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?

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

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%

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.

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?

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

TS, 812k "was your calculation" and not the amount she told you right? Yes, she can say bonus and dividend is guaranteed but confirmed the surrender value on 9th year is not RM812k, get her to show it to you in black and white (official quotation).

Yes, on the 9th year you can withdraw but confirm you won't get RM812k. Ask her.

At best you can only get back your principal on 9th year provided you don't take out the bonus and dividend.

Ya, use the IRR calculator to estimate the cash inflow and outflow (add in the additional compound interest), then you can compare whether the plan suits you

You have already made investment in shares, commodity, properties. You already have some higher risk stuff in your portfolio. If I were you, I will put in FD/bonds for saver investment to balance the risk

Because this type of investment tie you in for years. It is not as flexible as FD or bond funds.

But at the end of the day, it is your pick.

Why do you even need to ask whether have to ask point blank?

What about the points you forgot to ask?

Nope.

Just put your emergency funds into FD, instead of introducing it into a pointless thread.

Like HLA is good or not? Everyone have already told you it's not good, so what the heck are you trying to prove?

Endowment are meant for long term savings for your retirement / children education whereby you've set aside an amount for it to grow steadily without high risk of losing the money.

It's not your skim cepat kaya as portrayed by insurance agents.

that is true, if the plan are fully explained and buyer are "wise" to understand what that plan is all about......most of the time, if was the "seller" that make it so simple to project the high ROIs to get attention of the passerby.....
had been approached by similar offer in hypermarts/shopping centers....they would just tell you can get 20% pa ....you not interested meh?

the "high risk high return, low risk low return" is always true...

 

Lol contradicting statement

can I say something about this?

First thing first, the agent giving the piece of paper as u uploaded to show us is already a mistake. It can be terminated her code if u complaint to HLA HQ at pj city 0376501818. This is fxxking serious misleading issue.

Secondly, no doubt u all are very "kin yao" to calculate the return, ROI, irr, etc... But don't forget insurance is not investment. U just named it as insurance. That is no any above mentioned terms in insurance plan. But "surrender value" or cash value always the key of myth. (This is not ur fault, u will thinking in this way is because the presentation of the agent. And the material she give u. It's just a marketing tactic)

Insurance company can be insert fancy, fantastic, fabulous features. But end of the day. When u surrender the policy. Company will only pay u according to the surrender value. Of course it will be higher or lesser. It is depending to the performance of their invested fund.

When come to this. U can always have the alternative way to check where insurance company parking their fund. Which fund, what fund, through which assets management which channel. When u can do it yourself. Why u rely to the insurance company do it for u? And charge u a service fees, allocation fees, policy fees blablabla

U all at the previous 3 pages discussed about commodity, futures, options, stocks etc etc.. I believe u are alrdy expert to handle ur own money into market and speculate it.

If u want to diversify ur risk. U want a back up plan. Yes. U can go for this saving policy. If u still aggressive mode to Korek money. Go learn forex trading.

Remember insurance company origin business is to take care ur risk. Janji u will to pay the premium. They will take ur risk. But conclusion HLA prime wealth is a good saving plan among so many insurance company.

AiA have one more plan pay 5 years only. 3rd year break even. 5th year surrender alrdy making money. Pro rated like 3.++ % per annum. (Same to fd? But don't forgot the protection as well) banks FD don't give u protection.  No agent approach this plan because commission is only 3.9%

What a joke

lukenn, Why you tag me? Want me to give grandmother story again is it?

I think HLA built such a bad reputation for themselves, we basically charge them guilty unless proven otherwise. I hope your agent could provide that proof, I really do. But at the same time, I seriously doubt it

Story telling time
Once I got a call from HLA agent, telling me that for RM10k premium I'll get guaranteed returns of RM2k. I told him straight off that this is grossly misleading to say you have a FD like product that pays 20%
Guess what he said? He say I didn't listen properly, he never say 20%... he just say for 10k annual premium you get 2k back every year..... 

As to the product approved by BNM means must be good..... that's what agents always want us to believe. To be fair, BNM did a lot to protect consumer interests, last time if you surrender in the first 2 years you got no value back at all.... but at the same time, BNM need to balance that with the financial institutions' interests. If banks collapse who kena? So they have to make sure the banks n insurance companies don't collapse as well... that means they must make profit

BNM is not God, even if we want them to be, they do what they can within their power

1) insurance is LONG LONG TERM. 9 years is 'short' in insurance sense. so, sad to say, agent has mislead you (the minute i saw 9 years, i know)

2) agents are gonna sell you like it's REALLY good.