Savings Plan/ Insurance first?

[bigmice]

Hi guys,

I've recently stepped into the working world, and thinking of getting either one of the above-mentioned. Which one do you guys think is the one that a mid-20s guy should get first? Insurance for its lower premium, or savings plan?

With regards to savings plan, anyone here has any? Which company's savings plans are considered the best in your opinion? I've talked to Prudential and HSBC advisers; and the difference that I garner from that is that HSBC offers the full guaranteed amount of your amount saved (100%) but with a lower projected yield at maturity. Prudential, on the other hand, only offers 60% guaranteed returns on your savings, but has a higher 'projected' maturity yield, but subject to economy performance etc...

Any opinions or differences that any of you bros know of?

Cheers!
A guy trying to plan for his financial future

project return is given by MAS, all company is same.
saving plan after maturity ,will 100% guarantee your money.
before maturity withdraw money, sure will lose money.
return will be projected between 1~5%, depend on terms period and plan type.
my recommend GE Annual cash back.

 

[tatose]

saving plan after maturity ,will 100% guarantee your money.

No personal guarantee no believe

 

[chopra]

The under-mentioned is the same old naggy message that i have been posting for years, based on the clueless people whom had asked/post such questions/remarks before. Kindly spend a few minutes reading it. No need thank me.

First, you need to understand what's insurance and what's not insurance.

1. term plan, travel insurance, accidental insurance, medishield / integrated shield plan = insurance

2. life/endowment/savings plan/kids education = insurance plus fixed return investment in bonds etc

3. ilp = insurance plus variable investment in a mixed of bonds and stocks.

Next, the problem...

Only silly-people-who-feel-too-rich buy plans bundled with investment. Hefty commission in terms of paying the insurance agent, other insurance company overheads, HUGE bid-sell spread should you switch fund or surrender policies. If you do not understand all the terminologies of what i have written in this para, then you should see why this is a PROBLEM; signing contracts blindly.

Again, ILP, life, endowment, kids education plan, savings plan are essentially the same thing, with different weightage in bonds and equity. These silly ppl pass money to insurance company to invest -- what you should do is to skip these intermediary channels and DIY.

Remember, there is no free lunch in this world. If you think insurance agent is god-sent to help financially not so savvy people, you are wrong. These silly people will only realise the meagre profit (sometimes huge loss) after 5 to 10yrs of silly committment to the insurance company. They will then start asking their agents for the BENEFITS ILLUSTRATION only to realise what they r trapped. These silly people will either remain disillusional or wake up and start reading up on investment. So why repeat the path that these ppl have had taken? Spend 15min a day to read the money mind subforum in hwz and you will be enlightened in a year. Get off your lazy bum and be hardworking now!

Also, some agents will ask you to pm and discuss because they dont want you to know the truth. Again, be cautious, be skeptical. Your loss is their gain. The conflict of interest is and will always be there.

Buy term insurance and integrated shield plan and maybe accidental plan, and invest the rest. There's no financially not savvy ppl, only lazy people.

Good luck.

 

[RockyHero]

The under-mentioned is the same old naggy message that i have been posting for years, based on the clueless people whom had asked/post such questions/remarks before. Kindly spend a few minutes reading it. No need thank me.

First, you need to understand what's insurance and what's not insurance.

1. term plan, travel insurance, accidental insurance, medishield / integrated shield plan = insurance

2. life/endowment/savings plan/kids education = insurance plus fixed return investment in bonds etc

3. ilp = insurance plus variable investment in a mixed of bonds and stocks.

Next, the problem...

Only silly-people-who-feel-too-rich buy plans bundled with investment. Hefty commission in terms of paying the insurance agent, other insurance company overheads, HUGE bid-sell spread should you switch fund or surrender policies. If you do not understand all the terminologies of what i have written in this para, then you should see why this is a PROBLEM; signing contracts blindly.

Again, ILP, life, endowment, kids education plan, savings plan are essentially the same thing, with different weightage in bonds and equity. These silly ppl pass money to insurance company to invest -- what you should do is to skip these intermediary channels and DIY.

Remember, there is no free lunch in this world. If you think insurance agent is god-sent to help financially not so savvy people, you are wrong. These silly people will only realise the meagre profit (sometimes huge loss) after 5 to 10yrs of silly committment to the insurance company. They will then start asking their agents for the BENEFITS ILLUSTRATION only to realise what they r trapped. These silly people will either remain disillusional or wake up and start reading up on investment. So why repeat the path that these ppl have had taken? Spend 15min a day to read the money mind subforum in hwz and you will be enlightened in a year. Get off your lazy bum and be hardworking now!

Also, some agents will ask you to pm and discuss because they dont want you to know the truth. Again, be cautious, be skeptical. Your loss is their gain. The conflict of interest is and will always be there.

Buy term insurance and integrated shield plan and maybe accidental plan, and invest the rest. There's no financially not savvy ppl, only lazy people.

Good luck.

SECONDED

Fully advocate what you say as i myself being a FA admit that participating policies are usually meant for fools or people with too much money to spare. If you are looking to buy insurance, BUY INSURANCE.

1) Term covering life and tpd
2) Health insurance
3) Early CI
4) Disability income
5) Personal Accident

These are pure protection plan and every working adult should have them

 

[tatose]

SECONDED

Fully advocate what you say as i myself being a FA admit that participating policies are usually meant for fools or people with too much money to spare. If you are looking to buy insurance, BUY INSURANCE.

1) Term covering life and tpd
2) Health insurance
3) Early CI
4) Disability income
5) Personal Accident

These are pure protection plan and every working adult should have them

I take the "Protection" as gold.

Funny part is that I bought ILP to insure myself from not paying for protection - I especially took premium holidays and ILP -> term conversion seriously.

 

[sgtsickox]

To answer to the question of the topic.

Insurance first.

Savings plan you can just skip it. It is a scam by showing you numbers. "saved 10k and get back 13k when it matures etc." These plans only attract uncles and aunties. Given the time frame that you locked you money in there, I am sure you can find better investment instrument that can easily make more than what saving plans offer.

If you really need to prioritize,

1. Hospitalisation plan
2. Whole life Insurance

After which, if you are concern about health related coverage.

1. Critical illness coverage etc

Not that complicated !