As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 24 March 2012

Insurance - Enhanced Endowment Policy Suck! (3)

Read? Insurance - Enhanced Endowment Policy Suck! (2)

This year, I didn't receive any "tulan" announcement of further bonus cut. It seems that bad market condition is temporary over.

After paying premiums for the last 15 years, the Net Surrender Value is 95.4% of the total premium paid.

It didn't even manage to break even after 15 years. Insurance is really about protection and don't ever let your friendly insurance agents convince you that insurance is a good platform for forced saving and investment. You can't trust the insurance companies to take care of your investment portfolio. If you want better returns, you may have no choice but to get your hands dirty and learn to be financial and investment savvy.


  1. Yeah, I agree that insurance is purely about protection. The investment policies are just for the insurance companies to make more money. A person can simply start an RSP unit trust to invest at a much lower cost.

    I ask my friends why they purchase life insurance policies rather than term insurance. They simply say they can get back the full principle sum, when theoretically that may not be the case if the policy is not at break-even vale.

  2. I also regretted purchased the endownment iusurance plan, due to ignorance and friendship. If you want to buy insurance as a protection, then buy Term insurance which is cheaper. You can then invest the balance to yield much higher return from endownment or life insurance.


  3. after 15 years, I am sure your agent is nowhere to be found. If found, he & the insurance company will blame "the market" for the downs slope. My endowment & Investment linked policies aren't that much but was bought when I just started out working. The ILP is fast to drop prices at the slight of market hic up but SLOW to pick up in the bull run.

    These 50% commission buggers are the earliest blood suckers I have met so far.

    Yup. Protection & investment dun mix for us the end users. So, all my policies are terms. No need for any cash returns (another gimmick to satisfy our greed)

  4. This comment has been removed by the author.

  5. I did a projection to 20 years. Total Amount Premium paid is more than the amount i can collect back safely. This is definitely worst than fixed deposits.

    Yes just for Insurance only and is not much if i do die ...


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