Like Tree11Likes

HSBC life insurance

Reply
Page 2 of 2 FirstFirst 1 2
  1. #11

    Hello all!
    you know, this kind of policy costs more than buying a car but Bank people doesn't give you
    enough information.. of course they give you some brochure, I did read yesterday but these are greek to
    people with low financial IQ like me.
    So I really appreciate you guys explained this to me in normal language here! (Although I confess .. still I don't understand some words :P

    I was considering some HSBC stock actually it is getting lower now... (was 79 this afternoon
    Many people say that there is still some risk but nothing wrong to have some stable stock in a long term.

    one more question for the saving + life insurance is "HOW MUCH IS THE GUARANTEED AMOUNT? "
    my friend laughed out and said "their sample calculation is just for a reference to please potential customers (HSBC showed me the
    one with 4% interest) and your money is never going to grow like that! ! HA HA HA! !"
    .. .is it? really?
    The document doesnt mention anything guaranteed here.
    So bank shows us some reference with good figure, and then later on( when I am like ... 60 years old)
    .. give me a penny saying "told you it is just a reference! ha ha ha! "
    Then, in this policy, I"d have a risk or losing money if I have to withdraw earlier than 12 years,
    but they are willing to pay 500K(which is taxable to dependant) if I am dead,
    and all guaranteed is paid principal...?? hmm..
    If I leave my money untouched in the account for 20 years should I get something better than that?

    Maybe I should just have normal life insurance + health insurance with around 400HKD per month and
    forget about saving + life insurance stuff.


  2. #12

    For most people,

    - Don't buy life insurance unless you have people depending on you financially. Yes, it's cheaper when you're younger. But then so are dentures if you buy them now and I don't see people buying them until they need them.

    - If you do buy life insurance buy term life. It can be 10 times cheaper than whole life. And invest the rest. It should grow much faster than the savings element of the whole life plan.

    - Buy health insurance if you want access to the private hospital healthcare system. The public healthcare system is perfectly fine in a lot of cases.

    Investing in a single stock, even HSBC, is probably too risky for a beginner.


  3. #13

    Join Date
    Sep 2009
    Posts
    345

    The least risky investment in Hong Kong seems to be the ETF tracking fund 2800.hk. It gives a dividend of about 2.5% a year or so (well, depending on the performance of the companies in the Hang Seng Index).

    So 2800.hk is better than funds (which have a management fee of 3 to 5%) and usually under-perform the index (while they would need to grow by 5 to 7% more than the index, given the management charges).

    Last edited by Mr. No; 08-02-2010 at 06:19 PM.
    PSMaverick likes this.

  4. #14

    Join Date
    Feb 2009
    Location
    Gulf Region, ex Mid-Levels
    Posts
    1,933
    Quote Originally Posted by Mr. No:
    The least risky investment in Hong Kong seems to be the ETF tracking fund 2800.hk. It gives a dividend of about 2.5% a year or so (well, depending on the performance of the companies in the Hang Seng Index).

    So 2800.hk is better than funds (which have a management fee of 3 to 5%) and usually under-perform the index (while they would need to grow by 5 to 7% more than the index, given the management charges).
    Might want to wait in the current "correction"

  5. #15

    Join Date
    Aug 2006
    Posts
    7,188
    Quote Originally Posted by fth:
    Might want to wait in the current "correction"
    Maybe the current 'correction' is a good buying opportunity?
    fth likes this.

  6. #16
    Quote Originally Posted by tora-chan:
    I am thinking about investing some of my savings and went to HSBC but they adviced to buy a life insurance (worried about this because they are kind of pushy).
    That plan was like 5 year payment (total 200K), interest rate is 4% but not guaranteed, and they pay 500K plus interest immediately if I am dead.

    As I am not very resourceful about investment, I am not sure there is any advantage for me if I don't die in the near future and leave 500k to beneficiary.

    What do you think??
    I checked the BOCHK retirement plan (they also have a insurance plan). I guess it's similar to the HSBC one, but the IRR was 4.75% (also not guaranteed. It is revised every now and then, at their discretion). They also have one in in CNY, with an IRR 2.75%.

    I didn't buy it, but if anybody is interested it's worth comparing different banks.

  7. #17

    Join Date
    Feb 2009
    Location
    Gulf Region, ex Mid-Levels
    Posts
    1,933
    Quote Originally Posted by Pissenlit:
    I checked the BOCHK retirement plan (they also have a insurance plan). I guess it's similar to the HSBC one, but the IRR was 4.75% (also not guaranteed. It is revised every now and then, at their discretion). They also have one in in CNY, with an IRR 2.75%.

    I didn't buy it, but if anybody is interested it's worth comparing different banks.
    If it is not guaranteed they might as well be pulling the number from their backsides.

    When a bank tried to sell me one of these my sceptical mind viewed the pitch as "give us your money, we'll put it into a black hole, take some commission off you and if lucky you will get a 4% annual return over ten years, you will get a much higher return if you die".

    A quick look on page 9 of the SCMP's business section reveals a load of bonds which guarantee more that 4% in under 10 years, some of it issued (but subordinated) by banks!
    Last edited by fth; 11-08-2010 at 05:20 PM.

  8. #18

    Join Date
    Feb 2009
    Posts
    7,536

    I plan on living forever. So far so good.


Reply
Page 2 of 2 FirstFirst 1 2