Opinion on GREATLife Endowment Insurance II VS AIA pro wealth advantage

Quick calculation from the two illustrations given, great eastern one gives a better yield, although it is nothing to be excited about. the latest SSB already gives better yield. somemore backed by the government.

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caution that illustrations are not guaranteed. insurance company can change (read: lower) the interests rates at any time to their favour. and there is also no guarantee of their investment results.

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also do be aware that as with all insurance products, you need to commit to the premium terms. if there is slip in payments, you could lose all your money.

Hi anon,

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This is a whole of life endowment insurance that you can consider if you have no tolerance for risk and capital preservation is your priority.

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As you have mentioned, you are currently not into investing, so taking up an investment policy doesn't make sense.

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Most whole of life endowments will be able to grow your money indefinitely, the key is to ensure that

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1) The commitment amount (the premium) is something you can afford from your cashflow

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2) The commitment duration should not be too long that it becomes a burden down the road (let's say if you start a family and expenses rise).

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Note that the shorter the duration for the same total premiums, the higher the returns you will get, since the monies have more time to grow. But do not shorten it to the shortest possible duration if that will strain your cashflow.

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With these two factors in mind, you will be able to find a premium and a premium term that suits you. However, the next step is to compare across various insurers. Many insurers offer such plans and you need to compare

1. Guaranteed and non guaranteed yield
2. The guaranteed and amounts across a few different points in time (e.g. 15 years from now, 25 years from now, etc) as you have the freedom to surrender/partially surrender after a certain point
3. When does the policy become capital guaranteed?

An IFA will be able to compare across most insurers for you, so speak with one; shop around the various insurers to ensure you get the most for your money.