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Old 13-02-2020, 04:25 PM   #1
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Living Policy With Defer Bonus

Any one one

Last edited by datame; 17-02-2020 at 06:22 PM..
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Old 13-02-2020, 05:24 PM   #2
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Your policy document already informs you that you can encash your annual bonus. In my opinion, if you go to the branch personnel and request for a policy loan then they are not obliged to tell you that you can encash bonus instead, although that would be the nice thing to do. If you go through your insurance agent, however, the agent is supposed to act in your best interest, so I would interpret that as the agent should then inform you of the better option.
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Old 13-02-2020, 11:13 PM   #3
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You signed up for the loan contract with full knowledge about the interest. It seems like you are just finding fault because you can't pay your loan off.

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Old 14-02-2020, 12:18 AM   #4
Join Date: Sep 2019
Posts: 262
I read through my policy contract, I cannot find the wording 'Bonus encash'
so I call the hotline, staff said:She cannot explain nor advise why my copy did not indicate.
She added: Most likely the contract clause have been revised.

Question: If they had revise the contract, my copy will not be revised?

Back then, I went to the brand office, I did not request for a policy loan, instead I said: 'I needed money'
The staff did not share with all available option (as what you said, agent are are suppose to act in my best interest)
How about customer staff, are they not obliged to act in my best interest and tell me all the available options as such:
1) Encash bonus
2) Take policy loan
I would have make decision if I want to take loan or do bonus encash.

In view of that are FI negligent in not advising me of the possibility of bonus encashment?

I had fully paid the principal loan amount over 10K and now the FI want me to pay the outstanding interest of 15K. They want me pay by taking my bonus encash and bonus sum assure.
PS: Future annual bonuses on the Policy will be reduced due to the loss of the compounding effect of annual bonuses.

Can you kindly advise me how I should go from here.

You need to understand your contract.

There are a few ways to do things.
(1) Partial surrender (if it is allowed) allows you to encash both the reversionary bonus AND Terminal bonus, while still keeping some protection (if you so require).
(2) Paid up capital (but if you need money, not wise, coz reversionary bonus will be used, and you lose terminal bonus due to the lost of reversionary bonus, and hence, lost terminal bonus which would be paid out should you kept it instead or do partial surrender)
(3) Policy Loan which you used (only meant to have temporary cashflow while you fully pay later. Interest rate is 5.75% p.a or similar

Do PM or email me for more info and i can inform you which can be better for your situation.

Last edited by Value.Matrix; 14-02-2020 at 12:22 AM..
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Old 14-02-2020, 03:05 PM   #5
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you pay back the full 10k plus then u realise?

cannot be mah.. if u got problem within first few installment u will already realise.

there is a clear cut loan schedule given to u, no such thing as 'suddenly' ask u to pay an extra 15k
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Old 14-02-2020, 03:19 PM   #6
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At this point you probably should talk to your assigned agent to find out your best option. Trying to vent on branch counter staff for your bad decision is not going to help or achieve anything.
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