PRUDENTIAL SAVINGS SAGA

[soneat]

Based on the threads that have appeared (a lot of useful information on policies, need someone to create a blog to archive all the info), it appears that there are many products that won't break even after 20 years assuming 4% growth of the participating fund.

I find that sad, because in the past, there were decent products that broke even after 7-10 years (google NTUC Living Policy if you want...)

In comparison, if you invest in a conservative mix of equities and bonds which gives a return of 4% p.a. after 20 years, you basically double your money.

From time to time there are still decent WL plans around but most people are chanting BTITR without looking in the specifics and individual circumstances.

 

[Lewis.T]

From time to time there are still decent WL plans around but most people are chanting BTITR without looking in the specifics and individual circumstances.

decent WL plans? can sic B.I? Can outperform BTITR?

ETF 1 year performance 19.83%, anyone can emulate just go posb open invest saver with the friendly zeh zeh there can liao. Why let the insurance scums earn your hard earned money?

(lol)

 

[soneat]

but if you don't sign, the whole legal contract is void

The only thing that the PolicyHolder signs is the application form, copy of BI as well as the agreement with agent's recommendation. Out of these 3 items, only the application form forms part of the contract.

Usually the Policy Wording is binded to the Policy Contract after it is in force. The policyholder is given 14 days to consider if the Policy suits him.

Personally I always request for the Policy Wordings before even looking at the BI simply because it's absolutely important for one to understand it. If one finds it difficult to understand, then the person should refrain from buying it unless he is comfortable to pay for something he dunno.

In certain policies, the wordings are indeed very complex and I have even encountered situations where insurer's actuarials misinterpreted the wordings. Sounds terrible right but it's true.

 

[soneat]

decent WL plans? can sic B.I? Can outperform BTITR?

ETF 1 year performance 19.83%, anyone can emulate just go posb open invest saver with the friendly zeh zeh there can liao. Why let the insurance scums earn your hard earned money?

(lol)

Urmm I assume you are asking in jest. I am believer of balance and diversification.

 

[koja6049]

the TnC for insurance or endowment policies from insurance companies is so long... over 10++ pages (double pages) and the wordings so small... who in the right mind will read finish everything.. naturally will just trust what the agent says

my point is, if you've signed on every page of the tnc, it means you accepted it, then you no longer have a case against prudential

 

[Shion]

I am just making the point that Sum Assured is not Maturity Value in this case.

For an endowment, what else could Sum Assured mean ?

death benefit

 

[OngHuatHuat]

A lot of money was wasted on riders for this endowment plan. Don't you notice the sum assured for riders were higher than that of main plan? All this carried no cash value. Use endowment for protection purpose is rather expensive.

 

[w1rbelw1nd]

Using equity etfs returns to compare against insurance returns is not fair. Equity etfs return is never guaranteed. Yes even over 20 years, just look at Nikkei 225.

We also got to ask ourselves what kind of financial instruments were available 20 years ago, and the availability of information then. Is it fair to compare the situation now and situation back then?

Granted, the document was not clear on whether the amount is a guaranteed amount upon expiry of the product. I would suspect it is a projected return. For guaranteed returns product, it should be a LIABILITY in the insurers books, and they have to invest a significant portion of it into investment grade bonds to prove to regulators that they are able to meet their obligations. I don't think the insurers are able to get away with not paying guaranteed returns if it is worded explicitly.

Anyway, it is a bloody stupid reply from the insurance company, imo. They should highlight the exact fine print which states that the return is a projection, then give their excuses, rather than giving their 3 financial crisis excuse. Someone fire the public relations/ customer support department head please.

 

[akwl88]

decent WL plans? can sic B.I? Can outperform BTITR?

ETF 1 year performance 19.83%, anyone can emulate just go posb open invest saver with the friendly zeh zeh there can liao. Why let the insurance scums earn your hard earned money?

(lol)

Chiu insurance agent chiu shld know better lol

Dont come play reversal roles...

 

[akwl88]

What's wrong with that info?

I mean.. kumgong Prudential don't even know what I want is to surrender my policy anytime at my convenience and get back everything I paid, I also want interest in the meantime. Oh ya I want coverage also, minimal can liao but must be more than I put in.

Now then u know

Still come up with so many useless products to confuse and milk off consumers' money

 

[Lewis.T]

Now then u know

Still come up with so many useless products to confuse and milk off consumers' money

Chiu are right. Pay them money to invest for me cannot even cash out my full capital whenever I want, worse than bank. Interest also lower than ETF 19%.

Some more pay them then they only perform 8%+ in 2016 pui.

I spit on all agents.

What I want is simple. Whenever I need the money, I can take out premium paid without penalty. If I die, I get back at least 5% more than I put in. Interest should also at least perform equal to ETF example 19% for first quarter 2017. If market not doing well, at least return my premiums paid. If cannot do all that then pay them my hard earned money for what?

Oh ya, I also want them to guarantee my returns yearly when they make money, and then they cannot take back this amount that they guarantee to me.

 

[akwl88]

Chiu are right. Pay them money to invest for me cannot even cash out my full capital whenever I want, worse than bank. Interest also lower than ETF 19%.

Some more pay them then they only perform 8%+ in 2016 pui.

I spit on all agents.

What I want is simple. Whenever I need the money, I can take out premium paid without penalty. If I die, I get back at least 5% more than I put in. Interest should also at least perform equal to ETF example 19% for first quarter 2017. If market not doing well, at least return my premiums paid. If cannot do all that then pay them my hard earned money for what?

Oh ya, I also want them to guarantee my returns yearly when they make money, and then they cannot take back this amount that they guarantee to me.

Of course

So simple concept yet they dont understand

Dont keep hiam 8% in 2016 pls. 2015 make how much?

Consumers shld be guranteed their capital anytime. Afterall, the insurers are using their money to invest.

So much money wasted on agents monthly overseas trips, awards ceremonies etc

So much unproductivesness and inefficiency

 

[Lewis.T]

Of course

So simple concept yet they dont understand

Dont keep hiam 8% in 2016 pls. 2015 make how much?

Consumers shld be guranteed their capital anytime. Afterall, the insurers are using their money to invest.

So much money wasted on agents monthly overseas trips, awards ceremonies etc

So much unproductivesness and inefficiency

Ya exactly. Best is they turn off the air cons also. Let all the vermins die in their office. Air con also need $ and electricity tariffs going up. Entire 2016 make 8+% only my ETF made 19% in 3 months.

Also scrap their customer service and building la, waste money on hiring people who cannot help me get better returns and rent. Nowadays technological age liao they still so kumgong have many big buildings. Dunno how to save cost like and transfer the excess to policy holder?

 

[akwl88]

Ya exactly. Best is they turn off the air cons also. Let all the vermins die in their office. Air con also need $ and electricity tariffs going up. Entire 2016 make 8+% only my ETF made 19% in 3 months.

Also scrap their customer service and building la, waste money on hiring people who cannot help me get better returns and rent. Nowadays technological age liao they still so kumgong have many big buildings. Dunno how to save cost like and transfer the excess to policy holder?

coming from an insurance agent

 

[Perisher]

SSB is actually what most folks need.
Capital guaranteed, no penalty for early redemption, bonus given out is pro rated, interest also guaranteed.

Unless insurance have better products, they should just shut it down instead of confusing folks with lofty dreams.

Never mix insurance with investment.

 

[akwl88]

SSB is actually what most folks need.
Capital guaranteed, no penalty for early redemption, bonus given out is pro rated, interest also guaranteed.

Unless insurance have better products, they should just shut it down instead of confusing folks with lofty dreams.

Never mix insurance with investment.

yup

ssb is so straight forward and easy to understand.

this is what the conservative folks needs

 

[Lewis.T]

SSB is actually what most folks need.
Capital guaranteed, no penalty for early redemption, bonus given out is pro rated, interest also guaranteed.

Unless insurance have better products, they should just shut it down instead of confusing folks with lofty dreams.

Never mix insurance with investment.

Exactly. Can cancel at anytime get back capital. No penalty for early redemption such as tiered interest structure that gives you lower interest if you redeem early.

In fact it's so good I don't know why fixed deposits still exist. They give lower interest plus when I take out my money from FD they eat my interest tmd.

SSB gives me guaranteed interest paid as coupons, I can put under my pillow and sleep better at night song dah.

If you cannot take investment risks then SSB is the definitive answer for you, short term to 10 years.

Also works if you don't have a lump sum, just every month put $500 insai, guaranteed interest HUAT AH

 

[koja6049]

The only thing that the PolicyHolder signs is the application form, copy of BI as well as the agreement with agent's recommendation. Out of these 3 items, only the application form forms part of the contract.

Usually the Policy Wording is binded to the Policy Contract after it is in force. The policyholder is given 14 days to consider if the Policy suits him.

Personally I always request for the Policy Wordings before even looking at the BI simply because it's absolutely important for one to understand it. If one finds it difficult to understand, then the person should refrain from buying it unless he is comfortable to pay for something he dunno.

In certain policies, the wordings are indeed very complex and I have even encountered situations where insurer's actuarials misinterpreted the wordings. Sounds terrible right but it's true.

i see, thanks for the info. So in this case, the BI is the most important when in dispute of the maturity benefit

 

[koja6049]

I took another look at the fb post, on photo 3 is actually listed "ENDOWMENT ASSURANCE" as assured sum 20k. The rest are insurance. So I think the parents either bought this for insurance, or they are being duped by the insurance agent.

 

[soneat]

i see, thanks for the info. So in this case, the BI is the most important when in dispute of the maturity benefit

BI is usually not part of the Policy Contract. Policy Schedule, Policy Wording, Endorsement, Application Form, forms a legally binding Policy Contract. Some policy contract may recognise some other entities, such as written correspondence, as part of the it.