Endowment plans?

[boredboiboi]

First time I have heard about endowment plans is thru banks like DBS+Manulife, OCBC+Great Eastern and UOB+Prudential. Just thinking if they are offering isurance policies there, I am not sure if it is better to go straight to the insurance coy itself.

I am an agent. I can sell the plan. And yes u can buy thru either bank or agent. But when u got to check for something, they will tell u to call the insurance company directly most of the time but for agent, we will help u to check personally and we are responsible for the after service.

And there are also plans that are made for for kid education. Such plan with pay at various age such as age 18 or 20.

 

[xtwis7]

Before it was 3.25-4.75%, it was actually 3.75-5.25% that’s why older endowment plans can be much more attractive in terms of returns.

Yes you are right that it’s MAS requirements which is just a projection which doesn’t guarantee future performance. At the end, it’s the declared bonus that matters.

There was a article recently that said it’s in the discussion phase to revise this projected returns downwards. My Guess could be 3-4.5%.

Can elaborate more on this? Isn't the 3.25-4.75% projected returns mandated by the government? I.E has nothing to do with the historical performance, expert opinion etc?

Also, what kind of adjustment is underway?

 

[winthony]

Yes, I am more interested in the above. Only Manulife has this? Free interest policy loan means it needs to tie up with a bank?



Yes, most off the shelf endowment plans are quite straightforward. 10, 15 or 20 years and that's it. Some offers yearly bonuses, partial take out, and ability to deposit more cash during the policy term. Maybe this comes at an expense of potential interest or overall benefits compared to the more straightforward plan.



Kids' education



Is this with a bank?

BTW, is it advisable to sign up with a bank knowing they are tying up their products with an insurance coy?

If you are looking at kids education, there are specially curated products that cater to child's education and trigger payout based on your child's ages! Have done up some for others here and the guaranteed return is higher than typical endowment

 

[moejoseph]

Is this with a bank?

BTW, is it advisable to sign up with a bank knowing they are tying up their products with an insurance coy?

Nope not with bank. Is actually from AXA. Banks vs Insurers, i will say the later is better cos bank is just an intermediary, and should u need to clarify anything later on, it will take longer.

 

[junlove]

endowment plan is like a lacklustre protection plus savings plan combined. Nothing fanciful, and will lugi ALOT if you exit early.

it is ok for people who don't bother about active finance and protection planning.
Otherwise, a good savings or investment plan, plus term insurance beats it.

 

[purpleberry]

I am an agent. I can sell the plan. And yes u can buy thru either bank or agent. But when u got to check for something, they will tell u to call the insurance company directly most of the time but for agent, we will help u to check personally and we are responsible for the after service.

And there are also plans that are made for for kid education. Such plan with pay at various age such as age 18 or 20.

If you are looking at kids education, there are specially curated products that cater to child's education and trigger payout based on your child's ages! Have done up some for others here and the guaranteed return is higher than typical endowment

Nope not with bank. Is actually from AXA. Banks vs Insurers, i will say the later is better cos bank is just an intermediary, and should u need to clarify anything later on, it will take longer.

endowment plan is like a lacklustre protection plus savings plan combined. Nothing fanciful, and will lugi ALOT if you exit early.

it is ok for people who don't bother about active finance and protection planning.
Otherwise, a good savings or investment plan, plus term insurance beats it.

Any plans that can tie in with bank loans?

I am quite familiar with the standard offering that insurance coy offers but more interested in combining both education+retirement in the same bundle. If kids decide to study locally, I dont need to terminate my plan.

I might be wrong but so far the most rigid one is Great Eastern. Maybe too simple as it gives you only 2-3 options when to invest before your kids turn X years old.

 

[xtwis7]

Actually you might be mistaken. Maybe you were referring to the older plans which were much more rigid.

It’s become much more common now with insurers introducing endowments with no maturity, like GE’s GREAT Wealth Multiplier it Prudential’s PRUWealth.

Instead of a hard maturity date X years later, you have the option to decide whether you want to terminate the policy for the full maturity, make a partial withdrawal or continue to hold the plan.

Any plans that can tie in with bank loans?

I am quite familiar with the standard offering that insurance coy offers but more interested in combining both education+retirement in the same bundle. If kids decide to study locally, I dont need to terminate my plan.

I might be wrong but so far the most rigid one is Great Eastern. Maybe too simple as it gives you only 2-3 options when to invest before your kids turn X years old.

 

[boredboiboi]

Any plans that can tie in with bank loans?

I am quite familiar with the standard offering that insurance coy offers but more interested in combining both education+retirement in the same bundle. If kids decide to study locally, I dont need to terminate my plan.

I might be wrong but so far the most rigid one is Great Eastern. Maybe too simple as it gives you only 2-3 options when to invest before your kids turn X years old.

Bank loans? U means for those single premium plan with premium financing?
What the reason for doing that? Ur return will be affected. And usually this plan premium is at least 100k

 

[winthony]

Any plans that can tie in with bank loans?

I am quite familiar with the standard offering that insurance coy offers but more interested in combining both education+retirement in the same bundle. If kids decide to study locally, I dont need to terminate my plan.

I might be wrong but so far the most rigid one is Great Eastern. Maybe too simple as it gives you only 2-3 options when to invest before your kids turn X years old.

Certain product allows you to have the flexibility to withdraw partially and allow the remaining value inside to continue generating the returns!

For most education plans, it would definitely terminate when your kid turns X years old. If you are looking to have something of a longer horizon yet have the fund available, that is definitely something we can work with to match the timeline for the partial withdrawability at a certain year onwards

 

[moejoseph]

Any plans that can tie in with bank loans?

I am quite familiar with the standard offering that insurance coy offers but more interested in combining both education+retirement in the same bundle. If kids decide to study locally, I dont need to terminate my plan.

I might be wrong but so far the most rigid one is Great Eastern. Maybe too simple as it gives you only 2-3 options when to invest before your kids turn X years old.

Hmmm wouldn't really advise on bank loan as the interest will eat into your returns.

If getting through banks will be easier, but then will have cons as well. U can also check if u can apply for a loan through the bank, telling them that your intention is to service your endowment premium. Most time, they will try and pursuade you to just get a plan through them instead. Unless you don't tell them the exact reason, but then you may not be able to use the plan itself as a collateral.


For education + retirement,you may want to look at product with flexibility to reinvest the yearly payout. Say for AXA Retire Happy+ with a 20 years payout, you can reinvest the first few years and withdraw at one go to serve the education purpose, while from then onwards get the yearly payout for retirement. It will be mainly how you plan for the withdrawal as well

 

[drowningfish101]

endowment plan is like a lacklustre protection plus savings plan combined. Nothing fanciful, and will lugi ALOT if you exit early.

it is ok for people who don't bother about active finance and protection planning.
Otherwise, a good savings or investment plan, plus term insurance beats it.

that kind of plans are for risk averse ppl lor, like someone who dunno much abou financing, not familiar with investment planning or just looking to stash their cash

 

[Value.Matrix]

Hmmm wouldn't really advise on bank loan as the interest will eat into your returns.

If getting through banks will be easier, but then will have cons as well. U can also check if u can apply for a loan through the bank, telling them that your intention is to service your endowment premium. Most time, they will try and pursuade you to just get a plan through them instead. Unless you don't tell them the exact reason, but then you may not be able to use the plan itself as a collateral.


For education + retirement,you may want to look at product with flexibility to reinvest the yearly payout. Say for AXA Retire Happy+ with a 20 years payout, you can reinvest the first few years and withdraw at one go to serve the education purpose, while from then onwards get the yearly payout for retirement. It will be mainly how you plan for the withdrawal as well

Depends ba.

If the IRR is 4%, whats a 1.5% loan when you leverage and can get 2 policies.

Ceveat is to be able to pay off the loan once interest rate turns high.

 

[Alearner]

I bought an AIA retirement endowment with my SRS money since the money in the SRS is not utilised

 

[twinklingstars]

I bought an AIA retirement endowment with my SRS money since the money in the SRS is not utilised

May I know which exact AIA retirement endowment? Thank you!

 

[boredboiboi]

May I know which exact AIA retirement endowment? Thank you!

Actually almost all insurance have such plan. Return is almost similar, some with higher guaranteed.

 

[Yan Sia]

Hi, anyone got any good lobang for ocbc endowment plans ?

 

[boredboiboi]

Hi, anyone got any good lobang for ocbc endowment plans ?

What plans are you looking at? What is the features? Only ocbc?
Ocbc means the plans is from GE u know?

 

[Yan Sia]

What plans are you looking at? What is the features? Only ocbc?
Ocbc means the plans is from GE u know?

Ya I know. I’m thinking of getting those pay for 5 years then 10 years take out. Not sure if is good

 

[Yan Sia]

What plans are you looking at? What is the features? Only ocbc?
Ocbc means the plans is from GE u know?

Not only looking at Ocbc. Just overall endowment plan , looking at payment of 5 years and 10 years later take out

 

[winthony]

Not only looking at Ocbc. Just overall endowment plan , looking at payment of 5 years and 10 years later take out

There are plenty of companies offering this sort of products

So in total you looking at pay 5 wait 10 for maturity eh?