A reminder, as well as to all forumers

It is a misleading statement to label final projection figure as "definitely higher than FD" when the investment projection final figure has non-guaranteed portion of return.

Apart from the guaranteed portion of return, other non-guaranteed will remain as non-guaranteed, nobody can say those return is "definite" better than FD.

Any insurance company out there, if they are not aiming for growth at all every year and just maintain measly on the worst performance year to year in this case Scenario 2, would be better off close shop and be better off to become a bank and just collect FD and give out housing loan which gives them 4.4% interest rate return on a daily rest.

You should also look into aspect that insurance companies hire qualified fund managers to make sure they know what they are doing to make the necessary funds grow and gain profit for the company.

The point is, the sales illustration is just a projection and it's also depending on the funds that the policy holder chooses to invest, if they are expecting a higher return and are able to handle risk, then they can go for high risk funds.

If they are low risk takers, there are always bond funds that they can choose from.

The illustration will project accordingly to the different funds that a policy holder chooses.

You are right to say there is no "definite" but it's will be better off than FD with the element of investment involved rather than a fixed amount paid off by the bank. Unless you're saying even with Bond Funds + guaranteed return portion from the insurance company is still worse off than FD, I rest my case.

I forgot to add in a point whereby the main disadvantage for these kind of saving plans compared to FD would be the long holding period but as I said if the main purpose of the savings is part of the retirement money or children education then it makes sense, however if you're planning to use the money in the next 3 to 5 years then you will definitely lose money. An endowment plan is whereby you save for a period of time and expect to get certain form of return as part of an interest, which you have the choice to not take it and continue to let it roll and allow the insurance company to grow the money for you.

This post has been edited by lifebalance: Jan 26 2017, 10:19 AM

what is your age ya

Great Eastern has launched new product- *Great Cherish 80*

*No medical underwriting required, guaranteed acceptance.*


The plan basically cover for ONLY death & maturity benefits

*Fully refund total premium with 108% when policy matured at age 80 *

https://www.greateasternlife.com/my/en/pers...cherish-80.html

This post has been edited by MONICA88: Jan 26 2017, 12:01 PM

Thanks jiansheng for your kindly replied,
3) This is a savings plan? No wonder returns so low...
4) I was tend to invest.
6) Yes I can, but I feel it (the plan) doesn't good because the returns are so low... (for initial years) can't even in par with 3.5% FD rate. However it offered protection & FD offered liquidity.

I heard many bad rumors about I can't even get back the 60k I've invested when I tend to surrender when it's "matuted"... I feel like naik kereta ad.

Rumors from other insurance agent?

Thanks adele! For the IRR calculations and feedbacks.

3) I did the calculations take account of RM2k I got and reinvested into somewhere else for another 10 years (2000x10x5.5% p.a.)

4) 5) 88 y.o is very very unpractical, we all know that right.. this's what made this plan looks bad..

6) Already wet my hairs, this plan isn't what I want. I've wasted many money into such savings plan without any return in the first 10 years...

Thanks lifebalance.

3) The plan is lower than 3.5 which is unacceptable for me. (Because the liquidity is 0) what's the point I allow them handle my money for so long? Not to mention the 1st 10 years=zero return.. why don't I save by myself with liquidity without locked up my money? But it does offered protection though.. that's it.

4) long run is very unpractical for my honest opinion, I've wasted 1st 10 years (which is important) of pumping my money without liquidity & zero returns... what's this for?

5) sigh, I'm worry AIA can't even delivered the future returns. Which means the longer they hold my money, bigger lost I gonna suffer.

from few friends who surrendered for their parents after the plan "matured", no offence but it's AIA plan as well.

After 1st 10 years, it can't even protect the total injected capital money. I feel like losing confidence about their projection returns... (I know this isn't guarantee on blk and white) I feel like want to take back my money and handle by myself but I gonna suffer of "confirmed/actual lost" if I do so..

This post has been edited by heavensea: Jan 26 2017, 02:15 PM

These kind of plan is where you put in your surplus money aside a.k.a diversification.

Don't mix it up with your other bulk of money as "investment"

Please make up ur mind that Savings is putting aside the money for low risk investments

Whereas investment is where you put your money into high risk investments to get higher return.

Savings is something you can fall back on in the event you lose all your investment.

Have a sound financial planning for yourself rather than just thinking about "I just want high return investments". Never put all your money into one basket.

Thanks ckdenion, I feel upset about the 1st 10 years zero returns. I hands up those money in vain (lost opportunity costs) and let them locked up my money liquidity for nothing..

May I know what's the theory they offered zero % interest/returns for customers? We only started to gain peanut after 10 years? Not to mention previous money value is much higher than current money value..

In short:
1) 0 returns & liquidity in the 1st 10 years
2) 1st 10 years is crucial for every man to make some fortune, I can save those money to pay for property dp/investing in UT or REITs... I feel like being an idiot gonna wasting those 60k in insurance policy without returns for 10 years.

This post has been edited by heavensea: Jan 26 2017, 02:26 PM

I feel upset about the 1st 10 years zero returns. I hands up those money in vain (lost opportunity costs) and let them locked up my money liquidity for nothing..

May I know what's the theory they offered zero % interest/returns for customers? We only started to gain peanut after 10 years? Not to mention previous money value is much higher than current money value..

In short:
1) 0 returns & liquidity in the 1st 10 years
2) 1st 10 years is crucial for every man to make some fortune, I can save those money to pay for property dp/investing in UT or REITs... I feel like being an idiot that I gonna wasting those 60k in insurance policy.

I just digged up current policy (ILP) of 9 years. Plan to understand where my premiums go and decide what to do next.

Some questions here as I proceed page by page (and related annexes)

1. how is total sum insured calculated? On the cover page death benefits equals 50k but if I roughly add up all the other optional benefits as stated in each annexure, it's comes up to about 500k

2. Is there a formula to obtain ballpark figure of a properly protected single male? Will increase coverage if needed.

3. If #2 happens, is it advisable to add to current plan or look for a separate plan?

Thanks

It's how endowment plan works in the insurance industry. The first 10 years you won't see much but after the 10th year onwards you'll see the payout is alot more. It's not wasted, it's basically putting it aside.

You should highlight this to the agent about your needs and requirement before you bought the policy rather than complaining now about it.

1. Death benefit is inclusive of your basic sum assured + any additional bonus sum assured + cash value + any other riders or benefit

2. 10x of your annual income. if your annual income is 120,000, you should cover RM1,200,000.

3. There are other plans now that offers lower cost of insurance (COI) for high sum assured coverage.

Seems like you and your agent had a miscommunication during the discussion phase on what you need.

I always say it really depends on your luck the kind of agent you will meet. If the amount saved does not affect you financially then consider to continue the plan.

Rumors are just that. Get in touch with a professional agent and have him/her run through your policy with you.

Best,
Jiansheng

1. Refer to Lifebalance answer. If you don't mind, share a screen shot of the summary page on your benefits.

2. Usually it is 10 times of your annual income however it also depends how much liabilities you have out there and you'll have a rough idea how much insurance you need to cover them and also survive on if anything happens.

3. Depends on the situation.

Now that you've have a rough idea get in touch with your agent and share your concerns with him.

Best,
Jiansheng

Not all insurance savings plan are like that. The problem in your case is, you pay 10 years premium for a policy to last until age 88. Insurance products are designed for long term savings. So… you have taken all the premiums that you are supposed to pay until age 88, squeeze in to 10 years, then in contrast, yes, your first 10 years return is not just zero, it is negative if touch wood you want to take money out now. Anyhow if you want investment, this is not it.

Back to my cost/benefit analysis, if you have paid for many years, it should change your decision on what to do next.

Thank you both for your replies. I've work out my vegetable fund to be about 725k. But a measly 50k should I get run over by a vehicle tomorrow and die. Now, that's still a selfish occurrence. After land cost/crematorium, my folks will be left probably half that. More if they decide to nail plywood.

Let me know if I read the annexure wrong. Will hook up with my agent in the coming weeks but relatively better equipped now.

Inputs welcomed. Solicitations not. Not yet anyway.

No head no tail about yourself and your policy, unless you feel comfortable to share all ur financial and personal info in here, feel free to do so otherwise better talk to your agent since he's going to get paid anyway.

This post has been edited by lifebalance: Jan 26 2017, 04:57 PM

Sure, thanks