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.

Yes, the "everything" means the "Surrender Value" of the policy, and it won't be RM812k.

Hope this info helps you to ask the right questions to the agent.

This post has been edited by weissPC: Sep 7 2016, 11:26 PM

Bro @ckdenion, your assumption that 7th year will get slightly above break-even is unlikely to be accurate because a portion of the premium paid will be used to pay for agent's commission, the boss's overriding, HLA's expenses and profits, etc. The policy holder will be having negative returns if they decide to surrender less than 10 years into the plan.

Knowing HLA's endowment plans, if you decide to take the bonus and dividend out yearly, at maturity, you'll get less than what you saved. Part of the principal amount is also included in the so called bonus and dividend.

The best possible return will usually happen at maturity when you keep the bonus and dividend with the insurer.

It's not that HLA is not good, if it's not good Bank Negara won't allow it to be sold.

It's just that this endowment plan (a type of long term and forced savings plan) is being misrepresented by the agent or misunderstood by TS as a high-return, short term savings or investment.

Agreed