Saturday, March 29, 2008

Poor value from USD policies

Dear Mr. Tan,
I have been a regular reader of your blog since recent months. and found it is very informative and helpful. Thank you so much for your invaluable sharing.

I understand more about how insurance works, but start to struggle about the policies bought for my families now. We bought the whole life plan for my husband and myself since 2004. The coverage is US $50,000. The premiums total USD 2000 for both policies. The breakeven is 12 years in USD, but we are also losing on the depreciation of USD.

What will be your advice on these policies? Stop? Reduce the coverages? I know the current value of them should be very poor.

REPLY
I am sorry that I do not have the time to give specific advice of this kind.
I suggest that you read the FAQ in my blog and see if you can get any answers from there.
www.tankinlian.com/faq
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2 comments:

Anonymous said...

Your agent should have disclosed to you about currency risk and also should have advised you about the purpose and use of a US denominated plan. Either you terminate it and accept the losses or hold it in the hope that USD will regain its value.

March 30, 2008 12:30 AM
Anonymous said...

Some one suggested why should Sing$ be so strong when we do not have natural resources and muscle like US.

It is a matter of time US$ should recover again S$.

Australia dollar used to be weaker but suddenly, it shot above S$

Can consider to hold US$ for long term.

April 05, 2008 10:14 AM

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