clsiluf,

A) Rule of 72. So, if the return is 7%, in 10 years 72/7 ~ 10, that means the money should double to get 7%. So, at least you should get 7.6K.

B) Normally, it is projected aka not guaranteed.

C) Just think about this. In the last 2 years, the KLSE went up 15% to 30% per year. And, this investment only projected to return 7%.

D) The worst part of this is you have NO IDEA what you are buying. In UT, at least, you have prospectus to tell you in greater detail what is in the UT.

Let me just throw you a reverse question. Is this more or less risky than buying PBBank share now at RM11?? You get RM0.75 dividend which is around 6% to 7% dividend plus possibility of capital appreciation. And, you do not have to pay 1% to 2% annual fee and 5% to 7% front end load for domestic UT.

Dreamer

This post has been edited by dreamer101: Apr 7 2008, 09:26 AM

Using financial calculator u can calculate out the effective interest rate. And i can tell u one thing, 7% is gimnick. Insurance savings plan will NEVER go beyond 4% +/- p.a effectively.

This post has been edited by bafukie: Apr 7 2008, 10:07 AM

for me i think i will use up all my savings and investment just for the purpose of insurance payment than medical expenses

the chances of us being sick until need to use 200k is preety low (i can pretty sure say that my family....including my grandparent, relatives and friends non of them sick until so serious need to use 200k not even 5k for more than 20 years alredy) and not to mention quite some of the insurance i saw coverage kinda low...low until i dont bother to have one even~ low payment low coverage high payment high coverage

and sometimes insurance are too specific only cover certain thing and other dont cover(example) what if you buy 1 type of insurance then u urself involve in diff type of accident which is not cover by insurance company this kinda thing happen to often ( saw on the news )

the only good thing insurance is for tax purpose....instead of pay government with our hard earn money might as well buy insurance

be realistic....insurance company is created not for the benefit of us...if the chances of people get sick or accident until need 200k is so high insurance company would go bankrupt before any of us

please tell me what ganna happen to a guy if insurance only cover 200k and one day involve in 500k or more medical expenses for those with not much saving

This post has been edited by dr2k3: Apr 7 2008, 10:15 AM

the 4% interest is guranteed while another 3% is projection dividen . . . .
most of the savings plan in the market works that way

dr2k3,

1) Most people that make a lot of more money that has to worry about tax is not salary worker. For those people, they hire a good accountant and incorporated their business. Then, they do not have that much taxable profits.

2) For most salary workers and even for those that make 10K per month, the tax level in Malaysia is not high enough to be a problem.

Dreamer

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Added on April 7, 2008, 10:27 amColaboy,

Why can't insurance agent just honestly tell us this upfront?? I am NOT talking about you. But, there is another insurance agent that BS about this 7% stuff all over this forum without telling people the WHOLE TRUTH.

Dreamer

This post has been edited by dreamer101: Apr 7 2008, 10:27 AM

erm.....for those with 4-5k per month = 48-60k

taxable income 11% or 12% or 13% i dont know....is like 4-7k alredy
if not wrong i saw in tax thingy form that 1 year u can deduct tax up to 5k or 4k with insurance

or am i wrong?

tax relief per year is 6k..if not mistaken...

6K, LHDN site has a complete chart various tax relief allowed.

http://www.hasil.org.my/melayu/bm_NO2_1_1E.asp

Dreamer101,

agreed but not all insurance agent are that way . . . but i can see alot are just stressing on the advantages
& not goin into details of the policy. Well there is something which protect the consumer called the "cooling period" which is 100% money back guranteed. After the policy is aproved within 14 days, if any doubt you might have consult your agent/maybe some other agent or op for a refund.

This post has been edited by Colaboy: Apr 7 2008, 11:24 AM

I agree not all, but there are high % of it. Most of them, just try to 'scare' people about 'what if xxx happens to you', then insurance wil protect you, rather than explain the details and scope of the particular insurance that customers need. Everyone needs for insurance is different which depends on individual situation. Just like a single person without any dependant, death is not primary factor to be insured on, but PA on permanent disability or medical is more important than death.
Even in this forum, there are plenty of posts like that before.

Just like previous post some forumers told him/her that it can yield 7%, but didn't state it is actually 4% + 3% (projected) as you said, then it is somehow mislead customers already without telling the truth and details behind.

Also, I bet not many people knew the 14 days cooling off period as well, a failure of insurance agents to explain properly and details to the customers.

Don't get me wrong, there are plenty of good agents like you in the market, just view out some experience on some bad agents that had approached me before as well as some agents that posting in this forum as well.

This post has been edited by cherroy: Apr 7 2008, 11:35 AM

and most funny + dulan is, when i said wanna leave and think first, he said if buy thie year end, the return interest might drop to 6%
which piss me off 100% ...

haih... c liao the response i very tak tahan...!

ok before i begin... being humble i don wan offend any1 in this topic k all i wan is just to clear doubts and shed some light abt this plan... if i had offended any of u guys reading this post... my apologies 1st ya

ok... to clear all the doubts here... before some ppl out there feel cheated and tarnishes the good name of GE.
i noe there are agents out there simpling ranting aloud that the return is 7% or 7.5% or what ever it is!
they are not totally wrong nor totally right.

jz to share with you guys how the plan works:

with RM15,000 (approx) (i chose 15k cos easier to calc) investment yearly in this plan,

GE will give you RM100,000 protection immediately.

an investor would then invest 15K/year into this plan up till only 10 yrs, GUARANTEED (with black and white doc)

at the beginning of 11th year, the 1st payout is RM20,582 (approx) including the 7.5% ON THE SUM ASSURED

ok paused... here the 7.5% return is actually on the SUM ASSURED of RM100,000. got it guys ?
(4.25% GUARANTEED 3.25% ON COMPANY PERFORMANCE)

so from the 11th year onwards, the policy holder will get to enjoy 7.5% return based on the SUM ASSURED. and i stress the point again its on the SUM ASSURED! not on savings ok ? ur total investment in this plan would be RM150,000 approx and you get RM7500 return on the 11th year onwards to AGE 87

and if the policy holder choose not to take the RM7500 declared yearly he/she can leave it with GE to get interest of 5.25-5.5% on top of the RM7500 declared yearly.

so hope this explanation will make things clearer to you guys, i noe there are agents out there who do not stress on the point its on SUM ASSURED! and when the policy holder finds out about it they'll later blame the company. (plz plz if u are the agent reading this plz stress on the SUM ASSURED point ok after all v all are in the same ship... v are working as a team not as lonewolf ya ) but correct me if im wrong k ?

actually the concept on this plan is not to stress so much on return, but to stress on how it can benefit the policy holder in the long run.

all this can get from the product brouchure
feel free to contact me for more info refer my siggy
HONESTY and CLIENTS INTEREST always comes first !

This post has been edited by xeNOS: Apr 7 2008, 12:05 PM

i've bought a medic card, 36 illness, hospitalization & investment and now im kinda regret cuz its burden me a lot.... i know that at the end of the day, i wont be getting back as much as i've invested....

Insurance is not a form of investment.

Insurance = Hedge against undesirable outcome
Investment = Growing your capital

haha... please la... Do u understand the meaning EFFECTIVE INTEREST RATE? even added on a projected 3% dividend, the EFFECTIVE INTEREST RATE is 4+/-% The only advantage of so called savings plan is the added insurance which can be bought separately. Ie dun 'campur aduk' ur insurance and savings together. A total waste.

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Added on April 7, 2008, 3:46 pmmarketing gimnick again.. always leading ppl to think they will 'lose out' if they dun buy/save NOW. If i was u, i walked out straight from the deal

This post has been edited by bafukie: Apr 7 2008, 03:46 PM

Exactly Mod, I couldn't have worded it better.

thats call "threatening"

i was wondering have they ever bought their own insurance?

dr2k3,

So, this is TAX RELIEF. You pay 5K to 6K to insurance in order to save (11% to 13%) aka RM550 to RM780. How smart is this? The person could have buy less insurance and save the money.

Dreamer

erm...i never got tax before...is it yearly tax or monthly ??

what i mean is that if those 5-6k(yearly) are tax (must goto government pocket) might as well buy insurance for "protection"?

if 5-6k will be gone anyway which 1 would you choose tax or insurance

This post has been edited by dr2k3: Apr 7 2008, 07:15 PM

Annually.

It depends. If one bought some non-essential and necessart insurance, it can be like burning money only.

For eg.
You bought 6K of non-necessary insurance, the relief of 6K (if you are in highest tax bracket of 28%), it means 1.68K safe on tax.
But you 'burn' 6k to save 1.68K, is it considered a wise move? You still 'burn' 4.32k.

Yes, if you bought some necessary and essential for your needs and affordability then you can save a bit from the tax relief. (for tax bracket in 28%)As paying 6K mean effective you are paying 4.32k only.

The first criteria to consider is the insurance whether one actually needs it or not and affordability side, not the saving on tax relief side.