switzerp800
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- Dec 8, 2010
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Hi all, 3 years back I'd gotten for my dad an ILP from GE. Did not fully understand the numbers until recently when a relative fell sick.
The policy covers 50k death, 50k early CI (life), and 50k accident (expires 2034). Premium allocation to the investment component is near-zero as we only wanted the insurance component. Dad is 60 ANB, non-smoker, and only medical history is hypertension.
Currently the premium costs $3,050 per year and I'm thinking of cancelling the policy as the numbers don't look good, mainly due to the following reasons:
1. Death benefit not needed as he no longer has dependants
2. Coverage seems meagre compared to the premium cost. 3k compounded over 14 years at a modest 2% already yields 50k - making a simplistic assumption that we only get paid out on the 50k early CI component since it's the main focus; plus getting a CI within the next 14 years is not a sure event.
3. Existing private hosp shield plan would take care of hosp costs plus follow up for ~6 months if not mistaken
I'm thinking of either changing to a CI/ECI term plan or self-insuring though savings aren't substantial. Appreciate any comments. Thanks!
The policy covers 50k death, 50k early CI (life), and 50k accident (expires 2034). Premium allocation to the investment component is near-zero as we only wanted the insurance component. Dad is 60 ANB, non-smoker, and only medical history is hypertension.
Currently the premium costs $3,050 per year and I'm thinking of cancelling the policy as the numbers don't look good, mainly due to the following reasons:
1. Death benefit not needed as he no longer has dependants
2. Coverage seems meagre compared to the premium cost. 3k compounded over 14 years at a modest 2% already yields 50k - making a simplistic assumption that we only get paid out on the 50k early CI component since it's the main focus; plus getting a CI within the next 14 years is not a sure event.
3. Existing private hosp shield plan would take care of hosp costs plus follow up for ~6 months if not mistaken
I'm thinking of either changing to a CI/ECI term plan or self-insuring though savings aren't substantial. Appreciate any comments. Thanks!