[Dilemma] Invest-Linked Policy

[GreatKen]

Right now, I have Smart Protect (II) RP from Great Eastern.

Assured Sum: $100,000
Monthly Premium: $200

I've been paying for 20 months, which is about $4,000. The units are worth $700+ right now..

After reading a few links, I think it is a huge mistake on my part. I am paying way too much for the coverage I am getting. Furthermore, the projected returns didn't include removing commissions etc yet.

Should I terminate? I will absorb $3,200 loss.... I will get the NTUC one, term policy, premium only $40-$50 per month. Investment wise, I'll handle separately.

Tan Kin Lian's Blog: Shocking experience with Investment Linked Policy (ILP)
How to Avoid Investment-linked Policy Lapse
$1Million Personal Financial Diary: Commission Structure of Insurance Agents REVEALED

 

[Shiny Things]

Yeah, pull the plug - it's an expensive lesson, but better to pull the plug now than to keep paying in to that crappy thing for the next 10 or 20 or 30 years.

There'll be a whole lot of people coming on here saying "no, keep paying!". These people are insurance salesmen, worried about one of their own losing his phat commission. Ignore them.

 

[chopra]

how long is this plan supposed to last?
for monthly installment ones, usually quite long is it?

if so, agree with Mr Shiny.


cancel. now is a good time as market is good -- I assume your ilp is performing well too

 

[kebinu]

The projected return shown in BIPS is net off all expenses.

Since you are so focus on returns, the best way is for you to terminate this plan as soon as your new term plan is in force past the waiting period.

See, everyone can give you their recommendation. Each of us here have a certain level of success in whatever method we use our money to work for us, therefore, we will have a certain preference. We can show you which direction to go for, utlimately, you will be the one making the decision, setting your own direction and see how hard your money can work for you.

Good luck

 

[kasyes]

The projected return shown in BIPS is net off all expenses.

Since you are so focus on returns, the best way is for you to terminate this plan as soon as your new term plan is in force past the waiting period.

See, everyone can give you their recommendation. Each of us here have a certain level of success in whatever method we use our money to work for us, therefore, we will have a certain preference. We can show you which direction to go for, utlimately, you will be the one making the decision, setting your own direction and see how hard your money can work for you.

Good luck

Can do such thing?

Check whether can switch to a term plan within ge, unless no changes to your health status in the last few years since u take up this policy. If got change to health, n cannot switch, change to ilp with lower expenses...

Otherwise if u take up new term or whatever, u r bring ur current as of now health status with u.

 

[kasyes]

Of course if still super healthy since u took up the policy, can go ahead...

 

[kebinu]

Can do such thing?

Check whether can switch to a term plan within ge, unless no changes to your health status in the last few years since u take up this policy. If got change to health, n cannot switch, change to ilp with lower expenses...

Otherwise if u take up new term or whatever, u r bring ur current as of now health status with u.

Nope, cannot switch from plan to plan, unless it's a term plan which has a clause, which is usually from a term plan to whole life plan without underwriting.

ILP is flexible where one can change sum assured and premium, any revise upwards in SA is subjected to underwriting. If change lower, can.

Then again, if there is a change in health, it doesn't make sense to reduce sum assured.

There's a limited period to health warranty, which mean no change in health. It will not be valid if there is any change already.

For taking up of new policy, do remember to go through all the questionaires and answer truthfully. It may be troublesome during underwriting where we have to submit reports or go for medical examination, it will give us a piece of mind that we can claim when necessary in the future.

I do understand there are cases are not declared properly, resulting in rejected claim later on.