Endowment Problem

[xdemolicx]

Okay guys. This is extremely frustrating, and at the same time, I am pissed. So I am going to just add another expensive lesson learnt here. Yes u can get endowments, but PLEASE FOR GOODNESS SAKE, get an endowment that is capital guaranteed.

Why? My dad got 3 endowment policies back in the days where endowments was highly pushed. This was back in 1997 and just few days ago, we received a letter of the maturity amount. This is a 21 years plan.

Long story short. My monthly premium is $92.70 (This excludes any rider to be fair to the company). This translates to a total premium paid of $23,360.40.

How da hell dare the insurance company have the pleasure of informing me that my upcoming maturity amount is only a mere $16,787.87?

Where has the loss of my $6572.53 gone to? I can understand if there was riders being added. But I have even excluded the rider which is $10.14 per month.

It is ridiculous that my dad has saved and paid the premiums for 21 years diligently and yet, now he suffers losses because he got a non capital guaranteed plan.

 

[maumu]

maybe u want to share the whole policy details with us... blanko the name of your dad, any personal information... so we can see what happened.

from what i understand about endowment plans, they usually only break even near the last year or two before maturity. that sucks but still, it shouldn't be a negative return plan leh... it's after all supposed to be a 'savings' plan. did they seriously perform so bad in terms of the non-guaranteed returns?

 

[pcmdan]

Okay guys. This is extremely frustrating, and at the same time, I am pissed. So I am going to just add another expensive lesson learnt here. Yes u can get endowments, but PLEASE FOR GOODNESS SAKE, get an endowment that is capital guaranteed.

Why? My dad got 3 endowment policies back in the days where endowments was highly pushed. This was back in 1997 and just few days ago, we received a letter of the maturity amount. This is a 21 years plan.

Long story short. My monthly premium is $92.70 (This excludes any rider to be fair to the company). This translates to a total premium paid of $23,360.40.

How da hell dare the insurance company have the pleasure of informing me that my upcoming maturity amount is only a mere $16,787.87?

Where has the loss of my $6572.53 gone to? I can understand if there was riders being added. But I have even excluded the rider which is $10.14 per month.

It is ridiculous that my dad has saved and paid the premiums for 21 years diligently and yet, now he suffers losses because he got a non capital guaranteed plan.

Endowment = protection + savings

It is not a saving plan..so I don't see any reason for you to be angry about..all figures in the illustration is for illustrative purpose.

If save $100 covers both guaranteed and protection...insurance coy lose money wor haha

And No, never ever get an endowment plan.

U will be better off buying a term for protection plus save the money elsewhere.That's why I say...never ever buy endowment. Even at present, endowment is never capital guaranteed

To give u less angry...lets say your dad bot a term plan at $30 per month. After 21 yes he would have paid $7560. So by reducing only $6k+ u still have some savings of $1k. Does it make u feel slightly better?

 

[xdemolicx]

maybe u want to share the whole policy details with us... blanko the name of your dad, any personal information... so we can see what happened.

from what i understand about endowment plans, they usually only break even near the last year or two before maturity. that sucks but still, it shouldn't be a negative return plan leh... it's after all supposed to be a 'savings' plan. did they seriously perform so bad in terms of the non-guaranteed returns?

Honestly i quite stun when see e letter.

 

[xdemolicx]

Endowment = protection + savings

It is not a saving plan..so I don't see any reason for you to be angry about..all figures in the illustration is for illustrative purpose.

If save $100 covers both guaranteed and protection...insurance coy lose money wor haha

And No, never ever get an endowment plan.

U will be better off buying a term for protection plus save the money elsewhere.That's why I say...never ever buy endowment. Even at present, endowment is never capital guaranteed

To give u less angry...lets say your dad bot a term plan at $30 per month. After 21 yes he would have paid $7560. So by reducing only $6k+ u still have some savings of $1k. Does it make u feel slightly better?

I only started learning more about investing and financial stuffs on my own in the recent 4-5 yrs. So, whatever he had gotten back then, it made more sense to just let it mature instead of terminating it.

I have seen capital guaranteed endowment plans, ish just that alot agents push for non capital guaranteed.

Its just the figures ish utterly ridiculous?

 

[Maeda_Toshiie]

Okay guys. This is extremely frustrating, and at the same time, I am pissed. So I am going to just add another expensive lesson learnt here. Yes u can get endowments, but PLEASE FOR GOODNESS SAKE, get an endowment that is capital guaranteed.

Why? My dad got 3 endowment policies back in the days where endowments was highly pushed. This was back in 1997 and just few days ago, we received a letter of the maturity amount. This is a 21 years plan.

Long story short. My monthly premium is $92.70 (This excludes any rider to be fair to the company). This translates to a total premium paid of $23,360.40.

How da hell dare the insurance company have the pleasure of informing me that my upcoming maturity amount is only a mere $16,787.87?

Where has the loss of my $6572.53 gone to? I can understand if there was riders being added. But I have even excluded the rider which is $10.14 per month.

It is ridiculous that my dad has saved and paid the premiums for 21 years diligently and yet, now he suffers losses because he got a non capital guaranteed plan.

First and foremost, check the benefits illustration of the policy. When the policy was bought, there is a policy booklet. That is the legal document defining the policy purchased, and the only one that matters in court.

Secondly, even with a capital guaranteed plan, inflation has already eaten away its purchasing power.

Thirdly, screw those insurance companies and their employees. Retire to a country which has universal healthcare, not some half baked insurance policy based system that leaves people out in the cold.

 

[JuniorLion]

Okay guys. This is extremely frustrating, and at the same time, I am pissed. So I am going to just add another expensive lesson learnt here. Yes u can get endowments, but PLEASE FOR GOODNESS SAKE, get an endowment that is capital guaranteed.

Why? My dad got 3 endowment policies back in the days where endowments was highly pushed. This was back in 1997 and just few days ago, we received a letter of the maturity amount. This is a 21 years plan.

Long story short. My monthly premium is $92.70 (This excludes any rider to be fair to the company). This translates to a total premium paid of $23,360.40.

How da hell dare the insurance company have the pleasure of informing me that my upcoming maturity amount is only a mere $16,787.87?

Where has the loss of my $6572.53 gone to? I can understand if there was riders being added. But I have even excluded the rider which is $10.14 per month.

It is ridiculous that my dad has saved and paid the premiums for 21 years diligently and yet, now he suffers losses because he got a non capital guaranteed plan.

Is this Prudential?

 

[pcmdan]

I only started learning more about investing and financial stuffs on my own in the recent 4-5 yrs. So, whatever he had gotten back then, it made more sense to just let it mature instead of terminating it.

I have seen capital guaranteed endowment plans, ish just that alot agents push for non capital guaranteed.

Its just the figures ish utterly ridiculous?

Ok...seems like they have evolved. During the time when I was studying all the insurance products before I purchase them...nothing of that nature was read.

I agree with another post. Even if capital guaranteed...ur money that come back is smaller.


A plan that is 21 yrs ago would not have capital guaranteed. Endowment plan den was part protection and part savings.

If there is any upside..ur dad is lucky. If not...they will blame it on protection..

I do not recommend endowment because ..how good the fund earns are not transparent. Even the funds make 10 fold insurance company will just keep all and leave nothing for u...they will say bad markets

 

[HWZ1973]

Just buy according to individual needs and Budget, should not be too wrong from there. Dun over buy.

 

[maumu]

Endowment = protection + savings

...

And No, never ever get an endowment plan.

U will be better off buying a term for protection plus save the money elsewhere.That's why I say...never ever buy endowment. Even at present, endowment is never capital guaranteed

To give u less angry...lets say your dad bot a term plan at $30 per month. After 21 yes he would have paid $7560. So by reducing only $6k+ u still have some savings of $1k. Does it make u feel slightly better?

yeah, good advice. i stopped buying those long-term endowment (currently have two, 1 from Prudential) which has not been performing up to par but I've put in for over 10+ years so bo bian will just stick to it for another 10 years to mature. and hope it can break even at least (if not even beating inflation).

instead it's better to go for those shorter term endowment with minimal protection but more guaranteed savings like the recent fwd or GE205, etc. then buy term plans to cover insurance part + a life plan or two.

those young working adults are the insurance agents' target group - naïve and easy to prey on. the part about "effects on deduction" and the 3.75, 4.75, 5.75 bullsh!t is really non-transparent and not explained properly by agents. unfortunately this practice has been going on ever since.

 

[akwl88]

Nowadays agents say endowment good because of forced savings

When plans matured, the returns lose out to posb savings acct int

Lmao

 

[pcmdan]

Nowadays agents say endowment good because of forced savings

When plans matured, the returns lose out to posb savings acct int

Lmao

Hahaha yup..that's funny

An advice is..wan forced savings..buy a savings plan...these plans are usually capital guaranteed (pls read before buying) and comes with a guranteed % of returns (pls don't get carried away by the illustrative returns)

Tip: when buying insurance always look and ask to be pointed out on

1. Guaranteed amount
2. Capital guaranteed
2. Ensure there is no Black swan event that could eat up ur capital

The rest tell the agents don't bother showing it to u (unless is a chiobu and u wan to spend time talking to)

 

[pcmdan]

yeah, good advice. i stopped buying those long-term endowment (currently have two, 1 from Prudential) which has not been performing up to par but I've put in for over 10+ years so bo bian will just stick to it for another 10 years to mature. and hope it can break even at least (if not even beating inflation).

instead it's better to go for those shorter term endowment with minimal protection but more guaranteed savings like the recent fwd or GE205, etc. then buy term plans to cover insurance part + a life plan or two.

those young working adults are the insurance agents' target group - naïve and easy to prey on. the part about "effects on deduction" and the 3.75, 4.75, 5.75 bullsh!t is really non-transparent and not explained properly by agents. unfortunately this practice has been going on ever since.

Their mentors learnt from it and passed it down to the them.

If I tell u...forced savings..but when it matured u Gina lose Abit due to savings u will buy meh haha

This is call marketing gimmick..no choice one..

 

[Mecisteus]

Oh No. Don't tell me another plan from AIA ?

Just share with us the policy name.

 

[blurpandasg2014]

What company? That's the most impt

 

[Shion]

Can you take a pic of the latest BI ?

 

[computers70]

I have a feeling, your dad withdraw the coupons yearly knowingly or unknowingly.

 

[henrylbh]

I have a feeling, your dad withdraw the coupons yearly knowingly or unknowingly.

Good guess. Not that the dad knowingly or unknowingly, it's TS that's jumping to conclusion without knowing what the policy is about.

 

[Mecisteus]

My guess is that the old policies don't have such a thing as cash back. Policy loan probably yes.

If I'm not wrong, Prucash was the first plan that implemented this "clever" scheme.

 

[antonpoh]

Okay guys. This is extremely frustrating, and at the same time, I am pissed. So I am going to just add another expensive lesson learnt here. Yes u can get endowments, but PLEASE FOR GOODNESS SAKE, get an endowment that is capital guaranteed.

Why? My dad got 3 endowment policies back in the days where endowments was highly pushed. This was back in 1997 and just few days ago, we received a letter of the maturity amount. This is a 21 years plan.

Long story short. My monthly premium is $92.70 (This excludes any rider to be fair to the company). This translates to a total premium paid of $23,360.40.

How da hell dare the insurance company have the pleasure of informing me that my upcoming maturity amount is only a mere $16,787.87?

Where has the loss of my $6572.53 gone to? I can understand if there was riders being added. But I have even excluded the rider which is $10.14 per month.

It is ridiculous that my dad has saved and paid the premiums for 21 years diligently and yet, now he suffers losses because he got a non capital guaranteed plan.

For endowment, usually it's aro 50% protection + 50% savings. So this $23,360.40 only half went into savings. So the return amount is smaller.

You can't expect them to insure you at 10% protection + 90% savings right?