[_hulk_]

My friend bought this policy 10 yrs ago.

Monthly Premium : $59.70

Every 5 Yrs cashback: $2250 (total $4500 after 10yrs)

Now, she surrendered the policy, CSO initially told her she will get back $2+ k.

In the end, another CSO said she will only receive $600. (she just received the cheque of $600)

Is this correct? $600 is so little considering the amount she put in and hold this policy for 10yrs.

[o0KelviN0o]

see the BI

[cscs3]

Think AIA already quite well known in doing this kind of thing. Already has enough news in news paper.

[_hulk_]

o0KelviN0o wrote:

see the BI

My fren dont have the policy... 10 yrs ago..

so check with you. one of the CSO said this policy will take 20yrs to breakeven so u can take back wat u put in.

Any AIA agents here can verify this?

[Micky Neo]

Total premium paid 7K (is this basic or inclusive of riders?)
Paid out 2250 x 2 + 600 = 5100

The figures look about right, in fact it's not too bad already.

I'm not an adviser, but we deal with resale endowment

[imwarren]

_hulk_ wrote:

My fren dont have the policy... 10 yrs ago..

This is insane!
Your friend is committing his/her hard earned money every month into a "investment" product, and he/she is not worried at all that he/she does not have any black-and-white of what-on-earth he/she is buying into? "Oh... i won't understand the jargons in the policy contract anyway..." Then why did your friend buy it? The sales rep is supposed to explain the policy to you. (make sure they do that, and have them back up all their claims with reference to the policy contract. Be very sure what is guaranteed, what is not)

When you make a deposit to buy, lets say a TV or furniture for later delivery, don't you at least will ask for a receipt clearly stating what you have bought?

Strangely, when it comes to insurance/investment, many ppl are ok with just verbal promises.

_hulk_ wrote:

Is this correct? $600 is so little considering the amount she put in and hold this policy for 10yrs.

This is hardly surprising. Considering that (unavoidable) mortality and benefit charges, and the (avoidable) hefty initial commission charges.

o0KelviN0o wrote:

see the BI

The benefit illustration (BI), is an estimate. Only the amount quoted under the "Guaranteed" column is guaranteed.

_hulk_ wrote:

Any AIA agents here can verify this?

Wouldn't calling AIA directly or visiting their Service center be a faster and more reliable option?
http://www.aia.com.sg/en/customer-su...tre-locations/

[Accesscode]

_hulk_ wrote:

My friend bought this policy 10 yrs ago.

Monthly Premium : $59.70

Every 5 Yrs cashback: $2250 (total $4500 after 10yrs)

Now, she surrendered the policy, CSO initially told her she will get back $2+ k.

In the end, another CSO said she will only receive $600. (she just received the cheque of $600)

Is this correct? $600 is so little considering the amount she put in and hold this policy for 10yrs.

Total premiums paid = $7,164
Total cash back = $4,500
Surrender value = $600

The total figure of $5,100 seems appropriate for an endowment plan that has been paid for 10 years.

At the time when your friend called, the $2,250 coupon was due to be paid, that's why the CSO quoted the $2K+ figure.
Your friend must have surrendered the policy after the $2,250 coupon was paid.

[Accesscode]

_hulk_ wrote:

My fren dont have the policy... 10 yrs ago..

so check with you. one of the CSO said this policy will take 20yrs to breakeven so u can take back wat u put in.

Any AIA agents here can verify this?

It is common for most life or endowment insurance to break even between 15-20 years.
When calculating break even, do not add the Riders' premiums.

[WuMing1234]

Just wanted to express how i interpret endowment plan.
Firstly, endowment plan is a saving plan within a period of time frame. Simply, it forces you to save and it is suitable someone who lacks of discipline to save and at the same time, offering better returns than FDs. If you know where i am coming from, you should not be even comparing it with investment instrument. There is difference between the nature of both products. Since it is a saving plan, you should not be looking at capital appreciation unlike stocks.

In the insurance market these days, many endowment plan comes with cash payout yearly but never did the agents mentioned that you will definitely lose money if you cash out the coupons. You get returns that are near the projected value only if you allow the coupons to gain interest rate inside the policy. Having said that, it does not mean you will definitely get what is projected. The projected values are usually projected higher but as long as you do not cash out, you are 'somewhere' near. From another perspective, coupons are actually your own money that you save/pay for the year and if you were withdraw it, it means withdrawing your own money.

This is simply how i feel. Do not flame me. Thanks.

[matchy]

_hulk_ wrote:

My fren dont have the policy... 10 yrs ago..

so check with you. one of the CSO said this policy will take 20yrs to breakeven so u can take back wat u put in.

Any AIA agents here can verify this?

why ur fren dun wan ask her agent?

anyway she already surrendered her policy...nothing much we can do

[matchy]

actually she surrender be4 the policy mature, there will alway be a huge loss

[_hulk_]

she and even her another agent (from pru) called up seperately to ask how much she can get back if she surrendered the policy after 10yrs. Both said $2k plus (she had already received her $2250(2nd payout) before she called), she and her another agent considered it as seperate from the cashback.

But after she surrended, she only received a cheque of $600. She called and the CSO said only $600.

Her agent now overseas until late aug. Now, this agent ask another agent to find out. but he seems not that helpful.

But even with the high payout, the policy 10yrs already... still cannot breakeven?

Any AIA agent can shed some lights abt the duration to breakeven for this policy?

[WuMing1234]

I have no clue how can the pru agent tell her she will get back 2k+. would u mind asking her pru how he derive such figure? This plan has already phased out. Given the fact that she withdrew her cashback, she will probably lose money. Projections in BI are figures provided that she do not withdraw her coupons. Asked some of my senior colleagues, this is a life endowment, estimated breakeven point should at least be around 20 years.

[_hulk_]

WuMing1234 wrote:

I have no clue how can the pru agent tell her she will get back 2k+. would u mind asking her pru how he derive such figure? This plan has already phased out. Given the fact that she withdrew her cashback, she will probably lose money. Projections in BI are figures provided that she do not withdraw her coupons. Asked some of my senior colleagues, this is a life endowment, estimated breakeven point should at least be around 20 years.

Thanks. Its not pru agent who told my fren. Its my fren and pru agent called up AIA hotline to enquire it. Both heard its the $2+k. Thats why my fren surrender the policy.

I want to see BI but she lost the policy. Since u also confirmed its 20yrs, ok lor. i wil ask my fren to query AIA why that CSO said its $2+k...

[WuMing1234]

I think the CSO might have made a mistake. If you want to pursue this issue ask them to check the recordings. There must be a miscommunication somewhere.