Friday, 16 October 2015

About my Maxgrowth and Maxsave Enhanced plans from Great Eastern

I "invest" in Maxgrowth enhanced and Maxsave enhanced in one of my older posts. It was upon reading that I found that the sum assured was much lesser than the amount of premiums put in. For a person like me who wants 100% security, I felt totally disturbed.

P/s: Advice is very welcome, since I'm not financially savvy at all.

I tried to look online to see if there are any official website that shows the past performance of these funds, and guess what, NONE! I am so angry that I have put money in these funds when I don't even know much about them.

This is a summary of the amount of premiums that I would be paying over 5 years (for each plan), and the sum assured. I also calculated the potential loss I could expose myself to -- $9,808.25, at the end of the policy (not taking into account the time value of money).

Why didn't the adviser (or should I now call them salesman) even tell me about this potential downside. I then took a look at the surrender value. I am going to make an even larger loss if I were to surrender any of them now! As such, the decision to keep with these policies, and hope that the bonuses declared will be at least able to cover the premiums paid. 

I read through the policy again. It states that if you were to hold the policies to maturity (i.e. keep it until it reaches 10 years old), the total amount you will get is the sum assured, plus the reversionary bonuses declared annually (starting from the third year of the policy) plus the terminal bonus. Terminal bonus will only be declared upon surrender, while reversionary bonus is declared yearly from the third year onwards. Once declared, the reversionary bonus will be included in the benefit you will get at maturity. Meanwhile, you practically have no control over what the fund does. Well, the only thing I can do now is to hope that the funds make money, and get back more than I put in 10 years later.

Disclaimer: I am not a financially savvy person, so what I is written is based on what I deduce from my limited research and reading. This may not be an accurate account of the real scenario, and you are to do your own judgement on whether such funds are good or not for yourself. I won't be held liable for any inaccuracies or omissions (see also my disclaimer at the end of the blog).


  1. hello, sighh im so stupid to have signed maxgrowth last year without knowing much. btw you reached your end of 3rd year payout? i just finished 1st year and if surrender now, i will lose more than if i hold on.

    1. This comment has been removed by the author.

    2. Hi Lin,
      I just checked. This is my 3rd year for max growth, so they start to declare discretionary bonus. We do not have control over these at all. You can check online at their portal.
      For my maxsave, even at the 6th year, the surrender value is still a significant percentage lesser than the total amount of premiums paid.

  2. Hi Rena, thanks for sharing! I have also invested in maxgrowth since June 2015. And yes, i should be able to see the discretionary bonus credited to my account from next month onwards. Hoping that we can get back the premium paid plus extra upon expiry.

  3. Hi Rena, just sharing with you what i know as a Financial Consultant. Generally, such endowment plans have to be held to maturity in order for you to receive the projected benefits.

    You will be happy to hear that despite the lashes online, most companies do pay out the values according to the 4.75% column. I have personally backtracked my policies by calling the insurance companies every year.

    However, the sum assured shouldn't be seen as your potential loss or guaranteed amount. It is simply a Death benefit (an additional benefit the policy entails).

    For example, my premium is $500/ month. Sum assured: $38,500
    paid for 2 months ($1000). If i were to be met with an accident. The company will pay the Sum assured of $38,500.

    However, if you have fully paid up your policy and the premiums are more than your Sum assured, rest assured the Death benefit is normally 105% of premiums paid or 101% of surrender Value.
    You may refer to your policy for this detail.

    Hope this helps! If you'd like to clarify anything, feel free to reach out to me at 87502868.