Are long term anticipated endowment policies scams?

[Mcfguy]

My dad told me he got one and will be cashing out soon at maturity. I google a little and it doesnt look optimistic....

 

http://www.reach.gov.sg/YourSay/BlogUs/tab.../3/Default.aspx? ssFormAction=%5B%5BssBlogThread_VIEW% 5D%5D&tid=%5B%5B8129%5D%5D

[Atonchia]

How much put in? For how long? Return how much?

Please let us know once got the cash.

 

Or else it's like asking, Eh, how heavy is the whale?

At least specify the type of whale Sperm or Blue Whale?

How to answer?

 

Anything is a scam if you do not believe it.

[themagi]

My dad told me he got one and will be cashing out soon at maturity. I google a little and it doesnt look optimistic....

 

http://www.reach.gov.sg/YourSay/BlogUs/tab.../3/Default.aspx? ssFormAction=%5B%5BssBlogThread_VIEW% 5D%5D&tid=%5B%5B8129%5D%5D

 

Depends on your risk appetite, expectations of returns, and age group. Better for older people, not so great for younger ones. Popular in the past, not so now, but again it depends. Not a scam if one goes in with eyes open.

[Mcfguy]

he put in like $1000 plus annually since 25 years ago. If you read the link, a lot of people complain tgat the return is less than the total premium paid. For those who got more, the percentage return is not as promised, given 3% instead of the 'promised' 10%. When teferred to documents, they all have a 'For illustrative purposes only' disclaimer. Moreover, for my dad, he said the insurer changed his agent last fee years ago.

[Yoongf]

When I was in Sec sch, my mom bought me an endowment policy that had a maturity value of $50K. That time, $50K could get a 3Rm HDB flat.

 

After 20 years.. that $50K can get only 20% of a 3rm flat.

 

It's not a scam, but the time value of $ and inflation eroded the value of such policies. Unless such policies can provide a return that can beat inflation AND the time value of $, there is really no point getting such policies.

[Mcfguy]

When I was in Sec sch, my mom bought me an endowment policy that had a maturity value of $50K. That time, $50K could get a 3Rm HDB flat.

 

After 20 years.. that $50K can get only 20% of a 3rm flat.

 

It's not a scam, but the time value of $ and inflation eroded the value of such policies. Unless such policies can provide a return that can beat inflation AND the time value of $, there is really no point getting such policies.

 

how much your mum put in altogether? If the return is still more than the amount put in still not so bad. Inflation and $ devalue is no choice.

[Jimmylim]

if you put in effort and do your own investment, the return is much higher than what you will get back from such policies. if you want to just sit back and let others control your money, that return is expected. with policies, you also lose the liquidity of your money.

[Flying_genie]

The word 'anticipated' should give you your answer.

[Mcfguy]

The word 'anticipated' should give you your answer.

 

haha. that's true.

 

Another questiion, on my dad's policy paper, it is stated maturity is feb 2013, but he received a letter from the insurance company saying he should pay the last premium on this date. Is that correct? The commencement date is Feb 1988, so last year should be 25 years already, right?

Edited February 6, 2013 by Mcfguy

[Tungsl]

taken this from another website

the lesson be prepared

 

 

 

I am past 55 and recently I am billed for the Lift upgrading which I was assured by Ms Cynthia Phua that it can be paid by CPF. To my horror, when I applied for the amount to be paid by CPF, the ordinary account is 0 (zero). All my CPF contributions are transferred to my retirement account.

 

 

I just received another bill for the outstanding amount and plus interest. If the ordinary account is kept at 0 (zero) and all monthly CPF contributions is transferred to the my retirement account, how am I going to pay my HDB and other payments that had to be settled with CPF.

 

 

If I my out of work? can the CPF retirement account be used to pay for my HDB loan that is still outstanding? If not it is like killing us retirees, waiting for our HDB flat to be taken back as soon as we retirees who don,t meet the minimum sum after paying for the HDB flat and still have out standing HDB loans.

 

 

The CPF retirement account should be allowed to be used as like the ordinary account for HDB housing loan purposes as this was what the government had been encouraging for every citizens to own a flat.

 

 

Should not the MPs highlight this if all CPF contributions are to be transferred to the retirement account when the options for lift upgrading voting is being conducted?

[Soya]

i won't call it a scam but locking in $$ for the next 20yrs for a paltry 3% return is a bad joke.

 

 

[Mcfguy]

i won't call it a scam but locking in $$ for the next 20yrs for a paltry 3% return is a bad joke.

 

This just in. The insurance company sent a maturity letter. The maturity cash value is approx. $25000. My dad paid $1080 annually for the last 25 years amounting approx $27000. What a joke. So bros and sis, dont trust your endowment policies to make you any money!

[Solar]

i won't call it a scam but locking in $$ for the next 20yrs for a paltry 3% return is a bad joke.

 

if it is purely from investment standpoint, yes, this sucks.

but from an insurance against something, then it should be okay ba?

at least you still get some money back.. compared to term plans?

[Kusje]

if it is purely from investment standpoint, yes, this sucks.

but from an insurance against something, then it should be okay ba?

at least you still get some money back.. compared to term plans?

 

If you had bought term insurance and invested the difference in premium yourself, you would almost definitely get more than 27000....

[Jman888]

This just in. The insurance company sent a maturity letter. The maturity cash value is approx. $25000. My dad paid $1080 annually for the last 25 years amounting approx $27000. What a joke. So bros and sis, dont trust your endowment policies to make you any money!

 

 

did he get any pay out every 3 years prior to the maturity?

[BlueOldMan]

This happened to me too!

s--t

Losing some $ but I'm still gng to cash it out

Never ending road

Told my wife never buy any of these plans again

But some policy really got pay out yearly

So not so bad

[Chucky2007]

This just in. The insurance company sent a maturity letter. The maturity cash value is approx. $25000. My dad paid $1080 annually for the last 25 years amounting approx $27000. What a joke. So bros and sis, dont trust your endowment policies to make you any money!

Did the policy pay certain amount every year or every few year to your dad, like a form of coupon payout? I believe it does and either your dad just deposit it in without realizing it's from the policy, or have moved house and the old coupon cheques have been mailing to the old address.. Just call the insurer or visit their customer service and ask

[Kb27]

I had an 21 yr anticipated endowment for $10k. Paid about $780 every year.

Every 3 yr, they send me a cheque of about $1k.

At maturity, I got a cheque for about $11k.

 

I don't pay more premium on the whole than what I got back, perhaps not as much.

 

But you must remember that you get insurance coverage during this period as well, which you will pay premium for a normal coverage.

 

I don't think this is a scam, anyone can work out the numbers.

Edited February 23, 2013 by Kb27