Surrender Life Endowment Special

[lzr1984]

I decided to surrender this policy that my dad brought for me which I think not worth it to keep going.
Seeking advice here to double confirm before I go down to surrender it.


Plan: Life Endowment Special (Non Par)
Sum Assured: $15k
Coupon Option: Accumulated
Total Premium: Monthly - $54.83


From the Illustration, I using my age now if I surrender.


Year/Age Basic Premiums Paid Total Distribution Cost
11/29 ----------- 6,679 ----------- 1,201


Death Benefit
Guaranteed Non-Guaranteed Total
19,500 ----------- 684 ----------- 20,187


Surrender Benefit
Guaranteed Non-Guaranteed Total
5,475 ----------- 687 ----------- 6162


Every 5 year I will get cashback $2250, I taken 2 times already(23 and 28).


11 years with this policy and only at year 16 (another 5 years) then I start to earn. Paid: 9,715 then surrender: 10,511.


Wonder if I surrender now then go invest it better or keep this insurance?
Thank you.

 

[Aerial86]

I decided to surrender this policy that my dad brought for me which I think not worth it to keep going.
Seeking advice here to double confirm before I go down to surrender it.


Plan: Life Endowment Special (Non Par)
Sum Assured: $15k
Coupon Option: Accumulated
Total Premium: Monthly - $54.83


From the Illustration, I using my age now if I surrender.


Year/Age Basic Premiums Paid Total Distribution Cost
11/29 ----------- 6,679 ----------- 1,201


Death Benefit
Guaranteed Non-Guaranteed Total
19,500 ----------- 684 ----------- 20,187


Surrender Benefit
Guaranteed Non-Guaranteed Total
5,475 ----------- 687 ----------- 6162


Every 5 year I will get cashback $2250, I taken 2 times already(23 and 28).


11 years with this policy and only at year 16 (another 5 years) then I start to earn. Paid: 9,715 then surrender: 10,511.


Wonder if I surrender now then go invest it better or keep this insurance?
Thank you.

First, it's best to call the insurer and confirm on the surrender portion which will be more accurate.
Secondly, endowments could earn slightly better returns provided you Re-invest the cashback instead of withdrawing.
Thirdly, investment is definitely having much higher potentials in terms of returns but it also has to depend on what type of investor are you, time horizon available etc.

 

[NiteX2]

I decided to surrender this policy that my dad brought for me which I think not worth it to keep going.
Seeking advice here to double confirm before I go down to surrender it.


Plan: Life Endowment Special (Non Par)
Sum Assured: $15k
Coupon Option: Accumulated
Total Premium: Monthly - $54.83


From the Illustration, I using my age now if I surrender.


Year/Age Basic Premiums Paid Total Distribution Cost
11/29 ----------- 6,679 ----------- 1,201


Death Benefit
Guaranteed Non-Guaranteed Total
19,500 ----------- 684 ----------- 20,187


Surrender Benefit
Guaranteed Non-Guaranteed Total
5,475 ----------- 687 ----------- 6162


Every 5 year I will get cashback $2250, I taken 2 times already(23 and 28).


11 years with this policy and only at year 16 (another 5 years) then I start to earn. Paid: 9,715 then surrender: 10,511.


Wonder if I surrender now then go invest it better or keep this insurance?
Thank you.

You should post the amount that you will be getting back upon maturity. Surrendering before maturity will definitely result in less money back. And yea, try to leave the cashback inside if you don't need the money, the interest is much better than what banks are offering

 

[bigmice]

for endowment plan surrender before maturity, sure will lose money. this double check with your insurer .
do not withdraw the cash back money,that give u higher return than back unless you have confident can earn more.

 

[kenix14]

There are alternatives if you really decided to give up on your endownment. Firstly, surrendering it before maturity will cause you to get back a value which is lower than your total premiums paid. Alternatively, you can do a ownership transfer if your policy is eligible as there is a company in the market taking over endownment policies. RepsHoldings, you may wish to google it for more info.

 

[lzr1984]

I just called AIA and checked the value if i surrender now. I will get back $1359, i already taken 2 cashback at $2250.

$1359 + $2250 +$2250 = $5859
Total Premium Paid = $6679

Loss = $6679 - $5859 = $820

later i go home, i go scan the illustration here~~
what u all think about it?

 

[IFAadvisor]

I just called AIA and checked the value if i surrender now. I will get back $1359, i already taken 2 cashback at $2250.

$1359 + $2250 +$2250 = $5859
Total Premium Paid = $6679

Loss = $6679 - $5859 = $820

later i go home, i go scan the illustration here~~
what u all think about it?

I felt that you should not surrender your endowment plan, most endowment plan do not lose money, instead you should see if there are riders added to your plan. You should trim those riders.

I am from an IFA firm, do contact me if you need more advise.

 

[NiteX2]

I just called AIA and checked the value if i surrender now. I will get back $1359, i already taken 2 cashback at $2250.

$1359 + $2250 +$2250 = $5859
Total Premium Paid = $6679

Loss = $6679 - $5859 = $820

later i go home, i go scan the illustration here~~
what u all think about it?

Still same opinion, show how much you will get back at the end of the plan and calculate your rate of return from there. Those old plans usually got higher yields.

 

[bigmice]

I just called AIA and checked the value if i surrender now. I will get back $1359, i already taken 2 cashback at $2250.

$1359 + $2250 +$2250 = $5859
Total Premium Paid = $6679

Loss = $6679 - $5859 = $820

later i go home, i go scan the illustration here~~
what u all think about it?

Keep till maturity.

 

[lzr1984]

Still same opinion, show how much you will get back at the end of the plan and calculate your rate of return from there. Those old plans usually got higher yields.

I don't know why I cannot find when it is ending...


No. of years premiums payable??
It wrote 82 years...




seen like no end of the plan... why this insurance policy like that one??

 

[lzr1984]

Keep till maturity.

Problem is I dunno when maturity... no maturity date..

 

[Aerial86]

I don't know why I cannot find when it is ending...


No. of years premiums payable??
It wrote 82 years...




seen like no end of the plan... why this insurance policy like that one??

Older plans pays for life, in your case it seems like you bought it since age 17..

 

[lzr1984]

Found the Maturity Date...

Policy Date: May 11, 2002
Maturity Date: May 11, 2084

haiz....

 

[Aerial86]

Found the Maturity Date...

Policy Date: May 11, 2002
Maturity Date: May 11, 2084

haiz....

Don't have to get too upset over this. I've did a restructuring for one of my client and it turns out that he saves more $ switching over to a new limited whole life plan compared to him holding on to his old whole life policy. His overall coverage got better too.. It might be possible for your case too =)

 

[NiteX2]

Found the Maturity Date...

Policy Date: May 11, 2002
Maturity Date: May 11, 2084

haiz....

Hmm, it's a pay wholelife endowment plan. Should call into AIA request for new BI to see if its worth it carrying on this plan.

 

[lzr1984]

Don't have to get too upset over this. I've did a restructuring for one of my client and it turns out that he saves more $ switching over to a new limited whole life plan compared to him holding on to his old whole life policy. His overall coverage got better too.. It might be possible for your case too =)

Recently brought Term so i don't think i take another Life insurance.

 

[lzr1984]

Hmm, it's a pay wholelife endowment plan. Should call into AIA request for new BI to see if its worth it carrying on this plan.

I don't think i will continue it as this type of plan normally need 20 years to breakeven.. coverage also low...
Latest non-guarantee also half of what it wrote on the illustration list...

 

[chopra]

It sounds like an extravagant perpetual preference share/bond; for newbies, it's alot safer, better to park money in CPF thru voluntary contribution or SRS. For more savvy investors, u can consider SGS bonds, corporate bonds etc.

TS should consider biting the bullet and absorb the loss.

Buy term (like what u had just done) and invest the rest

 

[lzr1984]

It sounds like an extravagant perpetual preference share/bond; for newbies, it's alot safer, better to park money in CPF thru voluntary contribution or SRS. For more savvy investors, u can consider SGS bonds, corporate bonds etc.

TS should consider biting the bullet and absorb the loss.

Buy term (like what u had just done) and invest the rest

Yup I doing BTITR, going to open SC to start trading and will follow shiny plan about monthly 100 share and yearly 1 lot...