Need some advice for PRUflexicash

Shion · Nov 8, 2015

No...Just that whether does it really suits you is the main thing...

bibu00 · Nov 8, 2015

Thats most important, any investment or saver want their money to stay as their money. They want their money to grow for them, not grow into someone else pocket.

havetheveryfun · Nov 8, 2015

Its very hard to tell whether this plan is suitable for anyone or not because there are too many different perspectives

benefits:
-forced savings
-based on track record at least 2-3% returns, some people got 5% or more, but remember that 10 years ago interest rate everywhere was also much higher
-hands free, fussle free

cons:
-forced savings, money stuck inside for 20 years
-capital put in not guaranteed, but based on track record at least 2-3% returns
-pay some fees for agent to buy BMW

bibu00 · Nov 8, 2015

I figured if i spent the $18k buying this (or whatever satki version you can get with 18k)

And put my money in, its at least guaranteed i get my savings at the end of the premium time.

Dont say market recession, maybe war/nuclear bomb cant burst my safe.

Starmerchandises · Dec 27, 2015

agree

Yup I do agree with masato4 that you should not take up plans based on free gifts. Free gifts may mislead people into getting a plan that do not meet their needs which is sometimes detrimental. For Pruflexi- it is still ok since the risk is low but it can sometimes be really bad if one signs up for a plan that involves high risk because of the free gifts and without fully understanding the plan. I'm a financial consultant as well and I don't believe in free gifts.

Perisher · Dec 27, 2015

8 Pruflexicash threads merged and here is number 9 which is closed
http://deluxeforums.hardwarezone.com.sg/money-mind-210/prudential-pruflexicash-5209236-5.html

And there are even more threads on it...

Conclusion: Pruflexicash is either a bad product or the agents selling it is bad or the company is bad. At the minimum, there is something seriously wrong for this product to generate so many threads on 1 single product. Avoid.

yyqx1128 · Jul 17, 2017

I need some advice as well

I am a University student. Have been in this plan for 10 months.
Monthly premium = $510

At maturity after 25 years,

Guaranteed = $91k
Non-guaranteed = $91k
Paid Premium = $141k

It seems that this plan is really horrible. I just hope that I can get back around $150k after 25 years and I am happy with it.
How likely do you think I can achieve that? Or should I just terminate the policy, and lose $6k?

Please advice!!! :s11:

akwl88 · Jul 17, 2017

lol uni student paying $510 monthly for endowment

really kenna chop carrot liao :s13:

you ownself see the figures then decide if u want to cont ba

if agent present to me these figures, i straight away can see it is a very lousy plan

pay 141k but guaranteed 91k??? :s22:

Asure7 · Jul 17, 2017

For a student, 25 years is really too long a commitment, but sadly many fall prey to this because it's a "savings" plan.
Don't forget your future commitments: car (maybe), house, marriage funds, kids etc...
Many things can happen in 25 years. Even if you think you won't get married with kids... you never know. You won't even know if your job/salary is secured tightly for the next 25 years.

At $510/month (~$6k/year), it's really too costly. Did you add many unnecessary riders?
I personally have an endowment plan that is "cheaper". After 15 years, total premium paid = 95k, with return of $100K guaranteed (after 17 years). No payment needed for the last 2 years.
Returns are not great, but I insisted on the guaranteed part (for kids education), and at least the guaranteed returns is more than total premiums paid.

Personally since you have only paid for less than 1 year, I would choose to tank it. Take it as a loss, but you saved future 24 years of premiums that can be used for better investment.
It's not an easy bullet to take unfortunately.
If you are rich though and think you are fine with paying such high premiums for the next 24 years (on top of other future commitments), look at the non-guaranteed portion... if it is projected at 3.75%, calculate yourself and make it 2% to see how the numbers look like. 1-2% is usually the return rate for non-guaranteed portion.

anfielder · Jul 17, 2017

So based on your paid premium amt, you pay premiums for 23 years?

Anyway, based on premium payment of 23 years, I calculated the returns on a best case scenario (i.e. the maturity amount = guaranteed + non-guaranteed) and that is 1.87%. I reiterate that this is a best case scenario. So the actual returns will likely be lower than that.

What kind of scumbag agent sells this kind of plan to students?!! Though I admit I don't know anything about your financial situation.. perhaps you could easily afford that $510.. but this is the kind of plan that can be crippling for one's personal finances.

Unless you're already setting aside money every month for investments, I think it's better to terminate and redirect your premium to better investments. With $500 per month, you could easily buy cheap term insurance and do a DCA into ETFs using instruments like POSB Invest Saver.

Save

akwl88 · Jul 17, 2017

the agent earn 6k commissions from him liao

huat ah!

havetheveryfun · Jul 17, 2017

its not just about whether u can get back 150k after 25 years.

i am sure u are already feeling the pain of having to pay such a hefty sum every month as a uni student when u have no source of income.

when u graduate and then start to feel the stress of having to get a job, then this worry will be even greater

most likely, you were a seargeant or platoon commander during your NS drawing quite a decent pay ($800-$1000), and the agent probably asked you like "how much you think you can put aside a month for savings" and you went with that amount because hey, during NS ma.. never think much about it -food and lodging all covered. but after NS over and no more income.. then start to worry.

if you dont want to waste the 6k, you can consider talking to your agent whether its possible to "downgrade" the plan to like maybe 100-200$ a month from now onwards. i think it is possible to do that sometimes

i am not sure whether u will be able to earn or recover your capital after 25 years though if u do manage to "downgrade". for that you have to research and weigh the consequences yourself

FrontierX · Jul 18, 2017

U really kena chop Liao.

If I were u, I cut loose this bad investment and treat as a lesson.

The lose 6k I think is 100% contribute to the comms of the agent Liao. Lucky for her or him.

computers70 · Jul 18, 2017

Just carry on man, plan will not fail.
Do take note your salary will increase

oceanicmanta · Jul 18, 2017

Cancel it NOW.

The IRR is only around 2.085% on a NON GUARANTEED basis.
(paying $6210 a yr, Total Premium $140,760 after 23yrs, Maturity value $182k).

Just put into SSB can get 2.0X% pa Guaranteed over 10yrs.

Better cancel now rather than realise 1 or 2 years later that you cannot maintain the premiums, & terminate then !!

Asphodeli · Jul 18, 2017

change your premium to the lowest (about $75 per month), and cash out your "savings" ASAP.

Posted with E6533 via PCWX

Mecisteus · Jul 18, 2017

Must be an elite student or from an elite family. :s13:

Mecisteus · Jul 18, 2017

It is under 10 months. There is no savings left for him. The money all gone into agents pocket.

Don't give a further single cent to Prudential. Just terminate this plan. Cut early than suffer 24 years of poor returns.

soneat · Jul 18, 2017

This "Pru rubbish cash" type of products is fundamentally unsound for the policyholder. My spouse was sold one of these thrash product 2 decades ago. After I knew about it back then, I cancelled the policy. The policy was in-forced for 2 year+ back then. Take it as an expensive lesson.

blue_line · Oct 4, 2017

Wow, 6 years since I started this thread and I am surprised that it is still active.

Need some advice for PRUflexicash

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