There was a post by Ms Lorna Tan on Monday on a 57 year old Admin Executive plight when she thought what she put into the bank with UOB is guaranteed and that she has problems pulling it out. The article sought to create awareness of this specific case so that readers can learn from it. I have my own take away, hence this post. You can read the article here. Here are some of the facts from the article:

1. The product is an insurance savings endowment PRUsave Max Limited Pay
   1. Pay for 5 years $40,000/yr, total premiums $200,000
   2. Policy will mature in 10 years with a Maturity Benefit
   3. The Maturity Benefit is part guaranteed and non guaranteed
   4. The guaranteed portion will eventually be less than the total premiums paid
   5. The distribution cost in total, or the amount paid to the agents and the insurance company comes up to $55,000
   6. ...

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