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Thread ID: 93681	2008-09-27 05:00:00	Life insurance question re: surrender value	Nomad (952)	PC World Chat

Post ID	Timestamp	Content	User
708146	2008-09-29 07:42:00	That sounds vague. Sorry, if the policy runs its whole term, you get the insured amount plus bonuses. If you pull out early, then you only get the "surrender value" Your decision should be based on the time left to maturity and I think you should be asking people other than us.	decibel (11645)
708147	2008-09-29 08:17:00	They visted the adviser but she was with a client .. so they gonna send them a letter for withdrawal. Well.. its a 28yr term, 7 down, 21 to go. Maturity is 28yr it says. The statement provides an estimate what its value now and the estimate what it is valued in 28yrs time from the policy date. There is no unit number at all. All it say is that, capital stable investment 100% allocation. Something like, 8k surrender value, 16k to date paid of premiums. The thing that is funny is that they keep sending letters saying, if we don't hear from you we will automatically enrol you for CPI indexed at 3.5%, but this value changes each every so year .. before it was without then it was 3.5%, then it was 3.0 then 2 and now its 2.5%.... but the sum insured for life cover was still the same figure. I would of assumed that if it is index with the newer ones I have seen that the sum insured would also increase the same %? Like many people, I think they got investment type life cover cos they thought if they pulled out they would still have some cash but they didn't really look into it and compare just life cover and then just investment. When they sent letters, they didn't understand and ignored any letters they got. 7yrs ago, premiums had been $200/month and at current its $260/month.	Nomad (952)
708148	2008-09-29 08:31:00	The return forecast they say, is like 95k of premiums paid after 28yrs, you get about 140k at maturity (28yrs). Plus they got 100k collective for life cover. After tax but before management fees. They could of just got life cover so much cheaper and then just got investment or put that in the bank alone.	Nomad (952)
708149	2008-10-01 01:59:00	Management Fees and Commissions kill most Life Insurance linked products as good investments. Minimum Agent commission starts at 25% of the first years premium for a ten year plan and runs as high as 79% for longer periods, added to which there are annual management fees and commissions charged. Wouldn't be so bad if these products out performed other investment programmes, but they seldom do, and the hefty fees commissions etc are all up front, so these investments start well behind.	KenESmith (6287)
708150	2008-10-01 05:23:00	@ KenESmith: It's not necessarily just Life Insurance linked products you're talking about there. If you aren't in for the long haul (10 - 15 years plus), you're probably better off with a term deposit at the bank. From my experience, the life cover has no effect on the upfront initial costs/commission. It's the total premium that determines the charges. But I do feel that these types of contracts suffer in down markets, because although you may be purchasing more units with your payments, you will be cashing in more units to cover for life charges etc.	the_bogan (9949)
708151	2008-10-01 14:11:00	I believe in Life Insurance, as just that. Everyone with financial obligations to family and others needs it, and my family will certainly acquire more wealth with my demise courtesy of reasonably good life insurance cover. It is the Investment aspects that are bundled with life cover - The costs of the commissions and charges make these less than good investments, and the commissions apply on the total premium paid. You can actually buy Investment linked products from Life Insurance offices without Life Cover if you want it, not that the Agent is likely to push a prospect that way, unless they are graded as a high life insurance risk.	KenESmith (6287)
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