instead. The pain of loss FD interest is painful enough for some to not withdraw the FD(s).

Such "savings plans" is only good for people who have absolutely zero financial discipline and/or knowledge.

This post has been edited by Pink Spider: Jun 8 2015, 06:08 PM

Hmmm. So sifu is advising to go for FD instead of this plan?

If you're the agent, how would you sell this plan to use then?

will just say "i am from hong leong".

so that u think it is a great bank investment.

does not say it is hl assurance, insurance. nothing to do with the normal hl bank.

full of traps!!

Why is there a difference if u tell others you're from Hong leong or Hong leong assurance? Adter all the plan is the same. Correct me if im wrong.

perhaps you should ask yourself before looking at the returns because someone can promise you higher returns eg. unit trust, shares, ASB.
1. why do you need to save money
2. do you have enough like 3-6 months of expenses as emergency funds before taking up the plan

The product developed is for the benefit of the client's for different needs in different stages of life and purposes. Saving for own self, children, parents, retirement, education..

This post has been edited by sonicbull: Jun 8 2015, 06:35 PM

a bank does not usually call to do telemarketing. you need to go to bank and ask or products unless u r premium or priority customer of the bank.

the investment bank arm of the bank has other products that are not insurance based or insurance related.

if u can't tell the diff between a normal bank, an investment bank and an insurance co., i suggest u be very careful when u get a call.

6 years or 15 years continous premium payment made little difference.

You count the return by its ROI.

6 years total paid is (let say) 50K, vs 15 years total paid is 50K, 15 years one seems more "attractive" due to lesser commitment needed.
Lesser year need to pay, doesn't means must be good. You pay fully 6 years, but the plan need to run for 15 years to be completed.
Lesser year, higher commitment on early, while longer time to wait to get back the money.

Remember when you have cashflow problem or any financial difficult in between the saving plan running time, you may need to premature cancellation to get back the cash based on surrender value.

Out of 15 years or duration of the saving plan running, if one year you face financial difficulty that result in you cannot pay the premium on the particular year, it might result in premature cancellation of the plan as well.

There are plenty of saving plan out there, insurance endowment plan, please open you scope to know about it, instead posting a statement "there is no 15 years saving plan as the agent told me".

Bank is just an agent selling the insurance (just like any other agent out there), they do not run the saving plan, nor any liabilities associated with the insurance.

When you signed up the insurance plan, it is between you and the assurance company, not bank.

Banks do not run insurance product.

This post has been edited by cherroy: Jun 8 2015, 09:28 PM

Basically it's a method of bank to ask u give them money legally. Think of inflation rate. After 10y later, the amount u get back what can u buy?

saving is saving. investment is investment.

don't mix both.

why?

same reason why people should not mix wife with mistress.

different thing different function.

So it sounds to me this is pretty much an investment huh?

Is basically giving back your own money rather than so called "additional return on top of your amount given?"

I liked that

Its name already tell you that saving plan is a form of Saving.

okay i will explain.

this product is savings oriented. the purpose of this product is to help people who do not have much knowledge in investment products to have an alternative saving instead of just FD.

people who knew other investment products/methods definitely will skip this.

but this product targets the market audience who wants to save.

you see, the more you read about the brochure the more you think it as investment product as the words they compel is to make it sound like and look like an investment product.

it is not.

investment =/= savings

dog =/= cat

long story cut short, you are buying a saving plan. not an investment plan. all marketing gimmick. we all live in a world full of advertising to buy things that we don't need to impress people who we don't like with money we do not have.

As a saving plan in itself, HL savings plan is pretty good actually. Nevertheless, that's just because most companies savings plan sucks to begin with. Had to agree that you are better off putting the money inside FD as most savings plan does not even beat FD.

Another option I would recommend is going for unit trusts and go for bond funds. They can give higher return than FD and relatively safe. If you prefer high returns especially in the long term, go for equity funds especially growth funds.

this plan if no 'misguide/cheat" element in it sure cant sell well

The highest quality lemon will never be sweeter than the worse orange.

Xuzen

Xuzen-sama so wise

DONT GET CHEATED BY HLA.
Before you sign, ALL OK. Maturity ALL Problem.
Bloody HLA....I am just another stupid Victim from "HLA".
I sign up from Hong Leong Bank 20 years ago "FD Care". Which put in 1K every yr for continuous 10 yrs, and was told will get back 24K after 20 yrs Maturity on March2019. You know how much I get back? RM14K. Bloody Hell Hong Leong Assurance, I put 10K for 20 yrs and get back 4K as interest?
Anyone if wish to sign up those Endowment or Insurance plan like such (Especially Hong Leong), DONT Trust them (now then i heard actually there's a lot victim like me). They can bluff you in return Super High Interest, or Investment, or Saving... ALL SHIT
Congrat HLA ya.. successful suck blood

Luckily I did not sign for this thing. I understand you brother, not only HLA. I believe other insurance also same, especially those with "investment-linked".