http://www.hla.com.my/ourproducts/product_details.aspx?prod=life_income_builder

Recently, I posted the above scheme as my colleague asked me. Yeah ... slowly some of them got to know that I am interested with BEST investing-income building in town. So, if you could give a secure(LOWEST RISK) of 6% to 10% compounded dividends, I am very interested. Of what I knew of, my ASB-saving is still the 'best' around.

http://cpteh.blogspot.com/2012/01/best-investment-product-in-town.html

Refering to the above post, some kind souls taken some trouble to calculate or estimate the percentage yield.

By Rei

I know the HLA scheme, if you see properly, the positive point is the first 6 years, if you happen to pass away or permanent disabled, then the policy is considered covered for the rest of your life.
For your example, but if you considered after 6 years,you are still healthy, then one have invested 345k but till he is death by 90 years old , he only gets around 460k which even a sukuk can beat this policy. But there is another clause saying, if the fund earns more, there will distribute more dividend, maybe just to be on par with sukuk/EPF and slightly better than FD.

By susu

Too good to be true, probably an illustration only using a assumed interest rates, but this is not "guaranteed" I presumed (I may be wrong).

By Binary Yeik

This is not a good investment !

For the 1st 6 years, your total investment is RM 345600, you get back RM 69000, so the actual total is RM 276000.

For the 7th year onwards, you still get RM 11500 per year, so the return is only 11500/276000 about 4.2%.

Your are bond for the rest of 40 years, they pay you only 4.2%

By June Tan

my point of view:
yearly premium --> 57600 (4800*12)
6 yrs oremium --> 345600 (57600*6)
annual return --> 11500
breakeven years --> 30years (345600/11500)

to worth or not to worth buying this premium should be based on the policy holder age.

illustration age 20:
breakeven at age 50. enjoying next 40 years of income = $460000 + insurance cover.

illustration age 50:
breakeven at age 80. enjoying next 10 years of income = $115000 + insurance cover.

By HLPang

The return seem very good. But if am the buyer,few questions i would ask myself..

1.On investment wise
1a)How is the return is "guarantee"?
1b)What if i stop paying the monthly premium, the how? and one day if i want to resume the plan how?

2.On Protection wise
2a)What is the coverage and How much is the amount insured for each.
2b)"Touch wood", how does the insurance claim affect the investment plan?

Ppl who interested may try to compare this product with others. also consider "all-in-one" basis or "separate" basis product feature is suitable for you. Just my 2cent. :)

By Leslieyong77

hey guy, u may receive only 2.3% compounded anually for 40 yrs ( lower than bank' FD ) plus u are covered by insurance

By Casey188

i think this concept is not new.
AIA has something similar in GIP (Guarantee Income Provider) or ELI, GE has something similar too. I guest most of the Insurance company has re-package this concept in one way or another to attract the investor. I think the key concept behind this is something to do with the PV (present value) of RM and the future value that you receive... just my 2cents

By Anuar74

74 6% x rm4800 = rm326.4, if x 12 =rm3916.8, how it can grow to rm11400. pls fix this math problem, i'm not good in math...

By james001

you pay rm4800* 12 = rm 57600, you get rm 11400 but the principal of rm 57600 that you pay reduce significantly. so actually they pay you rm 11400 out from your principal of rm 57600.The net amount after one year including the rm 11400 is actually less than rm 57600. Misselling !
if you put money in bank, you get rm 57600 plus the interest after one year.


By s_investor

1.) on the severn years, can you withdraw the whole money ?
2.) pls refer to same question on hlpang.
3.) if you could not afford to pay or want to reduce the monthly premium ? how ? what is the draw back ? i believe they have lock you up with certain critirea here and please dont forget those finest print on the document you sign. those are the wording end up and / or that they have all the legal right to forfeit or partial slahh down your investment.
4.) pls always remember inflation. your money on the seven years or ahead will always slash almost half of it. look back your dad time what he can buy with rm10 and what you can buy with rm10 nowdays. to me it is not a good investment

by andy118

Note : Andy actually generate the amount using excel.

ave. amount invested per yr = 6911955 / 46 = 150,260
interest received per yr = 3987
therefore return per yr = 2.65 % + insurance cover.

I don't know whether the above is correct? Not taking into account the value of money as years goes by. That is what it is the RM11500 you are going to receive in 46 years time. Cheers.
Happy and prosperou Chinese New year everybody

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The above are comments from my blog and i3-investor site. I am not a financial person. So, I do not drawing any conclusion from here but told my colleague that swing trading some good dividend stocks such as BJToto could gain you the 6-8% per year. I will teach her how!! And she gladly thanked me.

I will also call up the agent and speak to him/her ... and will draw some conclusion once I heard from the agent, will record it here, ya.

By the way, of coz I wont be putting any of my money there. If you could beat 6-8%, you wont bother to listen to 3-4% income-bulider scheme, right?

TEH