Investment Plan for Better Future

Dear all,
Last few days I searched different SL Bank & Insurance companies for select the best investment/retirement plan for future. Even I have AIA Pension for me & my wife, I thought start another plan for both of us.

As we discussed ealiar at different forum there are lot of investment plan like Gold investment, Farming/grow some tree like teak, mahogany, Invest in property ( buy a land or home) etc. But this time I need to select some investment plan like I mentioned above.

When I'm searching the market I found follow policy from reputed company. But I need to your opinion regarding this.


This is from Janashakthi Insurance.
Janashakthi LIFE SAVER is simply a personal pension plan that offers you a way of building up your own private pension that is not affected by where you work or whom you work for. The money you save builds up into a pot, which grows each year. When you retire, the pot is used to pay you a tax-free lump-sum, or pay a regular tax-free income – either for a fixed period of your choice or for life.
 
The unique benefits of Janashakthi LifeSaver:
Commence the plan at any age-its AGE UNLIMITED
Policy never lapses-after year one
Joint lifetime pension cover for you and your spouse
Pay any amount, any time (minimum of Rs.2000/-)
Substantial life cover with protection from total permanent disability due to accident or sickness
Tax free maturity benefits
Loyalty Bonus
 
 
 
How will Janashakthi LifeSaver work for me?
As a first step, we recommend that you talk to one of our pension plan advisors, who will help you to calculate how much income you are likely to need in your retirement years, and how much you will need to save in your pension in order to receive the level of income you would like from this plan during retirement; whether it is to cover basic expenses, or to supplement the income you may have from other sources so you will be able to spend more on things you enjoy.
You can then see how, by regularly putting aside an affordable amount from your earnings during your working years, you could enjoy a steady income stream for the rest of your life.
Although the fund value at retirement will depend on how well the fund performs over the years, your advisor will be able to project how much you could have, based on likely interest rate scenarios.
 
By regularly putting aside an affordable amount from your earnings during your working years, you will be able enjoy a steady income stream for the rest of your life..
 
We will now show you some of the relevant benefits under the policy.
 
Year by year, your account balance in the company grows, depending upon the premium you pay, and the interest earned on your investment. Assuming a monthly savings of Rs.10,000/= the amount lying to your credit depending upon the period and the interest earned, is shown below on a indicative value of 8% and 12%.
 
   
Assuming an Annual Interest Rate Nett
     8.00%  12.00%
Term
Your Investment
Your Accumulated Fund
10 Rs.10,000 x 12 months x 10 years = 1,200,000/= 1,504,189 1,835,147
15 Rs.10,000 x 12 months x 15 years = 1,800,000/= 2,841,220 3,912,276
20 Rs.10,000 x 12 months x 20 years = 2,400,000/= 4,787,634 7,527,358
25 Rs.10,000 x 12 months x 25 years = 3,000,000/= 7,621,172 13,819,128
30 Rs.10,000 x 12 months x 30 years = 3,600,000/= 11,746,162 24,769,465
  It will be obvious that the longer you save, the greater will be the ultimate benefit.
These monies can be drawn by you over a fixed period (10, 15 or 20 years) in the form of an annuity and the table below shows the monthly pension, dependent upon the interest earned, and the period for withdrawal. You will see that every five years, the pension increases to buffer the effect of inflation at least to some extent.
 
 
Interest rate (nett)
Accumulated Fund at Retirement after saving for 20 years
8.00%
12.00%
 
4,787,634
7,527,358
Term Year
Monthly Pension Payment
10
1
5
10
39,897
55,960
90,355
62,728
104,071
212,819
15
1
5
10
15
26,598
37,012
56,423
91,103
41,819
68,575
128,875
263,543
20
1
5
10
15
20
19,948
27,668
41,795
63,714
102,876
31,364
51,180
94,902
178,353
364,723
   
You could decide to take this pension for the entire lifetime of yourself and your spouse, on terms to be agreed. The pension paid to you alone will be as shown below, again dependent upon the interest earned.
  You will see that every year the pension increases but after the 25th year, it is halved and continues for the rest of your life.
   
  One hopes that by the time you reach age 85 or more, your needs would be reduced, and you could manage on a lower pension.
 
 
Interest rate (gross)
  8% 10% 12%
Fund value @ retirement 4,787,634 5,988,928 7,527,358
Year
Monthly Pension Payment
1 15,959 19,963 25,091
5 22,094 29,967 40,834
10 33,245 49,918 75,282
15 50,221 83,554 139,593
20 76,559 141,442 262,344
25 123,616 257,083 536,478
25+ 61,808 128,541 268,239
   
  Automatic Life Cover
Insofar as your regular premium payments are concerned, the Company provides life cover based on the age next birthday at the time of death, or permanent total disablement caused by accident or sickness.
Sample figures are given below showing the life cover you would be entitled to, at different ages, for every Rs. 10,000/= premium you pay to Janashakthi Lifesaver plan. This would cover you for a period of 12 months from the payment date.
For higher premiums, the life cover increases proportionately. You will see that the life cover is very substantial, and is especially so at early ages.
   
 
Age Next Birthday at time of death
For every Rs.10,000/- paid the life cover will be as shown below, for the next 12 months
Up to age 35 250,000
40 183,580
45 115,830
50 69,583
55 41,475
60 24,950
65 15,230
70 9,433
 
NOTE:If you need to meet one of our professional Financial Advisors to customise the Life Saver plan according to your distinct needs and wants please click here to Contact Us.

This is from HNB Assurance.
myfund 
A Unique Retirement Fund Builder
Retirement is the beginning of another important chapter in one’s life and can be made the happiest season of life. We are glad to join hands with you to plan for a happy and comfortable retirement for you.
This Retirement Plan provides you the best protection with ample benefits that ensure a hassle free and enjoyable retirement. It allows you to build a safe retirement fund while you are stable in your employment. An individual transparent fund account will be maintained especially for you.
How Can I start “myfund” ?  

Monthly               -              Rs.2,000/- 

Quarterly             -              Rs.6,000/-  

Half Yearly           -              Rs.12,000/-

Annually              -              Rs.24,000/-  

 

Life insurance benefit of Rs.500,000/- throughout the premium paying period while the policy is in force.
Hospital benefit at Rs.500/- per day during premium payment period while the policy is in force. 

 

Eligibility criteria
 Age between 21 and 50 years

Special Features: 

My fund account grows annually with the premiums paid and dividends declared by the Company.

Facility to increase the Retirement Fund by adding more investment blocks. Premium for each additional block : Annually - Rs 6,000/-, Half yearly - Rs 3,000/-, Quarterly - Rs 1500/-, and Monthly - Rs 500/-. Any number of blocks can be included at any time during the period.

Fund value at maturity (Retirement Fund) is paid as a lump sum.


Please share your knowledge regarding this. Thx in advance.

 

There re numerous pension plans offered by Insurance companies. They now market it as an investment option rather than an 'insurance' which is fair to certain extent.

But personally, I would not treat it as THE investment option. It might be a safe option but not something that would outperform other options.

Personally, I would opt for one plan which will cover medical, hospital expenses and has the life insurance part. I'm sure there is no point having more than one insurance plan which has the medical benefit, please correct me if I'm wrong.

Other than that, personally, I would opt for one of these plans for a specific reason - retirement, child's education etc., and not as a general investment option

Agree with you First Guy. No point to start another retirement plan as a investment option.

I could not mention, my intention is increase my retirement package. If I need I can contact same company and increase my premium. But in the face of uncertainty, I do not want to save my retirment money in one place (Please ignore savings & FD Option).

Other thing, from both I have mentioned, end of the period we can withdraw it as a lump sum with interest + bonus for a specific reason like child's education (Like you mention)

Appriciate your views.

I'm having two policies.One is life insurance which is basic one with lessor premium and other is retirement plan with higher monthly payment, interest accrued on monthly basis and will entitle for the bulk at the age of 56.
What 1st guy says is valid but the problem is for a monthly salaried  person he is not in a position put a fixed deposit once and even though he prefers to save fixed amount in savings account he will find more reasons to consume this within one year.so to me the best alternative for this scenario is the retirement plan.h

Hi Serene,
Could you please tell us the selected company for retirement plan ? Thx in advance.

Nuinth, Its Ceylinco.
BTW I didn't compare it with others and when i was planning about monthly saving one of the Marketing officer from ceylinco canvassed me about their products and he actually pursuade me for normal Life Insurance.
But I didn't subscribe for their basic schemes but arranged a scehme that suit to me which includes higher premium for retirement plan(Two seperate policies).Now i have been enjoying this for Two and Half years and the service is satisfactory.  

Thx Serene, really appreciate your information.

Upto now, I'm happy with 'Janashakthi' policy as a second investment plan. But before start, I have to analyse bit more with market.

You are welcome mate.   

SLIC had a deal with NTB with regards to an investment plan

It's quite a good deal at that time when the interest rate was high. You only had to contribute once a month

I believe SLIC will launch a unit trust plan where the investments will be on the stock and bond market