Things you should read before buying an endowment plan

bibu00

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Aiya.. Majority who purchased endowment plans are usually those that are not that financial savvy. They don't do the "forced savings" via such insurance plans, they will also spend the money elsewhere.

I can build them a electric zapper. If they dont put a fix amount of money every month into this milo tin, they will get a electric shock every 2 hours.

Only need to pay me $600, i dont need to get paid 6k commissions.

Plus, capital guaranteed.
 

Shion

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I think for endowments mostly is need to hold till maturity ba...

If draw out cashback sure gg de..But then it defeats the purpose. Like most say here..Those who opt for endowments (except a few like me zzz) dono how to save $$ de..So they need a forced savings plan.

But introducing the cashback feature is like tempting them to draw out the $$ instead.Counterproductive.

Of course, need to hold till maturity. But then why choose this plan instead of putting your money straight into bank account...

Because of the non-guaranteed % ?
Because banks give too low interest ?
Because one has minimal self-control with spending ?

???
 

lazybee

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break even after 20 years???? same as putting into biscuit tin for 20yrs???

Technically yes. break even in 20 years if I'm lucky. The non-guaranteed portion may change.

There is no maturity date for endowment. Mine can go until age 70 after 40+ years of payment.

What is the point if you cannot earn profit after 20 years? Might as well use the money to pay your housing mortage loan, etc.

Most endowment plan(without investment portion) will only breakeven after 10+ years I guess.
 

bibu00

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Noticed an advertisement in the newspaper regarding NTUC policies returning a 5++% yield for their recently maturing policies.

Would like to kindly remind all MM/SSI readers to refer to my OP post and not be mis-led by the the advert. 5++% is what your fund perform, which is great, your money is working hard, insurers is doing a "decent" job picking fund that yields a stable market return for the customers.

BUT, your yield at the end of the policy is going to be WAY WAY WORST than whatever your fund is performing. This 5++% yield from your fund needs to be used for

Commission, marketing expenses, cost of insurance, people to maintain and service your policy, fund managers, maintaining the guaranteed amounts in your policy and the profits of the company among other things.

Regardless of whatever plan you can name me, none of the above is going to be free.

"Among other things" also includes your friendly's agent new satki BMW 7 series

You should be thankful you dont make a loss when your plan ends :s13::s13::s13:
 
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R2R_AIA

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Adding on, whatever table of projects that shows 3.25%, 3.75%, 4.75% etc, the yield % is based on what the fund managers is aiming to achieve. The project % DOES NOT refer to what you will get.

If you based it on the actual numbers within those columns, the yield will amount to probably around 1.5 ~ 2.3% for a 3.25% column. (Rough Estimate only)

So for people getting such plans if for example you are looking at forced saving purposes, do take note.

Noticed an advertisement in the newspaper regarding NTUC policies returning a 5++% yield for their recently maturing policies.

Would like to kindly remind all MM/SSI readers to refer to my OP post and not be mis-led by the the advert. 5++% is what your fund perform, which is great, your money is working hard, insurers is doing a "decent" job picking fund that yields a stable market return for the customers.

BUT, your yield at the end of the policy is going to be WAY WAY WORST than whatever your fund is performing. This 5++% yield from your fund needs to be used for



Regardless of whatever plan you can name me, none of the above is going to be free.

"Among other things" also includes your friendly's agent new satki BMW 7 series

You should be thankful you dont make a loss when your plan ends :s13::s13::s13:
 

wts2013

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Noticed an advertisement in the newspaper regarding NTUC policies returning a 5++% yield for their recently maturing policies.

Would like to kindly remind all MM/SSI readers to refer to my OP post and not be mis-led by the the advert. 5++% is what your fund perform, which is great, your money is working hard, insurers is doing a "decent" job picking fund that yields a stable market return for the customers.

BUT, your yield at the end of the policy is going to be WAY WAY WORST than whatever your fund is performing. This 5++% yield from your fund needs to be used for



Regardless of whatever plan you can name me, none of the above is going to be free.

"Among other things" also includes your friendly's agent new satki BMW 7 series

You should be thankful you dont make a loss when your plan ends :s13::s13::s13:

Are u sure u are reading/understanding the advert correctly? Do u have those policies to conclude it is not real? Do u have a good understanding of the various types of insurance policies and what the end result would be?

Let me set some common understanding about insurance policy definitions first, for this discussion to be more fruitful:

1.Whole Life policy = Protection + Savings
2.Endowment = Less Protection + More Savings (as compared to 1)
3.Term = Protection
4.ILP = Term + Investment
5.Whole Life with multiplier = Whole Life + Term

I quote a forumer who posted this: “Insurance is not meant to make you rich. Investment is meant to make you rich. Insurance will pay for that event (Death/TPD/CI) that you insure yourself for. Investment may pay depending on market conditions.”

What was advertised: # 1 and #2: I can tell u # 1 is true as my aunty got it!

Your comments apply more to #4, and #3 and #5 as well.

What is a question mark: those who bought whole life or endowment later, will these still earn 4%- 5%. That's for those who bought or are buying to evaluate.

So make S.U.R.E.: source, understand, research and evaluate for your own good!

:s13::s13::s13:
 

bibu00

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Are u sure u are reading/understanding the advert correctly? Do u have those policies to conclude it is not real? Do u have a good understanding of the various types of insurance policies and what the end result would be?

Let me set some common understanding about insurance policy definitions first, for this discussion to be more fruitful:

1.Whole Life policy = Protection + Savings
2.Endowment = Less Protection + More Savings (as compared to 1)
3.Term = Protection
4.ILP = Term + Investment
5.Whole Life with multiplier = Whole Life + Term

I quote a forumer who posted this: “Insurance is not meant to make you rich. Investment is meant to make you rich. Insurance will pay for that event (Death/TPD/CI) that you insure yourself for. Investment may pay depending on market conditions.”

What was advertised: # 1 and #2: I can tell u # 1 is true as my aunty got it!

Your comments apply more to #4, and #3 and #5 as well.

What is a question mark: those who bought whole life or endowment later, will these still earn 4%- 5%. That's for those who bought or are buying to evaluate.

So make S.U.R.E.: source, understand, research and evaluate for your own good!

:s13::s13::s13:

Try harder brother.:s13::s13::s13: thanks for the good sunday laughs.

I think you need to do some homework on what term insurance is about. Heck i can even tell you for sure, term insurance give you - 100% returns! (If nothing happends) :s13::s13:

Boy what has insurance agents been feeding consumers these days....

Adding on, whatever table of projects that shows 3.25%, 3.75%, 4.75% etc, the yield % is based on what the fund managers is aiming to achieve. The project % DOES NOT refer to what you will get.

If you based it on the actual numbers within those columns, the yield will amount to probably around 1.5 ~ 2.3% for a 3.25% column. (Rough Estimate only)

So for people getting such plans if for example you are looking at forced saving purposes, do take note.

Yeah thanks for the input. This is a good point. And if they didn't meet their goals (which is very possible) actual returns will be scaled down.
 
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wts2013

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Try harder brother.:s13::s13::s13: thanks for the good sunday laughs.

I think you need to do some homework on what term insurance is about. Heck i can even tell you for sure, term insurance give you - 100% returns! (If nothing happends) :s13::s13:

Boy what has insurance agents been feeding consumers these days....

haha the biggest joke in hwz: "term insurance give your 100% if nothing happens!" Oh u mean u paid premiums to ensure u survive = 100% return, but lost thousands and thousands of dollars in premiums or donate these to the insurer/agent so u can survive?

U bought term 1million? Only if u die will u get 1million! If u survive your term, u get nothing! Are u an agent or which agents brainwashed u?

U have not been reading hwz, the joke is my whole life policy with NTUC gives 4% compounded returns! U think NTUC dare to publish a more than 10k advert just to be humtum by all the policy holders in Sg?

:s13::s13::s13:
 
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R2R_AIA

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Chill guys. Every coverage solution out there is meant for a different individual. Theres really no right and wrong between the concept of having term or whole life. Each person is entitled to their own opinion regarding this matter. As an agent, i have both WL and term or a hybrid i will call it.

haha the biggest joke in hwz: "term insurance give your 100% if nothing happens!" Oh u mean u paid premiums to ensure u survive = 100% return, but lost thousands and thousands of dollars in premiums or donate these to the insurer/agent so u can survive?

U bought term 1million? Only if u die will u get 1million! If u survive your term, u get nothing! Are u an agent or which agents brainwashed u?

U have not been reading hwz, the joke is my whole life policy with NTUC gives 4% compounded returns! U think NTUC dare to publish a more than 10k advert just to be humtum by all the policy holders in Sg?

:s13::s13::s13:
 

bibu00

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haha the biggest joke in hwz: "term insurance give your 100% if nothing happens!" Oh u mean u paid premiums to ensure u survive = 100% return, but lost thousands and thousands of dollars in premiums or donate these to the insurer/agent so u can survive?

U bought term 1million? Only if u die will u get 1million! If u survive your term, u get nothing! Are u an agent or which agents brainwashed u?

U have not been reading hwz, the joke is my whole life policy with NTUC gives 4% compounded returns! U think NTUC dare to publish a more than 10k advert just to be humtum by all the policy holders in Sg?

:s13::s13::s13:

when this symbol ( - ) appear before a number, it means "Minus", which is means you are suppose to deduct this value from a reference value.

e.g.
$5000 in a -100% investment means $5000 x -100% = -$5000, which means $5000 is missing from your pocket.

To put things into perspective, im paying $12 for my $200k term insurance. If i happen to survive to 65 i would have paid a total premium of $480 (40 years)

I dont see the thousands and thousands of dollars? Where is it?

Why not u just post your total premium paid and total returns (BACK IN YOUR POCKET) in here, and let us calculate the CGAR for you? Just give these 2 values can liao, not asking much.

NTUC advertisement is not lying and there is nothing for policy holder to bash about.

The main point is this:
If you are S.U.R.E that this
"Commission, marketing expenses, cost of insurance, people to maintain and service your policy, fund managers, maintaining the guaranteed amounts in your policy and the profits of the company among other things."

Is absolutely FREE for you, then yes, i agree you are getting whatever rates of return the bank publish in the newspaper.
 
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wts2013

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when this symbol ( - ) appear before a number, it means "Minus", which is means you are suppose to deduct this value from a reference value.

e.g.
$5000 in a -100% investment means $5000 x -100% = -$5000, which means $5000 is missing from your pocket.

To put things into perspective, im paying $12 for my $200k term insurance. If i happen to survive to 65 i would have paid a total premium of $480 (40 years)

I dont see the thousands and thousands of dollars? Where is it?

Why not u just post your total premium paid and total returns (BACK IN YOUR POCKET) in here, and let us calculate the CGAR for you? Just give these 2 values can liao, not asking much.

NTUC advertisement is not lying and there is nothing for policy holder to bash about.

Here u go:

mthly premium $131.50 since 10 april 1996
surrender value $48680

Thank you
 

henrylbh

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U have not been reading hwz, the joke is my whole life policy with NTUC gives 4% compounded returns! U think NTUC dare to publish a more than 10k advert just to be humtum by all the policy holders in Sg?

:s13::s13::s13:

I wonder how you determine your WL policy gives 4% compounded return, unless the policy has matured or you have surrendered your policy to realised the final amount you get. Or the guaranteed amount plus bonus to-date show the return to be 4% compounded.
 

koja6049

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I wonder how you determine your WL policy gives 4% compounded return, unless the policy has matured or you have surrendered your policy to realised the final amount you get. Or the guaranteed amount plus bonus to-date show the return to be 4% compounded.

noticed he mentioned 1996. At that time the whole environment of interest rates is very different from now.
 

bibu00

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Here u go:

mthly premium $131.50 since 10 april 1996
surrender value $48680

Thank you

Is this your projection, or is this already in your pocket?

C4d0lgD.jpg


Edit: wait a minute I noticed that your plan is WHOLE LIFE policy. My god did you even read the title of this thread?!
 
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akwl88

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Is this your projection, or is this already in your pocket?

C4d0lgD.jpg


Edit: wait a minute I noticed that your plan is WHOLE LIFE policy. My god did you even read the title of this thread?!

Oh ya hor now u mentioned it. WL and endowment different wor
 

bibu00

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Oh ya hor now u mentioned it. WL and endowment different wor

Can't believe we all duped into entertaining a forum troll. Damm.
He still give some S. U. R. E. model.
Wah buay sai la.
Still want to "set some common understanding" tell me my example "applies to term plan" . Quote my figures also can remove negative sign.
 
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MikeDirnt78

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Can't believe we all duped into entertaining a forum troll. Damm.
He still give some S. U. R. E. model.
Wah buay sai la.
Still want to "set some common understanding" tell me my example "applies to term plan" . Quote my figures also can remove negative sign.

He likes to show off his obsoleted and paltry WL policy in every insurance thread one.

I did mention before he was lucky to pick a good policy. If he was 100% confident at the point of purchase, he would have bought 10x more coverage. Then can show off to us his huge policy value.
 

henrylbh

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Is this your projection, or is this already in your pocket?

C4d0lgD.jpg


Edit: wait a minute I noticed that your plan is WHOLE LIFE policy. My god did you even read the title of this thread?!

And I am sure the yield will get lower each passing year whether term or life. For WL, you will only know the final return when it's "in your pocket" or the declared bonus gives an indication of the direction.
 
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