Advice needed for endowment plan purchased

[LingBit]

Hi, I bought an endowment plan from a bank two years plus back, and was told that it was a savings plan with insurance, but recently realised that partial of the amount is non-guaranteed. Would it be better to terminate it or continue? It is for 25 years. Appreciate any help or advice, as it is my first time buying a plan.

 

[dendii]

Hi, I bought an endowment plan from a bank two years plus back, and was told that it was a savings plan with insurance, but recently realised that partial of the amount is non-guaranteed. Would it be better to terminate it or continue? It is for 25 years. Appreciate any help or advice, as it is my first time buying a plan.

First of all, do you need such a plan in order to save? If no, then this plan may not work in your favor.

Why I say so is because when you look at the projected returns, you have yet to include the deduction costs, so you may essentially be earning 1.2% - 2.7% return at the end of maturity.

1 more thing is the non-guaranteed portion. I am assuming that for the plan you got, your guaranteed amount is less than the amount of premium you have put in overtime. (Because all insurance policies I have seen that were gotten from banks are such). So there is some risk of you not being able to get back the full saving that you have after 25 years.

There are other better channels now for example, BOC, OCBC, UOB saving accounts (NOT PLANS), that you can easily earn a 1.7% interest and above with easy to fulfill requirements.

 

[LingBit]

First of all, do you need such a plan in order to save? If no, then this plan may not work in your favor.

Why I say so is because when you look at the projected returns, you have yet to include the deduction costs, so you may essentially be earning 1.2% - 2.7% return at the end of maturity.

1 more thing is the non-guaranteed portion. I am assuming that for the plan you got, your guaranteed amount is less than the amount of premium you have put in overtime. (Because all insurance policies I have seen that were gotten from banks are such). So there is some risk of you not being able to get back the full saving that you have after 25 years.

There are other better channels now for example, BOC, OCBC, UOB saving accounts (NOT PLANS), that you can easily earn a 1.7% interest and above with easy to fulfill requirements.

Hello, thank you for the advice. I do know how to save. Was told to change my atm card at the bank, but was then advised by the person that I should get a savings plan with insurance for retirement. And since I do not have any insurance, and do not mind having a savings plan, it sounded quite okay to get the plan. It was until recently that I was realised that there is a non-guaranteed portion, after speaking to a friend.

I am wondering whether it will be better to terminate the plan asap, or to try to get my money back.

 

[dendii]

Hello, thank you for the advice. I do know how to save. Was told to change my atm card at the bank, but was then advised by the person that I should get a savings plan with insurance for retirement. And since I do not have any insurance, and do not mind having a savings plan, it sounded quite okay to get the plan. It was until recently that I was realised that there is a non-guaranteed portion, after speaking to a friend.

I am wondering whether it will be better to terminate the plan asap, or to try to get my money back.

You may try to get your money back but I don't think the chances of this will be high. Surrendering the policy to cut your losses will probably be better.

Prior to that, do you have other any other insurance coverage? Are you working already? And if I may ask, any existing conditions?

 

[thekang]

Hi, I bought an endowment plan from a bank two years plus back, and was told that it was a savings plan with insurance, but recently realised that partial of the amount is non-guaranteed. Would it be better to terminate it or continue? It is for 25 years. Appreciate any help or advice, as it is my first time buying a plan.

You did not provide enough information. Your first step should be to ask for an updated benefit illustration. Find out what is your current guaranteed value, and what you will get if you surrender now (probably very little). It's easier to decide when you have numbers (you can share it here if you want).

Your two options are both not that good, so it's hard to say which is better. As a rough guide, if you're a savvy investor, then you should probably surrender and invest on your own. If you don't want to touch the stock market, then just continue with the plan.

 

[icyboiz]

Hi, I bought an endowment plan from a bank two years plus back, and was told that it was a savings plan with insurance, but recently realised that partial of the amount is non-guaranteed. Would it be better to terminate it or continue? It is for 25 years. Appreciate any help or advice, as it is my first time buying a plan.

like what thekang says, yeah, for us to advise it's better to give us more information. 1. what does it covers 2. and the benefit illustration (the one with the table of numbers)

 

[sanzhu]

Hello, thank you for the advice. I do know how to save. Was told to change my atm card at the bank, but was then advised by the person that I should get a savings plan with insurance for retirement. And since I do not have any insurance, and do not mind having a savings plan, it sounded quite okay to get the plan. It was until recently that I was realised that there is a non-guaranteed portion, after speaking to a friend.

I am wondering whether it will be better to terminate the plan asap, or to try to get my money back.

too late


terminate now no cash value


terminate l;ater also low cash value


stop the pain....just free look

 

[LingBit]

You may try to get your money back but I don't think the chances of this will be high. Surrendering the policy to cut your losses will probably be better.

Prior to that, do you have other any other insurance coverage? Are you working already? And if I may ask, any existing conditions?

Hello, I do not have any further insurance coverage, only have a rider on my mother's side, which I am not too sure what coverage it does. I am working now.

 

[LingBit]

You did not provide enough information. Your first step should be to ask for an updated benefit illustration. Find out what is your current guaranteed value, and what you will get if you surrender now (probably very little). It's easier to decide when you have numbers (you can share it here if you want).

Your two options are both not that good, so it's hard to say which is better. As a rough guide, if you're a savvy investor, then you should probably surrender and invest on your own. If you don't want to touch the stock market, then just continue with the plan.

like what thekang says, yeah, for us to advise it's better to give us more information. 1. what does it covers 2. and the benefit illustration (the one with the table of numbers)

Hello, as I do not have much knowledge in this, what further information do I have to provide? I am now in my 3rd year of this plan, paid for about 26-27 months. I have paid about 4k+, my surrender value is about 1k, as stated on the table that was provided when I first purchase the plan.

I do not invest or do anything, just save up my money in the bank. But in this case, it is the non-guaranteed part that is scaring me.

The insurance part to the plan, is if there is death, the rest of the premiums will be paid for.

What information on the benefit illustration do you need to know? I do not mind sharing, as I have no clue on what to do now.

 

[LingBit]

too late


terminate now no cash value


terminate l;ater also low cash value


stop the pain....just free look

Hello, from what I googled, 'free look' is at the start of the signing of the contract where I can terminate, however I am already into my third year...

 

[koreanlover]

There are companies which buy endowment plans at a higher price than surrendering the policy.

Maybe get some quotes from them first.

 

[thekang]

Hello, as I do not have much knowledge in this, what further information do I have to provide? I am now in my 3rd year of this plan, paid for about 26-27 months. I have paid about 4k+, my surrender value is about 1k, as stated on the table that was provided when I first purchase the plan.

I do not invest or do anything, just save up my money in the bank. But in this case, it is the non-guaranteed part that is scaring me.

The insurance part to the plan, is if there is death, the rest of the premiums will be paid for.

What information on the benefit illustration do you need to know? I do not mind sharing, as I have no clue on what to do now.

You haven't told us what is the name of the product you bought, and under which company. There are many different types of endowments, and they can work differently.

Although the initial benefit illlustration that you mentioned can be useful, you should get an updated benefit illustration directly from the insurance company (ask your bank if you don't know which insurance company is providing the policy). Asking for an updated benefit illustration is free, and will provide the current figures for your policy (different from the estimates you saw when you first bought).

 

[LingBit]

There are companies which buy endowment plans at a higher price than surrendering the policy.

Maybe get some quotes from them first.

Hello, I read slightly on this, and it seems like I would need to continue my plan for this option. Correct me if I am wrong. Thank you.

 

[LingBit]

You haven't told us what is the name of the product you bought, and under which company. There are many different types of endowments, and they can work differently.

Although the initial benefit illlustration that you mentioned can be useful, you should get an updated benefit illustration directly from the insurance company (ask your bank if you don't know which insurance company is providing the policy). Asking for an updated benefit illustration is free, and will provide the current figures for your policy (different from the estimates you saw when you first bought).

Hello, I am having the pruflexicash 7th series under Prudential.

Okay, I will get the updated benefit illustration from them. Thank you!

 

[Shion]

Why not post the BI details here ?

 

[jmapsmylife]

Hello, as I do not have much knowledge in this, what further information do I have to provide? I am now in my 3rd year of this plan, paid for about 26-27 months. I have paid about 4k+, my surrender value is about 1k, as stated on the table that was provided when I first purchase the plan.

I do not invest or do anything, just save up my money in the bank. But in this case, it is the non-guaranteed part that is scaring me.

The insurance part to the plan, is if there is death, the rest of the premiums will be paid for.

What information on the benefit illustration do you need to know? I do not mind sharing, as I have no clue on what to do now.

may i know what in the non-guarantee part is scaring you?
non guarantee just mean that the amount you may or may not get. thats all. what so scary?

 

[jmapsmylife]

Hello, I read slightly on this, and it seems like I would need to continue my plan for this option. Correct me if I am wrong. Thank you.

yes the plan will be continue but by the company that buy over your plan. the company will pay you your surrender value + maybe some more money and take over your plan. from then the plan do not belong to you and you do not have to pay anymore

 

[LingBit]

Why not post the BI details here ?

Hello, please find images below.

 

[LingBit]

may i know what in the non-guarantee part is scaring you?
non guarantee just mean that the amount you may or may not get. thats all. what so scary?

yes the plan will be continue but by the company that buy over your plan. the company will pay you your surrender value + maybe some more money and take over your plan. from then the plan do not belong to you and you do not have to pay anymore

Hello, as the person sold it to me as a savings cum insurance plan, I expected to get back the savings I had put in, however, the non-guaranteed part meant that it is not 100% confirm that I can get back all my money.

Thank you for the reply, I will look into this option too.

 

[jmapsmylife]

Hello, as the person sold it to me as a savings cum insurance plan, I expected to get back the savings I had put in, however, the non-guaranteed part meant that it is not 100% confirm that I can get back all my money.

Thank you for the reply, I will look into this option too.

the amount you have put in, part of it is going into insurance. also mostly for insurance, first 5 year the amount you put in go into charges here and there. onli after 5 year than the amount you put in will go into what they called saving. there fore the amount you get back now is hopelessly low.