Help for updated Benefit Illustration

[lewissac]

Hi,

Can I check based on this updated Benefit Illustration if it is still worth to continue or drop for another better deal?

 

[wahkao3]

any comments????

 

[blurpandasg2014]

What plan is this? Is the deposit fund guaranteed

 

[lewissac]

What plan is this? Is the deposit fund guaranteed

Endowment Plan with 2.5% coupon.
Sum assured: 25k
So far no coupon is redeemed.

I believe the deposit fund is the reinvested coupon if I read correctly from the footnote.

 

[sp0rky]

continue. do not cancel unless u are really cash tight and this affects ur cashflow

 

[lewissac]

continue. do not cancel unless u are really cash tight and this affects ur cashflow

Thanks for your comment.

The reason Im asking is I want to know if it's still viable to continue on because I was thinking, if I'm to surrender with a loss (possibly ard 2-3k i guess), and then use whatever there to put on ETF instead, and then recoup the loss there.

 

[akwl88]

What kind of plan is this?

Saving?

Protection?

Investment?

 

[lewissac]

What kind of plan is this?

Saving?

Protection?

Investment?

It's an Endowment Plan from HSBC. Pure savings. Not whole life insurance. Just purely savings with extra few dollars for CI/Death riders. You won't see this product on the webpage because its been put on shelf quite some time.

 

[akwl88]

Typical anticipated endowment plan.

Decent but not fantastic. About 2.3% yield with all the coupons re-invested.

25 years for 2.3% guranteed?

 

[lewissac]

25 years for 2.3% guranteed?

It was bought 4 years ago. So I have no idea too.
Anyway since i'm learning more about investing, this brought up to me. As you see I'm not sure myself if is still feasible to go in anymore instead to opt for ETF.

By the way, just curious, so you managed to calculate its 2.3% yield? I've been told this is the updated BI with correct ROI%.

So if thats the case is it still worth to continue? or just surrender?

Currently I have Invest Savers for ETF recently and planning to add in for BOnds ETF next mth. Im also planning to open another SCB's trading account for overseas ETF.

 

[lewissac]

Not even guaranteed. If the participating fund cannot perform up to expectations, then it can go even lower.

So can I say at this point in time it's not decent viable yield too? Then I might seriously consider to surrender that. I rather opt for ETF rather than stuck with that for another 7 years to break even granted if the non-guaranteed value stays the same as in updated BI.

 

[akwl88]

What % returns would you like for savings?

High returns comes with high risk like equities

A conservative choices could be fd, ssb, high yield savings acct

 

[lewissac]

What % returns would you like for savings?

High returns comes with high risk like equities

A conservative choices could be fd, ssb, high yield savings acct

Perhaps it's not really about the returns I'm so worried about. It's more on the cost/charges. The deductibles is pretty much high; albeit the distribution cost is still ok as it stops after 6 yrs. So I'm bit sad on why I have to lose that portion deductibles when I can earn it from other sources.

 

[akwl88]

Perhaps it's not really about the returns I'm so worried about. It's more on the cost/charges. The deductibles is pretty much high; albeit the distribution cost is still ok as it stops after 6 yrs. So I'm bit sad on why I have to lose that portion deductibles when I can earn it from other sources.

Bo bian u buy liao. Perhaps you might want to cut loss and deploy your money elsewhere

Paging for bro mike!

 

[Mecisteus]

So can I say at this point in time it's not decent viable yield too? Then I might seriously consider to surrender that. I rather opt for ETF rather than stuck with that for another 7 years to break even granted if the non-guaranteed value stays the same as in updated BI.

I got one endowment from HSBC too. I am already >10 years with this policy. Bonuses have been quite low so far. I expect my maturity yield to be about ~1.8% pa.

As for you, you may want to re-assess your alternative methods. Are you confident of generating better returns yourself? If yes, then terminate early. <4 years is still not too late to surrender. Even if you surrender, don't have the mentality to recoup your losses too quickly. If your method is right, the positive returns will come naturally.

If you are not so confident, then just treat it as a backup savings plan. Don't make a rash decision.

 

[sp0rky]

You stop now = instant loss guaranteed.

Not sure why everyone on this forum is advocating investing ETF machiam like sure win like that...

Different people have different needs but almost everyone on this forum just say buy term invest the rest in etf. buy hospital plan. wa lao... all the guru

 

[Mecisteus]

You stop now = instant loss guaranteed.

Not sure why everyone on this forum is advocating investing ETF machiam like sure win like that...

Different people have different needs but almost everyone on this forum just say buy term invest the rest in etf. buy hospital plan. wa lao... all the guru

If you are a car agent, we don't expect you to tell clients to buy a bike.

Most of us here (non-agents) are ordinary people who have no vested interests in any products. We simply endorse good and cost effective methods.

 

[lewissac]

You stop now = instant loss guaranteed.

Not sure why everyone on this forum is advocating investing ETF machiam like sure win like that...

Different people have different needs but almost everyone on this forum just say buy term invest the rest in etf. buy hospital plan. wa lao... all the guru

Haha I myself is an advocate for Term + Hospitalization. In fact after the first month I work here, these are the two things I bought first. Whole life is a big no-no for me as I don't see myself savings and insurance goes hand in hand.

Anyway, I'm gonna give it a chance. If 7 yrs ltr it still doesn't perform well, I'll go out since it'll break even tht time (pray).

 

[Mecisteus]

Are you sure you will breakeven after 7 years? That's not a typical breakeven year for any insurance policy.

Even my HSBC policy has not breakeven after 10 years.

 

[lewissac]

Are you sure you will breakeven after 7 years? That's not a typical breakeven year for any insurance policy.

Even my HSBC policy has not breakeven after 10 years.

7 years i wrote means 7 years from now. I'm already in 4th; going 5th year. So I'm expecting break even after 11-12 years if the BI reflects the accurate representation.