please help to evaluate Great Eastern' plan

[zhiz22]

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.

Erm there are seriously better plans out there.

 

[jack81]

Erm there are seriously better plans out there.

Would you mind sharing with everybody the better plans you mentioned? It would be beneficial and alot more helpful for our felllow bros who are considering to get an endowment plan and doing their own comparison ah

 

[synapse]

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.

care to elaborate on the better alternatives?

 

[Kheetat]

care to elaborate on the better alternatives?

you mean you want me to talk about investment products?

 

[synapse]

you mean you want me to talk about investment products?

not specifics but just generally?

 

[Kheetat]

not specifics but just generally?

The most flexible and easy would probably be single premium investment plans. You set aside a fixed sum every month and invest in country funds such as china, india, singapore or singapore blue chips funds or regional funds such as Asian or pacific.

This type of investments has no tie down period and you can make any changes to your investment anytime.

e.g. You can liquidate your investment if you are happy with the returns in 6 months. You can also do switches to whichever funds you are interested in with no cost. You can also do partial withdrawal if you needed a sum of money while keeping the rest invested.

On top of that, there are also free insurance coverage on your invested amount so that at anytime of a claim, you will not lose out due to market volatility.

 

[YanG85]

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.

anyone knows the min sum assured and min annual premium?

 

[Hyruga]

The most flexible and easy would probably be single premium investment plans. You set aside a fixed sum every month and invest in country funds such as china, india, singapore or singapore blue chips funds or regional funds such as Asian or pacific.

This type of investments has no tie down period and you can make any changes to your investment anytime.

e.g. You can liquidate your investment if you are happy with the returns in 6 months. You can also do switches to whichever funds you are interested in with no cost. You can also do partial withdrawal if you needed a sum of money while keeping the rest invested.

On top of that, there are also free insurance coverage on your invested amount so that at anytime of a claim, you will not lose out due to market volatility.

Investment plan no guarantee... What if you lose half of your initial capital?

 

[Hyruga]

Hey anyone care to comment on ocbc maxsave enhanced endowment plan?

 

[Financial Guru]

Hey anyone care to comment on ocbc maxsave enhanced endowment plan?

Would you happen to have a benefit illustration that I can analyse?
For endowment plans, they will mature at a fixed date with a projected amount.
Based on the amt of premiums you pay and the projected amt, I can estimate the effective projected rate of return.

 

[kenneth27]

If we are to base on the projected 5.25% thorughout the 5-20 years of our endowment plan, is it over realistic??


I can't deny 3.75% and 5.25% projected returns is a guideline offer by LIA (if not wrong).

Base on my PruCash Endowment Plan with Prudential for 10years already, the total figures appear unrealistic.

 

[Financial Guru]

If we are to base on the projected 5.25% thorughout the 5-20 years of our endowment plan, is it over realistic??


I can't deny 3.75% and 5.25% projected returns is a guideline offer by LIA (if not wrong).

Base on my PruCash Endowment Plan with Prudential for 10years already, the total figures appear unrealistic.

You can use the 5.25% as the high-watermark which most times may not be achieved in reality.

The actual return will be much lower than 5.25% if you do a cashflow IRR analysis because of effect of deduction.

 

[kenneth27]

You can use the 5.25% as the high-watermark which most times may not be achieved in reality.

The actual return will be much lower than 5.25% if you do a cashflow IRR analysis because of effect of deduction.

Precisely. This education must be pass-on. A lack of understanding towards insurance products appear to be buyer weakness. Insurance is a long term commitment and any termination before maturity means loss.

 

[matchy]

check the non-guaranteed portion...it is the most dangerous part

 

[tiny]

My uncle approached me with his policy. Apparently, he bought this OCBC Great Eastern MaxSave Enhanced plan. He claims that the agent said that he only needs to pay for 5 years of annual premiums, and the "survival benefits" from 6th year onwards will pay for the annual premiums. But no matter how I read the contract, it says annual premium for a term of 10 years. So who is right?

 

[Keverus]

My uncle approached me with his policy. Apparently, he bought this OCBC Great Eastern MaxSave Enhanced plan. He claims that the agent said that he only needs to pay for 5 years of annual premiums, and the "survival benefits" from 6th year onwards will pay for the annual premiums. But no matter how I read the contract, it says annual premium for a term of 10 years. So who is right?

means you dont know how to read properly. last 5 yrs' premium will be offset. essentially, pay 5 yrs nia.

btw, hasnt it been renamed to maxgrowth enhanced?

be wary, this plan is not capital guaranteed.