Hi. I intend to surrender my PruSave as I do not think it is good and I bought it when I was stupid and did not think things through. I bought it on 20 Feb 2017, so I am currently in the 3rd year with no surrender value, as surrender value only starts at the end of the 3rd year aka on 20 Feb 2020. However, before 20 Feb 2020 they will ask me to pay the next premium. Just want to ask the knowledgeable people here if I don't pay the next premium by 20 Feb 2020, does it count as a lapse? And if so, am I still able to get the surrender value after 20 Feb 2020?
Need help with PruSave surrender
- Thread starter neek44
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Mr. Wood
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I assume u pay by yearly.
first, login to pruaccess to check if there is any surrender value as of now, towards end of year, and again before 20 feb 2020.
if u r paying by credit card, change to cash mode or cancel the credit card such dat there is no automatic deduction.
u shud get like 1 month's grace (ie by 20 Mar 2020) before it is considered lapse. (but check with yr agent). during dat period betw feb to mar, u can surrender.
first, login to pruaccess to check if there is any surrender value as of now, towards end of year, and again before 20 feb 2020.
if u r paying by credit card, change to cash mode or cancel the credit card such dat there is no automatic deduction.
u shud get like 1 month's grace (ie by 20 Mar 2020) before it is considered lapse. (but check with yr agent). during dat period betw feb to mar, u can surrender.
Yup I have checked. There is no surrender value now. The revised BI says end of the 3rd year will have surrender value. I am not paying by automatic deduction so no problem there. Thanks for your advice. I'm actually not trying to contact my agent as I think she will try to psycho me into keeping the plan or sign more plans lmao
End of third year surrender value projections are based on you paying the premiums on the third year as well, might as well surrender now if that's what you're going for?
Mr. Wood
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no need to tell yr agent u intend to terminate the plan. can juz say is a general qn. or say u plan to renovate house, plan to go sabbatical, in case come back missed feb payment how?
or email customer service.
I have already paid the premium for the 3rd year at the beginning of the year. Are you saying to get end of 3rd year surrender value I have to pay 4th year premium?
Sorry, what I meant to say was the surrender values are estimated based on premium paying values.
If you paid for it through yearly premiums then I guess you should wait till before the lapse to get as much out of it as possible. If you're doing it monthly however, best to stop earlier than late. (If your plan is to surrender the policy)
If you paid for it through yearly premiums then I guess you should wait till before the lapse to get as much out of it as possible. If you're doing it monthly however, best to stop earlier than late. (If your plan is to surrender the policy)
Mecisteus
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Now is only April. Terminate now and ask for refund for the premiums from May onwards.
The past premiums have to forgo.
Sorry my fault I didn't mention that I'm paying annually. So I have paid the 3rd year premium. End of 3rd year is 20 Feb 2020. But before that date I would need to pay for 4th year premium or it would lapse. What I'm asking is do I need to pay 4th year premium to get end of 3rd year surrender value? If I don't pay 4th year premium, after 20 Feb 2020 can I get the surrender value? If I lapse the automatic policy loan will activate so will my surrender value get lesser? When exactly is the end of 3rd year surrender value available? Is it strictly after the end of policy year date 20 Feb 2020? Or near the end but before 20 Feb 2020 so I can get surrender value without paying 4th year premium or lapsing? Sorry for so many questions.
Mecisteus
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You already paid 1 year premium for 3rd year.
3rd year is not complete. Terminate now and get back the remaining months of 3rd year premiums.
How to get back remaining months of premiums? I didn't know it works this way. Currently surrender value is zero until end of policy year
Mecisteus
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Just go to Prudential customer centre. Tell them you want to terminate NOW.
Refund me back my premium for remaining months. You should be able to get the premiums.
Same with those policyholders who opt for monthly premiums. They stop now they don't need to pay remaining months of the year.
But past premiums are gone!
talkonly
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Not sure if you can get back the balance of 3rd year premiums, i.e. May till Jan 2020.
If surrender now maybe they will consider it as end of 2nd year only. Meaning $0.
I recently calculated the prud savings plan actual return(what we gonna receive, not their 3.25% or 4.75%), is only roughly 1.5%? I think other investment tools can beat this easily, say the SSB.
So ended up I didn’t get any policies from them.
If surrender now maybe they will consider it as end of 2nd year only. Meaning $0.
I recently calculated the prud savings plan actual return(what we gonna receive, not their 3.25% or 4.75%), is only roughly 1.5%? I think other investment tools can beat this easily, say the SSB.
So ended up I didn’t get any policies from them.
Yeah I have doubts about getting back the premium balance too. Also yeah now then I realize their returns not good. Last time not savvy enough.
Wrong understanding. You won't get any refund since it won't have any cash values in policy. Even if policy that has cash values also won't refund u.
If policyholder paid yearly, and he died a few months after that...no refunds of 'unused premiums" into your payout as well. You paid yearly, the company gave u a discount...basically that is the only advantage of paying yearly. You died earlier not company issue since they already given you discount.
To TS, no need to rush to terminate since you already paid. End of 3rd year if got cash value then u surrender without paying 4th year premiums...if no cash values then LL...makes no difference to you surrendering today and not enjoying the coverage you have paid for.
Zenest
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For max return of cash values, surrender ASAP.
Pru will refund unused premiums prorated in months.
Surrender value will be insignificant relative to your premium due early surrender.
However, saving money is rarely a mistake.
PruSave policy is simple, systematic and organised way for wealth accumulation in a low risk environment.
While there may be other instrument with better potential returns, Returns are proportional to Risk.
If you have access to instrument that gives you better returns but with the same risk, then you should surrender.
I like to think that most of us can accommodate a low risk accumulation tool as their fall back contingency.
May I encourage you to speak to a FC that you trust to discuss if this PruSave does serve a purpose for you before surrendering the plan.
For your consideration.
Trival.
It is true that if a claim occurs, there will not be prorated refund of annual premiums.
Even if you pay on monthly mode, insurance proceeds will be nett of balance annual premiums.
Pru will refund unused premiums prorated in months.
Surrender value will be insignificant relative to your premium due early surrender.
However, saving money is rarely a mistake.
PruSave policy is simple, systematic and organised way for wealth accumulation in a low risk environment.
While there may be other instrument with better potential returns, Returns are proportional to Risk.
If you have access to instrument that gives you better returns but with the same risk, then you should surrender.
I like to think that most of us can accommodate a low risk accumulation tool as their fall back contingency.
May I encourage you to speak to a FC that you trust to discuss if this PruSave does serve a purpose for you before surrendering the plan.
For your consideration.
Trival.
It is true that if a claim occurs, there will not be prorated refund of annual premiums.
Even if you pay on monthly mode, insurance proceeds will be nett of balance annual premiums.
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cheongking888
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I have 2 Prulife, 2 Prucash and 1 Prusave.
To be honest, I should have bought NTUC policies instead.
Prudential policies all cannot make it. Low interest, low bonus, low return.
To be honest, I should have bought NTUC policies instead.
Prudential policies all cannot make it. Low interest, low bonus, low return.
Mecisteus
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Some of you are not so smart.
If you don't try, you get 0. If you try, you may get something.
Even dollarandsense does not mention ALL insurers will not refund. So there is still a chance of refund for some policies.
https://dollarsandsense.sg/everything-you-need-to-know-insurance-premiums/
# 3 Refund After Termination
Most insurers would not refund your paid premiums so you might run the risk of losing your paid premiums after making annual payments (or even single premium) if you terminate your policy later on. As such, it is important that you are 100% sure that you need this policy before committing to an annual payment.
If you don't try, you get 0. If you try, you may get something.
Even dollarandsense does not mention ALL insurers will not refund. So there is still a chance of refund for some policies.
https://dollarsandsense.sg/everything-you-need-to-know-insurance-premiums/
# 3 Refund After Termination
Most insurers would not refund your paid premiums so you might run the risk of losing your paid premiums after making annual payments (or even single premium) if you terminate your policy later on. As such, it is important that you are 100% sure that you need this policy before committing to an annual payment.
Zenest
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May I congratulate you for holding Pru policies for the better average returns over a longer term.
(ref link here: - https://forums.hardwarezone.com.sg/120307322-post405.html )
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