A HLA agent met up with me and she was pitching this Prime Wealth plan from HLA LINKY for more info.

Ofcourse it was not a 100% super honest presentation, I had to cut thru a lot of marketing gimmick to get to the nitty gritty.

Actually it doesnt look so bad... as long as you can withdraw the money out FAST and not leave it lingering for 30 years getting stupidly low returns.

She presented that the payment is only 6 years, by 9th years we can withdraw everything.

A quick calculation I did shows that the returns outstrip the FD for sure... but I wish to double check if I missed anything... if confimr can withdraw everything WITHOUT penalty by the 9th years.. I might go for it.... 40~50k forced savings per annum sounds decent..




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Check what is guaranteed and what is not. That should tell you whether it is decent or not.

Is the dividend and interest guaranteed? Or projected like most presentations, lol. Sorry, being lazy here haha.
If confirm can pull out at least your base on the 9th year given whatever the scenario, I think its fine, lol.

Bonus is guaranteed.

Dividen is guaranteed (but its a flat figure, they wont put it in percentage format)

Compounding interest is not guaranteed as far as I know.

HLB/HLA keeps calling me to meet but dont want to send details. Really piss me off.

Website says otherwise wor

Potential financial gain: You may receive potential upside in the form of yearly cash dividend and a terminal dividend that is payable upon surrender or maturity of your policy. These dividends are non-guaranteed.

And whilst you get 20% of annual premium guaranteed, that amount is only payable to you when you surrender right? Can you take that 20% at any point by forgo-ing the 5.25% interest?

Hmm.. good point, will double check with Agent again.

As for the 20%, I dont mind putting it in and collecting at the end of the "supposed" 9 yr tenure.

a simple (but might not be correct) excludes (non guaranteed dividends)
20% is based on annual premium paid
the 20% of 100k = 20k.
after paying 3 yrs x 100k = 300k + 40k bonus = 340K
you get 20k
= 5.88%
after paying 4 yrs x 100k = 400k + 60K bonus = 460K
you get 20k
= 4.34%
after paying 5yrs x 100K = 500K + 80k bonus = 580K
you get 20k
= 3.44%
after paying 6yrs x 100k = 600k + 100k bonus = 700k
you get 20k
= 2.85%
~ 7 yrs = yr capital 600k + (20k x 6yrs) = 720k
you get 20k
= 2.77%
~ 8 yrs = yr capital 600k + (20k x 7yrs) = 740k
you get 20k
= 2.7%
end of 9 yrs 780K
you get 20k
= 2.56%

This post has been edited by MUM: Sep 7 2016, 07:31 PM

Haha if you think it's so straight forward then all also join in like you already

Dont "invest" in insurance plan...

no offence, but HLA name manyak busuk imho.

True. If AIA has something with better returns I'm all ears.

I realise it's a reducing return scheme hence my interet to withdraw ASAP. Ofcourse she was going on that marketing spiel of investing for long term crap.

It's at the end of 8 yr cause u supposedly can withdraw in the 9th year.

Also that calculation is correct if there is no dividen/interest..... need to clarify with her on the 2 items.

This post has been edited by MeToo: Sep 7 2016, 10:01 PM

Unless she is doing it for free, a significant chunk of your profits would have gone into her commission(s).

Leaving not much for you, but you feeling great because you don't know any better.

Question is: is she doing it for free?

Bro, use IRR calculation to assess an investment with periodical cash inflow and cash outflow

Don't need to see what are the returns rate 5.25%, bonus, dividend etc

Your cash inflow and outflow is as follows :

Year 0 -RM100k
Year 1 -RM100k
Year 2 -RM100k
Year 3 -RM100k
Year 4 -RM100k
Year 5 -RM100k
Year 6 RM0
Year 7 RM0
Year 8 RM0
Year 9 +RM812k

The IRR is 4.7152%

http://www.calkoo.com/?lang=3&page=26

The calculation will be affected by :

1. Your "guarantee" on bonus and dividend - whether they are fixed or variable
2. If you can withdraw without penalty in 9th year

If the above calculation is correct (please check the timing of cashflow), then 4.7% is not that a fantastic returns. It fits roughly in with a lot of those Saving Plans which force you to save XXX amt a year, by the year Y, you get ZZZ amount. Considering there are still some variable dividend which they don't commit to you, and that might affect your returns.

Invest in stock market like Reits can get more % for that.

But IMO, these types of saving plans are best for those who have no discipline and spend all their money whenever they see balance in their bank. It is a force saving.

812k was my calculation without factoring in the "compound interest" they are also including into the mix...

1. Apparently the bonus is guaranteed... the dividen she gave the impression it was, will re-clarify
2. That was my understanding, 9th year can exit.

As for equities etc getting better returns, sure, this is for diversifying the portfolio... i cant be putting everything in shares/commodities/properties..

Strange way of lookign at it...

Your shares brokers... my commodities futures brokers... they doing it for free?

its about alternatives way of getting better returns, if she is getting HALF of my profit but its still gives me the BEST ROI, I'm still game.

Wish to thank everyone who gave their thoughts so far, this is the reason I open this post, to get differing opinions on this scheme.

Lots of good point for me to ponder/weight upon!

MeToo if u r looking on returns and if you can "force" urself to save, u can look for non-insurance related investment. only consider insurance if you need protection of your assets

This post has been edited by ckdenion: Sep 7 2016, 10:58 PM

Understood your point, but not strange at all.

If the profits are GUARANTEED to be better returns, I have nothing to say.

In the case of shares, commodities etc, that falls into the high-returns, high-risk categories.

Did your agent discuss about GUARANTEES? Or did she talk about high-risk, high-returns (and high-losses accordingly)

Or are we still comparing to FD? What exactly would you like to discuss about?

PS: Or you don't care, because when some agent tells about BEST ROI on paper and you fall for it?

This post has been edited by howszat: Sep 7 2016, 11:02 PM