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Should I cancel ILP?

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Old 11-08-2018, 04:27 AM   #1
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Should I cancel ILP?

Okay. I know it has been discussed a million times about the infamous ILP. Sunk cost fallacy 😂 (total premiums paid at 5 digits now)

So I have an ILP (AXA Plusar) for 2 years (third premium due soon). I believe I wonít be getting a single cent back if I terminate <3 years. Iím contemplating between terminating before the third premium or after. Any advice? Can really use some help. Thanks in advance!

Iím letting it go no matter what. Just want to reduce the loss to the minimum.

Last edited by JellyCombat; 11-08-2018 at 04:31 AM..
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Old 11-08-2018, 06:03 AM   #2
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The earlier you cancel, the lower your losses.
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Old 11-08-2018, 09:56 AM   #3
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Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.
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Old 11-08-2018, 10:10 AM   #4
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Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.
Good advice. Rational.
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Old 11-08-2018, 10:44 AM   #5
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+1

If ts already thinking of cancelling, don't delay just do it while making sure ts have insurance coverage during the termination.

The earlier you cancel, the lower your losses.
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Old 11-08-2018, 11:50 AM   #6
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Don't cancel first, till you got term insurance coverage what you going to cancel.

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Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.
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Old 11-08-2018, 12:01 PM   #7
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Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.
usually need term to add on a CI plan. so still need it for CI
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Old 11-08-2018, 12:05 PM   #8
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Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.
Checked the BI. Itís gonna be quite a sum. It performed okay for the first year. Iím still not too sure how itíll pan out for this year. Premium due Dec but it hasnít break even. Itís not catering to my current needs anymore. I bought a 30 years plan (horrible decision!).
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Old 11-08-2018, 12:10 PM   #9
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Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.
Spot on here. I dont have any concerns with this. The pulsar doesnít come with the insurance component except for death benefit. My only concern now is I no longer want that 30year lock down
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Old 11-08-2018, 12:16 PM   #10
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AXA Pulsar is very good for the seller and very bad for the buyer
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Old 11-08-2018, 12:18 PM   #11
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Checked the BI. Itís gonna be quite a sum. It performed okay for the first year. Iím still not too sure how itíll pan out for this year. Premium due Dec but it hasnít break even. Itís not catering to my current needs anymore. I bought a 30 years plan (horrible decision!).
that is the trick of pulsar, lock you down for a very long time but claim to give start up bonuses which are eroded by the high fees over the 30 years

good luck to you!
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Old 11-08-2018, 01:19 PM   #12
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Saf-Aviva plan is the cheapest term insurance currently on market.

Are you NS men? I believe you also can buy for your spouse.


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Hmm. Like Iíve mentioned, Iím not exactly concern about buying term etc. I think I need to deal with the pulsar first as my third premium gonna be up soon. Thanks for the suggestions anyway!
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Old 11-08-2018, 02:36 PM   #13
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Why not u go on premium holiday and settle ur insurance first
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Old 11-08-2018, 05:20 PM   #14
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Since you think you has enough coverage than cancel your ILP wouldn't be a tough decision.

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Im thinking if I should lower the premiums for pulsar instead. An IFA told me to hold it
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Old 11-08-2018, 05:29 PM   #15
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You're still in the investing race through this ILP.

Just that you start at at '-5m' mark in a 100m race due to the high fees, cost of funds etc. Perhaps a low cost index fund will set you behind at the '-1m mark'

Starting behind doesn't mean you are sure to be last, but you are giving yourself an handicap through the fees.
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