Should I cancel ILP?

[JellyCombat]

Okay. I know it has been discussed a million times about the infamous ILP. Sunk cost fallacy (total premiums paid at 5 digits now)

So I have an ILP (AXA Plusar) for 2 years (third premium due soon). I believe I won’t be getting a single cent back if I terminate <3 years. I’m contemplating between terminating before the third premium or after. Any advice? Can really use some help. Thanks in advance!

I’m letting it go no matter what. Just want to reduce the loss to the minimum.

 

[Shion]

The earlier you cancel, the lower your losses.

 

[Lewis.T]

Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.

 

[JuniorLion]

Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.

Good advice. Rational.

 

[Bonhun]

+1

If ts already thinking of cancelling, don't delay just do it while making sure ts have insurance coverage during the termination.

The earlier you cancel, the lower your losses.

 

[Maeda_Toshiie]

Don't cancel first, till you got term insurance coverage what you going to cancel.

Sent from Mercedes-Benz E250 using GAGT

Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.

 

[havetheveryfun]

Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.

usually need term to add on a CI plan. so still need it for CI

 

[JellyCombat]

Usually ILP have a surrender value even from the first day. Better check and find out more before you surrender.

Find out how it's been performing, whether it meets your expectations etc, don't just cancel just because someone on the internet said so. Advice here is almost always not tailored to the individual.

Checked the BI. It’s gonna be quite a sum. It performed okay for the first year. I’m still not too sure how it’ll pan out for this year. Premium due Dec but it hasn’t break even. It’s not catering to my current needs anymore. I bought a 30 years plan (horrible decision!).

 

[JellyCombat]

Does TS need term? How much term? What are his/her insurance needs in the first place? That should be assessed first. TS doesn't need term if he/she doesn't have any dependents.

Spot on here. I dont have any concerns with this. The pulsar doesn’t come with the insurance component except for death benefit. My only concern now is I no longer want that 30year lock down

 

[akwl88]

AXA Pulsar is very good for the seller and very bad for the buyer

 

[akwl88]

Checked the BI. It’s gonna be quite a sum. It performed okay for the first year. I’m still not too sure how it’ll pan out for this year. Premium due Dec but it hasn’t break even. It’s not catering to my current needs anymore. I bought a 30 years plan (horrible decision!).

that is the trick of pulsar, lock you down for a very long time but claim to give start up bonuses which are eroded by the high fees over the 30 years

good luck to you!

 

[JellyCombat]

Saf-Aviva plan is the cheapest term insurance currently on market.

Are you NS men? I believe you also can buy for your spouse.


Sent from Mercedes-Benz E250 using GAGT

Hmm. Like I’ve mentioned, I’m not exactly concern about buying term etc. I think I need to deal with the pulsar first as my third premium gonna be up soon. Thanks for the suggestions anyway!

 

[blurpandasg2014]

Why not u go on premium holiday and settle ur insurance first

 

[JellyCombat]

Since you think you has enough coverage than cancel your ILP wouldn't be a tough decision.

Sent from Mercedes-Benz E250 using GAGT

Im thinking if I should lower the premiums for pulsar instead. An IFA told me to hold it

 

[blueG77]

You're still in the investing race through this ILP.

Just that you start at at '-5m' mark in a 100m race due to the high fees, cost of funds etc. Perhaps a low cost index fund will set you behind at the '-1m mark'

Starting behind doesn't mean you are sure to be last, but you are giving yourself an handicap through the fees.

 

[JuniorLion]

As you said, there's no insurance component, so you're just purely investing into a mutual fund?

 

[JellyCombat]

You're still in the investing race through this ILP.

Just that you start at at '-5m' mark in a 100m race due to the high fees, cost of funds etc. Perhaps a low cost index fund will set you behind at the '-1m mark'

Starting behind doesn't mean you are sure to be last, but you are giving yourself an handicap through the fees.

So you’ll suggest that I hold but lower the premiums?

 

[JellyCombat]

As you said, there's no insurance component, so you're just purely investing into a mutual fund?

I think so? I actually started researching about it only recently. It wasn’t explained to me clearly when I was getting it. Got it from a ‘friend’ introduced by my poly lecturer

 

[blueG77]

Would prefer you to cancel it. One time pain rather than not breaking even after 10-20 years

So you’ll suggest that I hold but lower the premiums?

 

[tangent314]

It's going to hurt, but there's a good chance getting out as soon as you can would be your best move.

If you put up your BI I can calculate the differences between staying in and surrendering.