Need some advice for PRUflexicash

[Putatives]

Help on PruFlexi Cash Endowment Insurance.

Hi guys.

I have applied for this Pruflexi cash endowment insurance from Prudential.

Looking at the Benefit Illustration, the Guaranteed Maturity Value will be lesser than the Total Premiums Paid projected at 3.25%.

Total Yearly Premium : $3,665.69
Monthly Premium : $311.58
Guaranteed Cashback after 2nd policy year : $2,150

Total Premiums Paid : $89,722
Guaranteed Maturity Value at 3.25% : $51,600

Now my question, is it worth to keep this plan if I am certain that I won't be taking this cashback and just letting it rot until it matures to 25 years? Eventhough I know that the 3.25% isn't guaranteed?
I am a good saver of cash. I don't want to invest in stocks or bonds
[ High Risk ].

Thanks.

 

[Lewis.T]

Are you still on your free look? If so, cancel the plan if you are certain you won't be using the cashback. There are better plans that give higher growth but no cashback feature.

How long have you had this plan?

 

[Putatives]

I have this plan for 6 Months now. [ Free-Look period Over ].
Only decided to reduce the Monthly Premiums to $100 these past 2-3 months.

Regards.

 

[Shion]

Not again...

Anyway, this might be good...
http://forums.hardwarezone.com.sg/money-mind-210/[gpgt]-endowment-plan-values-question-5218527.html

Are you still on your free look? If so, cancel the plan if you are certain you won't be using the cashback. There are better plans that give higher growth but no cashback feature.

How long have you had this plan?

Hmm...Do you feel this plan not actually suitable for thread starter, especially when he did mention he is a good saver...?

 

[Lewis.T]

Not again...

Anyway, this might be good...
http://forums.hardwarezone.com.sg/money-mind-210/[gpgt]-endowment-plan-values-question-5218527.html



Hmm...Do you feel this plan not actually suitable for thread starter, especially when he did mention he is a good saver...?

Not falling for your trap. It's always situational. A good saver may also want to supplement a big ticket item with accumulated cashback.

Anyways, to the TS, why not consider something like the Singapore Savings Bonds as well? If your income allows. This is virtually a no-risk product but you have to open a CDP account.

May want to complement your long term endowments with shorter term stuff, and also open a bank account that gives you a high interest rate.

As for the plan itself, what was your original intention for it? Long term savings with flexibility to supplement big ticket items for example? Hard to judge if its good in your scenario if we have nothing to base it on.

 

[Putatives]

As for the plan itself, what was your original intention for it? Long term savings with flexibility to supplement big ticket items for example? Hard to judge if its good in your scenario if we have nothing to base it on.

Hi, my original intention for taking up this plan is for my money to grow in a way, instead of letting it rot in my DBS account. I know that the bank's interest rates aren't that great. And the 3% projected returns from PruFlexiCash isn't what it's all hyped up to be. Besides, the idea of investments and such scares me. Hence I took this plan.

Regards.

 

[Putatives]

Hi, mrclubbie thanks for this.

 

[havetheveryfun]

Hi, my original intention for taking up this plan is for my money to grow in a way, instead of letting it rot in my DBS account. I know that the bank's interest rates aren't that great. And the 3% projected returns from PruFlexiCash isn't what it's all hyped up to be. Besides, the idea of investments and such scares me. Hence I took this plan.

Regards.

if you can be scared of other and such investments.. shouldn't you be scared of this plan too ?

 

[Putatives]

if you can be scared of other and such investments.. shouldn't you be scared of this plan too ?

This is my first plan I bought. [ Age : 25 ]. I've been reading the forums and all the bad comments this bond has. But that's because the Insured usually withdraw their yearly cashbacks.

But for my case, I am never going to withdraw the cashbacks.
So I was wondering if the plan I bought is good not taking consideration in investments and bonds.

Regards.

 

[Shion]

You may wish to take a look at the long string of history of this topic being discussed over and over again...

 

[Putatives]

You may wish to take a look at the long string of history of this topic being discussed over and over again...

Yes, but the thing is I have a 5 figure digit total in my DBS Savings Plus account. And this is my only savings account. Like I have mentioned I don't spend much.

Now I am in a dilemma if this Pruflexicash is worth it, since I have no idea how the maturity + interest without yearly cashbacks 3% non guaranteed for 25 years pans out to be.

Regards.

 

[pcmdan]

Yes, but the thing is I have a 5 figure digit total in my DBS Savings Plus account. And this is my only savings account. Like I have mentioned I don't spend much.

Now I am in a dilemma if this Pruflexicash is worth it, since I have no idea how the maturity + interest without yearly cashbacks 3% non guaranteed for 25 years pans out to be.

Regards.

endowment is never a good product to invest your money in.

Projected returns are crap.

Please go see the amount of deduction. The guaranteed amount by insurance always outstrip the amount of premium u pay.

If insurance companies cant even guarantee u get back slightly more than what u put in. It only means u hold a even larger risk than putting in SGS bonds.

They will tell u, part of it goes to insurance... nothing but crap lah.. in actual facts it goes to the commission of the chiobu u bought from.

Hence u are taking a risk that, after 25 years u pay X amount of premiums but get back X-y.. the Y is your risk premium that u are paying.

 

[Darkzi0n]

U sound very risk averse and not willing to give stocks or other investment a go... Singapore saving bonds sound like exactly what u need.

 

[pcmdan]

U sound very risk averse and not willing to give stocks or other investment a go... Singapore saving bonds sound like exactly what u need.

totally agree.. Guaranteed returns. and definitely outstripe what insurance gives u

 

[pcmdan]

This is my first plan I bought. [ Age : 25 ]. I've been reading the forums and all the bad comments this bond has. But that's because the Insured usually withdraw their yearly cashbacks.

But for my case, I am never going to withdraw the cashbacks.
So I was wondering if the plan I bought is good not taking consideration in investments and bonds.

Regards.

u meant bonds or insurance plan?

 

[Shion]

U sound very risk averse and not willing to give stocks or other investment a go... Singapore saving bonds sound like exactly what u need.

I think STI ETF also not bad...

Anyway, I don't get why TS actually bought this plan for.

 

[Shion]

Yes, but the thing is I have a 5 figure digit total in my DBS Savings Plus account. And this is my only savings account. Like I have mentioned I don't spend much.

Now I am in a dilemma if this Pruflexicash is worth it, since I have no idea how the maturity + interest without yearly cashbacks 3% non guaranteed for 25 years pans out to be.

Regards.

This sounds similar to all the other PruFlexiCash threads.

But then since you can save, then such saving plans is not a necessity at all. Why pay for the extra distribution costs and other costs incurred by this savings plan ?

What did the insurance agent tell you when he was selling his product to you ?

 

[Putatives]

endowment is never a good product to invest your money in.

Projected returns are crap.

Please go see the amount of deduction. The guaranteed amount by insurance always outstrip the amount of premium u pay.

If insurance companies cant even guarantee u get back slightly more than what u put in. It only means u hold a even larger risk than putting in SGS bonds.

They will tell u, part of it goes to insurance... nothing but crap lah.. in actual facts it goes to the commission of the chiobu u bought from.

Hence u are taking a risk that, after 25 years u pay X amount of premiums but get back X-y.. the Y is your risk premium that u are paying.

Hi, let me put in a way I could visualize what you are saying.

Premiums paid for a month = $311.58
Premiums paid in a year = $3,738.96 [ Y ] [ My risk premium ]
Premiums paid for 25 years = $7,789.5 [ X ]

Regards.

 

[Putatives]

U sound very risk averse and not willing to give stocks or other investment a go... Singapore saving bonds sound like exactly what u need.

Yes, I am quite new to these subject. Insurance/Endowment/Bonds etc.
Trying to experience these first hand. I had a look at Singapore Savings Bonds. It is well suited for me, I will read up on this more.

Regards.

 

[Putatives]

I think STI ETF also not bad...

Anyway, I don't get why TS actually bought this plan for.

Your guess is as good as mine. The Insurance Agent told me about all these Maturity Bonus if I saved till my endowment plan matures. And I am being covered at the same time.

I applied for the Crisis Waiver III and Early Stage Crisis Waiver plans together with the PruFlexiCash.

Regards.

Sum assured for Early Stage Crisis Waiver: $308.32 @ $4.32/Month
Sum assured for Crisis Waiver III : $304.32 @ $2.19/Month.