By: Adrian Khiat
I attended a training session arranged by one of the major Insurance Company recently. The session talks about this Annuity Plan that uses the Investment Concept to ensure a guaranteed income for the annuitant.
I thought that packaging of investment into an annuity is a good concept and heard that this plan was well received in matured countries like Japan and US. I was quite excited to know more as I thought such a plan will encourage people to take up some risk via an investment, yet still get the guarantee from the Insurance company that they will get an income for life.
We were shown why Singaporeans need to plan and blar blar blar in the first half of the session. Coming to 2nd half, I began to get deeper and deeper into confusion. I'm still confused because I never expect a plan to be designed till such complication.
Use an example to confuse you (Its okay to give up half-way)
50yrs old, male invested $100,000 into this plan. Just like to write a bit to show you how complicating this plan can be. Read more...