Prulink protection plus plan?

[derrick_91]

I was engaged from a agent and recommend me to get this plan. But I jus started work not long ago and am newbie in this kind of stuff. Should I get this anot?

I don mind having protection from CI, death and disability and also I wanna to save and use money to earn more money. But heard from the agent the result can only barely seen through the third year with paying 200/mth. I know first few month the money will eaten by prudential for admin fee and stuff. But how well can this plan go? Can it really make significant money?

if by third year my premium I paid 200*36 =7200. Can I make at least 8000 -9000 dollars?
or is there any disadvantages from the plan which I didnt know? (probably they hidden it out?)

hope someone can advise me!

 

[teejaywai]

it looks likes an ILP. typically it takes around 10-13 years to breakeven(meaning the policy cash values = the money you put in)

if you dont mind getting coverage with some investment. that should be fine.
if you only want coverage. get a term or life. and invest the rest through your own channels.

cheers

 

[Lewis.T]

Get a term plan, they are the most cost effective plans around for coverage.

Also, PruLink Protection plus is a plan that is focused on coverage, and works similar to a whole life plan except the investment portion is done by yourself. The disadvantage of this plan is that not all of your premiums go towards investing in the first few years, so do not expect to make anything early on during the policy.

If you aren't disciplined with your money, go for a whole life plan or endowment after your term plan and integrated shield plan, or invest regularly through POSB/OCBC's investment products.

 

[derrick_91]

abit feel cheated leh the feeling when only after 10 years then its break even. so for the next few years I cannot take out the money invested in since its so little. Got coverage its good but now I have a lump sum coming in so my primary interest is to use that lump sum to make more money.

 

[Keverus]

yes it will make significant money.

for your chio bu agent that is.

 

[teejaywai]

abit feel cheated leh the feeling when only after 10 years then its break even. so for the next few years I cannot take out the money invested in since its so little. Got coverage its good but now I have a lump sum coming in so my primary interest is to use that lump sum to make more money.

Some see it as a long term invest with some coverage. it basically depends your needs right now.
For you case more likely you should get a shield plan for hos. bills coverage. you may want a term/life for unforseen circumstances or a small amount of portion into endowment plan.
Rest of your capital you can invest else.

have a good balanced of liquid & illiquid savings.

cheers

 

[derrick_91]

I forgot to add. actually my dad bought for me a life insurance when I was young. That consider a coverage right? So should I jus take on a pure investment plan?

 

[teejaywai]

I forgot to add. actually my dad bought for me a life insurance when I was young. That consider a coverage right? So should I jus take on a pure investment plan?

check if the life plan a limited premium payment term. meaning to say you pay for X amount of years and it covers you for life. i am sure you wouldnt want to pay till age 80++ right?

 

[PRUbombz]

abit feel cheated leh the feeling when only after 10 years then its break even. so for the next few years I cannot take out the money invested in since its so little. Got coverage its good but now I have a lump sum coming in so my primary interest is to use that lump sum to make more money.

This is an insurance product, not investment. If you only looking to grow your money, this is definitely not the product for you.

Say you break even after 10 years, it basically means you have profited from the product by having 10 years worth of "free insurance". Don't forget, insurance products always have insurance cost involved.