using cashback value to buy another policy

[cz287cj]

I have this Prucash so far total bonus, interest and cashback value till last year is $28167. sum assured is 30K. I still have another 12 more years to go before the policy mature.

The agent recommend me that I use this cashback value which estimate to be about 35k when it mature to buy into pruwealth or prulifetime income for retirement policy. I would lose about $10k of bonus. In other words, I would actually be forking out $45k for the new retirement policy.

If I leave the cashnack back untouch, I would be getting back 86k of cash value.

Is it advisable given that in the long run the return from the new policy would cover the loss of 10k bonus and I need not fork out additional money?

 

[anfielder]

I have this Prucash so far total bonus, interest and cashback value till last year is $28167. sum assured is 30K. I still have another 12 more years to go before the policy mature.

The agent recommend me that I use this cashback value which estimate to be about 35k when it mature to buy into pruwealth or prulifetime income for retirement policy. I would lose about $10k of bonus. In other words, I would actually be forking out $45k for the new retirement policy.

If I leave the cashnack back untouch, I would be getting back 86k of cash value.

Is it advisable given that in the long run the return from the new policy would cover the loss of 10k bonus and I need not fork out additional money?

Your agent is a scumbag. Run for your life.

 

[Earnasyougrow]

Paging for Kenny Xiang 1991 for advice

 

[badsector]

do not get smoked by your agent.

 

[jmapsmylife]

prucash is an endowment. buying it is already bad enough unless you are someone who do not know how to invest or save. i advice not to touch the cashback. and after maturity take the money out and invest yourself. at the meantime use the time to learn investing. pruwealth need to hold very long or that few % of return all insurance policy have to wait for too long. money being kept aside are not your money. if you want to do that as your retirement planning i advice you top up ur CPF SA account risk free and higher return. can help to reduce your tax too ^^

I have this Prucash so far total bonus, interest and cashback value till last year is $28167. sum assured is 30K. I still have another 12 more years to go before the policy mature.

The agent recommend me that I use this cashback value which estimate to be about 35k when it mature to buy into pruwealth or prulifetime income for retirement policy. I would lose about $10k of bonus. In other words, I would actually be forking out $45k for the new retirement policy.

If I leave the cashnack back untouch, I would be getting back 86k of cash value.

Is it advisable given that in the long run the return from the new policy would cover the loss of 10k bonus and I need not fork out additional money?

 

[akwl88]

nowadays i see pple post questions about their policies sibei confusing one

insurers tweak the plans here and there make it confusing for consumers while agents only see the more premiums u pay, the more comms they get

like the old trick in the book, if cannot convince the pple, confuse them.

 

[jmapsmylife]

nowadays i see pple post questions about their policies sibei confusing one

insurers tweak the plans here and there make it confusing for consumers while agents only see the more premiums u pay, the more comms they get

like the old trick in the book, if cannot convince the pple, confuse them.

yes i was one of the victim then haha. now i review all of it and cut lost. cutting one ILP can help me cover the cost for term till 65 including ci, eci, tpd, death. somemore with more coverage. i believe most ppl are not willing to cut lost due to the mindset that they are losing money if they cut but they do not know if they dun cut they lose more.

i have also try to educate my friends around me but failed. once they meet up with agent they will end up buying some sort of ILP. but its ok at least i tried to educate them its still their choice

 

[Shion]

No...Just keep your cashbacks in PruCash will do...

The agent just want to earn more from you only...

 

[ceciltan]

I have this Prucash so far total bonus, interest and cashback value till last year is $28167. sum assured is 30K. I still have another 12 more years to go before the policy mature.

The agent recommend me that I use this cashback value which estimate to be about 35k when it mature to buy into pruwealth or prulifetime income for retirement policy. I would lose about $10k of bonus. In other words, I would actually be forking out $45k for the new retirement policy.

If I leave the cashnack back untouch, I would be getting back 86k of cash value.

Is it advisable given that in the long run the return from the new policy would cover the loss of 10k bonus and I need not fork out additional money?

Did your agent tell you to surrender your current policy? If yes then something is very wrong cause no agent should encourage their client to surrender policy.

And did your agent also tell you that when you buy another policy, how much would he be making off you?

Nothing against insurance but buying an endowment is actually the worse possible insurance you can get. Among the various type of policies out there, getting an endowment mean you pay the highest premium for the lowest sum assured with a fixed expiry date usually 25 years.

Imagine after 25 years later, your endowment matured though you get back some money but you are totally not covered by insurance assuming that is the only one you get.

And if you were to get another policy then, the premium would be much much higher.

Bottom line is you must learn to manage your own money, learn to invest yourself, learn about the various instrument you can use to grow your money, learn how to assess your own risk and investment horizon.

If you leave your money for other to manage for you, you can be sure they will get as much a bite into your return as possible. If you meet with some ethical person then good for you but in your case it best to change another person to manage for you if you decide not to learn to do it yourself.

 

[Darkzi0n]

yes i was one of the victim then haha. now i review all of it and cut lost. cutting one ILP can help me cover the cost for term till 65 including ci, eci, tpd, death. somemore with more coverage. i believe most ppl are not willing to cut lost due to the mindset that they are losing money if they cut but they do not know if they dun cut they lose more.

i have also try to educate my friends around me but failed. once they meet up with agent they will end up buying some sort of ILP. but its ok at least i tried to educate them its still their choice

I can relate to ur last para. Somehow ppl rather trust a stranger who has clear conflict of interest rather than someone u know who gain nothing from advising u.

 

[jmapsmylife]

I can relate to ur last para. Somehow ppl rather trust a stranger who has clear conflict of interest rather than someone u know who gain nothing from advising u.

its ok. they are responsible for their own money. just hope that they wun come to me after many year and tell me they want to cancel i think i will slap them hahaha

 

[maruikun]

i have also try to educate my friends around me but failed. once they meet up with agent they will end up buying some sort of ILP. but its ok at least i tried to educate them its still their choice

There is a meaningful quote which is applicable in this context.

"Ignorance can be educated and crazy can be medicated but there is no cure for stupid"

 

[FP_IFA]

I have this Prucash so far total bonus, interest and cashback value till last year is $28167. sum assured is 30K. I still have another 12 more years to go before the policy mature.

The agent recommend me that I use this cashback value which estimate to be about 35k when it mature to buy into pruwealth or prulifetime income for retirement policy. I would lose about $10k of bonus. In other words, I would actually be forking out $45k for the new retirement policy.

If I leave the cashnack back untouch, I would be getting back 86k of cash value.

Is it advisable given that in the long run the return from the new policy would cover the loss of 10k bonus and I need not fork out additional money?

I don't understand fully your question. Is your agent asking you to surrender early to buy another plan???

If so NO PLEASE NO! There is no way the new plan will make up for your loss! This makes me so MAD!

 

[Mecisteus]

I don't understand fully your question. Is your agent asking you to surrender early to buy another plan???

If so NO PLEASE NO! There is no way the new plan will make up for your loss! This makes me so MAD!

No. It is not surrendering. This recommendation is definitely against his code of conduct.

He must be halfway through the plan. He got a sizeable cashback which he is entitled to withdraw or leave with the company to accumulate. The agent is asking him to withdraw this amount and put into a new plan.

This is like trying to escape by digging a deeper hole into the ground.

 

[cz287cj]

Thanks for all your response.

I get to keep the policy but the cash back will be used to buy the retirement policy. If i do not cash out the policy, i will get more than the 45k.

I'm not a invester type, i do not play stock or whatever.

 

[Shion]

I don't think you should forgo your potential returns in your current plan, especially since it is an endowment. I suppose the folks here would agree that it is not a good plan to buy, but if you have bought it, best is not to withdraw the cashback.

From the way you mention it, it seems that the agent ask you to withdraw all your accumulated cashback to buy another policy. Is that actually possible, as in withdrawing accumulated cashback to date ?

 

[SBC]

Let's use the correct term. Cash Value should be what being termed as cashback.

Noticed that the Cash Value of $28k is like too high when SA is only 30k. Too high cos, it's 12 years away from maturity.

Withdrawal of Cash Value is considered as a loan. Interest rate charged is at 6%. How can insurance policy has a return higher than 6%?

 

[wira]

I think time to change your agent.
He is not working in your best interest but more to increase his commissions.

 

[SBC]

I filed a complaint against my agent when he sold & bought another ILP when I am actually entitled to a free swap.

He was my army friend. But be need to punish hard enough to remember his lesson.

 

[Mecisteus]

Thanks for all your response.

I get to keep the policy but the cash back will be used to buy the retirement policy. If i do not cash out the policy, i will get more than the 45k.

I'm not a invester type, i do not play stock or whatever.

You dont need to be a rocket scientist to manage your money.

You can choose not to dabble in stocks. But at least, know the best options available that can give the highest potential returns at the lowest costs.

Buying endowment plans is not the best option. It is probably a "good" thing compared to not having a savings plan at all.

Multi tiered banking products are already giving higher returns at 1-2% pa without any lockup. You can consider this option which is not so risky.

Or read this forum more to learn some good products.