Help with reading insurance benefit plan.

[ronald000]

Hi there

Wondering if a kind soul can help to break this down to me? I did try to find online esp on terms such as non-guaranteed surrender value, effects of deduction etc. Can't seem to grasp how much will the value be after 15 years? Less commission etc.

Image: imgur.com/a/Cd0LEWn

 

[tangent314]

This looks like an ILP, and it's yet another illustration of how horrible ILPs are. It barely breaks even if the funds perform at 4%, and that's quite WTF.

Being an ILP there is no guaranteed value. The value depends on the performance of the funds you have chosen, and the BI illustrates what this value will be for 4% and 8% performance.

ILPs are some of the worst insurance products to buy. Fortunately they are pretty easy to get out of with minimal downsides, unlike whole life or endowment plans that backload the bonuses. Get out of it ASAP, then reevaluate whether you need life insurance, in which case you should purchase term life insurance. If you are looking for long term investment, head over to the Shiny Things thread to read about our preferred methods for self-investing at low costs.

 

[boredboiboi]

Hi there

Wondering if a kind soul can help to break this down to me? I did try to find online esp on terms such as non-guaranteed surrender value, effects of deduction etc. Can't seem to grasp how much will the value be after 15 years? Less commission etc.

Image: imgur.com/a/Cd0LEWn

What the name of the plan?

 

[ronald000]

This looks like an ILP, and it's yet another illustration of how horrible ILPs are. It barely breaks even if the funds perform at 4%, and that's quite WTF.

Being an ILP there is no guaranteed value. The value depends on the performance of the funds you have chosen, and the BI illustrates what this value will be for 4% and 8% performance.

ILPs are some of the worst insurance products to buy. Fortunately they are pretty easy to get out of with minimal downsides, unlike whole life or endowment plans that backload the bonuses. Get out of it ASAP, then reevaluate whether you need life insurance, in which case you should purchase term life insurance. If you are looking for long term investment, head over to the Shiny Things thread to read about our preferred methods for self-investing at low costs.

Hey, thanks. Yea, as I was reviewing, it seems like it is not worth it. Wonder why he event attempts to sell this...

 

[ronald000]

What the name of the plan?

AXA Polaris

 

[boredboiboi]

The break even was very late is due to surrender charges during the premium or so calculation lock down thus the breakeven is very long, but if u were to look at the account value pages and not surrender page then you would see different values. Plus u also have riders for your protection that eats up some of your money as well. Not a fan of this plan as i not able to take dividend unlike some other ilp where i can take dividend as and when i like.

 

[ronald000]

The break even was very late is due to surrender charges during the premium or so calculation lock down thus the breakeven is very long, but if u were to look at the account value pages and not surrender page then you would see different values. Plus u also have riders for your protection that eats up some of your money as well. Not a fan of this plan as i not able to take dividend unlike some other ilp where i can take dividend as and when i like.

Hi,

Thanks. Below is the BI.

imgur.com/a/Cd0LEWn

It's a 15-year term.
So to see how much I will get at the end, I can for eg look at the 20th year term right?
Do I look at the 4% or 8% surrender value?
And do I deduct the effect of deductions? Or is the non-guaranteed value printed alr takes the deductions into account?

Bought this about 5 years ago, and I was just reading my folders.
Seems like I've made a poor investment choice. :/

 

[moejoseph]

AXA Polaris is an old product.

You should now look at the funds' performance, not on the BI, to see if the fund you entered are performing well.

Some funds from 5 years ago, are performing between 10% - 30%. So if u have entered into a good fund previously, then your returns are now a lot higher.

Go and check your account value with your agent before making any decisions.

https://www.interestguru.sg/axa-polaris-review/

 

[boredboiboi]

Hi,

Thanks. Below is the BI.

imgur.com/a/Cd0LEWn

It's a 15-year term.
So to see how much I will get at the end, I can for eg look at the 20th year term right?
Do I look at the 4% or 8% surrender value?
And do I deduct the effect of deductions? Or is the non-guaranteed value printed alr takes the deductions into account?

Bought this about 5 years ago, and I was just reading my folders.
Seems like I've made a poor investment choice. :/

4% and 8% is just for illustration. Your fund might be performing at 6% or 10%. To get the value, its better to ask your agent but i go find the product summary and read, its very hard to earn unless your fund perform more than 8% as i see the charges quite high plus coverage. I wouldnt say u make wrong choice, i would say u made right choice but wrong plan. If is me i would get a proper coverage plan and cancel this plan, for investment there are so many way better option in my opinion.

 

[ronald000]

4% and 8% is just for illustration. Your fund might be performing at 6% or 10%. To get the value, its better to ask your agent but i go find the product summary and read, its very hard to earn unless your fund perform more than 8% as i see the charges quite high plus coverage. I wouldnt say u make wrong choice, i would say u made right choice but wrong plan. If is me i would get a proper coverage plan and cancel this plan, for investment there are so many way better option in my opinion.

Thanks!

Just checked and my account value is ~ SGD 8,200. (Is this value typically AFTER all the acct mgmt charges?)
Premium (accumulated) so far is SGD 9,000.

100% of premium invested on TEMPLETON SHARIAH GLOBAL EQUITY FUND (SG).
I referred to this website for fund performance:
secure.fundsupermart.com/fsm/funds/factsheet/FTF138/

Quite a no of metrics to measure performance (bid to bid, offer to bid etc).
Which one should I focus on?

 

[ronald000]

AXA Polaris is an old product.

You should now look at the funds' performance, not on the BI, to see if the fund you entered are performing well.

Some funds from 5 years ago, are performing between 10% - 30%. So if u have entered into a good fund previously, then your returns are now a lot higher.

Go and check your account value with your agent before making any decisions.

interestguru.sg/axa-polaris-review/

Yup, thanks for the suggestion. Just logged into MyAXA account. Got some figures in and included in another reply.

 

[moejoseph]

Thanks!

Just checked and my account value is ~ SGD 8,200.
Premium (accumulated) so far is SGD 9,000.

100% of premium invested on TEMPLETON SHARIAH GLOBAL EQUITY FUND (SG).
I referred to this website for fund performance:
secure.fundsupermart.com/fsm/funds/factsheet/FTF138/

Quite a no of metrics to measure performance (bid to bid, offer to bid etc).
Which one should I focus on?

Check out AXA Fund Price instead, it will be easier to see.

https://www.axa.com.sg/fund-prices/

The 5 year annualised performance set it at 6.87%, which is not bad.

Will suggest doing fund switch to diversify your portfolio, not 100% in one pot, and into other better performing funds as well

 

[boredboiboi]

Thanks!

Just checked and my account value is ~ SGD 8,200. (Is this value typically AFTER all the acct mgmt charges?)
Premium (accumulated) so far is SGD 9,000.

100% of premium invested on TEMPLETON SHARIAH GLOBAL EQUITY FUND (SG).
I referred to this website for fund performance:
secure.fundsupermart.com/fsm/funds/factsheet/FTF138/

Quite a no of metrics to measure performance (bid to bid, offer to bid etc).
Which one should I focus on?

Account value should be after all the charges. But charges could be monthly basis as well.

 

[tangent314]

Performance for that fund is HORRIBLE. According to the fact sheet https://secure.fundsupermart.com/fsm/admin/buy/factsheet/factsheetFTF138.pdf the annualized performance since 2013 inception is 3.21%, way below the benchmark of 7.60%.

$8200 should be your actual surrender value. Platform charges are automatically deducted from your holdings regularly and sales charges are deducted every time you make a premium payment. Also, your first year premiums is all eaten by by the insurer/agent, as can be see from your BI.

Again, I suggest canceling your ILP and looking for platforms where you can invest at much lower cost. If you really want to continue with Unit Trusts, there are platforms that can do it with 0 platform fees, 0 sales charge and 0 redemption charge. However, Unit Trusts mostly have high management fees, so we typically recommend purchasing ETFs instead which have much lower management fees and performance generally in line with benchmarks, but will have some small amount of trading fees.

The insurance agents in this thread will tell you that ILPs do provide value making the process of investing a lot easier, because self investing does require a bit of discipline to do regularly. This is mostly true, but some of the other platforms do provide 0 cost RSPs for UTs though, but ETF RSPs do tend to be quite a bit more expensive.