just had a quick squiz and an MLC product they're advertising on the SMH
At least at a Casino you know you're likely to lose. This product sux big time.
Hopefully anyone thinking about this product would read the PDS, but I have my doubts. They're also a bit disingenuous in using the 1999-2009 time frame in their shiny graph.
The fee they charge is pretty steep
Based on the initial starting balance you have entered, this calculator illustrates the Protected Capital Value and Protected Account Balance using Protected Capital for a 10 year term. The calculations are based on MLC Horizon 4 Balanced Portfolio unit price data in Superannuation over the period 31 March 1999 to 31 March 2009. This assumes no contributions or withdrawals during the term, including no adviser fees or insurance premiums. The Protected Account Balance is shown net of all administration, investment management and Investment Protection fees. This assumes an administration fee of 0.40% and Investment Protection fee of 2.0%. Investment management fees are reflected in the unit price.
I love that they can bump up the protection fee to a mighty 7%, or they can just move your money into a new investment option. Not sure how it's protection if the "insurer" can make so many changes should things go pear shaped. As for adverse demographic changes, we all know the population is aging and the number of dependents to work is increasing so how can they use it as an excuse???
Changes we may make to your protection
We may need to change the protection features even after you've started your protection. Changes can happen at any time as a result of legislative or regulatory changes. Otherwise the changes listed below can only happen if certain events happen first, e.g. material or adverse long term changes in market or demographic conditions. Changes that may be made include:
the fee you pay for protection, however it won't exceed 7% pa
switching your protected account balance in to a new investment option
only allowing future contributions to a different investment option to the one you've chosen
how often market gains may be 'locked-in', but the lock-in will be at least every two years
reducing the withdrawal limit if you choose Protected Capital
stopping or restricting the addition of new investments into your protection
reducing your protected income payments, if you choose an income for life, but by no more than 20%.
If any of these changes occur, we'll let you know before the change is made.