GE Smart Protect - Reduce Premium???

[AhPek_Lion]

Hi

I am enquiring on behalf of a friend (26yr old female). She signed up this ILP (GE smart protect) about 2years ago, premium $532/mth. Coverage for 215k death, 200k TPD, Critical illness 400k (early payout critical care plus) and income loss coverage (1.5k/mth).

She wants to know if she can reduce the ILP premium (and also the coverage) or does she have to terminate the whole policy?

 

[VictorvonDoom]

Hi

I am enquiring on behalf of a friend (26yr old female). She signed up this ILP (GE smart protect) about 2years ago, premium $532/mth. Coverage for 215k death, 200k TPD, Critical illness 400k (early payout critical care plus) and income loss coverage (1.5k/mth).

She wants to know if she can reduce the ILP premium (and also the coverage) or does she have to terminate the whole policy?

Ask the agent? Make them work for the commission.

I for see lots of "cancel the ILP" comments incoming...

 

[Xaser74]

You can reduce paying the premium. If you reduce paying the premium , naturally the sum assured will be reduced as well.

What's her reason for reducing the premium ?

 

[kebinu]

Yes you can reduce the sum assured and premium. Reducing premium may not reduce coverage though.

GL

 

[djchris]

Technically you can reduce the premium and coverage.

But what your friend should tell you is why she wants to do it.

 

[AhPek_Lion]

Technically you can reduce the premium and coverage.

But what your friend should tell you is why she wants to do it.

She told me that she felt cheated (which agent would recommend 400k CI for a 24yr old) to have paid such a huge sum. she wants to reduce premium so that she can use the $ for other investments.

Since she already put so much in, would it be wise she reduce the coverage and make use of the remainder units and go on a premium holiday? After use finish all the units, the plan will cease

 

[djchris]

If she is going to cease the plan and not take any other insurance, then the answer is obviously no.

If she plans to go take another insurance policy, why don't she go find out what insurance policies she can consider first before going on premium holiday? She needs to choose the insurance she wants, sign up first and make sure the policy is in force before her current policy ceases so that she does not have any gap.

Question is also whether her health condition is the same as when she took up the plan last time.

 

[AhPek_Lion]

If she is going to cease the plan and not take any other insurance, then the answer is obviously no.

If she plans to go take another insurance policy, why don't she go find out what insurance policies she can consider first before going on premium holiday? She needs to choose the insurance she wants, sign up first and make sure the policy is in force before her current policy ceases so that she does not have any gap.

Question is also whether her health condition is the same as when she took up the plan last time.

She will be taking up other plans (most prob term). Health is the same.

 

[djchris]

She will be taking up other plans (most prob term). Health is the same.

Then it's up to her to decide to cease or not.

What I did for my ILP was to surrender it to take the money out and set aside in my OCBC 360 as emergency funds.

 

[AhPek_Lion]

Anyone can quote 200k death and 100k ci term till 65yr old for 26yo non smoker female

 

[FP_IFA]

Hi

I am enquiring on behalf of a friend (26yr old female). She signed up this ILP (GE smart protect) about 2years ago, premium $532/mth. Coverage for 215k death, 200k TPD, Critical illness 400k (early payout critical care plus) and income loss coverage (1.5k/mth).

She wants to know if she can reduce the ILP premium (and also the coverage) or does she have to terminate the whole policy?

If the 400k CI is a rider, it should be removable for the plan without needing to terminate.

 

[AhPek_Lion]

If the 400k CI is a rider, it should be removable for the plan without needing to terminate.

hahas i saw this thread being dugged up.
Yes it is removable. Over the past 2yrs when she had this ILP, all the premiums paid were being sucked up by the allocation and the riders. Cash value she got back was only 1.2k.

Ever since she surrendered the ILP and makan the lost, she is indeed much happier and now has the freedom on how she wants to invest her money. Long term wise, the ILP will not do her any good since her agent never reviews her portfolio. Only meet her to suck more money

 

[FP_IFA]

hahas i saw this thread being dugged up.
Yes it is removable. Over the past 2yrs when she had this ILP, all the premiums paid were being sucked up by the allocation and the riders. Cash value she got back was only 1.2k.

Ever since she surrendered the ILP and makan the lost, she is indeed much happier and now has the freedom on how she wants to invest her money. Long term wise, the ILP will not do her any good since her agent never reviews her portfolio. Only meet her to suck more money

Good for her. I didn't notice it was an old post.