CPF chats

[Kaypohji]

What’s the name of your plan?

U not so fortunate as me, I can cashout anytime now, with 4-5% compounded returns. But I am not cashing out yet.

 

[maple96]

What’s the name of your plan?

I am here to educate, not here to sell/promote any plans, dun want to be slap with infractions.

U go research yourself.

 

[Kaypohji]

This is sharing too as long as u r not an agent. Just like people share on forum which cake shop sell the best cake. Like this they also kena infractions ?

I am here to educate, not here to sell/promote any plans, dun want to be slap with infractions.

U go research yourself.

 

[pcmdan]

Eh. I calculate one WL policy. As long as you surrender, the IRR is negative regardless what age. Only when death with 4.75% returns, then the WL policy has +ve IRR.

That is also worth buying ?

eh nope? Since my WL plan nv die also earn >2.5%

Error in computation. Apologies

 

[pcmdan]

What’s the name of your plan?

is time to meet the SYT insurance agents, tell them to give u surrender number, u can go compute till u find one that has +tive guaranteed lo.

 

[starlight318]

Yes WL is really a joke. I also calculated my IRR is negative if I surrender at age 75, 52 years after holding the policy if based only on the 'guaranteed' amount.. Including non - guaranteed then its around 3%+.. Mine is Prulife policy started in 2002 when I was a silly fresh grad.. ;(

 

[Kaypohji]

Why don’t u all just share since u all like to promote WL saying how good it is?

is time to meet the SYT insurance agents, tell them to give u surrender number, u can go compute till u find one that has +tive guaranteed lo.

 

[pcmdan]

Yes WL is really a joke. I also calculated my IRR is negative if I surrender at age 75, 52 years after holding the policy if based only on the 'guaranteed' amount.. Including non - guaranteed then its around 3%+.. Mine is Prulife policy started in 2002 when I was a silly fresh grad.. ;(

I think u bought from the wrong company. Mine is definitely a +

Will upload the surrender value.. Bear with me

 

[Kaypohji]

Tokio marine i calculate only if returns is 4.75%, will then u have +ve IRR when surrender. Any other returns -ve

Your non guaranteed is how many % of par fund return?

Yes WL is really a joke. I also calculated my IRR is negative if I surrender at age 75, 52 years after holding the policy if based only on the 'guaranteed' amount.. Including non - guaranteed then its around 3%+.. Mine is Prulife policy started in 2002 when I was a silly fresh grad.. ;(

 

[maple96]

I think u bought from the wrong company. Mine is definitely a +

Will upload the surrender value.. Bear with me

Agree on the first point

 

[Conor McGregor]

Agree on the first point

Maple96 can take a look at my policies in previous page

Do you have any advice

 

[maple96]

Maple96 can take a look at my policies in previous page

Do you have any advice

I am not an expert in insurance. I only know how to share the fruits of my labor, fortunate, by accident.

I am not a believer in insurance, but wanted to buy a little, just in case, to help my parents if I am gone. So I told the agent, I want my money back if nothing happens, suggest those type of policies to me.

So here I am today, money back when I no longer need the policies cos my parents are in heaven.

What I have are those no choice type of policies: hospitalisation, eldershield (actually got choice but dunno so just opt in but not going for careshieldlife, CPF Life in the future).

No expense type of policies. What is the probability of it occuring? I self insure, I cannot afford to transfer all sorts of risk to the insurer by paying the premiums. I was right, at this life stage, confirm I was right, I also dun need it now.

 

[pcmdan]

Tokio marine i calculate only if returns is 4.75%, will then u have +ve IRR when surrender. Any other returns -ve

Your non guaranteed is how many % of par fund return?

Posted my one of my few policies as proof.

Have also attached the IRR computation.

 

[pcmdan]

Agree on the first point

Yup. Guys, learn how to read the guaranteed portion of your insurance. Do not listen to what the agents are showing u, such as the high projected returns page or their fund's history performance (past performance is not an indicator of future performance)

Their funds performance no matter how well it do, will not translate to the WL u buy. They have tons of excuse why it shouldnt be, such as keep the profits for future low market condition, etc etc.

Once u get that page, go home and compute the IRR. If is above ur ROI, you may safely proceed.

The whole life that i have shown, is a multiplier WL policy. E.g. sum assured is $100k, but if something happens to me before that, my bene will get $250k. Hence it serves as a protection when I am young.


And please, kindly note that,Endowment plans will not have such nice guaranteed number (i.e. +tive) shown in their policy.


Amended: Error in computation

 

[Kaypohji]

Your IRR table is interesting. U assume u r being paid of the guaranteed returns every year ? If I didn’t interpret your right last 2 columns wrongly....

Yup. Guys, learn how to read the guaranteed portion of your insurance. Do not listen to what the agents are showing u, such as the high projected returns page or their fund's history performance (past performance is not an indicator of future performance)

Their funds performance no matter how well it do, will not translate to the WL u buy. They have tons of excuse why it shouldnt be, such as keep the profits for future low market condition, etc etc.

Once u get that page, go home and compute the IRR. If is above ur ROI, you may safely proceed.

The whole life that i have shown, is a multiplier WL policy. E.g. sum assured is $100k, but if something happens to me before that, my bene will get $250k. Hence it serves as a protection when I am young.

At age 47, as seen in my picture, if nothing happen to me, and i decide to cash out, my money will fetch me a cool 7% p.a. ROI.


And please, kindly note that,Endowment plans will not have such nice guaranteed number (i.e. +tive) shown in their policy.

 

[hwmook]

Yup. Guys, learn how to read the guaranteed portion of your insurance. Do not listen to what the agents are showing u, such as the high projected returns page or their fund's history performance (past performance is not an indicator of future performance)

Their funds performance no matter how well it do, will not translate to the WL u buy. They have tons of excuse why it shouldnt be, such as keep the profits for future low market condition, etc etc.

Once u get that page, go home and compute the IRR. If is above ur ROI, you may safely proceed.

The whole life that i have shown, is a multiplier WL policy. E.g. sum assured is $100k, but if something happens to me before that, my bene will get $250k. Hence it serves as a protection when I am young.

At age 47, as seen in my picture, if nothing happen to me, and i decide to cash out, my money will fetch me a cool 7% p.a. ROI.


And please, kindly note that,Endowment plans will not have such nice guaranteed number (i.e. +tive) shown in their policy.

The way you assume 7% PA is laughable. Your "losses" over the first 15 years are conveniently forgotten.

 

[pcmdan]

Your IRR table is interesting. U assume u r being paid of the guaranteed returns every year ? If I didn’t interpret your right last 2 columns wrongly....

oops...u are right. I should not have assumed that i will be getting it back yearly.

Have revised

Was confused for a while thinking guaranteed is realized gains.

 

[pcmdan]

The way you assume 7% PA is laughable. Your "losses" over the first 15 years are conveniently forgotten.

Huh???? the IRR included that. Hence I am not sure why u said it was forgotten. Do you know how IRR formula works?

Only mistake was, i shouldnt have assume that the surrender values are realized gains yearly.

Work of advice, please go study it before making such comment.

 

[yongsaver]

oops...u are right. I should not have assumed that i will be getting it back yearly.

Have revised

Was confused for a while thinking guaranteed is realized gains.

Yep. IRR over 20 years below 3% looks more right. Insurance companies cannot be paying more than what they earn from their investment grade bonds. Also last time LTA, SP Power, PUB etc long term bonds pay around 4% in coupons. These days

 

[Kaypohji]

Anyway the guaranteed returns still looks good

Can share what plan is this ?

oops...u are right. I should not have assumed that i will be getting it back yearly.

Have revised

Was confused for a while thinking guaranteed is realized gains.