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Manulife Whole-in-One Protector Series 2

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  1. #1

    Join Date
    Aug 2006
    Posts
    6,524

    Manulife Whole-in-One Protector Series 2

    DBS are trying to sell me this product: Manulife Whole-in-One Protector Series 2.

    Total investment is aorund USD200,000. But USD136,000 comes from DBS, and I contribute the balance (USD66,000). I need to pay interest on the USD136,000 of around 1.3% pa (COF + 0.5%).

    On maturity I need to pay back the loan and each year I pay interest, but according to their figures I will make around USD52,000 after 10 years - depends on the non-guaranteed part. There's also a death benefit if I die.

    Thoughts?


  2. #2

    Join Date
    Jan 2010
    Posts
    4,406

    52,000 over 10 years is 2.34% p.a.

    It's shit, but if that's already including the non-guaranteed part it's real shit.

    If you want a death benefit, buy a life insurance. If you wanna invest, buy something else.


  3. #3

    Join Date
    Oct 2010
    Posts
    20,472

    Walk away. These deals are invariably excellent for the provider and poor for the customer. It is not even nessecary to run the numbers to know that.

    dfc and drumbrake like this.

  4. #4

    Join Date
    Jun 2018
    Posts
    236

    Bunch of risks to weigh on the premium financing... That rate can probably rise as and when DBS want to change it, while the return isn't guaranteed etc.

    As ever the only potential advantage of these insurance structures for saving is access to long term asset classes like private equity, alternative credit and unlisted real estate funds that you'd find it hard to get exposure to via other means. But with those illustrated returns it sounds more like a bond heavy investment allocation.

    Edit: just checked, looks like it is indeed bond heavy. By premium financing it you're essentially taking an interest rate bet with a bank and an insurance company simultaneously. Run away.

    drumbrake likes this.

  5. #5

    Join Date
    Mar 2020
    Posts
    55

    Just put your money into an S&P500 index fund like VOO or SPY and call it a day. Higher rate of return. Low expenses. If they're loaning you USD$136k, then I'm sure you can get a tax loan of the equivalent value.

    drumbrake and aw451 like this.

  6. #6

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    14,130

    Stay the hell away.

    Never mix insurance and investments.

    drumbrake and traineeinvestor like this.

  7. #7

    Join Date
    Sep 2018
    Posts
    351

    These investment cum insurance policies pay huge commissions to the so-called financial advisors who often try to sell them to you. Ignore anyone from a bank who advises you on financial products since there is a massive conflict of interest.

    drumbrake and shri like this.

  8. #8

    Join Date
    Aug 2006
    Posts
    6,524

    Thank you all. Case closed.

    TheBrit likes this.