What you guys think of this retirement savings plan?

MingFreeman SG

I have been introduced to a savings plan for retirement by a finance planner.
It is a combination of 2 plans. One from HSBC and the other....I forgot its name for the moment. I think its Asia Life.

The plan consists of a guarenteed and a variable components. The premiums will be paid up to an age set by the customer. After 3 yrs, $500 every half a year can be reclaimed back by the user. Premiums can be paid yearly, half yearly, monthly or quaterly.

Upon the event of death, the accumulated savings can be reclaimed back in full while in the event of critical illness, premiums can be suspended for the duration of illness.

The interest rate is ard 4%.

Is this retirement savings plan good?

de_middle SG

the premium must be high inorder for 3yrs later can get return Neutral

4getmenot SG

indeed, we won;t know if it is good unless TS tell us how much is it first..? Rolling Eyes

mancha SG

The $500 back is a sweetner.
It defeats the purpose of your plan, as it will be deducted at maturity or in the event of a claim, as being already paid.

fox_hound_33 SG

Looks like another one of those Insurance linked policies(ILP).

Did it say anything like in the first year 5% of your premiums will go into investments, second year 15%, third year 50% and from the fourth 100% ?
Did it say it will put your money into some funds?

My guess is that the policy has two components, one is the insurance part and other the investment part. The investment part is the one that gives the variable returns when the policy terminates.The insurance part is the one that provides for all those cover (illness etc) and gives your premiums back.

My advice is this.................DO NOT ever sign up for anything if you are not sure of what you are signing up for!!!
Dig up more info, ask your friend how EXACTLY the policy works.
And if it indeed is an ILP......i would suggest to stay away from it. You can put your money to better use by buying insurance and investments separately.

There is a lot of info on the net...Google your way through.

TXian SG

I found out some endowment plans from banks like OCBC and POSB. Quite attractive leh. They are a combination of savings and insurance.

Time range got 10 yrs to 25 yrs also got.

Find them rather confusing. Perhaps too many products already.

UandMe SG

How much is premium and the projected sum after maturity if u dun claim the $500 every half a yr? Think is just a normal savings plan rather than retirement savings plan?