Need help with PruSave surrender

[lifeishard]

Some of you are not so smart.

If you don't try, you get 0. If you try, you may get something.

Even dollarandsense does not mention ALL insurers will not refund. So there is still a chance of refund for some policies.

https://dollarsandsense.sg/everything-you-need-to-know-insurance-premiums/
# 3 Refund After Termination

Most insurers would not refund your paid premiums so you might run the risk of losing your paid premiums after making annual payments (or even single premium) if you terminate your policy later on. As such, it is important that you are 100% sure that you need this policy before committing to an annual payment.

haha, he should not even post his question. Just call and ask Prudential lor.

 

[SBC]

I have 2 Prulife, 2 Prucash and 1 Prusave.

To be honest, I should have bought NTUC policies instead.

Prudential policies all cannot make it. Low interest, low bonus, low return.

I had surrendered a Prudential ILP about 8-10 years ago.
Still made another mistake to get a PruSave. Still need to service this for another 8 years. Some more, is quite ex policy. 1k a month.

Also holding 2 NTUC life. Ntuc is definitely a better coy.

 

[Mecisteus]

haha, he should not even post his question. Just call and ask Prudential lor.

Yeah if everyone is rational as that, there will be less threads in the forum.

 

[JuniorLion]

May I congratulate you for holding Pru policies for the better average returns over a longer term.
(ref link here: - https://forums.hardwarezone.com.sg/120307322-post405.html )
-

High PAR fund returns does not imply high policy returns.

Are you a Prudential insurance agent?

 

[Mr. Wood]

High PAR fund returns does not imply high policy returns.

+1 for hardtruths
seldom when insurance make money they will declare more bonuses

 

[Nofear40]

I had surrendered a Prudential ILP about 8-10 years ago.
Still made another mistake to get a PruSave. Still need to service this for another 8 years. Some more, is quite ex policy. 1k a month.

Also holding 2 NTUC life. Ntuc is definitely a better coy.

Hi, what is your guaranteed and non-guaranteed returns on prusave? Thanks

 

[Zenest]

High PAR fund returns does not imply high policy returns.

For discussion;
Assuming Policyholder bought policy based on benefit illustration of projected par fund returns of 4.75%p.a on 12yr maturity starting 2006.

Based on chart, Pru 12yr average returns is 5.13% p.a. whereas NTUC is 4.72%p.a.

At maturity, Pru would have at least provided policyholder the projected amount on benefit illustration based on 4.75%, because Pru over-achieved projection.

Whereas NTUC would likely provide less due to lower than projected par fund returns.

Is the above assumption fair?

Considering 2006-2018 average returns with a financial crisis in 2008, Pru and AIA has been consistent in outperforming their peers in par fund returns.

Based on these stats, is it fair to say that, in event that the industry under achieve par fund returns projection, there is a higher probability of both Pru and AIA delivering better returns than other insurers?

 

[justwakeup]

Assuming Policyholder bought policy based on benefit illustration of projected par fund returns of 4.75%p.a on 12yr maturity starting 2006.

Based on chart, Pru 12yr average returns is 5.13% p.a. whereas NTUC is 4.72%p.a.

At maturity, Pru would have at least provided policyholder the projected amount on benefit illustration based on 4.75%, because Pru over-achieved projection.

Whereas NTUC would likely provide less due to lower than projected par fund returns.

Is the above assumption fair?

Considering 2006-2018 average returns with a financial crisis in 2008, Pru and AIA has been consistent in outperforming their peers in par fund returns.

Based on these stats, is it fair to say that, in event that the industry under achieve par fund returns projection, there is a higher probability of both Pru and AIA delivering better returns than other insurers?

“Past Performance Is No Guarantee of Future Results”

 

[Zenest]

“Past Performance Is No Guarantee of Future Results”

Yes, I saw this statement coming. That is why I underlined "higher probability".

 

[SBC]

Hi, what is your guaranteed and non-guaranteed returns on prusave? Thanks

Started PruSave in June 2012. Paying $1005 per month.

Surrender value at $35,058 of which $9009 is guaranteed.
I am withdrawing the yearly bonus. Quite siong to maintain this policy.

Need to maintain this policy for another 8 years.

 

[maple96]

For discussion;
Assuming Policyholder bought policy based on benefit illustration of projected par fund returns of 4.75%p.a on 12yr maturity starting 2006.

Based on chart, Pru 12yr average returns is 5.13% p.a. whereas NTUC is 4.72%p.a.

At maturity, Pru would have at least provided policyholder the projected amount on benefit illustration based on 4.75%, because Pru over-achieved projection.

Whereas NTUC would likely provide less due to lower than projected par fund returns.

Is the above assumption fair?

Considering 2006-2018 average returns with a financial crisis in 2008, Pru and AIA has been consistent in outperforming their peers in par fund returns.

Based on these stats, is it fair to say that, in event that the industry under achieve par fund returns projection, there is a higher probability of both Pru and AIA delivering better returns than other insurers?

I have never looked/compare Par Fund performance in the past nor use it to decide which insurer I should buy WL or endowment policies from.

My guess, maybe many people do that, that's why most are holding Pru or AIA policies and kena "burnt" somehow?

Is that the correct way to review/decide whether u shld buy an endowment policy from the insurer? Time to learn from past mistakes?

Just food for thought!

(maybe one reason a thread on par fund performance was started )

 

[Mecisteus]

Why not share the actual returns of those maturing policies?

 

[maple96]

https://forums.hardwarezone.com.sg/money-mind-210/insurers-par-fund-cagr-fy2008-onwards-5430385.html

 

[JuniorLion]

For discussion;
Assuming Policyholder bought policy based on benefit illustration of projected par fund returns of 4.75%p.a on 12yr maturity starting 2006.

Based on chart, Pru 12yr average returns is 5.13% p.a. whereas NTUC is 4.72%p.a.

At maturity, Pru would have at least provided policyholder the projected amount on benefit illustration based on 4.75%, because Pru over-achieved projection.

Whereas NTUC would likely provide less due to lower than projected par fund returns.

Is the above assumption fair?

Considering 2006-2018 average returns with a financial crisis in 2008, Pru and AIA has been consistent in outperforming their peers in par fund returns.

Based on these stats, is it fair to say that, in event that the industry under achieve par fund returns projection, there is a higher probability of both Pru and AIA delivering better returns than other insurers?

The discussion is only valid based on XIRR calculation. Not based on theory.

 

[Mr. Wood]

Why not share the actual returns of those maturing policies?

totally agree.
actual returns makes more sense to policy holders.

 

[justwakeup]

totally agree.
actual returns makes more sense to policy holders.

Many people kena burnt then understand this (incl me). But even more people kena burn liao still don’t understand

 

[Zenest]

Why not share the actual returns of those maturing policies?

totally agree.
actual returns makes more sense to policy holders.

Different par fund pool, over different periods with policy maturing with different policy and premium term... i would think it's difficult to have an apple-to-apple comparison just by using a maturity value of any particular policy.

That said, I have no intention of stepping on anybody's toes here.

Was just sharing info with the edmwer who mentioned he regretted buying Pru par plans due low returns.
It was in hope that he doesn't surrender them for the wrong reasons.

I've learnt alot from the info you guys shared as well.

Cheers & Peace.

 

[Shion]

I have never looked/compare Par Fund performance in the past nor use it to decide which insurer I should buy WL or endowment policies from.

My guess, maybe many people do that, that's why most are holding Pru or AIA policies and kena "burnt" somehow?

Is that the correct way to review/decide whether u shld buy an endowment policy from the insurer? Time to learn from past mistakes?

Just food for thought!

(maybe one reason a thread on par fund performance was started )

I have added in 2 more lines in my opening post of that thread

 

[JuniorLion]

Different par fund pool, over different periods with policy maturing with different policy and premium term... i would think it's difficult to have an apple-to-apple comparison just by using a maturity value of any particular policy.

That said, I have no intention of stepping on anybody's toes here.

Was just sharing info with the edmwer who mentioned he regretted buying Pru par plans due low returns.
It was in hope that he doesn't surrender them for the wrong reasons.

I've learnt alot from the info you guys shared as well.

Cheers & Peace.

Pretty sure you are an insurance agent.

 

[tangent314]

PruSave was okay back when self investing wasn't so easy. In the end, it's basically a RSP plan where the agent and the insurance company eats up your first 1-2 years of premium and then the rest of it builds up to around 4% IRR if the PAR fund performs at the advertised 4.75%

These days you can easily self invest into a portfolio similar to what the PAR fund invests in at much lower cost. If your funds perform at 4.75% you get the full 4.75%. You don't have to lose the first 1-2 years of your premiums. If you go for ETFs, the fund's internal management fees are much lower too.