Help with Flexicash

[boob8888]

It will be 0.Im at the same stage of the policy as you...

hou mai?!!! is this true, how come i'm not being advised on this

 

[Shion]

Err...I think you really need to call Prudential...

Can't be possible your policy never state the surrender values

 

[Tooi Kono Machi De]

hou mai?!!! is this true, how come i'm not being advised on this

It should be the same de. I just treat this as forced savings le. If ure young just hold lor. For me I mid 20s le..Hold dao lai also close to 50 lol.

But I duwan cancel. I cancel pain sia

 

[Tooi Kono Machi De]

Hello, the reason is that insurance is a business model. At the end of the day, it has to be a profitable one for it to be sustainable. They have to pay for staff etc and overheads.

The 3.something% is the projected amount you will be receiving under the 4.75% column, which means that if the company earns 4.75%, we can give you as per projected. (Let me know if you're still unsure about this part)

If you can manage your funds yourself, I strongly recommend you do so to cut on the expenses. For others, concentrating on their job and climbing the ladder is the quickest way for more money.

Edit: I guess I should make it clearer.

Here's a simplified version. When you pay premiums for flexicash, everybody who has bought flexicash has their premiums going to the company.

The company then uses the premiums to do their own investments. As investments are volatile, the company takes part of the returns as a safeguard as most if not all plans have a guaranteed amount that has to be paid regardless of the investment performance. On top of that, they also need to pay for the people to answer the phone regarding your policy or the agents who distribute them, or the claims department etc.

Tbh..I still dont understand leh. From the start, my agent got tell me about the 2 projected figures. That 1 ok. What I dun understand, is why you project 4.75% and if the fund manages to hit the 4.75%, I still only get a projected 3.something%?

Then whats the point of projecting 4.75%? You might as well jitao tell me 3.something%. Then what if never hit the 4.75% and hit the 3.75% projected figure? Means I will get like 2.something%? Doesnt make frigging sense

 

[Shion]

The numbers itself does not make sense anyway, it is like some numbers chosen out of the many. IIRC I was told these numbers are specifically chosen and are required to be printed out.

The figures are also generally the same for all the other companies too...3.25% and 4.75%

Need to take into consideration other costs incurred

 

[havetheveryfun]

Err...I think you really need to call Prudential...

Can't be possible your policy never state the surrender values

less than 2 yrs think surrender value is 0 cos most of the premiums paid go to the agents' commission

cancelled a similar plan when I was in NS some time ago, lost ~$1k

 

[Shion]

less than 2 yrs think surrender value is 0 cos most of the premiums paid go to the agents' commission

cancelled a similar plan when I was in NS some time ago, lost ~$1k

Yes, less than 2 years is $0, but after 2 years you will get back some money, which technically means the start of 3rd year.

But the other member mentioned he doesn't know about this so...

Anyway, I surrendered within 2 years and lost $3k+

 

[Tooi Kono Machi De]

Yes, less than 2 years is $0, but after 2 years you will get back some money, which technically means the start of 3rd year.

But the other member mentioned he doesn't know about this so...

Anyway, I surrendered within 2 years and lost $3k+

Wa..you jitao cancel ar? But its difficult to make back 3k ma isnt it

 

[havetheveryfun]

Yes, less than 2 years is $0, but after 2 years you will get back some money, which technically means the start of 3rd year.

But the other member mentioned he doesn't know about this so...

Anyway, I surrendered within 2 years and lost $3k+

lol, I only know if pay less than 5 years, the surrender value is almost negligible that can even not care about it, unless the plan was like 1k per month

Wa..you jitao cancel ar? But its difficult to make back 3k ma isnt it

maybe he thinks he will lose much more than $3k if he continued on with the plan loh..

1 month save $500, 6 months 3k liao...

 

[havetheveryfun]

Tbh..I still dont understand leh. From the start, my agent got tell me about the 2 projected figures. That 1 ok. What I dun understand, is why you project 4.75% and if the fund manages to hit the 4.75%, I still only get a projected 3.something%?

Then whats the point of projecting 4.75%? You might as well jitao tell me 3.something%. Then what if never hit the 4.75% and hit the 3.75% projected figure? Means I will get like 2.something%? Doesnt make frigging sense

u can ignore whatever numbers they give u for the projected figures, all you need to take note of is the guaranteed portion. Anything extra is bonus, meaning the returns on your investment, it can be from 0% to even 50% (logically it could even be a negative number since you may make a loss)..

you should take the 3.25% and 4.75% separately, they are just different scenarios to show you the difference you can get. There is even a 6-8% illustration which I saw before. They are different, don't be confused, they are just basically projecting the different amount of returns you can get based on how well the fund performs

just that they like to use 3%,4.75% etc because they claim (I dont know whether true or not ) it was what most (most not all) policies managed to achieve in the past 10-20years, so they feel it is a reasonable amount maybe to use

 

[Perisher]

Tbh..I still dont understand leh. From the start, my agent got tell me about the 2 projected figures. That 1 ok. What I dun understand, is why you project 4.75% and if the fund manages to hit the 4.75%, I still only get a projected 3.something%?

Then whats the point of projecting 4.75%? You might as well jitao tell me 3.something%. Then what if never hit the 4.75% and hit the 3.75% projected figure? Means I will get like 2.something%? Doesnt make frigging sense

Yes, the figure is/can be confusing to the layman.
I for one thinks they should absolutely do away with the projected returns, instead they should just use past history returns and that's that. Just purely use the real past history returns without including those that the company will take away anyway. It would be so much less cluttered and confusing.

But sometimes, cannot convince, confuse, ya know?

The projected returns depends on so many factors that it's pointless.

And if one were to purely compare based on past returns, over the long term(decades) BTIR ETF would triumph over most if not all of the policies barring some outstanding ones which nobody here can point out.

Suffice to say, skipping these policies would not matter much if you split your investment into BTIR bonds+ETF.

 

[boob8888]

Yes, less than 2 years is $0, but after 2 years you will get back some money, which technically means the start of 3rd year.

But the other member mentioned he doesn't know about this so...

Anyway, I surrendered within 2 years and lost $3k+

if this is the case, im past 2 year already leh

 

[Shion]

And if one were to purely compare based on past returns, over the long term(decades) BTIR ETF would triumph over most if not all of the policies barring some outstanding ones which nobody here can point out.

Suffice to say, skipping these policies would not matter much if you split your investment into BTIR bonds+ETF.

I see those who are supporting BTIR have significant amount of $ for investments and are financially savvy, BTIR is nothing to them.

That time I asked on another thread, no one answered me when I asked who invest solely in ETF for their BTIR strategy

The truth is, those who advocate BTIR also have the capital to engage in other investing activities and not just the solely "put yr money in ETFs on monthly basis" which many of you guys are saying when talking about BTIR

 

[Shion]

if this is the case, im past 2 year already leh

I think will have some money. Mine the other time they did write some surrender value after Year 2. I mean, re-look at your policy, or make a call to Prudential. They can check for you actually if you are unsure.

 

[Tooi Kono Machi De]

Now I really think of cancelling le... But I was paying close to 300 per month.. Cancel I lose like 6.5k lolz

 

[Shion]

Wa..you jitao cancel ar? But its difficult to make back 3k ma isnt it

maybe he thinks he will lose much more than $3k if he continued on with the plan loh..

1 month save $500, 6 months 3k liao...

Knowing what I have bought and how the agent misled me into this made me just cancel it.

lol, I only know if pay less than 5 years, the surrender value is almost negligible that can even not care about it, unless the plan was like 1k per month

Quite little in terms of total premiums paid to date. Its like total paid to date $5k but guaranteed surrender value at $1k $2k.

Now I really think of cancelling le... But I was paying close to 300 per month.. Cancel I lose like 6.5k lolz

Hmm...If is me, I will swallow the losses and learn an expensive lesson.

 

[squid93]

How do you surrender??

Sent from Samsung SAMSUNG GALAXY S5 using GAGT

 

[Shion]

How do you surrender??

Sent from Samsung SAMSUNG GALAXY S5 using GAGT

1) Call agent say you don't want to continue the policy
2) Go straight to their office and cancel

 

[Takagi]

if u wanna surrender, surrender earlier is best, of cuz there will be losses.

 

[squid93]

1) Call agent say you don't want to continue the policy
2) Go straight to their office and cancel

alright thanks.
really, like no point continuing this plan.