PRUDENTIAL SAVINGS SAGA

[Shion]

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?

This one is ILP, not endowment

Worse than endowment

 

[akwl88]

Lotsa pple brought whole life plans for protection

Is the protection coverage sufficient and premiums affordable?

 

[akwl88]

Risk considerations

Before you decide to invest in the Nikko AM Singapore STI ETF or ABF Singapore Bond Index Fund through POSB Invest-Saver, you need to understand the risks and fees that come with investing in the ETFs, and be willing to accept that your principal amount may be at risk including the possible loss of the principal amount invested as this is not a capital guaranteed product.

Chiu no read?[/QUOTE]

Lewis gor gor mia liao after not reading risk consideration in posb invest saver?

 

[maruikun]

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?

This is simple. The endowment is sold as a savings plan not investment plan. So no risk clause is required on the front page. To all the common folks out there, they have the misconception that they will get back the capital + interests after XX years. But we do know that this is not true after factoring the protection riders and participating fund performance. The question should be have the agents clearly states these important details to the consumer before getting their signature? I seriously doubt so.

Head out to any roadshows and ask any agents to explain endowment in details. 7 out of 10 agents will probably not able to explain how an endowment works. The actuaries who design this policy are smart to package it like savings plan but complex underlying fine prints. If agent cannot even understand how endowment works, we can expect consumers will be misled with wrong information also. Whether the misled part is intended or not that is subjective.

One forumer mentioned zero financial literacy 20 years ago so endowment is recommended during that era. This is not true. It does not matter whether it is 20 years ago or 20 years later, we can always find people with zero financial literacy. And it is this group of people that will fall prey to poor products like ILP. 10 or 20 years down the road we will probably see such saga again because of the existence of financial salesmen.

That being said if the insurers have advisors like the responsible ones in this forum, many issues can be avoided.

 

[deepblueli]

My personal opinion is that to look at fundamental of the financial product itself.

ILP / endowment is investing on fund
SSB is investing on sg government bond
STI is investing on the index

All of these investment instruments have good or bad, during downturn bond can be a better investment, etc.

I tends to agree with yyhwin that it may not be appropriate to compare ssb with endowment. Buying ssb + term of course gives you a different return from endowment (which is fund + terms at its fundamental).
When fund is doing good, endowment will be better. When bond is doing good, ssb can give you a better return.

My personal opinion on ILP or endowment is that it is an investment that depends on fund performance. Some policies allow you to switch fund, but some don't. But, it is also depends timing, when you start buying and when you're selling.

My issue with ILP / endowment is:
1) The agent usually shows the projected return, that's not actually the real return, that's just your fund performance
2) They usually show you the policy that earns money. But there are other cases, that some policies are not earning as much as it projected simply because fund is not doing good during the time horizon of the policy. I once asked an agent, if I bought the policy at high point of the market, what's the return I would get now, the agent always siam this question.
3) Inflexibility of withdrawing or changing the strategy of your investment. Your money basically locked in due to high upfront cost.

I don't blame the agent, because they are sales, of course they will sell whatever they earn the most.

Personally, I don't invest in fund, I got mixtures of strategy, ssb as fixed deposit for me, sti etf for long term DCA and hand pick some stocks. But I am aware that not all are financial savvy. So not all can make a good decision in investing. Creating a diversified portfolio is the best way to go, just don't put all your eggs into one basket.

 

[Ilovegreenbeansoup]

Wah. U all say until ilp Jin scary.

Should I terminate my ilp now? I also bought for my daughter. This time siao liao

 

[akwl88]

Wah. U all say until ilp Jin scary.

Should I terminate my ilp now? I also bought for my daughter. This time siao liao

u go and check these 3 things:

1) how much have you paid

2) duration how long liao

3) how much guaranteed returns now?

 

[Ilovegreenbeansoup]

u go and check these 3 things:

1) how much have you paid

2) duration how long liao

3) how much guaranteed returns now?

Paid 21k
8 yrs already
Surrender value now is 10k plus.

 

[anfielder]

u go and check these 3 things:

1) how much have you paid

2) duration how long liao

3) how much guaranteed returns now?

no such thing as guaranteed returns for ILP.

 

[Lewis.T]

Paid 21k
8 yrs already
Surrender value now is 10k plus.

That's not too bad actually, for an ILP, considering the coverage amount that you chose.

Don't freak out and sell just because some people are trying to spread fear, surrendering without considering your circumstances may be more detrimental.

If you want to surrender, look up your alternatives and get approved for coverage first.

 

[Ilovegreenbeansoup]

That's not too bad actually, for an ILP, considering the coverage amount that you chose.

Don't freak out and sell just because some people are trying to spread fear, surrendering without considering your circumstances may be more detrimental.

If you want to surrender, look up your alternatives and get approved for coverage first.

Coz I understand for ilp with protection. The assurance charges will get higher and higher with age. Think ard 40 yrs old, then policy will then become costly liao.

Think I should open a new thread. Lol. I have So many questions

 

[Perisher]

Ya, just open a ilp thread.

 

[akwl88]

Paid 21k
8 yrs already
Surrender value now is 10k plus.

gg max

this is what happen when u mix insurance with investment

 

[akwl88]

Coz I understand for ilp with protection. The assurance charges will get higher and higher with age. Think ard 40 yrs old, then policy will then become costly liao.

Think I should open a new thread. Lol. I have So many questions

you need to understand

protection is protection

investment is investment

dont get mislead thinking your protection is enough

can sic your protection coverage with this ilp?

 

[Ilovegreenbeansoup]

Yah. I know gg liao. But not too bad. Still gg. Jin Sian. Just bought ilp for my daughter also.
Both gg

 

[anfielder]

Wah. U all say until ilp Jin scary.

Should I terminate my ilp now? I also bought for my daughter. This time siao liao

My wife and I have terminated 3 ILPs recently.

I used to think it was ok to hold on because the greatest losses occur in the first few years (where a significant % of your premiums go to the agent's pocket). But by holding on, there are ongoing costs such as the admin fees ($60/yr) and management fees (somewhere around 2% pa). If your portfolio is 10k, that means you're paying $260 per year in fees, for lousy funds that probably underperform their benchmarks.

However if you want to terminate pls make sure you have sufficient term coverage.

 

[Ilovegreenbeansoup]

you need to understand

protection is protection

investment is investment

dont get mislead thinking your protection is enough

can sic your protection coverage with this ilp?

It cover death 200k,ti200k,tpd200k,crisis cover 150k and prusmart lady forget how much.

Sian half. I think I gg liao.

 

[Ilovegreenbeansoup]

My wife and I have terminated 3 ILPs recently.

I used to think it was ok to hold on because the greatest losses occur in the first few years (where a significant % of your premiums go to the agent's pocket). But by holding on, there are ongoing costs such as the admin fees ($60/yr) and management fees (somewhere around 2% pa). If your portfolio is 10k, that means you're paying $260 per year in fees, for lousy funds that probably underperform their benchmarks.

However if you want to terminate pls make sure you have sufficient term coverage.

Yah. I also think hold on maybe can balance out. Then yesterday I go beo the assurance charge table. It will keep on getting higher and higher.
No chance it will break even.
Then suddenly occur to me. This is no use lol. Gg

 

[akwl88]

It cover death 200k,ti200k,tpd200k,crisis cover 150k and prusmart lady forget how much.

Sian half. I think I gg liao.

say for eg u uplorry tmr

is that 200k sufficient for your dependents?

that is why must do your own due diligence

 

[akwl88]

now see if u want buy a better alternative like term plan

and cut losses for your ilp