Annuity is a financial instrument which pays out guaranteed
fixed amount of money someone every month/year, usually until their
death.
The solution posted here is a perpetual income plan which gives out
dividend payout at the end of 2nd year for life and a guaranteed
coupon payout at the end of 12th for life. The breakeven year is 10
years. If you cash in anytime before 10 year, you will suffer some
lost. eg, 22% lost if you cash in on the 8th years. The complete
table of return and lost will be disclosed to you before a contract
is sign. This plan is available for age 1 to 100.
Imagine if you have US$150k sitting around doing nothing, and you
have a 1 year old son. You can buy the lifetime annuity with your
son as the life insured, and starts to withdraw lifetime dividend
at the end of 2nd year plus guaranteed coupon on the 12th year. You
may choose to give the income to your son anytime or keep it for
yourself till you pass away. After which, you son will receive the
lifetime income till he pass away. And your grandchildren will have
inherited more than US$200k if you son pass away at 90 years of
age. In total, you and your son will enjoy lifetime income plus
death insurance of more than US$200k for your grandchildren. This
is the concept of 3-generation insurance.
Instead of lump sum payment, if you have US$2k a month to spare,
after paying for 8 years, you are on your way to receive your
lifetime dividend at the end of 2nd year and guaranteed lifetime
yearly income at the of 12 years.
Another type of lifetime annuity is only available to a person age
between 55-60. The monthly income payout is fixed at age 62. For
the initial sum of US$150k, your monthly guaranteed life income
will be US$850. If you decided to cash it in before age 62, the
lost suffer is 2%. If the person insurred pass away before he has
received more than his initial investment, the balance plus
interest will be returned to his estate. If the life insured live
till age 85, he would have received total income of US$240k. The
minimum sum to buy this annuity plan is S$20k using cash or your
CPF fund when you reach age 55.
thanks
KC
[email protected]
*life insurance is a form of financial tool gives out death
compensation*
*endowment is a fomr of savings plan gives you a discipline to save
plus a moderate return*
*endowment saving plan also have penalty if you choose to stop
saving before the term ends*
*if u can save yourself and ok with the interest earn, 0.015%, dont
buy endowment and please dont complain about endowment*
*if you can get better return from your own investment, insurance
plans may not be the right financial tool for you. so please don
complain*
*everybody has diff risk preference in handling their
finance*
*if you have S$10mil, dont buy insurance, cos you can
self-insured*
*if you have S$100k, better buy*
*if you have only S$10k, better save now*
*try not to use personal credit, not unless you are sure you can
settle the credit in 3-6months*