Need some advice for PRUflexicash

[maumu]

I think 2% p.a. would be the minimum u would expect... it doesn't even beat inflation but at least is better than 0.05% from banks.

if people sign up with the mindset to save, then I think endowment plan isn't a bad thing. so far I have not come across a case where the matured value is less than premiums paid. also haven't come across one where it is less than 2%. I think 3% would be ideal? idk...

but I noticed that there is always a big jump (or bigger than usual increase) in the policy value during the last year of the policy. maybe it is meant as a 'loyalty bonus' or 'maturity bonus' for sticking with the company to the end?

but certainly if you cancel mid-way you stand to lose some of the premium, don't need to talk about any 'profit'. even my current life insurance (> 20 years paid already) still hasn't reach breakeven value yet.

 

[akwl88]

I think 2% p.a. would be the minimum u would expect... it doesn't even beat inflation but at least is better than 0.05% from banks.

if people sign up with the mindset to save, then I think endowment plan isn't a bad thing. so far I have not come across a case where the matured value is less than premiums paid. also haven't come across one where it is less than 2%. I think 3% would be ideal? idk...

but I noticed that there is always a big jump (or bigger than usual increase) in the policy value during the last year of the policy. maybe it is meant as a 'loyalty bonus' or 'maturity bonus' for sticking with the company to the end?

but certainly if you cancel mid-way you stand to lose some of the premium, don't need to talk about any 'profit'. even my current life insurance (> 20 years paid already) still hasn't reach breakeven value yet.

forced savings is a loose concept

 

[Shion]

But prior par fund performance does not necessary translate into future investment performance

Past 10 years the performance from their par fund have not reached pre-2008 figures iirc

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

 

[computers70]

But prior par fund performance does not necessary translate into future investment performance

Past 10 years the performance from their par fund have not reached pre-2008 figures iirc

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

Just treat these products as a form of diversification. Just buy one with a small amount, not too much.

 

[havetheveryfun]

I think 2% p.a. would be the minimum u would expect... it doesn't even beat inflation but at least is better than 0.05% from banks.

if people sign up with the mindset to save, then I think endowment plan isn't a bad thing. so far I have not come across a case where the matured value is less than premiums paid. also haven't come across one where it is less than 2%. I think 3% would be ideal? idk...

but I noticed that there is always a big jump (or bigger than usual increase) in the policy value during the last year of the policy. maybe it is meant as a 'loyalty bonus' or 'maturity bonus' for sticking with the company to the end?

but certainly if you cancel mid-way you stand to lose some of the premium, don't need to talk about any 'profit'. even my current life insurance (> 20 years paid already) still hasn't reach breakeven value yet.

haven't come across one where it less than 2 % ? really ? so many horror stories out there already

 

[anfielder]

haven't come across one where it less than 2 % ? really ? so many horror stories out there already

None of the horror stories held the policy to maturity right? If the policy is terminated early, of course there are hefty losses. The returns are skewed toward the later years.

 

[maumu]

haven't come across one where it less than 2 % ? really ? so many horror stories out there already

None of the horror stories held the policy to maturity right? If the policy is terminated early, of course there are hefty losses. The returns are skewed toward the later years.

yah, i'm talking about those that matured. where are the horror stories? can share?

those who terminated earlier (and hence lose part of premium, or did not get maximum matured value) aren't horror stories - they are already set for some kind of disappointment.

 

[akwl88]

3% return for an investment linked plan is very tokong?

Means our cpf rate jin satki?

 

[anfielder]

3% return for an investment linked plan is very tokong?

Means our cpf rate jin satki?

No it's terrible and i wouldn't advise anyone to sign up for such plans. But it's by no means a horror story either. ILP on the other hand is a real horror story.

 

[Shion]

No it's terrible and i wouldn't advise anyone to sign up for such plans. But it's by no means a horror story either. ILP on the other hand is a real horror story.

The underlying insurance charges and nice repackaging called premium holiday promoted by agents...

10+ years to breakeven, and as you go older the insurance charges increases...

 

[computers70]

The underlying insurance charges and nice repackaging called premium holiday promoted by agents...

10+ years to breakeven, and as you go older the insurance charges increases...

Hmm, 10+ to break even ?
Not easy man, generally takes much longer. Agents will never say such stuff. Usually promoting the extra 5% bonus units after 10 years.

 

[Shion]

Hmm, 10+ to break even ?
Not easy man, generally takes much longer. Agents will never say such stuff. Usually promoting the extra 5% bonus units after 10 years.

Usually how long to break even ?

My mother has one of such products for 10 years, now lingering near the breakeven point now (total premiums paid to date slightly higher than surrender value)

 

[Lewis.T]

Depends on which kind of ILP.

There are some that can break even in about 2-3 years, those are the ones that people usually use CPF OA for. Sales charge including commissions is under 5% of the premiums paid and no admin charges.

 

[akwl88]

Usually how long to break even ?

My mother has one of such products for 10 years, now lingering near the breakeven point now (total premiums paid to date slightly higher than surrender value)

nvr take into account inflation?

 

[computers70]

Usually how long to break even ?

My mother has one of such products for 10 years, now lingering near the breakeven point now (total premiums paid to date slightly higher than surrender value)

Hmm, tough to answer, as it depends on the funds and market condition.

 

[anfielder]

I looked at the revised BI of two of my plans.
25 year PruCash plan - breakeven is at year 20.
15 year PruFlexiCash plan - breakeven is at year 14 (LOL?!!)

Don't even go in unless you're pretty sure you can hold on to maturity. And even then.. why go there at all? AVOID.

 

[akwl88]

I looked at the revised BI of two of my plans.
25 year PruCash plan - breakeven is at year 20.
15 year PruFlexiCash plan - breakeven is at year 14 (LOL?!!)

Don't even go in unless you're pretty sure you can hold on to maturity. And even then.. why go there at all? AVOID.

Put inside posb alr profit after 1 yr?

 

[havetheveryfun]

I looked at the revised BI of two of my plans.
25 year PruCash plan - breakeven is at year 20.
15 year PruFlexiCash plan - breakeven is at year 14 (LOL?!!)

Don't even go in unless you're pretty sure you can hold on to maturity. And even then.. why go there at all? AVOID.

well this may not be considered as horror stories to some since u got back everything before the policy ended, but it is a horror story to me .

 

[anfielder]

well this may not be considered as horror stories to some since u got back everything before the policy ended, but it is a horror story to me .

I haven't got anything back yet. This is projected and there are still ~10 years to go. So yeah, another caveat is that break-even is not guaranteed.