Stop paying pemiums

Dear Mr Tan,

I have 3 policies with NTUC Income and 4 policies with Prudential, taken over the past 10 years.

I am now 47 years old and no longer working, having been retrenched last year. I cannot continue to pay the premiums.

My husband wants me to surrender my policies and invest the sum elsewhere where it will hopefully generate income for us.

Is it wise to surrender the policies? Are there advantages to convert them to paid up status and what are the implications? Are there other options beside converting to paid up?

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My reply:

If you are not able to pay the premium, you have the following options:

* convert to a paid up policy
* terminate the policy and get a cash value
* take a loan to pay the premium

You should decide which option is best for you.

If you do not need the insurance protection and you need the money for other purpose, you can terminate the policies. But, this decision has to be taken carefully, as you cannot change your mind later.

Perhaps you should consider to surrender some of the policies and convert the other polices to "paid up". You should ask the insurance companies to give you the various options and get an adviser to help you make the best decision.