PRUDENTIAL SAVINGS SAGA

[Lewis.T]

On another note, still waiting for stats showing 20 years endowment returns of various companies after year 2000. Whether the majority of those policies beat the 2% mark.
And if they do, why is the 23 year policy not showing that as per TS's fb post.

A more experienced agent has posted that the policy in question should have had 3.1% to 3.4% returns, based on 7 of those policies he sold with the same name and company during that period of time for roughly the same maturity.

 

[akwl88]

Say that only if you can get protection for free.

then we compare protection cost and coverage products

 

[w1rbelw1nd]

To see which is more suitable for savings/wealth accumulation over the long term for a conservative person?

Maturity is different. Like how you dont compare the returns of a 5 year corporate bond to a 3 year corporate bond, you shouldnt do the same to SSB/endowments.

The right way is to look at returns of similar maturity SGS bonds.

 

[OngHuatHuat]

Maturity is different. Like how you dont compare the returns of a 5 year corporate bond to a 3 year corporate bond, you shouldnt do the same to SSB/endowments.

The right way is to look at returns of similar maturity SGS bonds.

DBS perpetual bonds are pretty good too. Just saying.

 

[akwl88]

endowments are sold as savings products, therefore ssb is a viable comparison

if endowments are sold as protection or investment products, we will use other viable alternatives.

protection - term/life insurance
investment - stocks/etf

 

[vince123123]

Im no expert in investment and insurance, but one factor which I thought of that may not have been raised in this SSB vs endowment debate, is whether we should also compare the default risk of SSBs vs that of the endowment? It would seem that the default risk in SSBs are lower, so an additional factor of reduced earnings should be considered as well.

 

[w1rbelw1nd]

That's gross simplification of the difference of the products.

If you take a 5 year endowment versus a 5 year ssb, you jolly well take the first 5 year interest of ssb to make comparison with endowment. Not the average interest normally used in ssb discussion.

Anyway the investment moats screenshot is also not relevant, since one can argue that many products there are based on historical performance, especially when interest rates are higher.

endowments are sold as savings products, therefore ssb is a viable comparison

if endowments are sold as protection or investment products, we will use other viable alternatives.

protection - term/life insurance
investment - stocks/etf

 

[w1rbelw1nd]

Not a big concern. Sdic covered for guaranteed portion up to $100,000 for sum assured and $50,000 for surrender value.

Not forgetting that there is strict regulation on the risk that insurers can take for the investment that they can make for products that they are giving guaranteed returns.

Im no expert in investment and insurance, but one factor which I thought of that may not have been raised in this SSB vs endowment debate, is whether we should also compare the default risk of SSBs vs that of the endowment? It would seem that the default risk in SSBs are lower, so an additional factor of reduced earnings should be considered as well.

 

[akwl88]

That's gross simplification of the difference of the products.

If you take a 5 year endowment versus a 5 year ssb, you jolly well take the first 5 year interest of ssb to make comparison with endowment. Not the average interest normally used in ssb discussion.

Anyway the investment moats screenshot is also not relevant, since one can argue that many products there are based on historical performance, especially when interest rates are higher.

yup, using the same duration

thats why i nvr dispute the chinalife 2.25% returns

it wins ssb except for liquidity

 

[Perisher]

The one is without fancy riders.

The one inside TS picture is with the fancy riders.
You try add so many riders to your term, your premium will also increase a lot due to higher chance of claiming. Not sure why you keep repeating this.

I will just say this again if the radio repeats. Now I know the trick here.

eh, minus away the riders? Not talking about the riders added overall returns.
Just pure endowment returns.

 

[Perisher]

A more experienced agent has posted that the policy in question should have had 3.1% to 3.4% returns, based on 7 of those policies he sold with the same name and company during that period of time for roughly the same maturity.

I must have missed it. Been skipping many post here.

 

[OngHuatHuat]

This case confirm plus chop is riders erode return. The sum assured for riders is more than the base policy, means a huge chunk of premium went into riders which carry no cash value.

eh, minus away the riders? Not talking about the riders added overall returns.
Just pure endowment returns.

 

[blueG77]

Why do we compare endowment with pure SSB? In endowment, there's is a non-guaranteed part, it means the fund is invested in some equities?

Isn't it unfair since equities yield better than bonds in a bull market

 

[akwl88]

Why do we compare endowment with pure SSB? In endowment, there's is a non-guaranteed part, it means the fund is invested in some equities?

Isn't it unfair since equities yield better than bonds in a bull market

Comparing endowment guaranteed returns against ssb as endowments are sold as savings products

 

[Bigoya]

bookmark...

 

[Shion]

Very informative thread

 

[akwl88]

Lol tonight all the prudential agents feeling "thankful" to their clients(premiums)

Flooding social media

 

[koja6049]

Lol tonight all the prudential agents feeling "thankful" to their clients(premiums)

Flooding social media

all posting about their obscene cars, watches, etc.

makes my blood boil only

 

[SBC]

Many of these "middleman" jobs will be lost in this new world.

 

[akwl88]

Saw some of them haolian they gg rome and florence

Guess where your premiums are going to?

Lol