Should i keep my NTUC foundation policy or AVIVA SAF?

[JuniorLion]

I will be glad to buy over your policies and pay you a HIGHER SUM compared to the surrender values =)

Please see my thread at: https://forums.hardwarezone.com.sg/...azaar-261/wtb-insurance-policies-5714739.html

Do let me know =)

Im currently in a similar situation. My parents took out 2 NTUC foundation policies for me with different maturities.

Policy 1
Maturity (year): 2026
Monthly Premium: 30.95
Premium Paid (to date): 8418
Payout upon Maturity: est 15370 [ of which 11820 is guaranteed ]
Current Cash Value: 7783

Policy 2
Maturity (year): 2046
Monthly Premium: 16
Premium Paid (to date): 4880
Payout upon Maturity: est 24500 [ of which 11800 is guaranteed ]
Current Cash Value: 3204

I already have insurance coverage, already completed my degree and already married. It feels like this policy is not really useful to me and a drain on my parents resources as premiums are still be deducted.

 

[Fujima]

sorry for diggin up this old thread, but tot it would be better than starting a new one for qns on this ntuc foundation policy..

understand it tends to be paying bonus at a rate of 1.5% on sum assured and another 1.5% on bonus accumulated. for me thats a yearly sum of about $300 vs yearly premium of abt $170 - does not seem like it is all that worth it to continue vs discontinuing and putting the money in SSB/CPF? am I missing something?

also, understand there is a bonus payout for higher education / marriage - is this something to definitely do (if possible), or is there any benefit of not taking out the bonus? for my case I missed the boat on the education, but marriage is still on the cards.

appreciate any comments thanks

 

[blurpandasg2014]

sorry for diggin up this old thread, but tot it would be better than starting a new one for qns on this ntuc foundation policy..

understand it tends to be paying bonus at a rate of 1.5% on sum assured and another 1.5% on bonus accumulated. for me thats a yearly sum of about $300 vs yearly premium of abt $170 - does not seem like it is all that worth it to continue vs discontinuing and putting the money in SSB/CPF? am I missing something?

also, understand there is a bonus payout for higher education / marriage - is this something to definitely do (if possible), or is there any benefit of not taking out the bonus? for my case I missed the boat on the education, but marriage is still on the cards.

appreciate any comments thanks

Regarding the bonus for marriage / education, this is what I got from ntuc website

Q: My Foundation policy has an Enhanced Benefit. What is this benefit?
A: There is an option for you to encash the accumulated bonus for the purpose of the Life assured’s tertiary education and legal marriage. We will pay the enhanced discounted value of the accumulated bonus at a rate which is 25% more than the normal discounted value. It must be encashed within six months after marriage or entry into/graduation from a tertiary institution. Unless there is a real need to fund the tertiary education or the marriage at the time of either event, we do not encourage policyholders to encash their bonuses (even with the enhanced option) because of these possible consequences.
The discounted value of the bonuses may be smaller than the face value of the annual bonuses given up.
Future annual bonuses earned on the policy will be reduced due to the loss of the compounding effect of annual bonuses.
A reduction in the face value of the annual bonuses means lesser bonuses (both annual and terminal) for a claim or maturity event in the future.

 

[Fujima]

Regarding the bonus for marriage / education, this is what I got from ntuc website

thanks for looking it up

I remain a bit sceptical given that it is coming from ntuc

my thought process is if I am cashing out the bonus, no point continuing on with the policy thereafter anyway

I actually do not foresee needing to cash out, but the question is whether it makes financial sense to hold on..

there is, of course, a chance that the bonus will go up in the future, but I highly doubt there is any guarantee for that? as for the protection value, well, I reckon these days $10k isnt much

would love to hear individual experience either way

 

[blurpandasg2014]

If ur intention is to surrender ur policy, a good time would be during marriage, u get 25% more bonuses.

However, if u intend to keep it till maturity, I suggest u don't withdraw anything as the 25% additional bonus is nothing as compared to the terminal bonus u will get at maturity

I personally have this plan and would be glad to take over another foundation plan from anyone who doesn't want it. I believe junior lion would agree that this is a good plan to keep

Nowhere u can find an endowment plan with such low premiums and high returns in current days