Is there anything wrong with this plan?

[Darkzi0n]

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?

share leh. i wan to see how they play with loopholes such that the agents can use the word 'guaranteed' to scam old uncles and aunties.

Great eastern for example used to have an endowment plan which has annual cashback. if u choose to reinvest this cashback, u will receive a guaranteed interest on the RE-INVESTED amount.

 

[subprimelive]

Best to separate death tpd from investment. Avoid at all cost

 

[SBC]

Passed by Heartland Mall over last week. Saw AIA having a roadshow at the plaza. Jintao Siam all of them.

Personally, have a few policies with various coy, including AIA.
It's return is the worst.

AVOID AIA.

 

[doody_]

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

Exactly, even zheng hu dare not 100% guarantee CPF interest rates, they only keep extending this 4% floor for SMRA every time it expires. This allows them an escape route to decrease this floor in future if desperately needed.

 

[tiny]

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?

My aunt also said the agent insisted it was guaranteed. A few years later, the agent resigned to join another company. The contract didn't say is guaranteed.

 

[Perisher]

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.

Government should sign up this plan and then jiak the 0.25% or more spread... free $$... 25 years of free $$...

 

[infusionist]

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?

I believe this plan is called AIA SmartRewards Saver 25. 25 year savings plan. 5% GUARANTEED COUPON from 3rd year onwards. At the end of the policy, the 21-year plan will pay a guaranteed payout equal to 25% of your coverage amount while the 25-year plan will pay 5% of your coverage amount. You are guaranteed to receive at least 120% of the coverage amount over the life of the policy.

This agent most likely missold u. The guaranteed is the coupon of 5% of the Sum Assured. Usually they sell it as 5% guaranteed and customer catch the words of that only.

Not to mention the 45% commission for the plan (one of the highest other than their ilps)

Even at TM, no doubt we give 66 years straight uncut-bonus, we cant say its a Guaranteed 4.75% for 25 years lol

 

[Perisher]

I believe this plan is called AIA SmartRewards Saver 25. 25 year savings plan. 5% GUARANTEED COUPON from 3rd year onwards. At the end of the policy, the 21-year plan will pay a guaranteed payout equal to 25% of your coverage amount while the 25-year plan will pay 5% of your coverage amount. You are guaranteed to receive at least 120% of the coverage amount over the life of the policy.

This agent most likely missold u. The guaranteed is the coupon of 5% of the Sum Assured. Usually they sell it as 5% guaranteed and customer catch the words of that only.

Not to mention the 45% commission for the plan (one of the highest other than their ilps)

Even at TM, no doubt we give 66 years straight uncut-bonus, we cant say its a Guaranteed 4.75% for 25 years lol

The key thing to ask might be, is it CAGR of 4.75% guaranteed for the whole sum of premium paid over 25 years?

Unless one put a lump sum in at the start, they would have to made a huge pile of $$ to make up for the low front premium before eventually averaging out to 4.75% in the later years.

 

[XHolyNoobX]

I believe this plan is called AIA SmartRewards Saver 25. 25 year savings plan. 5% GUARANTEED COUPON from 3rd year onwards. At the end of the policy, the 21-year plan will pay a guaranteed payout equal to 25% of your coverage amount while the 25-year plan will pay 5% of your coverage amount. You are guaranteed to receive at least 120% of the coverage amount over the life of the policy.

This agent most likely missold u. The guaranteed is the coupon of 5% of the Sum Assured. Usually they sell it as 5% guaranteed and customer catch the words of that only.

Not to mention the 45% commission for the plan (one of the highest other than their ilps)

Even at TM, no doubt we give 66 years straight uncut-bonus, we cant say its a Guaranteed 4.75% for 25 years lol

Yeah you're right, it's that plan. The 5% coupon should be the amount you're able to withdraw out.

I'll go take a picture of the fine print later this evening when I meet the dude.

How do you know it's 45% commission? 45% of what exactly? The annual premium you're paying?

What does TM stand for?

 

[Mecisteus]

TM is Tokio Marine.

So there is nothing with this plan. The interpreters that are usually misunderstood.

 

[wahkao3]

someone pls pull out the contract

 

[akwl88]

Guranteed to pay off the agent's overseas holidays or luxury cars or condos

 

[koja6049]

The actual 4.75% is from the 3rd year onwards. The first 2 years premium is used to pay their commission. Prudential has a similar plan which offered 4.75%, but after my calculations the net CAGR is only 1.8%

But no harm attending their sales pitch. I have entertained one AIA sales agent and got a free powerbank. Just get their freebies and say no.

 

[ksyksyksy]

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?

Hey there,
It seems to be a Endowment Plan with flexibility to do withdrawals.
As for the 4.75%, usually if for plans like Endowment policies, there would be columns stating the Projected Returns (Non-Guaranteed), one showing at 3.25% and another at 4.75%. There isn't any Guaranteed stated.

So probably if you came across one, you can check the company's website.

 

[diediex]

Found this AIA smart rewards saver plan online. Can anyone enlighten how to read this surrender table? Ie. How much can the person get back if he surrender at the end of Yr 2, 10 and 25? Guaranteed and non-guaranteed.

Note: Guaranteed coupon of 1500 is paid every yr from end of yr 2 onward

 

[hwmook]

This one is like Prudential Prucash. Guaranteed 4.75% my foot. Only the cashback is guaranteed, nothing else.

 

[BBCWatcher]

For what it's worth, I never combine insurance with investing. I keep both simple and strictly separate. That approach has worked extremely well for me.

Simple term life insurance (required only if your premature passing would seriously impair the financial well being of dependents), simple disability/long-term care insurance, simple medical insurance. If it's complicated, you're probably getting ripped off.

 

[koreanlover]

The actual 4.75% is from the 3rd year onwards. The first 2 years premium is used to pay their commission. Prudential has a similar plan which offered 4.75%, but after my calculations the net CAGR is only 1.8%

But no harm attending their sales pitch. I have entertained one AIA sales agent and got a free powerbank. Just get their freebies and say no.

The powerbanks given by insurance companies don't seem to be very good.

 

[royalmix]

The powerbanks given by insurance companies don't seem to be very good.

what do u expect with freebies , just got a led bracelet watch yesterday, not yet open

 

[dolph001]

Found this AIA smart rewards saver plan online. Can anyone enlighten how to read this surrender table? Ie. How much can the person get back if he surrender at the end of Yr 2, 10 and 25? Guaranteed and non-guaranteed.

Note: Guaranteed coupon of 1500 is paid every yr from end of yr 2 onward

erm.. look at 3.25% projected.

at 25 years, you put in 60k in premiums, your guaranteed + non-guaranteed + investment is only 58k

Most insurance plans don't give you more than 3.25% actual returns.
Welcome to reality