PremierLife Generation III

[Nancy Fancy]

hi. i did. signed back during end of 2020. like bros mentioned here that financing makes it more attractive, i took a loan to leverage on the annuity.

Yes, correct. congratulations!

 

[Nancy Fancy]

Now Generation 5, payout from yr 3 onwards

In fact, there are 3 PLR plans in the current market. 2 are in SGD and 1 in USD.
1) PLR 3 USD: payout from yr 5 onwards
2) PLR 5 SGD : payout from yr 3 onwards
3) PLR5A SGD: payout from yr 5 onwards

 

[Darth_Yang]

The current trend of such annuities is much more attractive if financing is taken up. Of course the consideration is that interest rate risk may erode the returns.

Let's assume that current interest rates at 1.5% pa. Given a $100k downpayment and $200k loan, your return on your $100k downpayment after the 5th year when payouts start will be as such:

Yearly payout: $10.8k
Interest payment: $3k
Net return: $7.8k

Out of the $10.8k return, roughly 45% is guaranteed with the remaining made up by the projected returns. Above is illustrated based on Prestige Life Rewards 3 from GE. While there are other similar options, note that the guaranteed payout will vary from company to company.

Ppl often over look the opportunity cost ... Any returns of the 100k for the first 4-5 years.. and also the interest paid for the 200k for the first 4-5 years...

 

[ashcrow]

In fact, there are 3 PLR plans in the current market. 2 are in SGD and 1 in USD.
1) PLR 3 USD: payout from yr 5 onwards
2) PLR 5 SGD : payout from yr 3 onwards
3) PLR5A SGD: payout from yr 5 onwards

premierlife 5 sounds so much attractive at year 3 than the previous versions.

 

[oinkoink1999]

just happened to come across this thread, anyone took part in PremierLife Gen VI by their RM? Payout is now shortened to 13th month and if you split the premium across 3 years payout is from 43th month onwards.

any advise or info to share please?

 

[reddevil0728]

just happened to come across this thread, anyone took part in PremierLife Gen VI by their RM? Payout is now shortened to 13th month and if you split the premium across 3 years payout is from 43th month onwards.

any advise or info to share please?

what advice or info are you looking for?

is that what your RM is asking and you considering?

 

[oinkoink1999]

what advice or info are you looking for?

is that what your RM is asking and you considering?

yes the RM gave 2 proposals as mentioned but im thinking which one to go ahead. Trying to decide by end of Jan cos now got CNY cash gift promo

 

[boredboiboi]

just happened to come across this thread, anyone took part in PremierLife Gen VI by their RM? Payout is now shortened to 13th month and if you split the premium across 3 years payout is from 43th month onwards.

any advise or info to share please?

Nv consider from other insurer?

 

[JuniorLion]

just happened to come across this thread, anyone took part in PremierLife Gen VI by their RM? Payout is now shortened to 13th month and if you split the premium across 3 years payout is from 43th month onwards.

any advise or info to share please?

No material difference in terms of XIRR. Get payout earlier = get lesser per month. Get payout later = get more per month.

 

[DevilPlate]

Now interest rate so high, really no point buying annuity plans.
i checked a few insurers and never increase their guaranteed returns so far….

 

[Jay9999]

Now interest rate so high, really no point buying annuity plans.
i checked a few insurers and never increase their guaranteed returns so far….

Did they changed their non-guaranteed?

Their underlying investment should be yielding more as interest rate rise.

 

[DevilPlate]

Did they changed their non-guaranteed?

Their underlying investment should be yielding more as interest rate rise.

Imo, we should only focus on the guaranteed figure and treat non-guaranteed as a bonus.

furthermore, those who took up floating loan to leverage on annuity plans will most likely see negative returns until interest rates fall back below 3%

 

[reddevil0728]

Now interest rate so high, really no point buying annuity plans.
i checked a few insurers and never increase their guaranteed returns so far….

not saying now is the right time but cannot just look at the immediate future. Such stuff is also for the long term, unless interest rate going to be high forever if not starting early also got value

Did they changed their non-guaranteed?

Their underlying investment should be yielding more as interest rate rise.

Not exactly right?

though their portfolio should have a bigger weightage in bonds, it also depends on their average duration and might be negative also

 

[Careful Investor]

The financing is the killer now. Each quarter interest payable gets higher and higher.

 

[reddevil0728]

The financing is the killer now. Each quarter interest payable gets higher and higher.

That’s why it’s for the long term.

so must be able to stomach

 

[JuniorLion]

Now interest rate so high, really no point buying annuity plans.
i checked a few insurers and never increase their guaranteed returns so far….

Interest rate is just temporary. Annuity plans are ultra long term.

Not apt to compare short term interest rates with long term planning.

A mistake most makes.

 

[DevilPlate]

Interest rate is just temporary. Annuity plans are ultra long term.

Not apt to compare short term interest rates with long term planning.

A mistake most makes.

What i meant is no incentive to buy annuity today (single premium) unless you are in early wealth accumulation phase.

 

[reddevil0728]

What i meant is no incentive to buy annuity today (single premium) unless you are in early wealth accumulation phase.

so is circumstantial

 

[DevilPlate]

so is circumstantial

Yes but if someone in early phase can also look into maxing SA account first as CPFLife is far more superior than any pte annuity plans with the highest guaranteed returns.

 

[DevilPlate]

Pte annuity used to be attractive due to cheap leverage…..
whether this is the end of cheap money era is everyone’s guess