Generali Utmost International Vision Policy Termination

[tiubhart]

Hi Everyone,

I am new to the forum and still very much a novice when it comes to all things investing and personal finance. I have recently started my NISA and I am in the process of getting my iDeCo approved. Thanks to everyone on the forum and to the Retire Japan team for the insights and advice.

About 12 years ago, I started a Vision policy through Generali (now Utmost International). At the time, I knew nothing and naively took all the advice from the adviser that I met at the time. I pay into the policy monthly and while I have not lost money, I have not seen any growth. In my most recent statement, the admin fees + investment admin charge + DSA fee added up to about 33% of what I pay into the policy each month (I guess this is why I am not seeing any growth). I didn’t even see the 10-year bonus that I should have received after the 10 years. I don’t even know what the DSA fee is for!

I still have about 12 years until the policy matures and seriously want to cut ties with the policy now (stop paying in, cash in, invest the money in my NISA or other funds) but unsure if that is the best course of action.

Has anyone been in my position in the past or currently? What advice do you have?

[goodandbadjapan]

I had a Generali policy ( a 15 year one). I cashed it in after 10 years with a modest gain, but was glad to get out! One thing I did check before cashing in was when the bonuses come in. I waited till the ten year mark so I would get a bonus and then cashed in, so not sure why you didn't get a bonus. Have you asked about that? My own investing has (of course) been much more profitable.

[beanhead]

Yes. Sold up and never regretted it.

Do the calculations on whatever the penalty is and then try to simulate what you think you will get over the next 10 years or so with the low-cost funds. I am sure it will be worth it, although paying the penalty is painful to contemplate at first.

[Wales4rugbyWC23]

I had a Generali policy ( a 15 year one). I cashed it in after 10 years with a modest gain, but was glad to get out! One thing I did check before cashing in was when the bonuses come in. I waited till the ten year mark so I would get a bonus and then cashed in, so not sure why you didn't get a bonus. Have you asked about that? My own investing has (of course) been much more profitable.

Exactly the same experience, cashed in after 10 years of a 15-year policy. (funnily enough when I started following Retire Japan...) I managed to get the 10-year bonus. Absolutely no growth, paying in yen but sent it back to the UK at 140 yen to the pound, which was sweet...

[tiubhart]

Thanks for the prompt responses and … encouragement. I’m going to dig into the bonus situation, calculate the early termination penalty policy and get myself out. While I wish that my money was invested in some other way, at the very least this ordeal did get me saving and I will still have something at the end. Less than what I would like/was lead to believe I would have but lesson learned!

[Silversurfer]

I had a Generali plan from Banner Japan. After contributing for 11 years on a 15 year plan the administration fee was arbitrarily raised. I don’t remember what the fee was, maybe it went from 1 to 1.5 percent, but I didn’t care for the lack of a good explanation for the increase. I cancelled immediately, despite desperate pleading on the part of Banner.

My eleven year long investment earned me an extra 37,000 yen. The guy who ran Banner at the time, and maybe still does, acts as an agent for bundled securities for companies headquartered on the Isle of Man and Guernsey. Something about taxes, or lack their-of. He lived then in a huge and expensive apartment in Omotesando, Tokyo, a high-rent area. No way I wanted to pay for HIS rent. I took my savings and bought a one-story house that now pays me 50,000 yen gross a month. I control my investment, not some guy living high on the hog in a tower mansion!

My advice: control what you own.

[seijaibow]

I'm almost at the 10 year mark on my General Utmost contributions, and my account has almost doubled. I guess it depends on what fund you selected (I picked a technology fund), but I'm somewhat satisfied with it. These types of accounts were always advertised as tax free savings by the so called financial advisors. But, in reality I don't think there's a way to transfer it into japan tax free.

[adamu]

I'm almost at the 10 year mark on my General Utmost contributions, and my account has almost doubled. I guess it depends on what fund you selected (I picked a technology fund), but I'm somewhat satisfied with it. These types of accounts were always advertised as tax free savings by the so called financial advisors. But, in reality I don't think there's a way to transfer it into japan tax free.

That's worse than the market average and a passive global index fund did better, for what it's worth.

[seijaibow]

Agreed it’s not the best of returns. But, I will continue with it as it’s quite a lunp sum now and don’t think I want to try to bring it into JP. I’ve already maxed out on the old nisa and will max out on the new nisa, so probably don’t need the money now.
I just wish I knew what I knew now and I would have never trusted those so called financial advisors here.