yoongcy421
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- Jul 9, 2017
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Is anyone with the OCBC Max Endowment Insurance plan?
Is it any good?
Is it any good?
BTW is Greatlife Endowment Insurance 10 a good plan? I don't mind lower returns in exchange for lower risks btw.
If say,
I paid $3600.05 per year for 10 years (total $36000.50).
Then 15 years later I can get a guaranteed amount of $38160 (I will incurr loss if I withdraw within 15 years).
The non guaranteed amount is $41179 (3.25%) or $46238 (4.75%) after 15 years
Of course I will get more if I put even longer.
guaranteed returns after 15 years is 0.56%
add in non-guaranteed 3.25%, ur returns is 1.28%
add in non-guaranteed 4.75%, ur returns is 2.39%
what a shitty policy
guaranteed returns after 15 years is 0.56%
add in non-guaranteed 3.25%, ur returns is 1.28%
add in non-guaranteed 4.75%, ur returns is 2.39%
what a shitty policy
I got slightly different numbers from my excel. It's 0.82%, 1.55%, 2.66%.
The returns are not much better than SSB so I don't understand why anybody should bother with endownment. SSB and SGS are good for those who want fixed income. It's more flexible, more secure with similar or better returns. I have 1 endownment plan that I bought when I am 20, regretting it everyday until now.
can share which insurer, how many years premium and how many years to maturity, plan name?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.
guaranteed returns after 15 years is 0.56%
add in non-guaranteed 3.25%, ur returns is 1.28%
add in non-guaranteed 4.75%, ur returns is 2.39%
what a shitty policy
How you derive your calculation?
I got slightly different numbers from my excel. It's 0.82%, 1.55%, 2.66%.
The returns are not much better than SSB so I don't understand why anybody should bother with endownment. SSB and SGS are good for those who want fixed income. It's more flexible, more secure with similar or better returns. I have 1 endownment plan that I bought when I am 20, regretting it everyday until now.
Not sure how people arrived at these numbers.
My endowment policies (in my own name) are yielding 4.07-4.55% XIRR.
If you not sure how people arrived at these numbers, likely your yield of 4.07-4.55% xirr is not believable. Show your BI and if it's has been running for few years, show the year-to-date actual against projected.
The "not sure" can be read in two ways.
One is the way you interpeted it, and the other is... well I won't expound on it.
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.
1. Did you actually get these return as stated?
2. You cannot cash out in between and these interest earned is not compounded right. Ie. Effective payout at the end of endowment plan is less then what is been stated. As you did not earn interest for the intetest earned.
Ie. Assuming $100 @4% every year. You get $4 every years and not $4 for first year, $4.16 for 2nd year (total $108.16) and etc.
All you get is $108 at 2nd year. That is to say effectively you are paid less then 4% if payout remain at 4%.
Unlikely that his policy has matured. But still can calculate the ytd return based on amount declared to date.
1. Did you actually get these return as stated?
2. You cannot cash out in between and these interest earned is not compounded right. Ie. Effective payout at the end of endowment plan is less then what is been stated. As you did not earn interest for the intetest earned.
Ie. Assuming $100 @4% every year. You get $4 every years and not $4 for first year, $4.16 for 2nd year (total $108.16) and so on. (3rd year $112.48)
All you get is $108 at 2nd year. That is to say effectively you are paid less then 4% if payout remain at 4%. (3rd year you get $112)!
So don't get tick by these payout by insurance company. What is value in these plan is protection in the event of dead.
In other word, if your aim is make money out of endowment plan. You are looking at wrong product.
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.
I remember seeing some comparisons of endowment policies at another website, they furnish real policy documents (minus the names) and none ever reach 3% p.a. CAGR for those nearing maturity even after 20 years!
So, any claim above 3% p.a. CAGR, either the policy already matured many years ago or the person make mistake in calculations loh! Doubt the claim can be backed up with real policy documents and can't stand up to scrutiny
I bought this dumb plan (pruflexicash) when I was 18. Don’t know if I should surrender the policy or to just take the cashback every year and keep the policy running