Endowment Insurance Plan

[netbookcraze]

I never fancy long term endowment plan but if TS do want to save up for a new home or a new car in 5-8 yrs time, maybe he can consider those short term but high premium saving plan.

I think the premium is 100% guarenteed upon maturity, with a small percentage of interest but higher than bank interest.

This is to force to save with discipline..

 

[henrylbh]

TS just wants a hassle free simple savings plan. Yes he/she used the word insurance, but no, you and I both know that is not what he/she cares much about. Focus is on savings and maturity value for his/her child's education. Insurance coverage component is just a bonus to TS I believe..

So, if you all wanna contribute to the TS, then no need to go so off topic la!

Agreed. The feedback to help TS has gone off topic.

 

[LH0779]

in response to TS questions. I think if the is really looking at 100% safe saving insurance there's no such thing. Cos as long as there's insurance part, there's cost to it. So the amount of premium you pay a portion of it go to insurance coverage.

E.g. your monthly installment is $160, but $10 goes to coverage/rider. but as a consumer most time you would see that you have 'invested' or saved $160, instead of $150)

hence if you thinking of saving or having more money for your kids, you should like some other forumer say, invest in UT or stocks. but that's definitely high risk.

BUT if you wan to buy protection, insurance/endowment + rider may be good. cause there's some that's give you premium waiver if you diagnose with critical illness etc... which ensure you that even in the event touch wood, along the way you unable to pay due to those included illness, you can rest assured your kid still get the money upon maturity.

 

[gyuna49]

in response to TS questions. I think if the is really looking at 100% safe saving insurance there's no such thing. Cos as long as there's insurance part, there's cost to it. So the amount of premium you pay a portion of it go to insurance coverage.

E.g. your monthly installment is $160, but $10 goes to coverage/rider. but as a consumer most time you would see that you have 'invested' or saved $160, instead of $150)

hence if you thinking of saving or having more money for your kids, you should like some other forumer say, invest in UT or stocks. but that's definitely high risk.

BUT if you wan to buy protection, insurance/endowment + rider may be good. cause there's some that's give you premium waiver if you diagnose with critical illness etc... which ensure you that even in the event touch wood, along the way you unable to pay due to those included illness, you can rest assured your kid still get the money upon maturity.

If want to save money then cannot invest in high risk products right? It's like gambling with your kids' future. I get that the higher return is alluring but so is taking all the money and putting it in the casino table - 100% return. I've been thinking of getting some kinda plan for the kids. My colleague recommend me dbs edusmart insurance plan. Anyone here have it? What do you think...he said it's a profit endowment plan and you get stable returns from investment-linked funds. Plus 100% guaranteed principal at maturity..not bad right?

 

[Asure7]

If want to save money then cannot invest in high risk products right? It's like gambling with your kids' future. I get that the higher return is alluring but so is taking all the money and putting it in the casino table - 100% return. I've been thinking of getting some kinda plan for the kids. My colleague recommend me dbs edusmart insurance plan. Anyone here have it? What do you think...he said it's a profit endowment plan and you get stable returns from investment-linked funds. Plus 100% guaranteed principal at maturity..not bad right?

ALWAYS look at the guaranteed amount, and the non-guaranteed part.
Returns from investment-linked funds is never stable...and you can make a loss.
Generally for Education Plan, I go for guaranteed portion at least as high as the total amount I pay up, and ignore the non-guaranteed portion.

If I am not mistaken, reading from DBS website, this is a 2-in-1 policy.
Quote 1: "It is a 2-in-1 plan that combines the stable returns of with-profit endowment plan and the growth potential of investment-linked funds*."
Quote 2: "Save and grow your child's education fund with the stable returns of a with-profits endowment plan that offers 100% guaranteed principal+ at maturity. You also have the option of investing in a wide range of investment-linked funds to stretch the potential of your savings."
* Bonuses and investment returns are not guaranteed as they are dependent on the performance of Aviva's life fund and ILP funds respectively.

My understanding is that the endowment part of the plan is "100% guaranteed principal".
BUT that does NOT apply for the investment linked portion.

 

[FP_IFA]

If want to save money then cannot invest in high risk products right? It's like gambling with your kids' future. I get that the higher return is alluring but so is taking all the money and putting it in the casino table - 100% return. I've been thinking of getting some kinda plan for the kids. My colleague recommend me dbs edusmart insurance plan. Anyone here have it? What do you think...he said it's a profit endowment plan and you get stable returns from investment-linked funds. Plus 100% guaranteed principal at maturity..not bad right?

Yes when it comes to education saving, people should take a lesser risk. This is because while the years in which you need to take the money is more or less fix, we can't really predict if those years would be a stretch of financial crisis years or a string of bullish years.

Alternatively if you are investment savvy, you can monitor your portfolio more closely as it starts to get near to the child university days and start to relocate profits to lower risk instruments (if you have profits). Of course this would involved more works.

 

[Th3Keeper]

Is there cooling off period for endowment plans? I just signed one but feel like canceling...

 

[iCuteCube]

Is there cooling off period for endowment plans? I just signed one but feel like canceling...

Within 7 days, cooling off period.

You can cancel off! Just call them immediately.

 

[Th3Keeper]

Within 7 days, cooling off period.

You can cancel off! Just call them immediately.

At this hour who to call

 

[iCuteCube]

At this hour who to call

Next Wednesday morning lo

 

[lzydata]

Next Wednesday morning lo

Hope his agent is not on long holiday...

 

[Th3Keeper]

Hope his agent is not on long holiday...

Only he can cancel?? If like that all the agents claim to be on long holiday during cooling off how

 

[kenneth27]

Email serve as a indication and intention you wish to cancel.

 

[Lucas_]

Go straight to the company itself and seek for cancellation. Dont do it through the agent.

 

[Saj.Mahal]

Is there cooling off period for endowment plans? I just signed one but feel like canceling...

Can share what plan you took up and also why you don't feel comfortable with the plan? Just out of pure curiosity.

 

[matchy]

Within 7 days, cooling off period.

You can cancel off! Just call them immediately.

14 days free look~!

 

[jgyy1990]

Yes when it comes to education saving, people should take a lesser risk. This is because while the years in which you need to take the money is more or less fix, we can't really predict if those years would be a stretch of financial crisis years or a string of bullish years.

Alternatively if you are investment savvy, you can monitor your portfolio more closely as it starts to get near to the child university days and start to relocate profits to lower risk instruments (if you have profits). Of course this would involved more works.

btw how low risk is consider low? 1% returns a year?

 

[Asure7]

To me, I don't look at the % returns in particular. (High risk also can give you 1% mah .. not negative happy oredi ). % returns is not an indication of Low/high risk, rather it is the instruments used for investment (e.g. low-volatility fixed income vs highly volatile equities).


In this case, i consider low/high risk as: What alternatives do you have, or rather how well can you manage if your target maturity amount cannot be met?
That is why for educational plans, I ONLY look at the guaranteed returns. Any amount from non-guaranteed is simply a bonus.
This makes it a lot easier on planning as a guaranteed fixed return is to be expected.

 

[jgyy1990]

icic thanks for the advise.

 

[yoshihara]

Aiyo no need to make things so complicated. Ask yourself this can liao. Whats your risk profile. Risk adverse people just take savings. Risk taker people take investments products.
And for those that dont want to take any kind of risk, deposit in your bank.

However, before all these, ask yourself wether you are adequately protected or not first.

No protection, accident or cancer pop out, bye bye to all your money.