ILP advise

[geeeek]

I just went through my dad's insurance files (age 55)

he has a couple of ILP from various insurance company one about 5 years already

another ILP for about 8 years.

I am thinking of cancelling due to the high fees and buy insurances for him on its own.

so my question is, if he has been diagnosed before he applied for ILP, the pre-existing medical condition can be claimed right? If I were to cancle his ILP now, and apply another insurance under Term or Life he might he have to pass the medical examination?

 

[SBC]

Mortality charge gao gao.

 

[akwl88]

I just went through my dad's insurance files (age 55)

he has a couple of ILP from various insurance company one about 5 years already

another ILP for about 8 years.

I am thinking of cancelling due to the high fees and buy insurances for him on its own.

so my question is, if he has been diagnosed before he applied for ILP, the pre-existing medical condition can be claimed right? If I were to cancle his ILP now, and apply another insurance under Term or Life he might he have to pass the medical examination?

why u depend on ilp for medical???

 

[parallelyy]

I just went through my dad's insurance files (age 55)

he has a couple of ILP from various insurance company one about 5 years already

another ILP for about 8 years.

I am thinking of cancelling due to the high fees and buy insurances for him on its own.

so my question is, if he has been diagnosed before he applied for ILP, the pre-existing medical condition can be claimed right? If I were to cancle his ILP now, and apply another insurance under Term or Life he might he have to pass the medical examination?

The question then is if he declared to the agent, and did the agent declared to the insurer?

If no, then the insurers can reject to pay the claims, since they were kept in the dark. In this case, it's better to just surrender and self insure.

If yes, then we will have to look at the policy contract, to see if there's any exclusion (most likely so). If there's no exclusion, then likely is that they charge higher premiums for that cover. What this means is the ILP returns will be adversely affected.

If your dad pre-existing condition is serious, you can consider keeping the ILP for the insurance cover (especially if there's a minimun guaranteed cover) though it's still better to take out whatever's left to form a self insurance.

If the condition is diabetes, you can also consider AIA Diabetes Care instead of the ILP.

 

[unhinged_loon]

I just went through my dad's insurance files (age 55)

he has a couple of ILP from various insurance company one about 5 years already

another ILP for about 8 years.

I am thinking of cancelling due to the high fees and buy insurances for him on its own.

so my question is, if he has been diagnosed before he applied for ILP, the pre-existing medical condition can be claimed right? If I were to cancle his ILP now, and apply another insurance under Term or Life he might he have to pass the medical examination?

In the first place, does he have any shield plan? Shield plans are not tied to ILPs. ILPs have lousy mortality coverage. Any form of "medical" coverage associated with ILPs should be riders attached, and these are usually stuff like CI or Early CI. These are NOT hospitalization plans.

First of all, you should be checking on the funds invested in the ILP, and how much they are worth right now.

 

[computers70]

A good question.

There is a few possibilities now. insurance companies will pay out the death coverage unless they suspect it is a fraud. It not, they will pay out the sum assured. If you feel that the sum assured is fine, keep the policy.

IF you do not need the sum assured, I would suggest to lower the sum assured to the minimum, to keep the policy going. After the policy have ' even out' or reach the desired value, please surrender.
Do check with the company, as they will allow this only after a few years.

So, do consider if you need the sum assured or not.

 

[anfielder]

What kind of dodgy agent recommends ILP for someone who's 48-50 at the point of purchase?

The approach you have is the right one.. don't worry about the losses because they are a sunk cost. What's more important is any additional exclusions that might kick in if you switch to a new policy.

 

[geeeek]

Thank you all for your advise.

I am still going through my dad's file.
He not only has IPL but couple of other insurance as main assurance.
I am in the process of contacting the insurance for details of different policies.
Might take out ILP money and put it into SSB or high-cap div stock.

Will update in a few weeks!