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AXA Pulsar
10 Nov 2013 (325 views)

RATING: AVOID

This is an investment linked plan with premium payable for 8 years.

The Benefit Illustration (see PDF below) shows an annuak premium of $3,000 payable for 8 years. It is invested in the Asian Growth Fund.  This policy has low insurance protection, as the death benefit is only slightly more than the total premiums paid.

At the end of 30 years, the non-guaranteed cash value is projected to be $76,900 (based on 9% yield) and the Effect of Deduction is $104,000. This means that the accumulated premium is $180,900 and the deduction is a hefty 58% of the premium.

Why should the consumer give away so much of the accumulated premium, when the consumer can invest the savings on his or her own?

The non-guaranteed cash value at the end of 30 years, based on a projected yield of 4% and 8% is $27,600 and $76,900 respectively.

If the consumer invest on his or her own in an index fund, such as the Straits Times Index ETF, to earn a yield of 4% or 8%, the accumulated amount will be:

Annual savings Yield Amount after 8 years Amount after  30 years
$3,000 4% $27,644 $65,514
$3,000 8% $31,912 $173,489

.To get advice on how to invest on your own in an index fund, you can see a consultant listed here.

 

 



AXA Pulsar
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RATING: AVOID

This is an investment linked plan with premium payable for 8 years.

The Benefit Illustration (see PDF below) shows an annuak premium of $3,000 payable for 8 years. It is invested in the Asian Growth Fund.  This policy has low insurance protection, as the death benefit is only slightly more than the total premiums paid.

At the end of 30 years, the non-guaranteed cash value is projected to be $76,900 (based on 9% yield) and the Effect of Deduction is $104,000. This means that the accumulated premium is $180,900 and the deduction is a hefty 58% of the premium.

Why should the consumer give away so much of the accumulated premium, when the consumer can invest the savings on his or her own?

The non-guaranteed cash value at the end of 30 years, based on a projected yield of 4% and 8% is $27,600 and $76,900 respectively.

If the consumer invest on his or her own in an index fund, such as the Straits Times Index ETF, to earn a yield of 4% or 8%, the accumulated amount will be:

Annual savings Yield Amount after 8 years Amount after  30 years
$3,000 4% $27,644 $65,514
$3,000 8% $31,912 $173,489

.To get advice on how to invest on your own in an index fund, you can see a consultant listed here.