Regarding those life ins policy

[BlueOldMan]

Hi bros & sis,

 

Like your kind advises n knowledge

Got this 20 yr policy from ***** in yr 2000

States in yr 2008 will break-even

But till now every yr statement comes

Surrender value always off by 3-4 k

 

Will u keep paying or surrender if no need the coverage?

Is it true that it will never break even , dun even say about gain then?

 

If eg yr 13/14 market is very bad

If this co were to close shop

Are we protected by Mas or it will be 0 value?

 

Tks

[C_wern]

hi bro, your life ins policy is to give u the coverage for life so why would you want to surrender it? I've 3 life ins policies and 2 term policies. My life ins policies surrender value nv bothered me before because i know as long as i keep it, i've the coverage and i'm sure when i surrender it 35-40 years later

the projected surrender value will be there. The insurance companies have been in Sg for so many years, definitely they've been doing smth right.

And yes, u r automatically covered under the policy owners protection scheme for your policies.

i'm an insurance adviser and this is just my 2 cents views. thanks and have a great day!

[BlueOldMan]

Tks for reply

I Hv afew with prudential n manual life n I'm enjoying the coverage

This Abv mentioned co I dun like so I'm thinking of surrendering

But the projected states 8th yr will break-even but till now nv ever break-even

 

Btw I asked one of my fren oso surrendered one of his policy upon reaching the last yr but still suffered a lost of 1+ k

 

My uncle who paid thru out his 20 yrs policy oso nv break-even

I really wonder all these life policy is there any body who has gain in value over capital anot

Haha

 

But so far I haven't heard of one yet

 

Tks

[Freestylers09]

3-4K no break even but coverage and protection still there

 

Leverage so high,good enough liao lor

 

 

[C_wern]

bro, even though the payment period is done paying for it doesn't usually means it'll breakeven or 'make'. You've to let the policy continue to roll through the years for the compounding effect, anyway you'll need the coverage anyhow :) and yes u pay this mthly amount for that much higher coverage so it still makes sense should anything untoward happens

[C_wern]

life ins policy is unlike endowment policies which have a payout which is normally more than what u put in after the policy paying terms ends/matures

[PengYou]

Tks for reply

I Hv afew with prudential n manual life n I'm enjoying the coverage

This Abv mentioned co I dun like so I'm thinking of surrendering

But the projected states 8th yr will break-even but till now nv ever break-even

 

Btw I asked one of my fren oso surrendered one of his policy upon reaching the last yr but still suffered a lost of 1+ k

 

My uncle who paid thru out his 20 yrs policy oso nv break-even

I really wonder all these life policy is there any body who has gain in value over capital anot

Haha

 

But so far I haven't heard of one yet

 

Tks

 

Bro, I know where u are coming from. I faced the same problem, spoken to a number of insurance agent, but non comprehen my concern. Until finally I met this friend of mine, also insurance agent. He listen and intro me another policy (Guarrantee get back principle + more), but advice me not to surrender current one 1st, or terminate at a later stage when I restrategize base on situation.

 

But note: the Guarrantee get back principle + much more is when I up lorry, something bad happen, or when I reach certain age, which I find it reasonable. So depending your actual intention of buying insurance, you strategize accordingly.

 

1 thing to note (No offence to all insurance agent), Now ecornomy unpredictable I never never consider the word "Projected growth" becareful of this term. alot of agent + bankers love to sweet talk using the term "Projected growth".

[C_wern]

yup totally agree with you. In times like this, we should tell our clients to look more into the coverage it provides rather than the 'growth' side.

[Chrispie]

since u mentioned life insuranse, most impt is what is the key function of that policy? If its to give coverage, then i wont bother with whatever surrender value as of now.

 

if you want high yield policies, i think those investment link ones are the one u shld be looking at. Life insurance are not meant to give u good returns anyway.

 

correct me if im wrong..

[BlueOldMan]

True

Tks for all replies

 

Yup in the sense yes there's the coverage

 

Actually the initial plan years back was jus forced savings for our future

That's when my gf, now my wife who is the one wanted this first policy

 

Ya I think if looking at picture now is to cont with them for that coverage

 

Yup the projected growth is really nonsense

 

Act there is some investment in it which shows gain

So that's y I dun understand y 12/20 yrs still no gain one

Haha

 

Tks

[BlueOldMan]

Oh now I Duno mine is life or endowment

Paisay paisay

Hahaha

 

Mine is those that we need to pay monthly till 20 yrs

Got cover some major illness n death n oso got some investment one

 

There is oso a projected growth chart which shows which yr start will break-even

 

Something like that

[PengYou]

Actually the initial plan years back was jus forced savings for our future

 

Act I too wan forced savings, those with guarantee returns at most 1% only, normally fix Deposit, which bo pian, I am doing, always bank hopping, cos only applicable for fresh funds... haha cheapo rite??.

 

In the past Unit trust, but now no more trust in UT. the only really possible guarantee return hopping to minimize inflation is our CPF liao, 2.x% interest.. where to find?? but only can take out when 5 of 6 side of the coffin already nailed on.. sigh..

 

But as the saying goes, "U either put ur $$ in the bank do nothing, or take it out and do something" If ur analysis is correct u earn big $$, if you foresight fail, you lose big time.

 

Also sad to say in this modern world, you no $$, you cannot get sick, so insurance bo bian buy incase really need.

 

Dunno how malaysia bank can afford high interest rate of up to 4%..

[BlueOldMan]

Hahaha well said

 

I must admit in those days we really Duno abt ins

It's jus buy n buy lor

 

Haha

Yup I jus google mine should be endowment

 

[Hosaybo]

insurance are package together to make it more platable to the layman. In other words, the insurance component and investment (eg life policy) are lump together as a whole such that one gets insurance coverage and yet, have some projected returns many years down the road. This is to make them feel that they are paying for something whcih eventually they will get back. in reality, what the company does isto put an X amount (say 30%) for insurance coverage which does not generate any returns at all. The other Y amount (say 70%) is used for investment. So what you are getting back is based on this Y amount invested which usually take many years. The projected values (aka Estimated value) is based on assumption or past records and MAS has restriction on the number these companies can quote. These are estimates only (too make you feel enticed to buy) and not guaranteed. I believe nowadays insurance like to mention that bank interest very low and it is better to buy such policy to generate returns. However, they don't tell you that it might miss their estimate as well.

 

In summary, for someone who is good at investment himself, it may be better to buy term (aka insurance with no returns) and invest the rest of the money himself.

[BlueOldMan]

So can I say even if I hold on to it till 20 yrs the maturity yr

It most prob will be not able to break even as per to our capital?

 

I got this feeling man

 

Haha

[Freestylers09]

i got investment link,cancel after 6 months, feel v v hard get back ,how long u nid or percentage gain of funds for ur 1.5 years of payment to gain back this 1.5 months?

 

after that got life ,limited pay..limited pay pay 12 or 15 years then no nid pay then policy continue to roll and run