please help to evaluate Great Eastern' plan

[lobo76]

Actually it's for my parent.

It's some kind of plan for old people. You pay premium of $5k per year for the first 5 years. on the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bounus projected at 3.75% to 5.75%. At 5.75%, it comes to about over $7k.

To me, it seems like a 10 yr fixed deposit. With a minimum of about $5k at the end of it. Giving that my parents are super low risk people, is this plan a good one to take up?

p.s the proposal my parents brought home to show me was a 15yr plan. I hope the 10yr plan they verbally mentioned is the same...

 

[Kheetat]

Actually it's for my parent.

It's some kind of plan for old people. You pay premium of $5k per year for the first 5 years. on the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bounus projected at 3.75% to 5.75%. At 5.75%, it comes to about over $7k.

To me, it seems like a 10 yr fixed deposit. With a minimum of about $5k at the end of it. Giving that my parents are super low risk people, is this plan a good one to take up?

p.s the proposal my parents brought home to show me was a 15yr plan. I hope the 10yr plan they verbally mentioned is the same...

Hi lobo76, I'm not sure if I am reading this correct. You got to pay premium of $5k for the first 5 year (Total paid =$25k). On the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bonuses projected at 3.75% to 5.75% (5.25% i think). It comes to about over $7k (total premium paid is more than projected returns?)

I think some information might be wrong there.

 

[cathdan]

this is a maxsave enhanced plan from ocbc. 10 years endowment plan. u pay 5 years, the other 5 years ocbc pay for u. end of 10 years u get a lump sum = which is in ur case (5000x5)x either 3.75-5.75% based on bonus declared n vested. as long u keep for 10 years u will get back ur principle n watever bonus declared. hope that explains. a 15 year plan means u hold for 15 years, but still pay 5 years only. sum is only redeemed at end of endowment plan.

 

[cathdan]

if u need more info or explaination u can pm me

 

[RabbitKing]

Actually it's for my parent.

It's some kind of plan for old people. You pay premium of $5k per year for the first 5 years. on the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bounus projected at 3.75% to 5.75%. At 5.75%, it comes to about over $7k.

To me, it seems like a 10 yr fixed deposit. With a minimum of about $5k at the end of it. Giving that my parents are super low risk people, is this plan a good one to take up?

p.s the proposal my parents brought home to show me was a 15yr plan. I hope the 10yr plan they verbally mentioned is the same...

i got a better plan, but in USD..
for the first 5 yr u pay 67k. then u shake leg
end of 5th yr (once u paid up ur 67k) u get 25k back, den 10th yr 25k, den 15th yr 25k again.
if u cash out everything, u earn 8k lo,
if u nv cash out, interests is guaranteed @ 4.25%, yes guaranteed.

EDIT: pm me if u r interested or if u have any questions.

 

[lobo76]

Hi lobo76, I'm not sure if I am reading this correct. You got to pay premium of $5k for the first 5 year (Total paid =$25k). On the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bonuses projected at 3.75% to 5.75% (5.25% i think). It comes to about over $7k (total premium paid is more than projected returns?)

I think some information might be wrong there.

I assumed that the premium will be 'returned'. The plan is call something like Primelife Saver or something.
The table that gives me the above figures should only be for the bonus.

 

[Kheetat]

I assumed that the premium will be 'returned'. The plan is call something like Primelife Saver or something.
The table that gives me the above figures should only be for the bonus.

Personally, I feel that you need to have more information before a conclusion or discussion can be made.

Try not to assume. You need to manage your expectation now, if not, you will be at a losing end.

 

[lobo76]

Personally, I feel that you need to have more information before a conclusion or discussion can be made.

Try not to assume. You need to manage your expectation now, if not, you will be at a losing end.

haha.. my motto is to assume I am being lied to, and work from there.
In this case, it is pretty safe assumption though. No one will come up with a plan for you to invest 25k and only return you 7k right?

 

[Kheetat]

haha.. my motto is to assume I am being lied to, and work from there.
In this case, it is pretty safe assumption though. No one will come up with a plan for you to invest 25k and only return you 7k right?

Haha. Assume might be useful sometimes but not when it comes to paper of trust.

I think nobody would invest 25k for 7k returns ba. Specifically putting investment products aside, which has no guaranteed maturity benefit and is market sensitive, we just talk about endowment and its related.

When you mentioned that your parents are low risk takers, it means that they have would feel super uneasy if they see that they savings loses 20% in the first year. Even thou it is paper lost, they will still have sleep less night. By being low volatility tolerance, they need to have a high guaranteed amount.

If you invest 25k and get 25k guaranteed with 7k bonus, I guess it is reasonable for a 10 year investment. Thats about 2.5% p.a.

However, if you can invest for 10 years and can take tolerate abit of volatility, I guess there are much more attractive alternatives.

 

[matchy]

low risk = low returns

 

[Inzaghi009]

i got a better plan, but in USD..
for the first 5 yr u pay 67k. then u shake leg
end of 5th yr (once u paid up ur 67k) u get 25k back, den 10th yr 25k, den 15th yr 25k again.
if u cash out everything, u earn 8k lo,
if u nv cash out, interests is guaranteed @ 4.25%, yes guaranteed.

EDIT: pm me if u r interested or if u have any questions.

so i put in 67k and get back 75k after 15years? which is abt 12% for 15yrs?

 

[lostinwonder]

Not sure if is the same plan i've been intro to... i went ocbc with the intention to find some fixed dep or sth.. then was intro to this plan, the banker dint told me what name is the plan. But how it works is like this:

save 5 years into the plan
hold for 5 years
from 11th years to 15 years it will payout annual returns for 5 years. (aka similar to policy maturing)

all in all is a 15 year limited savings endowment plan from GE.

If this is the same as what's intro to ur parents la.

 

[purplezbabe]

Not sure if is the same plan i've been intro to... i went ocbc with the intention to find some fixed dep or sth.. then was intro to this plan, the banker dint told me what name is the plan. But how it works is like this:

save 5 years into the plan
hold for 5 years
from 11th years to 15 years it will payout annual returns for 5 years. (aka similar to policy maturing)

all in all is a 15 year limited savings endowment plan from GE.

If this is the same as what's intro to ur parents la.

This plan is very familiar.
My friend has been introduced this plan from OCBC too.
However, whatever the bank offers, my company can offer better.
Bank has higher overheads & such.
So I showed her a apple-to-apple comparison, the limited 15year plan is much better than the one u mentioned.

Interested to know more? Please pm. No obligations. Thanks.

 

[Starzzberry]

OCBC introduced this maxsave plan to me too, what u guy think? shld i take up?
What i know is invest $5k p.a for 5 year, then OCBC will mail the cheque to us when the plan reach 10 yrs, when they calculate and show me is I can earn abt $700 p.a (not guaranteed)
p/s: this is 10 years plan.

 

[iCuteCube]

This plan is very familiar.
My friend has been introduced this plan from OCBC too.
However, whatever the bank offers, my company can offer better.
Bank has higher overheads & such.
So I showed her a apple-to-apple comparison, the limited 15year plan is much better than the one u mentioned.

Interested to know more? Please pm. No obligations. Thanks.

What company??

 

[lzydata]

Is it this one, Endowment 5 Plus? It was the top of the list when I visited their website. Their latest and greatest product *sarcasm*.

http://www.lifeisgreat.com.sg/en/jsp/products/products/education/endowment5plus.jsp
http://www.lifeisgreat.com.sg/en/jsp/pdf/brochure_pdf/endowment5plus.pdf

One of their benefit illustrations is $6000 premiums per year for 5 years, $8620 payout per year for year 11-15 assuming 5.75% investment returns. That comes to an IRR of 3.69%. Better than the risk-free 2.5% from a 15-year SGS, but not outstanding. You should be able to do better by saving on GE's commissions and investing it yourself, though of course there is no capital guarantee with that. It is probably good if you need some discipline with saving though. Not sure if other companies have better offers.

 

[jack81]

How about this?

Same 15 year plan, 5 year premium term.

Guaranteed maturity value of $31,500, total premium paid is $27,213.

Annual premium is $5,443.

 

[Starzzberry]

Jack: from ocbc as weell?

 

[Chevron]

Actually it's for my parent.

It's some kind of plan for old people. You pay premium of $5k per year for the first 5 years. on the 10th year, you can collect survival bonus (supposedly 4,999) plus the other non-guaranteed bounus projected at 3.75% to 5.75%. At 5.75%, it comes to about over $7k.

To me, it seems like a 10 yr fixed deposit. With a minimum of about $5k at the end of it. Giving that my parents are super low risk people, is this plan a good one to take up?

p.s the proposal my parents brought home to show me was a 15yr plan. I hope the 10yr plan they verbally mentioned is the same...

I know of only two plans from GE that vaguely sounds like what you asked about. One is you pay 5 years, accumulate for another 5 years then you get back your capital in equal amount for the last 5 years. Total 15 years term plan. No more no less.

While there is another one that you are required to pay just the first 10 years, and then you can get a lifetime stream of yearly income from the end of Year 10 till you die.

 

[purplezbabe]

What company??

Prudential =)