Endowment plans?

[Yan Sia]

Hi, anyone bought Ocbc maxendowment insurance special ?
Pay for 5 years and matured in another 5 years time.
Any comment

 

[Value.Matrix]

Hi, anyone bought Ocbc maxendowment insurance special ?
Pay for 5 years and matured in another 5 years time.
Any comment

Buy traded endowments, get same maturity at a lower time required

 

[kiwimiwi]

Reviving old thread... any1 bought HSBC life online endowment?

Friend say like not bad got 3.9% pa den he math out for me say after 3 yrs + compounding become 12.16% ah?

 

[Value.Matrix]

Reviving old thread... any1 bought HSBC life online endowment?

Friend say like not bad got 3.9% pa den he math out for me say after 3 yrs + compounding become 12.16% ah?

That's 12.16% of capital after 3 years yes. But I always look at the IRR/EIR because time is also money. If I can achieve higher amount with the same lump sum/payment why not.

 

[Geonasen]

HSBC has the calculator on its website. However, I can't post their link for some reason.

Based on their website, a 10k investment will net you 11,216 @ 3.9% after 3 years, which is 12.16%, compounded. However, current inflation rate as of October 2022 is 6.7%. Based on MAS Monetary Policy Statement for October 2022, inflation will remain high, and should moderate after H1 2023. If you take inflation into account, it will be much lower than 12.16%. You should be facing loss for the first year and how the second and third year look like depend on the economy.

 

[kiwimiwi]

That's 12.16% of capital after 3 years yes. But I always look at the IRR/EIR because time is also money. If I can achieve higher amount with the same lump sum/payment why not.

Oh ya good point... like that you got any other plan to reco?

HSBC has the calculator on its website. However, I can't post their link for some reason.

Based on their website, a 10k investment will net you 11,216 @ 3.9% after 3 years, which is 12.16%, compounded. However, current inflation rate as of October 2022 is 6.7%. Based on MAS Monetary Policy Statement for October 2022, inflation will remain high, and should moderate after H1 2023. If you take inflation into account, it will be much lower than 12.16%. You should be facing loss for the first year and how the second and third year look like depend on the economy.

True true. But this means the other plans also will get affected by inflation right? And it's still better than putting in savings acc?

 

[mp4005 help]

Oh ya good point... like that you got any other plan to reco?


True true. But this means the other plans also will get affected by inflation right? And it's still better than putting in savings acc?

but many savings account now giving you more than 3.9% with their promotions?
and don't forget these savings accounts are in a way compounding monthly.

But savings accounts rates are extremely short term as things may change anytime. so it depends on your timeline investment strategy.

 

[fluffydream]

but many savings account now giving you more than 3.9% with their promotions?
and don't forget these savings accounts are in a way compounding monthly.

But savings accounts rates are extremely short term as things may change anytime. so it depends on your timeline investment strategy.

Ya was looking at this for longer term lock in of the 3.9% interest rates for a portion of my cash. But haven’t actioned

 

[Geonasen]

It's definitely better than putting in saving plan, but you're still losing money, albeit for lesser amount.

Your interest earned + principal after 3 years based on HSBC endowment is
10,000 * (1+0.039)^3 = 11216

Let's assume the average yearly inflation rates for next three years are this:
2023: 5%
2024: 4%
2025: 3%

Your real value of investment after including inflation rate is:
11216/1.03 = 10889.32
10889.32/1.04 = 10470.5
10470.5/1.05 = 9971.90

It's a loss of $28 per 10k at the end of 3 years, based on the above assumptions. GST is also increasing by 1% in 2023 and in 2024. Business owners will pass costs to consumers, as usual.

 

[GrandJedi]

whats the best 2 or 3 year endowment fund in the market now? I think it is DBS 3-year (3.65% pa)?

 

[GrandJedi]

https://www.greateasternlife.com/sg...gsp12_static&dclid=CL7gqOiHtoEDFd8rtwAdRwoKZQ

 

[header]

whats the best 2 or 3 year endowment fund in the market now? I think it is DBS 3-year (3.65% pa)?

https://www.greateasternlife.com/sg...gsp12_static&dclid=CL7gqOiHtoEDFd8rtwAdRwoKZQ

Isn't DBS/ Manual life 3 years endowment better than GE?

 

[ckong8]

Isn't DBS/ Manual life 3 years endowment better than GE?

DBS/Manulife is open to individual below 65 yo. Don't know why there is a discrimination against people above 65 yo?

 

[koster]

https://www.greateasternlife.com/sg...gsp12_static&dclid=CL7gqOiHtoEDFd8rtwAdRwoKZQ

This looks good

 

[sglandscape]

DBS/Manulife is open to individual below 65 yo. Don't know why there is a discrimination against people above 65 yo?

If is because of the term life insurance that is bundled with it that's why it makes it no longer feasible to offer such a rate

 

[sohguanh]

DBS/Manulife is open to individual below 65 yo. Don't know why there is a discrimination against people above 65 yo?

Actually reason is simple. Ppl over age 65 higher chance to die so means may do a lose monies business deal. If you are the insurer instead you not scared your customer die and claim monies from you meh?

 

[zeroX26]

DBS/Manulife is open to individual below 65 yo. Don't know why there is a discrimination against people above 65 yo?

Risk-reward lah. Same reason why almost all term insurance plans end at age 65 and those where you can still extend to age 70 come with very high annual premium. Don't forget that at the end of the day an endowment plan is still an insurance product i.e. if you die during the tenure of the plan, the payout I recall is usually 105% of the endowment premium. So of course I won't want to sell the products to those with a higher risk of death mah. Nothing about age discrimination here, just pure business.