PRUDENTIAL SAVINGS SAGA

[Perisher]

Pru-sh-it is so greedy of course moi hate them. Prudential is one of the most greediest and cheesepie insurance company I had ever seen. You can click the link to see how they raise the insurance premium.

Is this whole WOT even relevant?

Can stick to the endowment+rider issue?

 

[oceanicmanta]

Latest BI not available until 16th of April.

in fact my current surrender value is higher than what was projected @3.75% return initially. So i think that surrender value is a very good approximation.

may i ask is it the Gross Surrender Value or Guaranteed Surrender value that is higher than original BI projection ?

 

[soneat]

Latest BI not available until 16th of April.

in fact my current surrender value is higher than what was projected @3.75% return initially. So i think that surrender value is a very good approximation.

For some insurers., the Policy values increases daily, some increases monthly. Annual bonus is added to your policy upon anniversary. Should you decide to surrender , there will be a terminal bonus applied. Unless the insurer cut bonus, if not it is likely that you will received the 5.25% projection (I am assuming your policy is based on 5.25%/3.75% projection).

 

[Perisher]

For some insurers., the Policy values increases daily, some increases monthly. Annual bonus is added to your policy upon anniversary. Should you decide to surrender , there will be a terminal bonus applied. Unless the insurer cut bonus, if not it is likely that you will received the 5.25% projection (I am assuming your policy is based on 5.25%/3.75% projection).

you meant to say there is a possibility that one can get the 5.25% nett yield?

 

[oceanicmanta]

For some insurers., the Policy values increases daily, some increases monthly. Annual bonus is added to your policy upon anniversary. Should you decide to surrender , there will be a terminal bonus applied. Unless the insurer cut bonus, if not it is likely that you will received the 5.25% projection (I am assuming your policy is based on 5.25%/3.75% projection).

good to know

i will be terminating a few of my Pru endowment plans over next few months, so will be able to see if Surrender Value comes close to Projection

 

[OngHuatHuat]

may i ask is it the Gross Surrender Value or Guaranteed Surrender value that is higher than original BI projection ?

of course it is higher that's why i come out and defend my policy.
If it is lower, I will fxxx prudential upside down and warn you all not to trust the projected value.

 

[soneat]

5.25% is the projected par fund performance, not the net yield. Depending on the expenses, margin etc, and duration of the Policy, it could be as low as 1,2,3%. At best low end of 4%.

 

[OngHuatHuat]

you meant to say there is a possibility that one can get the 5.25% nett yield?

got expenses incurred for protection fee over 20plus years.

Cannot just happily ignore the yearly protection fee lor.
Even if term is cheap....it is not as cheap as what this forum has alway advocated for the same coverage from the same insurer. (i don't see the point of taking the most cheapskate term to save money end up a lot of exclusions, hard to claim and insurers having a risk of bankruptcy).

 

[OngHuatHuat]

5.25% is the projected par fund performance, not the net yield. Depending on the expenses, margin etc, and duration of the Policy, it could be as low as 1,2,3%. At best low end of 4%.

Got 3 % i very happy already, coz it covers protection fee.

If I choose to terminate my whole life, I have to pay this amount for 32 years for the same protection.

 

[soneat]

good to know

i will be terminating a few of my Pru endowment plans over next few months, so will be able to see if Surrender Value comes close to Projection

My statement is generally true for whole life policies from ethical insurers. I have always preferred whole life policies compared to endowment because the protection is much higher and I can let it roll as long as I want. Don't have to stop at 10/15/20/25 years. Generally anything above 20 years will yield 3+%

Again, not all WL policies are born the same. If yours does not, I have no comment on that. Thanks.

 

[soneat]

Got 3 % i very happy already, coz it covers protection fee.

If I choose to terminate my whole life, I have to pay this amount for 33 years for the same protection.

Don't forget your par protection will increase. By policy year 20, probably 180k, year 30 220k. So by the time u r 57 years old, your cover is 220k and not 100k anymore.

 

[OngHuatHuat]

My statement is generally true for whole life policies from ethical insurers. I have always preferred whole life policies compared to endowment because the protection is much higher and I can let it roll as long as I want. Don't have to stop at 10/15/20/25 years. Generally anything above 20 years will yield 3+%

Again, not all WL policies are born the same. If yours does not, I have no comment on that. Thanks.

I think you really very pro and thanks for willing to spend time on our queries. Hee hee.

 

[soneat]

I think you really very pro and thanks for willing to spend time on our queries. Hee hee.

Glad you find my views useful. But seriously you need to read and thoroughly understand your policy.

Just have to reiterate from my point of view, WL policies are really meant for whole life protection and if some day that view changed, it will become my low yield bond.

 

[oceanicmanta]

My statement is generally true for whole life policies from ethical insurers. I have always preferred whole life policies compared to endowment because the protection is much higher and I can let it roll as long as I want. Don't have to stop at 10/15/20/25 years. Generally anything above 20 years will yield 3+%

Again, not all WL policies are born the same. If yours does not, I have no comment on that. Thanks.

Mine are PruSave and PruAsset Builder policies bought over 20yrs ago.

Projected Maturity values were drastically reduced back in 2008, by around 25% on average & have never recovered to original BI levels since.

Even current BI, the non-guaranteed portion forms 35-45% of Gross Maturity Value, which to me is a big uncertainty & biggest concern.

 

[Ilovegreenbeansoup]

Wah. I got prudential protection plus.

Die liao

 

[soneat]

Mine are PruSave and PruAsset Builder policies bought over 20yrs ago.

Projected Maturity values were drastically reduced back in 2008, by around 25% on average & have never recovered to original BI levels since.

Even current BI, the non-guaranteed portion forms 35-45% of Gross Maturity Value, which to me is a big uncertainty & biggest concern.

Personally I am not a big fan of endowment. Most of the time the Policy don't really make financial sense. The only endowment I ever bought was Income Capital Plus and UOB Life Guaranteed Rewards. Both are capital guaranteed and returns guaranteed.

 

[peacefulday]

Personally I am not a big fan of endowment. Most of the time the Policy don't really make financial sense. The only endowment I ever bought was Income Capital Plus and UOB Life Guaranteed Rewards. Both are capital guaranteed and returns guaranteed.

I think we had a similar choice. I got the uob life guaranteed endowment and the other one is NTUC harvest. I presume all are extinct now

 

[oceanicmanta]

Personally I am not a big fan of endowment. Most of the time the Policy don't really make financial sense. The only endowment I ever bought was Income Capital Plus and UOB Life Guaranteed Rewards. Both are capital guaranteed and returns guaranteed.

my GE Whole Life current BI projection is also like 25% lower than original BI projection after 20 years !

only comfort is that the returns so far is 3% to 4% pa over past 20 years

not so good for GE Living Assurance policies

 

[Ilovegreenbeansoup]

MMine is prulink protection plus bought in 2009.
Paid to date is 21k. Surrender value is 10k now.
It cover death 200k,ti200k,tpd200k,crisis cover 150k.

Termintae now?

 

[Perisher]

Was it on the front page staring at me or in small wordings on a different tab?

Why ain't it? Why ain't insurance companies doing it? Why ain't all their investment linked product showing it on a the first page of their policy big big?
Why are you even arguing here about this point? Do you disagree about this?

Just put up a
This product may result in 0 capital gain or loss over the Long term.

It will save both sides from tons of issues that we see now. It is beneficial to both parties so why doesn't insurance companies do it?