Prudential ILP close and run?

[Axisx]

dont flame me!
i bought this ins...at 37yrs . now turned i turned 40.
just came to know what the " effect of deduction " shown on the "benefit illustration" is all about.

as of today...total premium paid is $8064.
effect of deduction = $6849
Non-guaranteed at 4%= $3100

If i have understood correctly.... if i were to surrender will it be
8064+ 3100 - 6849?

Is there any chart or excel sheet( with updated yearly declared cash value ) that allows us to key in the above data and get the surrender cash value?

Secondly with all those new plans by government like the medishield life, do i still need the ilp plan?

thanks all

 

[dork32]

dont flame me!
i bought this ins...at 37yrs . now turned i turned 40.
just came to know what the " effect of deduction " shown on the "benefit illustration" is all about.

as of today...total premium paid is $8064.
effect of deduction = $6849
Non-guaranteed = $3100

If i have understood correctly.... if i were to surrender will it be
8064+ 3100 - 6849?

Is there any chart or excel sheet( with updated yearly declared cash value ) that allows us to key in the above data and get the surrender cash value?

Secondly with all those new plans by government like the medishield life, do i still need the ilp plan?

thanks all

if you surrender now, you get whatever your units is worth now. if the projection is 100% accurate, you get 3100.

 

[Lewis.T]

You can check through PruAccess (online portal for policy holders), or call up customer service for details about your policy.

Also, ILP and medishield life have nothing in common - they cover different areas.

PruShield and medishield life (once implemented) will work together to give you comprehensive hospitalization and surgical coverage.

 

[kingerfisher]

dont flame me!
i bought this ins...at 37yrs . now turned i turned 40.
just came to know what the " effect of deduction " shown on the "benefit illustration" is all about.

as of today...total premium paid is $8064.
effect of deduction = $6849
Non-guaranteed = $3100

If i have understood correctly.... if i were to surrender will it be
8064+ 3100 - 6849?

Is there any chart or excel sheet( with updated yearly declared cash value ) that allows us to key in the above data and get the surrender cash value?

Secondly with all those new plans by government like the medishield life, do i still need the ilp plan?

thanks all

you don't get so much . depending on market fund performance , you will get less than SGD 3100.

I just surrendered my ILP , it sucks !

 

[havetheveryfun]

you will lose more than 70% of what you have paid during these 3 years, that's for sure. For ILPs to break even or profit you will have to pay for at least 20 years.

Furthermore, the agent that sold you the ILP gets 50% of your premiums for the first 2 years (if Im not wrong), so you will definitely get a lot lesser or even nothing at all in some cases.

its best you call up ur agent or find prudential to ask them how much you will get if you withdraw the policy now, and then decide for yourself. but you can tell that most people hate ILPs in this forum

 

[kingerfisher]

if you need advice , you can msg me , I just surrender my ILP , and I lost 8k plus....

I can teach you the basic calculation

 

[wahkao3]

ILP good or not? If so many of the agents are promoting it, it must be good investment!! surely they wont risk their reputation

 

[Shiny Things]

ILP good or not? If so many of the agents are promoting it, it must be good investment!! surely they wont risk their reputation

I've learned the hard way that sarcasm doesn't carry well in text; you might want to wrap <sarcasm> tags around this, otherwise people will think you're being serious.

 

[Axisx]

bumping up for more discussion and inputs

 

[sophie.wee.weng]

Interested to know more too!

 

[zeroX26]

ILP good or not? If so many of the agents are promoting it, it must be good investment!! surely they wont risk their reputation

Y not you liquidate all your equities holdings and convert to ILP instead

 

[kingerfisher]

I don't think you can liquidate , they have certain percentage for "insurance" and "investment "

 

[Lewis.T]

At any rate, do calculate if the insurance is still necessary, supporting your children/spouse/family?

Do take note for PruLink Protection Plus Account, the focus is on the protection, not on wealth growth.

What is the reason you wish to surrender the policy? Would you perhaps like to do your own investments and incur lesser charges?

The biggest loss comes when you surrender early, because that's when most of your premiums are used to pay for commissions and costs. At later years, we will allocate extra for units purchased. If you do decide to stop this policy and have dependants, do take up maybe a term insurance to cover for the shortfall as this would be a prudent and responsible thing to do.

 

[SpinFire]

Why don't you contact the agent who sold you this policy? It's his job to do it

 

[archcherub]

you will lose more than 70% of what you have paid during these 3 years, that's for sure. For ILPs to break even or profit you will have to pay for at least 20 years.

Furthermore, the agent that sold you the ILP gets 50% of your premiums for the first 2 years (if Im not wrong), so you will definitely get a lot lesser or even nothing at all in some cases.

its best you call up ur agent or find prudential to ask them how much you will get if you withdraw the policy now, and then decide for yourself. but you can tell that most people hate ILPs in this forum

Less than 10% of your first year premium goes into the policy. (different companies different %)

and.... *drum rolls* i think a certain company's ILP commission is extremely lucrative, 60% of the first year premium, best in singapore for the agent. hopefully it is no longer true right now.

Anyway, call up Prudential hotline, or use the Pru online someone memtioned. The benefit illustration you used is a projection, not a confirmation.

And you are seeing the effects of deductions wrongly... it does not affect your current cash value.
It is a projected value that your policy's sales and management fee charges would had in effect on your cash investment from day 1. If there were no charges, you would have had those extra money.
Ignore it now if u were to surrender, it does not affect your current cash value.... best to call up prudential hotline and ask. they experts, and they will convince u why ILPs are the best, and probably ask u to buy a 2nd one!
Huat ah!

Oh wait.
<sarcasm> they experts, and they will convince u why ILPs are the best, and probably ask u to buy a 2nd one!
Huat ah! <sarcasm>

 

[wooty100]

Of all the replies, non clarifies what is "effects of deductions"

It is in a perfect situation whereby your investments grows by 4% and 8%(MAS mandatory figures) every year perfectly without losses and mitigating factors like management fees and charges, then we subtracted the figure with your cash value of the stated illustration figures.

The difference is called "effects of deduction", while it is not a cost nor a poor performance table to illustrate anything, it is simply a industry requirement to showcase what would be the difference if someone can have a perfect investment. This is to give consumers a feel and be transparent about the what they are getting into.

Many agents have problems explaining the table as some do not even understand what it means in the first place.

Due diligence, Proper fit and conduct requires us to explain and get client to sign on the dot. If you do not understand the table, probably you should have clarified and seek more clarity before signing in the 1st place.

As of why your value is much lesser than what you put in, i suggest you search my replies to one of the topic on ILP which i explained.

 

[archcherub]

Effect of Deductions

Tan Kin Lian's Blog: Effect of deduction
he was once CEO of NTUC Income..

But the easiest way of phrasing Effects of Deductions is from here

Value of Premium Paid – Total Cash Value = Effect of Deductions
Seth's Blog on Finance