Is there anything wrong with this plan?

[XHolyNoobX]

Well I stumbled upon a "roadshow" while shopping at Tampines Giant and I came across...

4.75% guaranteed compounding interest over 25 years
Freedom to take out up to 60% of the invested amount (can only do this once per year, for a one year "block")
Minimum $100 per month, no maximum
$100k death coverage/total disability coverage for every $100 per month invested

What do you guys think about this plan?

-------------------

Update:

I actually cancelled the plan ASAP and got it refunded in full thanks to the generous advice from everyone here.

Agent was legit lying through his teeth and intentionally giving wrong information, nothing to do with my interpretation.

He would not share the benefits illustration and kept insisting it would only be given after signing the agreement/contract. Once I received the real document I immediately spotted 4.75% projected.

Good riddance to this and probably all worthless insurance plans.

 

[havetheveryfun]

Sounds like an ILP. The guaranteed interest is probably not guaranteed, just projected.

 

[knightdreamer]

Sounds like an ILP. The guaranteed interest is probably not guaranteed, just projected.

Ya see small print

 

[XHolyNoobX]

The guy insisted that it was guaranteed and would not change. Assuming that is true and the fine print does state so, what do you guys think about it?

 

[knightdreamer]

The guy insisted that it was guaranteed and would not change. Assuming that is true and the fine print does state so, what do you guys think about it?

Which company?? If is guaranteed sound good to me

 

[XHolyNoobX]

AIA...........

 

[Mecisteus]

take photo and post here.

 

[wts2013]

hahaha what u posts shows u dun understand enough about this plan and u are not sharing enough info about this, who can help u? hahaha

so AIA, what is the name of that plan, what type of plan is it, u dun know, how u expect people here to know, hahaha

 

[havetheveryfun]

The guy insisted that it was guaranteed and would not change. Assuming that is true and the fine print does state so, what do you guys think about it?

Why assume? Show us the fine print first then say, if not why waste time on an imaginary scenario.

Can't totally blame the guy though, some of them were brainwashed during their training to think its guaranteed. I had a friend who started out on selling insurance thinking it was guaranteed too. When he finally realized it wasn't, he quitted.

 

[Perisher]

Name the product then the people here can dissect it for you... There are always a catch.

Imagine you can borrow at 2-3% interest while churning out 4.75% and taking the spread... I did borrow millions for a guaranteed interest.

 

[anfielder]

Looks more like a savings plan than ILP. I seriously doubt the 4.75% is guaranteed. Even if AIA makes 4.75% on the funds, your return is less than that because of charges, fees etc. The insurance portion is not free.

 

[OngHuatHuat]

If only 4.75 % over 25 years, might as well just top up cpf special account for the 4 + 1 %

Well I stumbled upon a "roadshow" while shopping at Tampines Giant and I came across...

4.75% guaranteed compounding interest over 25 years
Freedom to take out up to 60% of the invested amount (can only do this once per year, for a one year "block")
Minimum $100 per month, no maximum
$100k death coverage/total disability coverage for every $100 per month invested

What do you guys think about this plan?

 

[frenchbriefs]

why must everything be over 25 years?can these insurance companies fack off??

they are treating u like a sucker,just like HDB making it seem pigeon holes are affordable by extending ur loan over 25 years,when in reality HDB is a scheme to suck hundreds of thousands of ur hard earned money and interest from ur cpf over the course of a lifetime.

 

[doody_]

If only 4.75 % over 25 years, might as well just top up cpf special account for the 4 + 1 %

If it is 4.75% fully guaranteed over 25 years, this is a phenomenal plan cos they are saying they can beat CPF SA interest of 4%. I would invest in it cos at least I have the option of withdrawing up to 60% of the amount every year, as compared to CPF which is locked in until retirement.

 

[01asdf]

If it is 4.75% fully guaranteed over 25 years, this is a phenomenal plan cos they are saying they can beat CPF SA interest of 4%. I would invest in it cos at least I have the option of withdrawing up to 60% of the amount every year, as compared to CPF which is locked in until retirement.

Not to mention the CPF floor rate of 4% is *not* guaranteed, and the +1% is only for the 1st 60k.

 

[streetguy28]

LOL. That agent gonna get DA if u were a mystery shopper.

3.25% to 4.75% is the standard illustration in the BI and is NOT guaranteed.

for investments, illustration is 4% and 8%. obviously non guaranteed.

 

[Shion]

Sounds like ILP mix with savings

 

[wahkao3]

guaranteed by who?

 

[wahkao3]

LOL. That agent gonna get DA if u were a mystery shopper.

3.25% to 4.75% is the standard illustration in the BI and is NOT guaranteed.

for investments, illustration is 4% and 8%. obviously non guaranteed.

reminds me of this

many many fine print



Walton land banking investment advertised 12%PA return,with fine print. What this fine print mean?

On the headline advertisement it says "Our Solid 30 year track record, 12% P.A" , then there is a small fine print to give details.

Anyone knows what this fine print means?

it looks really deceptive.

Internal rate of return
Who's internal rate of return? Walton's rate of return or the investor's rate of return.

Fully exited projects
What about those unexited projects that got stuck!? OMG

Unaudited
Means just believe what I say. No 3rd party come in to inspect my books

Syndication value
"Syndication value" WTF is "syndication value" I bet its some really low value. Perhaps the cost price at which Walton bought the land?

Exit offer value
Its probably some gross high numbers.
Is there any additional deduction on top of the exit offer value? Taxes? management fees? sales charges? marketing costs?

Anticipated closing date
projected closing date? What if projections are missed?

Past performance is not necessarily indicative of future results
Fine, I can take this clause

 

[frenchbriefs]

If it is 4.75% fully guaranteed over 25 years, this is a phenomenal plan cos they are saying they can beat CPF SA interest of 4%. I would invest in it cos at least I have the option of withdrawing up to 60% of the amount every year, as compared to CPF which is locked in until retirement.

yes very nice if 4.75 percent is guaranteed,that would make it a triple A grade bond,even better than singtel stock with the cash reserves of apple INC.