Endowment plans

[neanea]

How to know which is a better endowment plan from so many different companies?

 

[akwl88]

How to know which is a better endowment plan from so many different companies?

1) guranteed returns more than total premiums paid

2) surrender value more than premiums paid any time

 

[neanea]

Mostly such plans have low returns since so much guarantee?

1) guranteed returns more than total premiums paid

2) surrender value more than premiums paid any time

 

[I'mpossible]

not much different i'd say.. as long as you're comfortable with the plan, time horizon and returns, you can go for it

 

[akwl88]

Mostly such plans have low returns since so much guarantee?

yeah endowment plans normally ard 2-3% returns

main thing is to lock your money up for a certain period of time

 

[neanea]

1.9% doesnt warrant to be locked up for 5yrs

 

[Perisher]

The current hottest endowment plan from my portfolio being sold like crazy is from ChinaLife. Limited pay 3 years and mature on the 5th.

If putting the premiums in 3 tranches, the yield works out to be 2.25%.
If buying as a single premium and applying a discount factor, the yield is about 1.9%.

All yields are guaranteed as it's a non-participating plan.

This plan has been soaking up the excess liquidity from the market lately as there are no 5 years endowment plan for these few years.

Hope this helps.

3 tranches means? Year by year? Got 30k example?
2.25% is EIR over the 5 years?

Single premium means
e.g. 1 time $10k at start, 5 years later 1.9% p.a. get $10986.79 back?

 

[akwl88]

3 tranches means? Year by year? Got 30k example?
2.25% is EIR over the 5 years?

Single premium means
e.g. 1 time $10k at start, 5 years later 1.9% p.a. get $10986.79 back?

1st yr - 10k

2nd yr - 10 k

3rd yr - 10k

5th year mature get back ard 32.7k

 

[Shion]

1) guranteed returns more than total premiums paid

2) surrender value more than premiums paid any time

the 2nd one I think not possible, no ?

 

[FP_IFA]

The current hottest endowment plan from my portfolio being sold like crazy is from ChinaLife. Limited pay 3 years and mature on the 5th.

If putting the premiums in 3 tranches, the yield works out to be 2.25%.
If buying as a single premium and applying a discount factor, the yield is about 1.9%.

All yields are guaranteed as it's a non-participating plan.

This plan has been soaking up the excess liquidity from the market lately as there are no 5 years endowment plan for these few years.

Hope this helps.

Surprise people are buying them.

 

[Shion]

Surprise people are buying them.

Why is that so ??

 

[Mecisteus]

The current hottest endowment plan from my portfolio being sold like crazy is from ChinaLife. Limited pay 3 years and mature on the 5th.

If putting the premiums in 3 tranches, the yield works out to be 2.25%.
If buying as a single premium and applying a discount factor, the yield is about 1.9%.

All yields are guaranteed as it's a non-participating plan.

This plan has been soaking up the excess liquidity from the market lately as there are no 5 years endowment plan for these few years.

Hope this helps.

Your numbers are not making sense to me.

How can the yield of 3 payable tranches plan be higher than a single premium plan?

 

[xiao.xin]

5 years capital Guranteed with EIR 2.2% consider attractive mah?

Sent from BlackBerry STH100-2 using GAGT

 

[lewissac]

http://www.chinalife.com.sg/chinalife/en/products/savereward101SGD.html

Benefit Snapshot:

2.25% p.a. Guaranteed Maturity Yield
100% Capital Guaranteed upon Maturity
Guaranteed Acceptance
3 Years Premium Payment
Protection against Death 1

Sounds too good to be true? 2.25% guaranteed? Hmm.. first time heard such a decently high yield guaranteed.

 

[akwl88]

http://www.chinalife.com.sg/chinalife/en/products/savereward101SGD.html



Sounds too good to be true? 2.25% guaranteed? Hmm.. first time heard such a decently high yield guaranteed.

1st yr - 20k

2nd yr - 20k

3rd yr - 20k

5th yr - get back 65,598

good deal?

 

[neanea]

Does it have non guarantee payout?

http://www.chinalife.com.sg/chinalife/en/products/savereward101SGD.html



Sounds too good to be true? 2.25% guaranteed? Hmm.. first time heard such a decently high yield guaranteed.

 

[akwl88]

Does it have non guarantee payout?

Lump Sum Maturity Payout
Enjoy a rewarding and guaranteed lump sum
maturity payout to realise your financial goals once
your plan matures.

seems like dont have leh

very straightforward one lol

but dyodd

 

[lewissac]

I did some googling on Chinalife Fradulent and lotsa link came up.

http://www.forbes.com/2007/03/12/china-accounting-fraud-biz-cz_emd_0312chinafraud.html

Similarly, within months of China Life Insurance’s huge $3.5 billion initial public offering in 2004, state auditors found $652 million worth of irregularities, according to official press reports. Government auditors will only say the irregularities involved “inappropriate competitive problems” and “inappropriate” use of premium funds, including loans and investments. It also found that millions of yuan had been placed into “little treasuries,” which are off-book accounts used to distribute bonuses.

https://en.wikipedia.org/wiki/China_Life_Insurance_Company

China's audit office said it uncovered "improper and illegal activities" involving 3.02 billion yuan at two of the country's largest insurers, People's Insurance Co. of China Ltd. and China Life Insurance Co., during an audit of their 2009 books. They are charged with offences including the illegal sale of policies, overstating policy sales, improper claim settlements, illegal distributions of commissions and "grey income" - off-the-books gains, some of which company officials pocketed among themselves.

These violations have raised concern amongst some Chinese citizens over the authenticity and legality of the policies they currently hold. They are worried about where their money is going and what it is being used for. Without transparency, trust is quickly evaporating from businesses that are found to be conducting shady business

 

[Perisher]

I did some googling on Chinalife Fradulent and lotsa link came up.

http://www.forbes.com/2007/03/12/china-accounting-fraud-biz-cz_emd_0312chinafraud.html



https://en.wikipedia.org/wiki/China_Life_Insurance_Company

China government linked. Shady but well depends on how one views it.

 

[lewissac]

China government linked. Shady but well depends on how one views it.

Well to me, I'm more concerned on the integrity of the company as well as how it performed. When legal cases related to fraud kicks in, most likely its a no no for me to invest. Of course this is very subjective to each person.