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Chitchat Hawkers Lose Money In Prudential Endowment Plan!

JohnTan

Alfrescian (InfP)
Generous Asset
17795857_10212258543995950_4912340067030654936_n.jpg


17796358_10212258145305983_5432459219171178040_n.jpg


My dad bought this prudential savings plan twenty years back and he was supposed to get 40k+ this year during March. However, they've only sent my dad a cheque for 20k+ (the initial investment is 30k+).
My family went up to the prudential office to lodge a complain and to enquire as to why the company isn't giving the full sum as promised on the contract. The company dismissed my dad with a convenient bullshit excuse " our company isn't earning much so that's the sum you'll have ".

Is this ethically right? What's the point for anyone to save with prudential if you're going to make a loss in the end after 20 years? That money could've been many times more if my dad invested in other financial instruments and inflation.


Is there any case if we were to sue them? My parents are just Hawkers, I don't understand why you've to make the old generation suffer so much
Update: it's an endowment plan.

Update2 : there has been no withdrawal made and payment has been made regularly since 1994. The agent who sold this policy to my dad is no longer in prudential so it's more troublesome too. I've also attached another pic regarding the loss of $ (which I've no idea what it is)

Update3: Hi there! Didn't expect to receive so much help from everyone. I've already sent the documentations to my friends who're from diff insurance agencies and they're looking into it to see if they're able to help. I've also translated the knowledge I've learnt from everyone to my dad but we'll have to wait till Monday to see how the situation unfolds (I was told that someone from prudential will be contacting us, we don't know how it'll go but we'll see).

For those who're not providing any useful advice at all and is attacking my dad and I, please know that none of us expected this to happen. The term insurance is a very new concept to him in the 90s. Just because you're literate now doesn't mean that everyone is back then in the 90s. Your parents could've bought similiar policies for their retirement plan back then, and they could've ended up in a similar fate if they've an unethical agent whose mind is prob only on their KPI, serving them.

Once again, thanks everyone for your advice and concern regarding the situation and I really appreciate it. Have a great weekend ahead!

- More at AllSingaporeStuff.com https://www.allsingaporestuff.com/article/hawkers-cannot-get-back-their-money-insurance-plan
FB: http://fb.com/allsgstuff
 

MyMother

Alfrescian
Loyal
Where is the benefit illustration?
There are different types of endowment plans, this looks like one of those with guaranteed and non guaranteed returns, $42000 is the projected returns. What he got back is the guaranteed portion but the non guaranteed made a loss.

Does his policy also come with any riders?
 

johnny333

Alfrescian (Inf)
Asset
Not surprised by this. Plenty of funny business like CLOB, the CPF investment scheme, mini bond fiasco, changes in the CPF scheme, ....

This is why I have given up on investing in Spore. You never know rules what rules & regulations they will change next :eek:
 

frenchbriefs

Alfrescian (Inf)
Asset
most of the returns in these types of endowment/savings/ilp policies are non guaranteed,if they tell u ur expected return is 3.75% p.a. after 20 years,take it with a pinch of salt,cause absolutely none of it is guaranteed.....sometimes even the guaranteed portion do not even cover the amount of premiums u have put in over the years.....the penalties for early termination of these policies are huge,the bigger the earlier u terminate them,it could be as little as 50 percent to 70 percent of the premiums u have put in.what they dont tell u is how many people do not make it to the end of these fifteen,twenty year policies.this is a huge cash cow for insurance companies.machiam like cpf

dont be fooled by the fancy terms like $1200 of cash back every year or ability to withdraw 30 percent of ur money every 5 years for personal needs or the cute 20 year old xmm trying to sell u these things,most of the time they only bring up the benefits of the products and not the clauses and penalties and terms and conditions.its not in their interest or duty to do so(unless they are asked by the customer) or they have no clue what they are doing anyway......one ridiculous term in the insurance policy i was looking at,at the bottom of the page it said in small disclaimers that 73 percent of the premiums of the insurance policy during the first year goes towards paying the agent,distribution fees and the company,subsequent years 5 to 11 percent,the agent never once deemed it necessary to bring it up to me during the half an hour long convo despite the subject being brought up that insurance companies
 
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chootchiew

Alfrescian (Inf)
Asset
hi sir, many sinkie losers treat non guaranteed and projected returns as guaranteed.
that's how stupid sinkie losers are and destined to be a sinkie loser :p
 

JohnTan

Alfrescian (InfP)
Generous Asset
hi sir, many sinkie losers treat non guaranteed and projected returns as guaranteed.
that's how stupid sinkie losers are and destined to be a sinkie loser :p

I have little faith in those so-called savings plans or endowment plans. Most of the returns are taken by the fund managers and insurance agents as commissions. The investors get the crumbs. I buy mainly term insurance, hospital plans and basic life insurance plans.

The average folk get better monetary returns from improving their professional skills which usually leads to a long-term rise in salary and keeping that salary in a bank than putting their money into endowment plans and whatever hare-brained schemes out there.
 

frenchbriefs

Alfrescian (Inf)
Asset
I have little faith in those so-called savings plans or endowment plans. Most of the returns are taken by the fund managers and insurance agents as commissions. The investors get the crumbs. I buy mainly term insurance, hospital plans and basic life insurance plans.

The average folk get better monetary returns from improving their professional skills which usually leads to a long-term rise in salary and keeping that salary in a bank than putting their money into endowment plans and whatever hare-brained schemes out there.

it doesnt matter,the higher u are paid as a pmet,the more likely u are to get shafted by the time ur 40,then its back to washing dishes again at sakae sushi or driving a uber.the circle of life in SG is complete,its like the ying yang wheel in buddhism,there is no escape.
 

chootchiew

Alfrescian (Inf)
Asset
I have little faith in those so-called savings plans or endowment plans. Most of the returns are taken by the fund managers and insurance agents as commissions. The investors get the crumbs. I buy mainly term insurance, hospital plans and basic life insurance plans.

The average folk get better monetary returns from improving their professional skills which usually leads to a long-term rise in salary and keeping that salary in a bank than putting their money into endowment plans and whatever hare-brained schemes out there.

among all the insurance plans , I'm more puzzled by how/why insurance company are willing to risk selling health / hospital plans as the premium paid is usually much lesser than the claimant amount, especially with today's average human health conditions and the way some medical professionals play around with this plans with their patients.
 

no_faith

Alfrescian (Inf)
Asset
The agent will always say projected earnings blah blah.
Projected means not guarantee. Or the agent did not mention?
 

virus

Alfrescian
Loyal
he didnt buy the guaranteed one lah... at same timeline, i have guaranteed return and if i cash in now it's some 50K. for both, i can get around $90k.

but why cashout?
 

garlic

Alfrescian (Inf)
Asset
he didnt buy the guaranteed one lah... at same timeline, i have guaranteed return and if i cash in now it's some 50K. for both, i can get around $90k.

but why cashout?

Yah, should buy those that have guaranteed cash value whereby the projected earnings (bonuses) are declared annually, can be more than 3.25% or lower, but once declared, are added onto the policy's cash value and won't decrease. This hawker was likely coerced into buying a higher-risk product which has a higher "projected earnings" but which does not have guaranteed cash value.
 

MyMother

Alfrescian
Loyal
He added another document and it becomes clear now.

17634627_10212271806847513_731386145454117942_n.jpg


$836 went to savings plan, the rest went to CI and disability coverage.
$19228 for 23 years and he got back a cheque of $20k++

The only issue I have is that they explicitly mentioned, "You will receive $42000 on maturity."
 

Boliao

Alfrescian
Loyal
All insurance based saving plans are bullshit. The only benefit you get is coverage and it is not even worth it. The average projected return is 4-6% and it is not even guaranteed. Give me the money and I'll make you 4-6% in a month.
 

JohnTan

Alfrescian (InfP)
Generous Asset
CPF is the best. Guarantee one.

CPF actually is amongst the best. I maxed out my Special Account by my mid 30s and have been collecting compounded interest of around 4.5% per year for many years. My CPF returns each year run into tens of thousands of dollars in compounded interests.

The government gave some bad advice by asking sinkies to pay for their HDB flats with only CPF, no cash. It's a rotten idea. During my early married life, my wife and I switched from paying by CPF to paying by cash. We left our CPF accounts alone and allowed it to grow and accumulate interest. When there was sufficient money in our OA, we transferred most of it to SA. Over the years, the compounded returns from the SA grew larger and larger.

Very few investment plans out there can give guaranteed 4.5% annual returns compounded yearly.
 

chootchiew

Alfrescian (Inf)
Asset
CPF is the best. Guarantee one.

yes cpf is guaranteed upto 55 yo. When i turn 50 ? I'm thinking to dump in 300 to 500k cash to OA to earn the 2+% for next 5 years.
although the MS falls under non guaranteed, I will maintain it at the max cap every year by transferring OA to SA. by this method I am rest assured to retire comfortably instead of living like a pauper now since I'm anti slave. Also I do not have to expose myself to all the toxic investment products .
 
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JohnTan

Alfrescian (InfP)
Generous Asset
yes cpf is guaranteed upto 55 yo. When i turn 50 ? I'm thinking to dump in 300 to 500k cash to OA to earn the 2+% for next 5 years.

You are better off dumping $100k into your SA by mid 30s in order to make as much use of the long term compounding effect of 4.5% annual interest.
 

frenchbriefs

Alfrescian (Inf)
Asset
yes cpf is guaranteed upto 55 yo. When i turn 50 ? I'm thinking to dump in 300 to 500k cash to OA to earn the 2+% for next 5 years.
although the MS falls under non guaranteed, I will maintain it at the max cap every year by transferring OA to SA. by this method I am rest assured to retire comfortably instead of living like a pauper now since I'm anti slave. Also I do not have to expose myself to all the toxic investment products .

theres tons of bank accounts that gives high interest now,why put ur money in cpf and have it locked up?
 

chootchiew

Alfrescian (Inf)
Asset
You are better off dumping $100k into your SA by mid 30s in order to make as much use of the long term compounding effect of 4.5% annual interest.

totally agreed sir, I did it abit late but it's still doing good as i will maintain S.A. to its cap every year by topping up.
 
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