Should I surrender my ILP?

[xenyamahcx]

Hi. I would like to seek advice as I feel that I am over insured.

1. Smart protect (2012)
Sum insured 100k
$200/ month

2. Life ( 20 year) ( 2015)
Sum insured 100k
$2977 per year

3. Manulink enrich (2015)
Sum insured 21k
$5000 per year

4. Manulink flexi (2014)
Sim insured 100k
$4200 per year

 

[luvalist]

IMHO there is nothing called over-insure but overbuy. Is this taking a strain on your financials and you would like to give up some of the policies? Or do you think you don't have dependents hence you don't need the coverage?

Do look at the surrender value and coverage of the various policies + your dependents and financial situation to help your assessment.

 

[Shion]

You are paying nearly 15k per year for your policies

 

[akwl88]

You are paying nearly 15k per year for your policies

BB spotted!

 

[vince123123]

The sum assured looks real small for the amounts you are paying. Do you need insurance or investment? ILPs are a bad idea in general.

Hi. I would like to seek advice as I feel that I am over insured.

1. Smart protect (2012)
Sum insured 100k
$200/ month

2. Life ( 20 year) ( 2015)
Sum insured 100k
$2977 per year

3. Manulink enrich (2015)
Sum insured 21k
$5000 per year

4. Manulink flexi (2014)
Sim insured 100k
$4200 per year

 

[anfielder]

Hi. I would like to seek advice as I feel that I am over insured.

1. Smart protect (2012)
Sum insured 100k
$200/ month

2. Life ( 20 year) ( 2015)
Sum insured 100k
$2977 per year

3. Manulink enrich (2015)
Sum insured 21k
$5000 per year

4. Manulink flexi (2014)
Sim insured 100k
$4200 per year

You don't seem to be overinsured. But you sure are paying a lot in premiums for just $300k+ in coverage.

 

[xenyamahcx]

IMHO there is nothing called over-insure but overbuy. Is this taking a strain on your financials and you would like to give up some of the policies? Or do you think you don't have dependents hence you don't need the coverage?

Do look at the surrender value and coverage of the various policies + your dependents and financial situation to help your assessment.

I feel that i don't need so much coverage as i don't have dependents yet.
Also, i heard from my friends that it is better to lower the premium for my ILP and invest in ETF instead.

 

[xenyamahcx]

What are your current and future priorities? Have they shifted towards :
1) Wealth protection
2) Wealth accumulation

That is a considerable amount spent if you are focusing on 1).

I am focusing on wealth accumulation.

 

[xenyamahcx]

As many have pointed out,the funds in ILPs would have to perform well to overcome the mortality charges and management costs considering the increase in age as time goes by.

Limited pay (8-25) year endowment plans are what I suggest to my clients who shares a similar priority as yours.

I have one 20 year endowment plan as well.
Is it wise to reduce my premium and SA or to surrender my ILPs altogether?

 

[xenyamahcx]

Have you contacted your agent regarding this matter? He should be your first person of contact when it comes to crucial decisions like these.

I contacted my agent (Great Eastern). She recommended to keep the plans going if possible.
If it's too much to commit, then lower the premiums.

 

[Maeda_Toshiie]

I contacted my agent (Great Eastern). She recommended to keep the plans going if possible.
If it's too much to commit, then lower the premiums.

No agent is going to tell you to cut the plans that they get their commission from.

If you reduce the premiums, did your agent elaborate on what happens to the plans? Would it affect the protection? If not, a larger portion of your premiums will go into fees and protection, leaving even less for the investment part. Even if the investments somehow miraculously do reasonably well, what you get in terms of investment gains is going to be even smaller.

Cut out the unwanted plans.

I am focusing on wealth accumulation.

There are better ways than buying ILP.

-------------------------------------

You have NO dependents, yet you have so many policies. How old are you?

Very key point: Do you have an hospitalization plan?

-------------------------------------

 

[anfielder]

I contacted my agent (Great Eastern). She recommended to keep the plans going if possible.
If it's too much to commit, then lower the premiums.

If you cancel your plan, especially one that's relatively recent, it's kind of like a black mark for them. And they lose their ongoing commissions. There's no way they will advise you to cancel the plan.

 

[xenyamahcx]

No agent is going to tell you to cut the plans that they get their commission from.

If you reduce the premiums, did your agent elaborate on what happens to the plans? Would it affect the protection? If not, a larger portion of your premiums will go into fees and protection, leaving even less for the investment part. Even if the investments somehow miraculously do reasonably well, what you get in terms of investment gains is going to be even smaller.

Cut out the unwanted plans.



There are better ways than buying ILP.

-------------------------------------

You have NO dependents, yet you have so many policies. How old are you?

Very key point: Do you have an hospitalization plan?

-------------------------------------

I am 26. Yes I do.

 

[Goldschlager]

sry to hijack ts thread but will also like to have some suggestion on whether to carry on my ILP (prulink protection plus). I am worry that it will be too difficult to break even in the future. Portfolio solution will be based on mercer recommendation, is it really trustable? thanks

 

[Shion]

http://forums.hardwarezone.com.sg/money-mind-210/ge-smart-protect-reduce-premium-4822978.html

 

[Shion]

I guess you didn't know what you are buying ? 3 ILPs, that is scary.

The 2 Manulife seems to be heavy burden.

 

[SBC]

What is the total SA for the life policy? ILP excluded.

 

[xenyamahcx]

What is the total SA for the life policy? ILP excluded.

Death 100k
Tpd 100k
CI 200k

 

[xenyamahcx]

I guess you didn't know what you are buying ? 3 ILPs, that is scary.

The 2 Manulife seems to be heavy burden.

Indeed. Maybe I should just cancel one of them.

 

[Shion]

I would say both, if you can swallow the losses