Saving Insurance Plans

[akwl88]

Mixing savings with insurance?

Lmao

 

[luvalist]

Etf got holding charges no dividend

agent ah?

anyway, I investing through Posb invest saver for past 1 year+, no holding charge and I do receive dividend. Maybe the harder part is to slash the dividend aside and keep coz it's not big amount for now.

I have 2 ILPs and they never break even up til now (9 to 10 years). My agent still tell me they are using a technique called DCA. I am speechless. 9 years to DCA and never break even wor. I am holding on for coverage only la due to some personal reasons.

Like what the rest says, get your protection first. If u wanna slash away some money, can consider CIMB fastsaver that kind of deposit accounts, accumulate and think about what you want to do. the non-guarantee portion of endownment plans nowadays are too uncertain IMHO

 

[Shion]

ILP need over 10 years to hit breakeven, sad to say

 

[Maeda_Toshiie]

ILP need over 10 years to hit breakeven, sad to say

ILPs may never break even. There is no guaranteed return.

 

[Pandule]

actually what do you all mean by break even??

 

[Shion]

ILPs may never break even. There is no guaranteed return.

Wow...I didnt expect that to happen

 

[Shion]

actually what do you all mean by break even??

https://en.wikipedia.org/wiki/Break-even

For example, after 10 years:
total premiums paid is $100,000
total surrender value is $100,001
So 10 years is the period needed to hit break even point

 

[SBC]

ILP is a no-no.

 

[Bigoya]

Wow...I didnt expect that to happen

mrclubbie I thought you very savvy
ILP is purely investment + insurance. If market goes against you your fund value can drop all the way to 0 and your plan gets terminated right away. Only endowments have guaranteed portions which may or may not be more than your capital.

 

[Bigoya]

agent ah?

anyway, I investing through Posb invest saver for past 1 year+, no holding charge and I do receive dividend. Maybe the harder part is to slash the dividend aside and keep coz it's not big amount for now.

I have 2 ILPs and they never break even up til now (9 to 10 years). My agent still tell me they are using a technique called DCA. I am speechless. 9 years to DCA and never break even wor. I am holding on for coverage only la due to some personal reasons.

Like what the rest says, get your protection first. If u wanna slash away some money, can consider CIMB fastsaver that kind of deposit accounts, accumulate and think about what you want to do. the non-guarantee portion of endownment plans nowadays are too uncertain IMHO

STI ETF avg annualised returns for past 10 years in abt 8% with div reinvested. if u nv reinvest then annualised returns is ard 4% iirc. Rmb to buy in with ur accumulated div at market low when opportunity arises.

It is hard for ILPs to break even, some funds which are considered "low risk" have very low returns, most often these low returns are lower than you mortality charges especially if your sum assured is high. also, traditional ILPs are front end loaded, which means your initial premiums were all used to pay for agent's commissions and insurance company expenses rather than buying into funds.

I do have 1 client however who broke even after 16 years, just broke even last month. Her ILP was from GE, invested into GreatLink Global Supreme Fund. The fund makes about 1.97% p.a. annualised. After DCA and fees/charges, her net returns is at about 1.22% p.a. annualized since inception in 2010.
Never loose money, but returns isn't fantastic. Put the money in FD safer for the same kind of returns.

For your ILP if ur main concerrn is for coverage because you have some pre-existing medical conditions which makes it hard to apply for new insurance, I suggest you opt for premium holiday and just use existing cash value to pay for future increasing cost of insurance, provided you have sufficient cash value. Stop putting money waste.

2 cents.

 

[akwl88]

tldr:

AVOID ILP!

 

[RolexKing88]

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.

Good that you are getting your shield plan fix.
For a savings plan (endowment) 10 years, i think you need to put around $600++ monthly. Unless you can wait longer like 15 years then it will be 300++

Alternatively you can look in putting it in singapore saving bond, but it is a lump sum investment.

 

[Bigoya]

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!

If you want to plan ur future finances nicely you should be starting from Life insurance and hospital insurance planning. Only when you've covered your potential risk then only wealth accumulation would make sense.

You might want to check out AXA's early saver for savings plan too, it has no cash coupon hence you'd have to make sure you can confortably commit $250/mth say for the nxt 10yrs, otherwise you might risk lasping the policy.

In comparison with TM, I think our guaranteed portion is higher while their non-guaranteed is higer, it is afterall, non-guaranteed.

 

[Bigoya]

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.

The longer the tenure, the higher the payout, guarenteed and non-guarenteed. You might want to refrain banging your marriage fund in an endowment and hence compromising on the higher payouts you could poentially get from your endowment.

Invest your CPF-OA when you have ufficient fund and if you know how to invest, also, top-up ur OA early so interest can be compounded earlier at 2.5% or more (if you know hw to invest), which can cover more on your HDB mortgage.

 

[Bigoya]

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!

ILP is a poor protection product. It shouldn't even have existed.

 

[Bigoya]

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.

That would depends on whether or not you know how to invest. There are people who buy div stocks with poor fundemental and end up loosing in the long run run.
But if you have done ur due deligience and have faith in the stocks u hold, i'm glad to say you're good on ur own.

 

[Bigoya]

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.

I'm sorry but nobdy should care about the negligible death benefit in an endowment plan.

 

[Bigoya]

Sorry for the outdated reply. Just realize I'm looking at an old thread with my HP. Words are too small.

Please disregard those posts as they no longer serve any purpose.

 

[Shion]

Sorry for the outdated reply. Just realize I'm looking at an old thread with my HP. Words are too small.

Please disregard those posts as they no longer serve any purpose.

It is ok

 

[Starbelle]

ILP is a poor protection product. It shouldn't even have existed.

Yea, I hear ILP is something not worthy to invest unless one is super well informed which is unlikely to happen