I wanted to do some low risk investment and was shopping around for a good one. I sat down and listen when I was approached by the Etiqa Takaful agents and this is what I was informed on their latest product:
1. Principle investment is guaranteed by PIDM (I found out later this is a big bullshit!)
2. It’s a saving plan (hmmm…so it is not an insurance plan?)
3. Maturity is 30 years
4. Free insurance coverage
5. interest can earn up to 8% (not guaranteed)
Right, after some thoughts I asked what are the risks and any hidden cost (I was preparing to invest, with my IC on hand). The agent simply said there are no hidden cost and no risks since principle investment are guaranteed. Worst case scenario, I will get back my investments in full.
The thing is, after the Lehman Brothers’ issue which has stirred the world by surprise, I will ensure every guarantee provides in an investment is recorded in black and white. The agent said he will email me one, which after a month now and I have yet to receive any.
I have also found out that I cannot withdraw in full amount (principle plus interest) before the maturity date or I’ll lose some of my investments. I was surprise as this sound like an insurance plan, insurance supposed to be free! This is supposed to be a saving plan! Mind you I do know that Takaful is an insurance company and not a bank but then why say it’s a saving plan in the first place?
This is not fine since I need the money for my sons’ education and so I ask the agent to calculate how much I can earn in a worst case scenario should I withdraw (be it in partial or I surrender the value) in say after 15 years. Well, I can’t say I am happy with the result but then again this is base on worst case scenario and this is the risk that I have to take. HA funny at first they said there is no risks.
Two days later (and while I’m still waiting for the black and white from the agent saying my investments will be guaranteed) I was withdrawing money in Maybank, another agent approached me. I was furious seeing another Etiqa Takaful agent, how they say there are no risks, how my investments are guaranteed, how there are no hidden cost, how this is supposed to be a saving plan. The agent then explained to me that I must have got it wrong. First of all, there is no guarantee in this investment. NO GUARANTEE. Secondly, there will be cost for admin fees and so on, that is why I will never get back my investment in full. Thirdly, even if I do not withdraw any money and waited until maturity date I will still not receive my investment in full because Takaful is base on profit sharing and on maturity date, depending on the amount of money in the pool, Takaful will calculate how much I will get.
Holy Cow!!!!! No risks and no hidden cost? In my opinion this is an insurance plan plus investment, just that they twist it in such a way that sounds like a saving plan. For 30 years and with such risks involved, I would rather put my money in EPF. Now at least that is guaranteed.
Disclaimer: This is base on my understanding and may not be the facts on Etiqa Takaful Maybank (hack, not even the agents can get it right, how can I?? Two agents telling me two different stories) If you have any questions on the investment product please seek an agent yourself and don’t rely on what I have written above.
1. Principle investment is guaranteed by PIDM (I found out later this is a big bullshit!)
2. It’s a saving plan (hmmm…so it is not an insurance plan?)
3. Maturity is 30 years
4. Free insurance coverage
5. interest can earn up to 8% (not guaranteed)
Right, after some thoughts I asked what are the risks and any hidden cost (I was preparing to invest, with my IC on hand). The agent simply said there are no hidden cost and no risks since principle investment are guaranteed. Worst case scenario, I will get back my investments in full.
The thing is, after the Lehman Brothers’ issue which has stirred the world by surprise, I will ensure every guarantee provides in an investment is recorded in black and white. The agent said he will email me one, which after a month now and I have yet to receive any.
I have also found out that I cannot withdraw in full amount (principle plus interest) before the maturity date or I’ll lose some of my investments. I was surprise as this sound like an insurance plan, insurance supposed to be free! This is supposed to be a saving plan! Mind you I do know that Takaful is an insurance company and not a bank but then why say it’s a saving plan in the first place?
This is not fine since I need the money for my sons’ education and so I ask the agent to calculate how much I can earn in a worst case scenario should I withdraw (be it in partial or I surrender the value) in say after 15 years. Well, I can’t say I am happy with the result but then again this is base on worst case scenario and this is the risk that I have to take. HA funny at first they said there is no risks.
Two days later (and while I’m still waiting for the black and white from the agent saying my investments will be guaranteed) I was withdrawing money in Maybank, another agent approached me. I was furious seeing another Etiqa Takaful agent, how they say there are no risks, how my investments are guaranteed, how there are no hidden cost, how this is supposed to be a saving plan. The agent then explained to me that I must have got it wrong. First of all, there is no guarantee in this investment. NO GUARANTEE. Secondly, there will be cost for admin fees and so on, that is why I will never get back my investment in full. Thirdly, even if I do not withdraw any money and waited until maturity date I will still not receive my investment in full because Takaful is base on profit sharing and on maturity date, depending on the amount of money in the pool, Takaful will calculate how much I will get.
Holy Cow!!!!! No risks and no hidden cost? In my opinion this is an insurance plan plus investment, just that they twist it in such a way that sounds like a saving plan. For 30 years and with such risks involved, I would rather put my money in EPF. Now at least that is guaranteed.
Disclaimer: This is base on my understanding and may not be the facts on Etiqa Takaful Maybank (hack, not even the agents can get it right, how can I?? Two agents telling me two different stories) If you have any questions on the investment product please seek an agent yourself and don’t rely on what I have written above.
After 15 years already?
ReplyDeleteI mean how long u start save money in this plan?
Me also in a same problem...