Need help with PruSave surrender

[lifeishard]

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.

like what juniorlion said...par fund returns has nothing to do with actual returns of the policy. Don't let agents or the insurance companies smoke you...i only buy NTUC/tokio marine PAR products...for term policies i am open to any companies which provides the lowest cost.

 

[Zenest]

like what juniorlion said...par fund returns has nothing to do with actual returns of the policy.

I can understand it is not in exact proportion to actual returns of policyholders due to the smoothing process by insurer to policyholders returns.

I can understand Par fund returns are to insurer and policyholders have their respective policy ROI, but my impression is this ROI is closely linked to the insurer par fund returns.

You mentioned "par funds returns has nothing to do with actual returns of the policy"?
Pls do share, what does?

I'm open to learn.

 

[JuniorLion]

For the 3rd time I am asking you Zenest, are you a Prudential insurance agent?

 

[cheongking888]

Let me show you my two similar policies, i.e. Prucash and Income Revosave. Both at sum insured $40k and accumulated coupons.

Prusave - inception 1999, maturing 2020, yearly premium $3744, paid 20 years premium $74880, surrendered value now at $71272. Left one to go and still hadn't broken even.

Income Revosave - inception 2007, maturing 2027, yearly premium $3296, paid 12 years premium $39552, surrendered value $42800. Only 12 years now breaks even.

Tell me which one benefited policy holder?

 

[Geeezz]

Let me show you my two similar policies, i.e. Prucash and Income Revosave. Both at sum insured $40k and accumulated coupons.

Prusave - inception 1999, maturing 2020, yearly premium $3744, paid 20 years premium $74880, surrendered value now at $71272. Left one to go and still hadn't broken even.

Income Revosave - inception 2007, maturing 2027, yearly premium $3296, paid 12 years premium $39552, surrendered value $42800. Only 12 years now breaks even.

Tell me which one benefited policy holder?

fwah sho much diff what's the total maturity value as of nao fr both? income generally hv higher returns fr their endowments?

 

[Mecisteus]

For the 3rd time I am asking you Zenest, are you a Prudential insurance agent?

I read his past posts.

He is a Prudential agent.

 

[Zenest]

For the 3rd time I am asking you Zenest, are you a Prudential insurance agent?

Thank you for your query but I must respectfully decline to disclose my personal information.

The posts I make are solely of my personal opinion and does not reflect the views of any company or organization.

I’ve benefited from the info shared so generously in this forum.
I’m no expert but hope to contribute what I think I know as well.

If your views differ from mine, pls do share them.
I’m a ready student.

 

[Zenest]

Let me show you my two similar policies, i.e. Prucash and Income Revosave. Both at sum insured $40k and accumulated coupons.

Prusave - inception 1999, maturing 2020, yearly premium $3744, paid 20 years premium $74880, surrendered value now at $71272. Left one to go and still hadn't broken even.

Income Revosave - inception 2007, maturing 2027, yearly premium $3296, paid 12 years premium $39552, surrendered value $42800. Only 12 years now breaks even.

Tell me which one benefited policy holder?

Just to clarify, is it a PruCash or PruSave plan?

 

[JuniorLion]

I read his past posts.

He is a Prudential agent.

I know. His post reeks of vested interests.

 

[cheongking888]

Just to clarify, is it a PruCash or PruSave plan?

Prucash. I also have Prusave.

People will ask. Why so stupid to continue my Prucash? I continue in the hope that I could get back all my premium which I have paid.

But each year, I was disappointed. I seriously think that I won't get back.

Any way, I have not added any new Prudential policy since 2002.

I have AIA life, HSBC life. All cannot make it. AIA and HSBC both now 18 and 19 years. No loan taken. Haven't broken even.

Whereas my 7 Income life, they broke even between 12 to 15 years. My oldest Income life is now in its 32 years enjoying about 5% compound interest.

My newest Income life is now 13 (broke even at 12) enjoying 0.5% compound interest.

My oldest Prulife are now 25 and 27 enjoying 2.8% and 3.3% respectively.

 

[cheongking888]

fwah sho much diff what's the total maturity value as of nao fr both? income generally hv higher returns fr their endowments?

I also don't know.

As a layman, to me break even point is very important.

It helps me to gauge which insurers give better return faster.

 

[tangent314]

Let me show you my two similar policies, i.e. Prucash and Income Revosave. Both at sum insured $40k and accumulated coupons.

Prusave - inception 1999, maturing 2020, yearly premium $3744, paid 20 years premium $74880, surrendered value now at $71272. Left one to go and still hadn't broken even.

This plan with surrender value $71k, is it PruCash not PruSave?
If PruCash, have you been taking out the regular cash benefits?

 

[Mecisteus]

This plan with surrender value $71k, is it PruCash not PruSave?
If PruCash, have you been taking out the regular cash benefits?

He already said accumulated coupons.

 

[Mecisteus]

Prucash. I also have Prusave.

People will ask. Why so stupid to continue my Prucash? I continue in the hope that I could get back all my premium which I have paid.

But each year, I was disappointed. I seriously think that I won't get back.

Any way, I have not added any new Prudential policy since 2002.

I have AIA life, HSBC life. All cannot make it. AIA and HSBC both now 18 and 19 years. No loan taken. Haven't broken even.

Whereas my 7 Income life, they broke even between 12 to 15 years. My oldest Income life is now in its 32 years enjoying about 5% compound interest.

My newest Income life is now 13 (broke even at 12) enjoying 0.5% compound interest.

My oldest Prulife are now 25 and 27 enjoying 2.8% and 3.3% respectively.

wah you really collect a lot of participating policies.

I terminated my Prucash after a few years and I never look back after that.

Now I am still holding 1 HSBC policy which is already 13 years. I think I have not break even yet.

NTUC may give better returns in the past but the performance may not repeat again in the future.

But I think among all the participating policies, you can trust the NTUC, TM or GE ones. This is just my opinion.

 

[tangent314]

That's pretty bad then. Unless there's a really substantial backloaded bonus which is actually quite common for these kind of plans.

As I always like to say, we really need to see the full BI to make a judgement.

 

[littleredboy]

Hopping in here.
I've recently started my investment journey, and after some consideration, I am going to surrender my Pruwealth of 3 years, crossing over to May 2019. 3.25% non-guaranteed is just...zzz..

The surrender value is about half of my paid premiums (monthly). There is an accumulated Reversionary Bonus. Will I get this sum if I surrender my policy?

 

[tangent314]

Hopping in here.
I've recently started my investment journey, and after some consideration, I am going to surrender my Pruwealth of 3 years, crossing over to May 2019. 3.25% non-guaranteed is just...zzz..

The surrender value is about half of my paid premiums (monthly). There is an accumulated Reversionary Bonus. Will I get this sum if I surrender my policy?

No, the surrender value is inclusive of all bonus.
If you like, you can post your BI here we can check for you if it's worth keeping the plan

 

[soneat]

For participating policies, besides the PAR fund returns, the plan itself (guaranteed component vs non-guaranteed components), the insurer's ethics matters.

I have policies from the following insurers and request for updated BI regularly (every 4-5 years).
1. AIA - Very bad, 3 huge cuts over the years. 20+ years policies
2. Income - Older (20+ years) exceeded initial BI. Newer ones meet the initial BI.
3. GE - 10+ year. Meet and exceeded (there was a one-time additional bonus last year) initial BI.
4. Tokio Marine - Relatively new polices (Ard 5 years). So far meet initial BI.

 

[talkonly]

Their past 10 years performance was slightly more than 3.25% so still quite ok. But problem is your actual annualised return to your portfolio is roughly ~1.5% because of their cost of manpower building water electricity etc. Look at table of deductions for more info.

Hopping in here.
I've recently started my investment journey, and after some consideration, I am going to surrender my Pruwealth of 3 years, crossing over to May 2019. 3.25% non-guaranteed is just...zzz..

The surrender value is about half of my paid premiums (monthly). There is an accumulated Reversionary Bonus. Will I get this sum if I surrender my policy?

 

[Mecisteus]

Hopping in here.
I've recently started my investment journey, and after some consideration, I am going to surrender my Pruwealth of 3 years, crossing over to May 2019. 3.25% non-guaranteed is just...zzz..

The surrender value is about half of my paid premiums (monthly). There is an accumulated Reversionary Bonus. Will I get this sum if I surrender my policy?

Reversionary bonus is an annual bonus that increases the guaranteed benefits of the policy. Once added, a reversionary bonus cannot be reduced or removed unless you surrender the policy before it matures. Performance bonus is paid upon the death or disability of the life assured or when the policy matures.

Now you are going to year 3 only?

If I were you, I will just surrender it. You are still in the beginning of a very long long term policy.