Things you should read before buying an endowment plan

hwmook

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Not sure how people arrived at these numbers.

My endowment policies (in my own name) are yielding 4.07-4.55% XIRR.

Granted, DIY DCA into IWDA/EIMI have the potential to do better. Heck, even DCAing into STI ETF is better. But 4.55% ain't too shabby. I'm fine with it; not sure about others.

Disclaimer: I am NOT an insurance agent.

We just calculate base on the number provided. Why not you show how do you do the calculation then?
 

henrylbh

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No need to expound. Show us the BI and ytd bonus to dispel my doubt, if not bias thinking that returns on endowment is not worth.

There is no need to.

I am not an agent and I gain absolutely zilch for your belief or otherwise in endowment plans.

Suit yourself, really. If it makes you happy to win in the virtual world.

We just calculate base on the number provided. Why not you show how do you do the calculation then?

Forget it. He owes us no explanation or rather he simply can't substantiate what he said.
 

JuniorLion

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he simply can't substantiate what he said.

Up to you really. I don't gain anything out of claiming it. I don't get money, business, fame, or internet ego (which interestingly, is something people get out of putting others down on the interwebs).
 

henrylbh

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Not sure how people arrived at these numbers.

My endowment policies (in my own name) are yielding 4.07-4.55% XIRR.

Up to you really. I don't gain anything out of claiming it. I don't get money, business, fame, or internet ego (which interestingly, is something people get out of putting others down on the interwebs).

You are proclaiming to all here that your endowment policies are yielding 4.07-4.75% xirr and yet not prepared to substantiate. I really don't know what to say :s13:
 

maple96

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I share info given to me:

1. Single Premium Endowment - Premium 25,492, current surrender value 37,615.36 after 10 years, 1 more year to maturity end next year. Estimated compound interest 3.96%, I dun like xirr.

2. Whole Life

Mthly premium 125, 24.5years todate = total premiums paid 36,750, current surrender value 61,796.46. Estimated compound interest 4%
 
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Sharing my AIA EAS Saving @ 60

Inception : 9 Nov 1998
Annual premium : $1,723.26 (20 years)
Maturity : 9 Nov 2018
Guaranteed : $48,118
Non Guaranteed : $6,393
Total Benefits : $54,511 (Maturing 9 Nov 2018)

According to my calculation, if the payout equals the total benefits, is my XIRR = 4.17 % ?
(Please correct me if I am wrong)

Thanks
 

hwmook

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I share info given to me:

1. Single Premium Endowment - Premium 25,492, current surrender value 37,615.36 after 10 years, 1 more year to maturity end next year. Estimated compound interest 3.96%, I dun like xirr.

2. Whole Life

Mthly premium 125, 24.5years todate = total premiums paid 36,750, current surrender value 61,796.46. Estimated compound interest 4%

Not bad at all, which coy and Plan? My Prucash is horrible in comparison.
 

tangent314

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Sharing my AIA EAS Saving @ 60

Inception : 9 Nov 1998
Annual premium : $1,723.26 (20 years)
Maturity : 9 Nov 2018
Guaranteed : $48,118
Non Guaranteed : $6,393
Total Benefits : $54,511 (Maturing 9 Nov 2018)

According to my calculation, if the payout equals the total benefits, is my XIRR = 4.17 % ?
(Please correct me if I am wrong)

Thanks


4.58%.
You started at the right time though, Nov 1998 was the lowest the STI had been for the past 30 years
 

henrylbh

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Sharing my AIA EAS Saving @ 60

Inception : 9 Nov 1998
Annual premium : $1,723.26 (20 years)
Maturity : 9 Nov 2018
Guaranteed : $48,118
Non Guaranteed : $6,393
Total Benefits : $54,511 (Maturing 9 Nov 2018)

According to my calculation, if the payout equals the total benefits, is my XIRR = 4.17 % ?
(Please correct me if I am wrong)

Thanks

Calculation ok, though it's closer to 4.186% if maturity value = G+NG.

It' very attractive that the guaranteed amount is already giving almost 3.1%

My15 yrs endowment's annual premium was $3,872.50 for 14 years and the maturity amount was $72,053.54 yielding 3.72%. But the projected G+NG was supposed to be 5.77% (or $84,700) according to BI.
 
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in less than 2 months (on 9 Nov 2018), I will be able to know if AIA keep to their promise to my NG bonus portion. I am pretty confident they will. I guess those 'pure savings endowment policies' of yesteryears does provide a decent return.
 

henrylbh

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in less than 2 months (on 9 Nov 2018), I will be able to know if AIA keep to their promise to my NG bonus portion. I am pretty confident they will. I guess those 'pure savings endowment policies' of yesteryears does provide a decent return.

You should be able to know since it so close to maturity as they send annual statement indicating current year bonus and accumulated value and a lot would depend on the last maturity bonus.
 

cscs3

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Calculation ok, though it's closer to 4.186% if maturity value = G+NG.

It' very attractive that the guaranteed amount is already giving almost 3.1%

My15 yrs endowment's annual premium was $3,872.50 for 14 years and the maturity amount was $72,053.54 yielding 3.72%. But the projected G+NG was supposed to be 5.77% (or $84,700) according to BI.

Is actually less then that. Not to forget G+NG pay out do not earned compounded interest and you cannot use them till Nov 2018. (End of plan).
 

Shion

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in less than 2 months (on 9 Nov 2018), I will be able to know if AIA keep to their promise to my NG bonus portion. I am pretty confident they will. I guess those 'pure savings endowment policies' of yesteryears does provide a decent return.

Do update us by then :s12:
 

JuniorLion

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Is actually less then that. Not to forget G+NG pay out do not earned compounded interest and you cannot use them till Nov 2018. (End of plan).

Wonder why you would keep talking about compounded interest when he already said XIRR = 4.17%... unless, you don't know what XIRR is?
 

henrylbh

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What matters is the actual maturity amount against premium/s paid and the period of the policy. No use using projected numbers to calculate return or xirr.

It will be more meaningful if policy holders state such info against BI and let those interested in endowment to decide.

My 15 years endowment with annual premium of $3,872.50 for 14 years and the maturity amount was $72,053.54 yielding 3.72% against BI of 5.77%. I had another shorter endowment and also the maturity amount fell short of projection. One was from AIA and the other was from NTUC.
 

tangent314

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The actual amount you get will still be closer to the G+NG amount than the G amount. With regulation bringing down the projections to be based on 4.75%, the amount projected by BI today will probably be more accurate than that from BIs from a decade or two ago.
 

cscs3

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Anyway, it is now common knowledge that endowment policies will never give the kind of returns projected by the insurance companies in the policy document, so people can just disregard the projected non-guaranteed portion.

You are right.
Always think if you put the same amount in say fix deposit and compounded interest. In the end of 20 years. You are notvtoo far from this kind of plan, but with flexibility of withdrawn at anytime.

There are also other fanicial products that are principle protect but interest pay out quarterly or every 6 months vs the complete sum been locked up for the next 20 years.

Ofcouse, if the objective is to get insurance protection. That's different story. But endowment plan usually only give you protection a few percent on top of your base amount.
 
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