I am a policy holder and I have signed documents to agree to certain terms. My premiums are being paid out from accumulated dividends since 2005 ( $2027 p annum after removing a rider))
The policy began in 1990 In 14 years ( $2177 p annum )I had paid $30,478. The "critical" year was 2005 ( year 15 after 1990)
The accumulated dividends up till 2004 was $9,242.33
Since 2005 my premiums have been paid from this 'credit' amount.
The residual amount in the accumulated dividends is $2,063.54. When they declare this year's dividend amount, it may just add $200 with interest. I can therefore pay for another year perhaps. In year 2014, I will have to pay cash out of pocket.
Since my accumulated dividends are depleted, and if I surrender the policy in 2014, I will get $48,000 ( I think!)
Basically, after 24 years, I get my capital sum back.
If I had spent all the $48,000 to buy Great Eastern shares, I would have had a better return, plus capital appreciation. Of course I would not enjoy insurance on my life.. but what the heck, Financial Guardian valued my life at $100,000 face value only!
I wish her all the best in her legal pursuits.
This policy is a very good example as a reason not to buy whole life. Mr Tan is the only person that bothers to educate anyone on the short commings.
Yes, readers here must keep in mind, buy term and shield only, rest of money invest in high dividend stocks and in property when it is down in the dumps. Recently Aviva is canvassing around for SAF Term suscribers to take up their Critical Illness Rider, maybe our SAF boys should consider if they wan more protection. The Rider is very much cheaper than those sold separately on the market. But then bear in mind, Aviva may play you out when coming to claims, maybe you need to have one foot in the coffin first, before you could get some claims, so ask them to specify clearly in black and white, and ask your lawyer to go thru. Never trust all Insurance agents, they are protected by MAS, else you feel like a trussed up defeathered dead chicken when you get played out some years down the road. Be extra wary if that Agent is your friend or relative. And going to Court is going to enrich another rascal, your lawyer, your case will drag on for years, with the Judiciary here favouring all these big shot Insurers.
A heroic task.
ReplyDeleteI am a policy holder and I have signed documents to agree to certain terms. My premiums are being paid out from accumulated dividends since
2005 ( $2027 p annum after removing a rider))
The policy began in 1990
In 14 years ( $2177 p annum )I had paid $30,478.
The "critical" year was 2005 ( year 15 after 1990)
The accumulated dividends up till 2004 was $9,242.33
Since 2005 my premiums have been paid from this 'credit' amount.
The residual amount in the accumulated dividends is $2,063.54.
When they declare this year's dividend amount, it may just
add $200 with interest. I can therefore pay for another year perhaps.
In year 2014, I will have to pay cash out of pocket.
Since my accumulated dividends are depleted, and if I surrender
the policy in 2014, I will get $48,000 ( I think!)
Basically, after 24 years, I get my capital sum back.
If I had spent all the $48,000 to buy Great Eastern shares, I would have
had a better return, plus capital appreciation. Of course I would not enjoy insurance on my life.. but what the heck, Financial Guardian valued my life
at $100,000 face value only!
I wish her all the best in her legal pursuits.
This policy is a very good example as a reason not to buy whole life.
Mr Tan is the only person that bothers to educate anyone on the short commings.
Thank you Sir.
Yes, readers here must keep in mind, buy term and shield only, rest of money invest in high dividend stocks and in property when it is down in the dumps.
ReplyDeleteRecently Aviva is canvassing around for SAF Term suscribers to take up their Critical Illness Rider, maybe our SAF boys should consider if they wan more protection. The Rider is very much cheaper than those sold separately on the market. But then bear in mind, Aviva may play you out when coming to claims, maybe you need to have one foot in the coffin first, before you could get some claims, so ask them to specify clearly in black and white, and ask your lawyer to go thru.
Never trust all Insurance agents, they are protected by MAS, else you feel like a trussed up defeathered dead chicken when you get played out some years down the road. Be extra wary if that Agent is your friend or relative.
And going to Court is going to enrich another rascal, your lawyer,
your case will drag on for years, with the Judiciary here favouring all these big shot Insurers.
What are stated in the BIs also
ReplyDeletebopakay