After 8 years, the investment is still negative

Hi Mr Tan,

I have 3 insurance policies - one investment-linked policy and 2 endowment policies.
I will keeping my endowment policies as they are my long-term savings.

As for the investment-linked policy, it is completed invested in Company P. I understand from this policy is that the mortality charges will go up as I grow older. My friend has told me that is is better to stop paying for this at age of 60.

Currently, I have kept this plan for eight years and owing to strong Singapore equity performance, the fund has performed above its benchmark. However, the value that I have accumulated in this account is still less than what I have paid in premiums.

Perhaps, the policy is still young and that part of the premiums go towards my insurance. Should I then terminate this policy and switch to a life insurance in which I only pay for 20 years and let the plan run? What do you think?

EH

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Dear EH

I am surprised that after saving for 8 years, the value of your investments is still below what you have paid in premiums. It seems that the charges (for agent's commission and mortality charges) are too high.

I am not sure if it make sense for you to make a switch now. I suggest that you visit our business center and talk to our consultant. Maybe, the consultant can give you our proposal for you to make a judgement.