Saving Insurance Plans

[H3r0s0ulr3nd3r]

Hi everyone!

Currently I'm 21 this years and I'm trying to plan my future nicely as I come from a poor background with some savings.

I'm planning to get a Saving Insurance, however I'm really not sure which is the best to choose from actually even though I did a lot of research. Let me tell you my requirement as below.

1. I'm planning to save $250 per month.
2. Duration of 10 years will be great to me.
3. I think I will prefer those insurance that doesn't give cash vouncher (From what I've research, receiving cash vouncher will result in a much lesser total maturity value, therefore I prefer not to)

I've heard of so many insurance companies (AIA, Great Eastern, Aviva, NTUC Income, etc etc) - There're really so many.

My friend actually recommended me Tokio Marine - TM Nest Egg (RP) Saving Insurance.

Here's the resource: TM Nest Egg (RP) | Tokio Marine Life Insurance Singapore Ltd.

Is this the "best" that I can find of all the insurance offered by many companies?

Your advice and comment will really be apperciated to me.

Thank people!

 

[Asure7]

If you are only looking at the "guaranteed" portions of the returns, Tokio Marine and HSBC give the best BI.

The question is are u willing to "risk" and go for lower guaranteed returns but higher non-guaranteed returns?

 

[kuro]

You seems rather young to be a full time working adult.

Have you upgraded your medicshield?
Are covered against Death, TPD, CI? These is to ensure in any event, you know that your dependents (your parent since you came from poor family, I believe your parent will depend on you) will be able to sustain a certain quality of life.

Saving plan is a long term commitment.

 

[kebinu]

Agree with Kuro. You should get your protection up before saving.

 

[WuMing1234]

If you are only looking at the "guaranteed" portions of the returns, Tokio Marine and HSBC give the best BI.

The question is are u willing to "risk" and go for lower guaranteed returns but higher non-guaranteed returns?

Sorry to point out. The guaranteed portions are actually lesser the total premiums he paid for. I am from AIA and i think i have seem better figures from some of the endowment plans. Need clarification from other agents and am i right to say that?

 

[Asure7]

was commenting based on my own experience, with recent BIs from TM, HSBC, NTUC, AIA, Prudential and GE.

Of course mileage may vary based on age, maturity period etc.


For savings plan, nothing much to really compare except yield (guaranteed vs non-guaranteed) for a fixed premium.
Just get as many BIs as you can and choose one based on how risk adverse you are

 

[kazaf99]

Sorry to point out. The guaranteed portions are actually lesser the total premiums he paid for. I am from AIA and i think i have seem better figures from some of the endowment plans. Need clarification from other agents and am i right to say that?

not exactly, for his age, hsbc and ntuc are able to provide guaranteed portions higher than prmiums paid

i have done both hsbc and ntuc, my bank is also taking in tm, heard they have been giving on projection for every policy since dunno when

company like aia and pru are well known in the industry for projecting high and low guaranteed amount

agents are selling it as a savings plan when it should be more like an investment plan since "capital not guaranteed"

 

[H3r0s0ulr3nd3r]

Hi everyone!

Thank for giving all the important advice.

As for protection scheme, I'm planning to get this 2 when I'm going into NS soon:
1. NTUC Income - Hospital/Surgical Insurance
Resouce: NTUC Income | Medical and Health Insurance Products

2. Aviva - SAF Group Term Life Insurance (Death) + Living Care Policy (Critical Illness)
Resource: Life & Health - SAF Insurance for Nsmen - Aviva Singapore

Heard it's very cheap and worth it, not sure other insurance company though.

As for Saving Insurance, I'm planning to take at most 10 years because most likely I would need to $ for marriage and etc when I'm like 31 or so.

I also understand that is either I would want to have higher guarantee but lower potential gain (lower risk) vs lower guarantee but higher potential gain (higher risk).

Thank guys.

 

[Carnage]

not exactly, for his age, hsbc and ntuc are able to provide guaranteed portions higher than prmiums paid

i have done both hsbc and ntuc, my bank is also taking in tm, heard they have been giving on projection for every policy since dunno when

company like aia and pru are well known in the industry for projecting high and low guaranteed amount

agents are selling it as a savings plan when it should be more like an investment plan since "capital not guaranteed"

Your post made the decision for me.

Was considering an offer from Prudential to sign $400 savings plan, 10 yeasr tenure, mature in 15 years. Agent keep telling me it's not investment, it's savings.

 

[GE_ric]

Your post made the decision for me.

Was considering an offer from Prudential to sign $400 savings plan, 10 yeasr tenure, mature in 15 years. Agent keep telling me it's not investment, it's savings.

I have to say, in some sense, he's not wrong. Endowments are indeed savings plans, and are probably the only safer tools such companies carry.

Coming from GE, I think such endowments are the only tools I CAN recommend when I'm asked about regular savings. But the savings element does feel diminished by the non guaranteed portions. Of course some even recommend ILP but that will truely be investment not savings any more. (ILPs should be viewed as a PROTECTION product, not an investment product.)

All the best!

 

[H3r0s0ulr3nd3r]

Hi Everyone,

I'm really so confuse now. So many insurance companies, however which should I really choose to meet my requirement?

I'm still trying my best to research and learn all the details in a insurance policy, terms used and etc.

So the TM one is good/the best to meet my needs? Or there's even better one out there?

Thank.

 

[kebinu]

Any agent relative or friend, find one that you trust and stick.

More returns will come thru DIY. Such plan gives low return.

 

[FP_IFA]

Look at coverage first if you haven't gotten any. Your coverage cost will increase with ages so it will become more and more expensive the longer you delay. In a way you are also saving up by getting your cover earlier.

Once your cover is taken care of, then you look at your savings or investments.

 

[Carnage]

Any agent relative or friend, find one that you trust and stick.

More returns will come thru DIY. Such plan gives low return.

He kept saying my method of ploughing money into dividend yield stocks is risky, put into savings plan is less risky.

All I can say is, his pitch didn't convinced me fully. After reading this thread, I'm fully convinced he's wrong.

 

[WuMing1234]

He may be wrong in a way he phrased it. It seems to me that he is eagerly promoting you to buy saving plans. I dont think it is not even appropriate to compare endowment plan to other investment product. The only comparative advantage for endowment plans is that it comes with insurance element that provides you death benefits.

 

[kazaf99]

He may be wrong in a way he phrased it. It seems to me that he is eagerly promoting you to buy saving plans. I dont think it is not even appropriate to compare endowment plan to other investment product. The only comparative advantage for endowment plans is that it comes with insurance element that provides you death benefits.

Insurance is not worth mentioning for endowment the insurance come in because it is a long term plan

If one is looking for coverage, either term or life plan or a ilp more geared towards ins

 

[kebinu]

He kept saying my method of ploughing money into dividend yield stocks is risky, put into savings plan is less risky.

All I can say is, his pitch didn't convinced me fully. After reading this thread, I'm fully convinced he's wrong.

If FA don't invest/trade in the market, they don't understand what is risk. Buying an ILP can be more risky than investing.

 

[Shiny Things]

He kept saying my method of ploughing money into dividend yield stocks is risky, put into savings plan is less risky.

All I can say is, his pitch didn't convinced me fully. After reading this thread, I'm fully convinced he's wrong.

Eerrrmmm. Technically he's right, but in practice he's still a lying asshole.

If you invest in a savings plan (I'm assuming this isn't an ILP), the money gets invested in the insurance company's internal bond fund. And that bond fund has lower volatility than stocks, so technically they're less risky.

HOWEVER...

Bonds also have significantly less return than dividend stocks - and on top of that, you'll be paying 1-2% a year in hidden fees, which you won't pay elsewhere.

And over a 15-year timeframe, you've got plenty of time to ride out any dips in the stock market.

So although the salesdroid was right in theory, he was wrong in practice. (And also, he was terrified that if you went and invested in dividend stocks, he wouldn't get his phat 1-2% fees every year for doing absolutely nothing.)

You made the right decision.

 

[kazaf99]

a lot of ppl are being mis sold products and dont even know it
problem being time horizon too long 15 to 25 years
by then they already forgotten what they bought alr

met ppl telling me prudential give them 5.25% guaranteed for endowment plan

and they think its the best plan in the world, nothing can come close, dont even wan to listen to u
sometimes dunno wan to laugh at them,shoot them or pity them

 

[GE_ric]

a lot of ppl are being mis sold products and dont even know it
problem being time horizon too long 15 to 25 years
by then they already forgotten what they bought alr

met ppl telling me prudential give them 5.25% guaranteed for endowment plan

and they think its the best plan in the world, nothing can come close, dont even wan to listen to u
sometimes dunno wan to laugh at them,shoot them or pity them

Guaranteed 5.25% endowment?! Really? Gosh