Do not spend more than 3% of your monthly earnings on life and medical insurance for yourself and your family.
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
If you have already invested more than 3%, you have probably bought some insurance products that provide some savings. You can keep these products, as you have already incurred the upfront charges.
For your future purchases, you should buy low cost protection products and invest the additional savings in a low cost investment fund.
"If you have already invested more than 3%, you have probably bought some insurance products that provide some savings. You can keep these products, as you have already incurred the upfront charges."
ReplyDeletedepends.
on most regular premium ILPs, if the policy is still under one or two years old, you haven't paid all the unnecessary charges. it is usually better to go ahead and terminate the ILP.
even on more than 5 years old regular premium ILP, it is usually more beneficial to terminate it because of the higher load fee of the investment portion. alternatively, you can try to zero out the investment portion if you have the option to do so.
on single premium ILPs, it is usually better to keep it because all the charges are already paid upfront. but if the need to top up arises, it is better to invest elsewhere because of the higher load fee on ILPs.
I agree with the analysis by Priyadi. It is correct and well written.
ReplyDelete