Need some advice for PRUflexicash

[lifeishard]

isn't rsp=endowment plan? which bank has regular savings plan without any insurance at all in sg market now? please share.

 

[lukaloo]

i do agree. nowaday alot of bankers are very aggresive and misleading. I was proposed similar product in DBS before. The RM told me just save for 2 years, then can take out the money, and can earn 3%, and they said since i save 2k a month, can transfer 1k into this account. Worst than your case, they dun even mention how long i need to save until i ask.

I think MAS should start stritcter regulation on bankers alr. Its sad to see so many uncle auntie still falls into this. I met some RM with business or Econ degree, who i think has less financial knowledge than a lot of layman.

 

[royaloyalz]

Alright so I went down to the bank with my parents and we cancelled the policy.

We didn't sign any additional documents, but the banker assured us that he would cancel it for us.

He admitted to re-packaging the policy to us when he was explaining it, but he says that the facts that he provided were true.

In any case, for PRUflexicash, the guaranteed sum assured is not equal to the amount of premium paid, it is in fact lower. However, when I asked him about this, he said that since we were signing up for this policy through UOB, UOB will guarantee our premiums paid, so the least amount we will get back is the total premium paid. Which is also why the bank classified it as a no risk product. This is something new to me. Is this true?

If it were actually true, then this plan may appeal to people who are conservative, though I am sure there are probably better deals out there. In the end, BTIR should be the way to go, but does everyone have the time or is willing to make the effort to learn how to do it properly? Guess it is up to the individual.

Honestly, the PB appeared to be sincere and helpful to us, but in the end I think the only thing that we should trust is the black and white. Lesson learnt from this is to always read all documents carefully before signing up for anything.

 

[MrQuotes]

Wow, I didn't know UOB/Prudential is allowed make such guarantee?

If Prudential has got UOB's backing, then they can clearly states it in the benefits illustration that the guaranteed amount is the premium paid. (Backed by UOB) That would clearly make the plan more attractive.

Why didn't they do so? What about other customers that has bought it directly from Pru?

 

[XiaoZen]

layman here.. actually most endowment plan still beats FD interest rate.

 

[lifeishard]

what bull talk? uob guaranteed your premiums paid even though quotations didn't state anything? till now still misrepresent? i sibei hot liao...gimme his name and branch,i pretend buy and ask him write down his words and send to uob,prudential and mas!!!

 

[chopra]

layman here.. actually most endowment plan still beats FD interest rate.

layman, not apple to apple.
u should be AT LEAST BE using CPF SA, SGS bonds as a better form of comparison.

 

[royaloyalz]

what bull talk? uob guaranteed your premiums paid even though quotations didn't state anything? till now still misrepresent? i sibei hot liao...gimme his name and branch,i pretend buy and ask him write down his words and send to uob,prudential and mas!!!

Thanks for the intentions, but when we went down to the bank today he didn't give us any problems with the cancellation. He also seemed pretty pale. I guess he knows what he did.

In any case, my parents have decided to give him a second chance, especially since he is still relatively young. I do understand that he may go on to misrepresent this product to other people, but hopefully my case will remind him that not everything will always go his way, and that he will wake up his idea.

As mentioned, I hope this brings more awareness to people, to do some research about any products that they intend to buy, regardless of whether it is something like insurance or even something like household appliances. It always pays off to be in the know.

 

[Pika mianbao]

Thanks for the intentions, but when we went down to the bank today he didn't give us any problems with the cancellation. He also seemed pretty pale. I guess he knows what he did.

In any case, my parents have decided to give him a second chance, especially since he is still relatively young. I do understand that he may go on to misrepresent this product to other people, but hopefully my case will remind him that not everything will always go his way, and that he will wake up his idea.

As mentioned, I hope this brings more awareness to people, to do some research about any products that they intend to buy, regardless of whether it is something like insurance or even something like household appliances. It always pays off to be in the know.

TS I support your actions... I always believe in karma, we don't have to repay evil with evil. ppl nowsday lacking kindness...

 

[lifeishard]

TS I support your actions... I always believe in karma, we don't have to repay evil with evil. ppl nowsday lacking kindness...

hellooo,that guy still misrepresenting on the day ts went to cancel policy by claiming uob would guaranteed min returns of premiums paid,this type of sales no need a wake up call?

i hope you will still be so kind when one day you realised your parents has been mis-sold by him. i wonder if you are kind enough not to slap me back after i slap you...

 

[Rmondo]

PBs in banks don't earn direct commissions like the usual direct agents if I am not wrong. They earn it indirectly when they hit their sales targets.

Anyway just to sidetrack a little, TS you mentioned you would rather BTIR instead of buying an endowment like this. Well I think to clear up any misconceptions you might have [guys please correct me or feel free to add on if I am wrong], endowment plans aren't exactly bought for the protection coverage.

Or rather that's not really the main objective. The added on protection coverage are really just sweeteners thrown in by insurers. The main objective is still geared towards savings, but from what I understand insurers are not allowed to offer "pure" savings plan hence whatever funky stuff they offer, be it savings or investments, it is always lumped with some form of protection.

Endowment plans have their own target group, people who are more conservative but not totally risk adverse and looking to park some cash with higher rates as opposed to leaving it in a savings account in the bank and seeing it burn. E.g Typically parents buy endowments in anticipation of uni fees, etc

BTIR is structured towards the objective of protection or self insurance in a sense.

I am writing just in case you are wandering into the grey area and mixing up the two. I might be wrong of course!

Note: I am not a sales rep from anywhere and BTIR is a great strategy imo when it comes to looking at life insurance for the disciplined.

 

[bibu00]

Help on Pruflexicash plan

Hi guys, my parents bought the pruflexicash plan for me since 2011 while i was just a poly kia. Now im financially independent and they expect me to take over all my ins policy. I read up on this plan and realised it is not very well liked among people here. Can anyone who knows this plan well please answer my questions below. I dont really care about the insurance part of this policy because i believe im well protected by our SAF GTL insurance(bought the add-ons too). Im in on the "disciplined savings" part only.

1: On maturity, my total premium paid would be 71k++, my guaranteed value is only 54+k, non guaranteed value @25-34k assuming i do not take the cashback. Does it means there could be a chance i lose the non-guaranteed portion and make a loss in my savings?

2: is taking the cashback worth it? assuming i will be using the cashback in either POSB invest savers and SSB

3: what are the losses i will be incurring if i want to reduce my monthly premium?

Once again i emphasise i dont really care about the insurance portion of this policy, only the savings part. I do not really understand the policy and i believe its not as simple as just savings plan with interest after reviews on this forum. i would like to here independent views on this and prefer not to approach pruagents or bankers.

Thanks in advanced.

 

[NiteX2]

Since it has already been running for 4 years now, I would suggest that you continue on it and just see it as your second bank account. Non-guaranteed value of 20+k comprises of both the interest earned (currently 3%) on the cashbacks that you didn't take out and also the yearly bonuses that Prudential declares.

You might want to either send me the benefit illustration of the plan or just post it here. The total returns you get should be more than the premiums you put in, but from what you said, it seems like you will only get back the same as what you put in even by not taking out the cashback.

 

[bibu00]

Since it has already been running for 4 years now, I would suggest that you continue on it and just see it as your second bank account. Non-guaranteed value of 20+k comprises of both the interest earned (currently 3%) on the cashbacks that you didn't take out and also the yearly bonuses that Prudential declares.

You might want to either send me the benefit illustration of the plan or just post it here. The total returns you get should be more than the premiums you put in, but from what you said, it seems like you will only get back the same as what you put in even by not taking out the cashback.

Thanks for your advice ah, but which part of my post did i imply did, or how did you come to this conclusion? (honest question, im not trying to question your expertise)

 

[berieng]

What is the surrender value now? How much have u/ur parents invested? How much loss incurred?

 

[blurpandasg2014]

Do u have a copy of ur bonus declaration? Compare it with ur benefit illustration (surrender value), has pru declared the 4.75% valvalue

From there u know what to expect. And i am also curious if you are getting the 4.75%. Do let me know

 

[bibu00]

we have paid a total of around 19k. I have never received bonus declaration(or rather i dont know what that is).
But my current policy value is around 12.9k, on the benefit illustration it is show it can be between 12.8k to 13k.

 

[NiteX2]

1: On maturity, my total premium paid would be 70k++, my guaranteed value is only 50+k, non guaranteed value @20+k assuming i do not take the cashback.

Thanks for your advice ah, but which part of my post did i imply did, or how did you come to this conclusion? (honest question, im not trying to question your expertise)

50+ + 20+ = 70k++ of premium paid? that's what you said

 

[bibu00]

50+ + 20+ = 70k++ of premium paid? that's what you said

Ohhh allow me to correct myself in the first post. sorry for the confusion

 

[NiteX2]

The figures look better now. I'm assuming that its a 15 year plan.
Yield wise, you should be able to work it out yourself based on the benefit illustration that you have. As the policy was purchased in 2011, it will be on the old projection of 5.25%.

Things to consider will be what will you do with the money if you take out the cashback or terminate the plan? Are you a spender or saver? If you are a spender by nature, then just see the plan as something that forces you to save every month so that you will still have savings years down the road even if you spend everything else