Well, not a scam per se, but most likely al fly trap for the pretty dumb. (in most cases, unless ur happy with low returns )

Was looking at the "insurance" scheme from AIA........ a few catches i.e need to put in every year for 10 years or more

what they tell you

1) you get your tax back i.e. 37% if your in that bracket every year

2) your insured incase of death.

it really does look like you get 37% back every year, in reality if you compound your interest @ 4% every year, you get the same...even better, in a bank, you can take your money out when you want.

They say you are insured, but after year 5, the money your spouse gets is less than you have put in (great insurance !! ).

When you say "the money your spouse gets is less than you have put in" do you mean:

a. the money she would get if you died, or

b. the money she would get if you decided to cash out the policy?

Edited April 27, 201214 yr by FreedomDude

Not sure what kind of policy you're talking about, but my understanding is that generally speaking, insurance is not a good vehicle for investment.

Term life to help take care of your loved ones after you pass is of course worthwhile, and not expensive as an ongoing pure expense.

I could be wrong, and would be happy to be enlightened.

When you say "the money your spouse gets is less than you have put in" do you mean:

a. the money she would get if you died, or

b. the money she would get if you decided to cash out the policy?

Ya, if I Kark it. Don't need it, but the girl was telling about the great pay out if something happens ... Until i pointed out it was less than the investment,

In essence, they give u nothing, take ur cash, and u can claim back from tax, but their maths is so good, makes u feel like ur getting 37%, when in reality it's equivalent to about 4%

When you say "the money your spouse gets is less than you have put in" do you mean:

a. the money she would get if you died, or

b. the money she would get if you decided to cash out the policy?

Ya, if I Kark it. Don't need it, but the girl was telling about the great pay out if something happens ... Until i pointed out it was less than the investment,

In essence, they give u nothing, take ur cash, and u can claim back from tax, but their maths is so good, makes u feel like ur getting 37%, when in reality it's equivalent to about 4%

many investments use "creative" and misleading advertising to get people on board ,this is nothing new ,even in the west /farngland ,i have sat down with people trying to sell me this or that "fantastic" investment package and when you read the small print and pick the holes in it you are getting more or less nothing in return for them making money from your capital and sometimes even putting it at risk

Yeh, told the girl " your company gives me nothing 0% over 10 years". , she dodged it by saying it was the tax department which gave me something.

Yeh, told the girl " your company gives me nothing 0% over 10 years". , she dodged it by saying it was the tax department which gave me something.

its like opening a bank account to get a free teddy bear or umbrella .......