note : updated content found at the bottom of this post
Copy from Lowyat forum that :
If I understand it correctly, then it should be like below spreadsheet.
click here to view the spreedsheet
It is like you save into a Fix Deposit who pay you 0.28% interest rate ONLY !!
Far from 2.X % that is paid by most banks now ! Not to mention the calculation above is compounding yearly while real FD accounts compound monthly
Ofcourse they will pay you more money at the end of 30th year. That will boost up your effective interest rate but want to bet ? As shown in earlier posts in Capital guarantee plan ? and 2,400 get 800 = 33% ? Whatever the guaranteed maturity value is, the final effective rate will be less than 3%.
do correct any of the info here if mistake found, all confrontation welcome for the good of all.
Blogged with the Flock Browser
2009 03 13
Allianz personel showed up in the forum above and provided more info and complete picture. First of all this is the full illustration provided :
One very important fact shared is that the life coverage in this plan is a Reducing Term Average which means the life coverage reduces as it approaches the end of 30th year. I can safely assume the Sum Assured is $100,000 and as the SA reduces, the guarantee $4,000 pay out will eventually make up to the reduced Sum Assured. So sum it all up, you will get back your $104,000 whether you die early or you don't die at all.
If you scroll to the right in the spreed sheet at the beginning of this article, this plan basically gives a 2.93% to 3.47% non guarantee return. Although its NOT guarantee but looking at today's recession ( entry time ) and a period of 30 years ( exit time ), its almost no brainer this return can be easily paid out as promised. So not exactly as FD but can be as safe as FD.
I hope this exercise benefits some people. First of all, guarantee return is usually not able to be higher than Fix Deposit. 2nd of all, we cann't really assess a plan correctly until we get the full info and quotation. As mentioned by this blog before, analyse the actual numbers, not the rate published by the promoter or sellers.