PruCash losing money?

[thisisnotme1212]

Just did a quick sum of my policy (assuming I'm correct).

Reversionary Bonus + Gross Surrender Value + Reversionary Bonus + Accumulated Cashback
= 10560.23

(Don't know should add "guaranteed Gross Surrender Value" or not.)

But premium is around 11006.28 for 9 years (101/mth). -446.05 in total.

Did I do the sums right?
Hearsay insurance policies only will start to see a bit of positive value after 10 year?
Should I keep it rolling?

 

[Flex11]

Just did a quick sum of my policy (assuming I'm correct).

Reversionary Bonus + Gross Surrender Value + Reversionary Bonus + Accumulated Cashback
= 10560.23

(Don't know should add "guaranteed Gross Surrender Value" or not.)

But premium is around 11006.28 for 9 years (101/mth). -446.05 in total.

Did I do the sums right?
Hearsay insurance policies only will start to see a bit of positive value after 10 year?
Should I keep it rolling?

I just cancelled mine after doing my calculations.

I will only make positive returns if I rely heavily on the non guaranteed portion when the policy mature.

 

[xtwis7]

I'm cancelling mine after 7 years. Took out the cash back when I was younger but realized it can be used more wisely.

 

[anfielder]

Just did a quick sum of my policy (assuming I'm correct).

Reversionary Bonus + Gross Surrender Value + Reversionary Bonus + Accumulated Cashback
= 10560.23

(Don't know should add "guaranteed Gross Surrender Value" or not.)

But premium is around 11006.28 for 9 years (101/mth). -446.05 in total.

Did I do the sums right?
Hearsay insurance policies only will start to see a bit of positive value after 10 year?
Should I keep it rolling?

The early years are when you lose the most. So having stuck it out for 9 years I don't think it makes a big difference whether or not you keep the policy.

 

[teejaywai]

Just did a quick sum of my policy (assuming I'm correct).

Reversionary Bonus + Gross Surrender Value + Reversionary Bonus + Accumulated Cashback
= 10560.23

(Don't know should add "guaranteed Gross Surrender Value" or not.)

But premium is around 11006.28 for 9 years (101/mth). -446.05 in total.

Did I do the sums right?
Hearsay insurance policies only will start to see a bit of positive value after 10 year?
Should I keep it rolling?

Does your figures above base on the latest BI? Or is the BI you received 9 years ago?

 

[archcherub]

Just did a quick sum of my policy (assuming I'm correct).

Reversionary Bonus + Gross Surrender Value + Reversionary Bonus + Accumulated Cashback
= 10560.23

(Don't know should add "guaranteed Gross Surrender Value" or not.)

But premium is around 11006.28 for 9 years (101/mth). -446.05 in total.

Did I do the sums right?
Hearsay insurance policies only will start to see a bit of positive value after 10 year?
Should I keep it rolling?

if u got time, go a prudential service counter, u will get a better view helped by their officers.
better to get clarifications than get wrong info from us

 

[mcylo]

I only know the coupon interest always decrease. Pui.

 

[win_man]

just realised my PruCash policy is nearly 12 years. After reading a few threads, i don't know if i should terminate it?

 

[SBC]

I have a PruCash Flexi. About 5 years now. Another 10 years to go.

 

[terryhoho]

cancel lor..
if u don't cancel. do you still need to put in more money every year or month?
do these subsequent cash put in has a opportunity cost for you?

I was sold a great eastern "SAVINGS" policy.
if you "SAVE" late into the account, Great eastern charge a late payment interest.
NB. you save or you owe people money.
Late payment interest.
I go OCBC bank(Great eastern parent) 50 years later SAVE also no late interest fee.

 

[anfielder]

just realised my PruCash policy is nearly 12 years. After reading a few threads, i don't know if i should terminate it?

How long is your policy?

You should probably keep it because the worst years are over. It's still a poor policy but you get negative returns in the early years and the returns pick up over time.

You could post your revised BI here if you need to calculate the returns.

 

[akwl88]

just realised my PruCash policy is nearly 12 years. After reading a few threads, i don't know if i should terminate it?

Your agent got thank you?

 

[Shion]

just realised my PruCash policy is nearly 12 years. After reading a few threads, i don't know if i should terminate it?

Think you left with 3 years ?

 

[computers70]

Just continue paying for the policy, it is a matter of time you will get back your lump sum. Returns can be poor or good. Do not terminate the policy, and complain that you lost money. You will lose money for sure.


Just wait for the lump sum, collect and do what you want with it. Even if you surrender, what do you want to do with the surrender value ?
Most will say, invest, but where ?
Unit trust, stocks, bonds ?
Save the headache man.

 

[Bigoya]

just realised my PruCash policy is nearly 12 years. After reading a few threads, i don't know if i should terminate it?

Compare side by side the current surrender value and what was projected in the initial BI to see how your returns have fared.

No point listening to wild random comments without looking at what's right infront of you.

 

[yoongmy]

Don't forget about the maturity bonus. If left few years just hold and continue.

 

[MrColin]

Most insurance policies do not allow for early termination, thus, your surrender value at throughout the years will typically be lesser than your premiums paid. Most insurance policies will give out a "maturity bonus" which typically makes up a huge chunk of the returns on insurance policies as well.

 

[VanquishShadow]

I'm in a similar position as some of the users who posted in this thread. 12th policy year, and the policy hasn't even broken even.

if (and that's a big IF) all the non-guaranteed materialises, the CAGR over 21 years is 1.39% based on (51k / 38k)^(1/21) . That's really quite sh~tty.

Trying to find a reason not to cancel it, but there seems to be none.

For surrender, is it very straightforward? Walk into Prudential cust service centre, produce NRIC and walk away with a cheque equiv to the surrender value?

 

[JuniorLion]

I'm in a similar position as some of the users who posted in this thread. 12th policy year, and the policy hasn't even broken even.

if (and that's a big IF) all the non-guaranteed materialises, the CAGR over 21 years is 1.39% based on (51k / 38k)^(1/21) . That's really quite sh~tty.

Trying to find a reason not to cancel it, but there seems to be none.

For surrender, is it very straightforward? Walk into Prudential cust service centre, produce NRIC and walk away with a cheque equiv to the surrender value?

Try computing the XIRR instead. It is not as bad as you said, but certainly not fantastic.

Yup, walk in with nric, and you can get your cheque.

 

[VanquishShadow]

ah true, forgot that im not paying all of the premiums upfront. good point, thanks.