Advice on NTUC INCOME *HELP*

[circleheart]

Hi all,

I just received a letter from NTUC income in regards to a endowment insurance plan which my parent bought for me when i was still a kid. The insurance which is vested to me(21yo), is 80$ per month. Sum assured 100k.

I am thinking should i continue to pay for the insurance or surrender it. I am currently serving the nation and have a aviva term insurance as well.
From my lack of discernment, I am afraid i will make the wrong decision.

TIA the help
Cheers

 

[laksa2003]

what is the ending date of the endowment

 

[Chua Zhiming]

you are in the same situation as me 4-5 years ago

i was 21, dad bought for me a 35k endowment plan with $55 monthly payment under NTUC since i was 6, after i took over, i decided to surrender the policy but i did so during my uni period so that i can get additional bonus encashment under 1 of their clauses...in the end my return was 1-2% over 16-18 years

Only advice is to see what you want to do with the money, if you are investing in other areas, then go for term life insurance instead. If dont want to be bothered with investments/insurance, then at least continue the endowment plan. Personally, i dont think its value for the high monthly premiums.

 

[SpinFire]

What's the premium term of the policy? For life or limited term?

 

[circleheart]

what is the ending date of the endowment

the maturity date is 2077

 

[circleheart]

What's the premium term of the policy? For life or limited term?

It is a life policy till 2077

 

[circleheart]

Consult your agent.

Hi, there is no agent attached to me only can call their hotline.

 

[iCuteCube]

Hi, there is no agent attached to me only can call their hotline.

Call their hotline

 

[SpinFire]

It is a life policy till 2077

Wah... Another 64 years to go. Check what's the surrender value and decide if you're willing to cut loss.

At $960 per year, I believe it's a life insurance policy with death and TPD coverage only.

 

[laksa2003]

Should be whole life not endowment. Then it's up to you personal situation n preference if you want to keep or stop. Need to check the surrender value now...suggest you call hotline

 

[circleheart]

you are in the same situation as me 4-5 years ago

i was 21, dad bought for me a 35k endowment plan with $55 monthly payment under NTUC since i was 6, after i took over, i decided to surrender the policy but i did so during my uni period so that i can get additional bonus encashment under 1 of their clauses...in the end my return was 1-2% over 16-18 years

Only advice is to see what you want to do with the money, if you are investing in other areas, then go for term life insurance instead. If dont want to be bothered with investments/insurance, then at least continue the endowment plan. Personally, i dont think its value for the high monthly premiums.

Thanks for the advise,

Yeah i was told there is a 25% additional from NTUC if i am using it for studies. So you are able to get the additional bonus and surrender without any catch?

 

[circleheart]

Wah... Another 64 years to go. Check what's the surrender value and decide if you're willing to cut loss.

At $960 per year, I believe it's a life insurance policy with death and TPD coverage only.

The surrender value now is around 24k, how do i calculate the loss/gain?
TIA

 

[SpinFire]

The surrender value now is around 24k, how do i calculate the loss/gain?
TIA

How much premiums have you paid?

Gain/Loss = Total Premiums Paid - Surr Value

Interested to know the returns of your policy, pls share info

If you surrender within the first 20-25 years, you'll very likely lose money as approx 1.5 years of premiums were deducted as fees and commissions.

 

[circleheart]

How much premiums have you paid?

Gain/Loss = Total Premiums Paid - Surr Value

Interested to know the returns of your policy, pls share info

If you surrender within the first 20-25 years, you'll very likely lose money as approx 1.5 years of premiums were deducted as fees and commissions.

The Total premiums paid is roughly around 19k, my parent have aldy paid for 19years + , surr value is around 24k.

 

[SpinFire]

The Total premiums paid is roughly around 19k, my parent have aldy paid for 19years + , surr value is around 24k.

Then you have already made a gain of $5k. You'll probably receive PMs from many financial advisers here offering you products. Study them with care before committing to another long term plan.

 

[wooty100]

It is always good to have cash stashed away and generating something. Yes people will say it is no good returns for 1-2% but it is the thought that counts. Moreover there is no guaranteed that your parents would have saved 19k without the discipline of a endowment plan and further invest for 5-7% returns in those 19years.

Now you reaped the reward of your parents' labour, you can let it roll by virtue of it being cheap and there are always terminal bonus attached to long endowment plans(check your policy).

Unless you wanna cash in and reinvest, i suggest you shop for alternatives and have a plan of what u wanna do before liquidating and let it erode in your bank again.

 

[kebinu]

The surrender value now is around 24k, how do i calculate the loss/gain?
TIA

Something that will worry any plan that you are going to make is that you don't even know if there's a gain/loss from this plan, discounting all inflation etc.

And then so, it will be better for you to stick to this plan and receive the maturity payout at the end till... you actually learn how to make better use of the money.

 

[tiny]

The surrender value now is around 24k, how do i calculate the loss/gain?
TIA

You can use an online calculator. Google for it.

With a conservative annual returns of 3% over 20 years of $960 rolling, the compounded value is $27,500

With self-investing and a high risk appetite annual returns of 7% over 20 years of $960 rolling, the compounded value is $43,000.

Your estimated loss is a value between $3,500 and $19,000.

 

[jjonghae]

If I buy NTUC incomeshield enhanced, do I need to cancel away CPF Medishield?
Sry, I am fresh out of school, my parents do not know much abt insurances.

 

[torrent06]

Medishield is integrated into Approved Private Shields like Enhanced NTUC Incomeshield. Part of the premium still goes to CPF Medishield but you now get a higher coverage. You do not have to do any cancellation as CPF and NTUC will handle it. It will never be possible for you to have multiple shield plans at any one time.