Resale Endowment illustration (1)

 This is an illustration of Resale Insurance which I bought in Jun 2021. 

Original Aviva Policy - started 23 Mar 17. Ends on 23 Mar 32.  Total: 15-year.

Bought by a 50-yo woman. Her premium term: 10-year. Cashback started at end of Year-2, which was subtracted from her annual premium.

Resale Policy  - started 23 Jun 21.  Ends on 23 Mar 32.  Total: 10-year 9-month. Bought by me through TES Capital, the Middleman.

~~~~

To compare original vs Resale XIRR.  

Some observations made:

Observation#1: The saving is about S$2k discount the new endowment. Regrettably subsided by the first original policy holder who surrendered.

Observation#2: Maturity payout at Year-15 remains unchanged as I bought over the policy; nevermind who that Original Assured is still "her".

Observation#3: Her original premium is slightly more as she added rider to her policy. This adds to her premium without adding to its payout. 

Observation#4 would be to quickly payout your premium tenure. Let it grow quickly, if you can afford to.

Original xirr: 2.74%, typical of a 15-year policy; worse over 10-year payment duration.

My Resaled xirr: 4.5%; still projected; hopefully Aviva honours it best effort.

Observation#5: The saving is quite substantial, amounting to about $13k; regrettably subsided by the first policyholder who surrendered her policy.

Blur or not ah?

https://t.me/Mr_Ferrari_Lim/53





Comments

Post a Comment

Popular posts from this blog

Consideration for MY property Purchase

Consideration for MY property Purchase 1.  Avoid mixed devt; it is difficult to demarcate Hotel, Residential & Mall for Strata Title issue.  Best choice is JB (& Melaka) as more food choices & rentals. (KL & Penang are too far for me to travel, although it's property may have good return value. Need MM2H or else need to return home monthly to renew Visa extension.) 2. Before Strata Title issue, Unit has to pay State Consent every 2-year @RM5k (recently raised from RM3k) to keep unit ownership interim.  When purchasing, bargain for one time payment for State Consent; no need renewal. But easily than said, Developer may not warrant it after 3-year Latent Defect Period (LDP). Not even through legal statements, unless it's first State Consent Certificate does not have expiry date.   Earlier year, new property buy may have such privileges such as Deferred Interest Bearing Scheme (DIBS) loan absorption by developer during construction phrase; so one doesn't
Read more

Can retire with $1k monthly? got bluff me?

  Someone who is my cohort just retired last year.  He candidly shared that his average monthly expenses is less than $1000. Some background that I gathered: 1.  Married with a working adult child. 2.  Stay in condo; ever spinned n profited from few property sales. 3.  Still need to support aged parent with 4 siblings. 4. No car. So I did some quick calculation to see sure or not to retire with $1k monthly expenses. Think his $1k p.m. is thin retirement. Utility & PS, water : $100 p.m. Telco: $20 p.m.  MCST: $200 p.m. (where got so low maintenance?) Medishieldlife: $800 / 12= $66 p.m. (can pay by CPF-MA) H&S Shield Plan: $1200 / 12 = $100 p.m. (excluded $680 deducted from MA) Support his parents: $2000/5 = $400. Basic fixed monthly overhead:  100+20+200+100 + 400 = $820 With just $1000 p.m., net available for meal = $1000 - $820 = $180 p.m. (or $6 per day) Not forgetting that he just retired, he need to fully pay his last year personal income tax. ------ In summary, my assessme
Read more

Buying insurance for Children

During my time as first-time parent, we are blur blur general direction in investment and protection.  That was in the last 90s then. We bought whole life insurance (dont know and dont care about ilp or tradition); at that time, no one talked much about Term insurance.  No such things as TermLife. And... my monthly pay was less than $2,000. And CPF did  not allow topup to child SA.  I remembered that this was introduced in 2013 under a "Others" category.   I quickly made my first $10k topup to their CPF SA, each to my child; over n over the next decade.  At that time, one kid had yet even had her nric; hence I wouldn't check if the cheque topup into the CPF SA was really deposited.    Very chuang. Do make your own decision, I am no insurance agent. If I were you, I would do this: Pt1: Your child has to be covered under both parents' Company Dependents Health Benefits.  First basic protection from Day 1 till their age 21.  (Caveat: Buy when no medical loading. Touchwoo
Read more