Maxlink: Why you shouldn't consider this plan

Great Eastern Maxlink


What :The policy cover Death, Disability and Activities of Daily Living 

Pros & Cons: Nothing good about this plan. A st*p*d plan. It's an investment link plan hybrid with Term Life Reducing plan. Sum assured (reduce from $132k to $12k after 35 years.) The plan is actually accumulate your own money.

Well, the policy holder surendered the plan after paying >$8k (for 3-4 years) and get refund at $3k. Net loss about $4k ..

Better alternative:
Buy a Whole Life Limited Pay plan, says 10-15 years if you are able to commit >$2k per annual for Life Insurance OR
Buy a Term Life Plan, says 25-35 years.

If Activities of Daily Living is your concern, you should consider GE Life Secure ( ~$300 per annual, depends on your monthly income replacement) which will cover your income if ADL striked.
At 40 years old, you may then opt to elder-shield plan which could be fully paid by your medisave, which cover ADL as well.

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Benefit illustration: Non-guaranteed cash value

Well, talk about Benefit Illustration, insurance agent usually shows 2 column of return at different rate. There are usually 3.75% vs. 5.25% for traditional whole life policy, or 5% vs. 9% for investment-link life policy. According to MAS (Monetary Authority of Singapore), there must be 2 return rates with at least 1.5% differ to each other to let consumer see a wider pictures of return rate.

Unfortunately, insurance agent will usually keep the word "Non-guaranteed".

Theoretically, "Non-guaranteed" return rate means the return could be 0%, 1%, 2%, 5% or 10%. Nobody knows what will happen at the future (and the fund manager could not guarantee it).. So it's best to keep your expectation by looking at the lower return rate.

Let's take a look at the generated sample from X company, for a client paying $1200 per annum.

If the selected fund performs at 2.5% return over the 40 years, the client will only get ~$20k after paying $48k. Means the client might has 'burned' $28k for the 40 years insurance fees.

But the damage could up to $300k. If you invested your premium at a fund performs at 9% return over the 40 years, at the end you might get $300k. So, instead of looking at the Non-guaranteed Cash Value return figure, it's very important to take a look on the effect of reduction. tb continued.