Sunday, August 21, 2016

comments on Surrendering My AIA Prime Life Policy

comments on
the NTUC policy has no cash value. 
"For AIA, I’m paying $73.17 monthly for $50k coverage with some riders on it. In comparison, my NTUC Income policy has $200k TPD/CI coverage at $68.90" 
inaccurate calculation. at $73.17 monthly for 20 years, if you assumed the insurance costs was free, the yoy annual rate is about -0.67% 
"Yah ! for the past 20 teays,, you are just getting half of the return if you just invest in STI ETF ,, IRR just around 3.5 % ,,, with your own control ,, money shall double than that in enxt 20 years !!" chua's comment is particularly insightful.
kevin's policy IS from 1997. 
"We all know that the benefit illustration 20+yrs ago is flawed and XIRR based on my surrender value is about 2.6%. However, bearing in mind that I was 13 then and my parents are not financially savvy – they just hope to give me some form of savings when I grow up, I can live with it. If XIRR can increase to 3% when I reach the 30th policy year, coupled with the insurance coverage, – I will be contented." 
always a good habit. I do so for mine too. 
"At the halfway mark in 2008 when I started working, I began collecting these annual letters as much as I could, and I can see that the projected surrender value was revised downwards." 
freaking ****!
the plague of one size fits all.
freaking employee fund manager mentality! just protect his own rice bowl! 
"72% in fixed income20% in equities3% in real estate3% in other assets2% in loans" 
looks about right but that 2012 to 2016 is just wrong.
see above comment. 
"Year 1997 : $21,385Year 2008 : $17,544Year 2010 : $15,718Year 2012 : $16,448Year 2016 : $16,449" 
good timing now though if it is 72% fixed income! 
"I was told have to wait to next year, because the value at that point in time can fluctuate according to the underlying fund returns. Oh well."