If you are not able to continue with your life insurance policy, the insurer will pay its cash value to you. This cash value is calculated by the insurer to give them a profit when you surrender.
You may be able to find a buyer who is willing to pay a higher amount to buy the life insurance policy from you. The buyer will continue to pay the premium and collect the maturity or death benefit.
This breaks the monopoly of the insurer who issue the policy. This competition may force the insurer to pay a higher cash value to their policyholder.
There is a moral risk that the buyer of the policy may benefit substantially on the premature death of the policyholder. Apparently, this is allowed by law.
Someone has set up an operation in Singapore to buy over the life insurance policy from the policyholder. If you look for "sell endowment" in Google search, you may be able to find some links to this service.
I am likely to give my life policies to my children, or at least to get them to invest on the latter part of my life to get a higher payout when I go to meet my maker.
ReplyDelete- Thomas Phua