pruflexicash vs pruwealth

[chirppy]

Hi All

i'm currently into pruflexicash for near to 1.5yrs. Monthly premium is 300. Came to know pruwealth and feel that pruwealth is better. Can someone advise me if i should surrender pruflexicash?

 

[mousehunt]

My feel is that you should not surrender your flexicash. You have paid about $5400 till now. If you surrender it, you will not get much back or even nothing.

If you can afford it, you may want to buy another Pruwealth. The lowest premium for Pruwealth is $200 per month.

 

[Perisher]

Is pruwealth or pruflexicash an ILP or endowment?

 

[mousehunt]

Pruwealth is a long term endowment plan. It works differently from the traditional endowment plan.

 

[Perisher]

Pruwealth is a long term endowment plan. It works differently from the traditional endowment plan.

So pruflexicash is ilp? If so, can avoid.

As for pruwealth, is it a mixture of investment/insurance with some of the investment going into bonds/stocks mix and some commission into the agent/company?

How is it different from traditional endowment?

 

[Shion]

PruFlexiCash is that dumb endowment which is not capital guaranteed and has a high term insurance portion

 

[mousehunt]

PruFlexicash is also an endowment plan but with a shorter tenure date like 15/20/25 years.

Pruwealth policy will continue till the sum assured age till 99 years old. Yes, even is the sum assured person has pass away, the policy will be in force because there is a secondary life assured.

I do not know did I use the terms correctly. That is why Pruwealth is for wealth accumulation for the future generations and not for the current sum assured person. But the policy owner can choose to cash out the bonuses anytime it wants as long as the policy allows to.

To me all insurance policy is a mixture of savings and investments. Idiots like me know nothing about investment like stocks or commodity, so I can only depend on other people to do it for me. Of course by doing so, the company will take a large chuck of the profit.

 

[Shion]

My feel is that you should not surrender your flexicash. You have paid about $5400 till now. If you surrender it, you will not get much back or even nothing.

If you can afford it, you may want to buy another Pruwealth. The lowest premium for Pruwealth is $200 per month.

How many endowments you want to buy ? You throw your money inside the bank or into STI ETF is better

Dont anyhow buy endowments. Its not worth it.

 

[Shion]

PruFlexiCash is an endowment with high term insurance portion. Your premiums paid are to finance this part. That is why this plan can never be capital guaranteed.

Why do you even want something that is not even capital guaranteed ?

Its like you put $ in fixed deposit but the bank tells you capital guaranteed only 50%. Logic ?

Dont come and tell me about those bonuses and non-guaranteed portion. I have no interest.

So many Pru agents have sold this product as pure savings which is wrong. Dont believe ? Go ask any of them during their roadshows. Most will tell you it is a savings plan which is obviously not.

 

[mousehunt]

That is why I say most insurance are a mixture of savings and investment.

When there is an investment, there will be risk and with that, bonuses and capital will not be guaranteed.

Noob like us is not investment savvy.

Give you a scenario.

I want to eat mee pok and the net cost of a bowl of mee pok is maybe $1.50. However I do not know how to cook mee pok.

So no choice but to fork out $3.50 for a bowl of mee pok that is cook by an expert but still, this does not guarantee that the mee pok will suit your taste!

So this is similar. If you know how to invest by yourself, please do so by all means as it cut out the middle man and you can enjoy 100% of the profit.

For people like me, lan lan loh.

 

[Shion]

forums.hardwarezone.com.sg/money-mind-210/pruwealth-min-premium-5127007.html

 

[Perisher]

That is why I say most insurance are a mixture of savings and investment.

When there is an investment, there will be risk and with that, bonuses and capital will not be guaranteed.

Noob like us is not investment savvy.

Give you a scenario.

I want to eat mee pok and the net cost of a bowl of mee pok is maybe $1.50. However I do not know how to cook mee pok.

So no choice but to fork out $3.50 for a bowl of mee pok that is cook by an expert.

So this is similar. If you know how to invest by yourself, please do so by all means as it cut out the middle man and you can enjoy 100% of the profit.

For people like me, lan lan loh.

Don't need to made investment sounds difficult when it's not. Buying a ETF regularly is exactly for the newbies investor.
It does not require one to have much if any financial knowledge, no timing involved, no skill involved, no studies involved. Heck, it's even less complex than most insurance plan.

 

[Shion]

If I were TS, I will terminate the PruFlexiCash. No point. That is my view.

Check out the history of PruFlexiCash in this forum. Notorious, every year confirm will have a few threads on concerns and complaints.

 

[mousehunt]

I think the bottom line is the TS needs and decision.

If he can afford to lose the money on his Flexicash, then by all means.

No single insurance policy can fulfill everyone needs. Also it is also depends on the integrity and honesty of the agent.

Different products is targeted at selected group of people.

So everyone will really need to understand the plan offered to him.

I can honestly told you I have bought Pruwealth from someone I know but this policy is not for me but for my kids.

I do not want to leave cash only for my kids but something and really hopefully will increase in value over the years.

 

[Shion]

Don't need to made investment sounds difficult when it's not. Buying a ETF regularly is exactly for the newbies investor.
It does not require one to have much if any financial knowledge, no timing involved, no skill involved, no studies involved. Heck, it's even less complex than most insurance plan.

Some rather let insurance earn I guess ?

Insurance = protection, and not savings or investment

 

[Lewis.T]

They are both endowment plans, PruFlexicash has a cashback feature while PruWealth does not.

Growth wise, PruWealth will do better and in a shorter period of time (20 years) for the same premiums put in. Which makes sense because it has no cashback feature.

To the TS, they both serve different purposes. Pruflexicash's guaranteed cashback can be used to fund milestones in life, such as childbirth, uni fees etc, while you continue to receive a small amount of insurance coverage.

PruWealth is meant for long term (20 years at least) accumulation of money. It's a pretty safe way for long term accumulation as it is capital guaranteed after 20 years.

 

[Shion]

That is why I say most insurance are a mixture of savings and investment.

When there is an investment, there will be risk and with that, bonuses and capital will not be guaranteed.

Noob like us is not investment savvy.

Give you a scenario.

I want to eat mee pok and the net cost of a bowl of mee pok is maybe $1.50. However I do not know how to cook mee pok.

So no choice but to fork out $3.50 for a bowl of mee pok that is cook by an expert but still, this does not guarantee that the mee pok will suit your taste!

So this is similar. If you know how to invest by yourself, please do so by all means as it cut out the middle man and you can enjoy 100% of the profit.

For people like me, lan lan loh.

3.50 pee bowl for mee pok, 3 meals daily is 10.50, 1 month is 315

If you learn to cook it yourself, you can save how much ? 180.

Why not learn instead of pushing everything to a 3rd party ? Why let a 3rd party do the decisions and controls when you have the choice to do it yourself ?

 

[Shion]

But then I see TS already paid $5400, I think just maintain, since it is a sizable amount.

But here is one thing...did the agent present this product as a pure savings or ?

 

[Lewis.T]

3.50 pee bowl for mee pok, 3 meals daily is 10.50, 1 month is 315

If you learn to cook it yourself, you can save how much ? 180.

Why not learn instead of pushing everything to a 3rd party ? Why let a 3rd party do the decisions and controls when you have the choice to do it yourself ?

For a lot of us, our time is worth more than the $ saved. We can dedicate the time to progress in our career and earn a truckload more, or spend the time doing things that may be more meaningful, such as time with family etc. Not everybody has money as the #1 priority.

Did you DIY your house or did you get an agent to help you? If you got an agent, why?

Btw I'm not trying to be snarky here, but this was the best I could phrase it.

 

[Shion]

You are just trying to justify the point that you need a 3rd party to guard your finances.

Some things can be learned and picked up easily. Does DIY-ing your house something easy to learn and pick up ?