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?

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?

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?

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.

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.

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?

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.

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?"