when to surrender insurance policy

[VanquishShadow]

I have an NTUC Income Living Plan, 76 year premium term, started in Feb 2018. So Feb 2018 will commence policy year 21.

Have been advised that the best time to get out (i.e. surrender) is in policy year 20, and based on what is in the benefit illustration, the "jump" in surrender value is indeed the largest from year 19-20 compare to say 18-19 and 20-21.

I pay the premium annually, so am I right to say the ideal time to terminate is in late Jan 2018, just before the premium for year 21 is due?

 

[sgdividends]

Hi I pmed u. Pls check

 

[oceanicmanta]

would also like to know leh

 

[soneat]

Understand which series is your plan and go income website to download the terminal bonus table to determine the optimum year to terminate the policy.

 

[lovesleeping1981]

Hi I pmed u. Pls check

I don't understand why must PM? This is a goddn forum to share info. First thing come to my mind is you're an Insurance Agent to sell him more policies. If really sharing info I don't why you don't type here.

 

[sgdividends]

I don't understand why must PM? This is a goddn forum to share info. First thing come to my mind is you're an Insurance Agent to sell him more policies. If really sharing info I don't why you don't type here.

Not an agent

Check my previous threads and post.click my nick.

Not everything need to share. Fact of life.

 

[DevilCurseYou]

You have to read the wordings carefully. Does the tenure bonus applies at the end of year 20 or the beginning of year 20? I also suspect the the participation bonus is only declared at the end of the year, so you have to hold till the end of the year to collect the participation bonus.

Unsolicited Content (Commercial solicitation / Ads / Referrals / Spam)

I would guess sgdividends is from endowment resale. While Singapore resale endowment market is small, there are still a few competitors and you may want to shop around.

They buy over your policy, offering a value higher than the surrender value. They do offer a better financial proposition, but when they buy over your policy, they have a vested interest in you dying. The insurance payout get accelerated and they get paid death benefit; these benefits are easily worth 50k in the case of whole life policy. Of course, it will be illegal for them to send hitman after you and I do not think there have been such assassination so far, yet.

 

[Mecisteus]

I think he is not agent but just interested to buy some ongoing policies.

If he can bid more than what the surrender value can offer, then why not just sell to a ready buyer.

 

[BBCWatcher]

They do offer a better financial proposition, but when they buy over your policy, they have a vested interest in you dying.

Do they at least offer free cigarettes?

 

[sgdividends]

You have the read the wordings carefully. Does the tenure bonus applies at the end of year 20 or the beginning of year 20? I also suspect the the participation bonus is only declared at the end of the year, so you have to hold till the end of the year to collect the participation bonus.


I would guess sgdividends is from endowment resale. While Singapore resale endowment market is small, there are still a few competitors and you may want to shop around.

They buy over your policy, offering a value higher than the surrender value. They do offer a better financial proposition, but when they buy over your policy, they have a vested interest in you dying. The insurance payout get accelerated and they get paid death benefit; these benefits are easily worth 50k in the case of whole life policy. Of course, it will be illegal for them to send hitman after you and I do not think there have been such assassination so far, yet.

Actually, the resellers or investors of such things generally don't have a vested interest in whether a person die or not . They look at the maturity value and the seller is nameless.

Yes, its true that when the life assured dies, by right the payout goes to the buyer BUT, the buyer would need the family or their estate to submit the death cert to activate the payout. Which in this case, the family or estate can negotiate and ask for a cut of it so it's very troublesome.

For me, it's about the maturity value, not betting on a life.

On the other hand, yes, there are a few places u can sell to..repholdings, purvis capital and conservation capital. Do check them out.

I'm not a reseller, its for my personal investment to cut out the middleman which are above stated .I believe in a win win so pls do your due diligence .

 

[limster]

if this is the famous NTUC Living Policy, there are people who will buy the policy from you at greater than the surrender value because its CAGR >3%. I know because I am one of the lucky ones who bought the policy.

There are people with even better timing than me and got the policy with 4% CAGR:

http://investmentmoats.com/budgetin...ving-plans-endowment-give-you-3-to-5-returns/

 

[sgdividends]

if this is the famous NTUC Living Policy, there are people who will buy the policy from you at greater than the surrender value because its CAGR >3%. I know because I am one of the lucky ones who bought the policy.

There are people with even better timing than me and got the policy with 4% CAGR:

http://investmentmoats.com/budgetin...ving-plans-endowment-give-you-3-to-5-returns/

I got it too actually . They didn't meet the bonus though . But their projections are quite zhun

 

[Jupiter2017]

I have an NTUC Income Living Plan, 76 year premium term, started in Feb 2018. So Feb 2018 will commence policy year 21.

Have been advised that the best time to get out (i.e. surrender) is in policy year 20, and based on what is in the benefit illustration, the "jump" in surrender value is indeed the largest from year 19-20 compare to say 18-19 and 20-21.

I pay the premium annually, so am I right to say the ideal time to terminate is in late Jan 2018, just before the premium for year 21 is due?

Old is Gold.
Patience is a virtue.
The pot of gold is at the end of the rainbow.
If you do not need the cash for life/death situations, just hang on another 5 years and think again.
Ask yourself why you buy this policy in the first place.

 

[Mecisteus]

if this is the famous NTUC Living Policy, there are people who will buy the policy from you at greater than the surrender value because its CAGR >3%. I know because I am one of the lucky ones who bought the policy.

Actually to be fair, those much older policies ought to give higher returns because interest rates were much higher 20 years ago.

Asia Life (before TM) used to offer education endowment plans with high guaranteed returns more than 10 years ago. These plans were not sustainable and obsoleted because interest rates have gone down.

 

[oceanicmanta]

Actually to be fair, those much older policies ought to give higher returns because interest rates were much higher 20 years ago.

but older policies took a big hit in 2009/2009 GFC.

all my savings plans kena 25% - 30% drop in projected maturity values then and have not recovered to previous levels