Like any other insurance products, the financial gain is calculated on risks. On many occasions, the purchaser of this kind of "forced saving scheme" base the decision to buy on the strength of trust on the agent. I took out mine because the agent was my ex-staff. Dutifully I paid the premium through a bank standing instruction and have forgotten about it for years till it matured recently.
I hardly looked at the finer points of the documents and only remembered the amount due to me at the end of the maturity period. So when I finally received the cheque I was surprised to discover that had I saved that amount in the bank I would have got the same amount of "interest" and had I invested the same amount in PNB Unit Trusts I would have got double the amount via so called 'dividends". The only factor in the equation was "the risk" that was, should anything have happened to my child during the period, I would be paid the insured amount... Hmmm.. one can always be wise after the event. But then, for the aggressive risk-taker, this is not a good method of wealth creation especially when there are currently so many good financial products offered by banks and Unit Trust Managers.
By the way I received about 9% less than the amount promised and my agent has long migrated to Australia!
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2 comments:
hmmm..we live and learn , i suppose.
not all endowment policies are to the investor's advantage.
would put my 'trust' in pnb more for a low risk person like me.
But you need to diversify your portfolio so that you have an income balance and dear Zana, no risk no gain :)
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