I have applied for Hong Leong Assurance – Cash Builder/Retirement plan and now waiting for its policies to arrive. Got to check if all the so call “guarantees” items that the agents said HLA will guarantee is stated inside the policies. I hope it does.
Some bloggers say this is just another endowment plans (not very sure how this works, my knowledge in this area is quite limited), others say no insurance guarantee so much return but if it does then it is worth the investment but 35 years is just too long. Well, if you ask me, if the policies mention all the guarantees then I say it is worth the risk. I did the calculation of up to 20 years of putting the same amount of money in bank with 2.5% interest vs the most conservative guarantee return from HLA and yet HLA provide slightly higher returns. Of course the longer you invest the higher the return, for 35 years I am not investing for myself but for my children. But then again, like I said, I am still waiting for the policies. If any of the guarantees is not mention in the policies then I’ll forget about it (including the spreadsheet calculation that they show to me – hey, the agents said the spreadsheet is part of the agreement so it got to be in or else).
The truth, I don’t trust insurance companies. All making tons of bucks by tricking people like us investing in it. They always have some very cleaver people who are very good with playing with figures and make us believe it is better than putting your hard earn income in bank, and when we do cash out we will never, never ever have the amount that they mentioned. Therefore, I see these type of products as to protect the beneficially and not for investment purposes.
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