I have bought a vivolife policy 2 yrs ago. Recently, I am thinking of increasing my coverage as I am planning to start a family soon.
After reading your blog, I am thinking of the following: switch to term plan and invest my savings on equity personally. Do you think it's advisable?
REPLY
Please read this FAQ before you take your decision to terminate the Vivolife policy.
If you terminate the policy now, you will lose a large part of what you have paid during the past two years. If you look at the cost for the next five or ten years, you can get a better idea about the advantages of making a switch.
You should also find out the cost of the term insurance policy and critical illness coverage.
It is advisable to take up a term insurance policy, rather than a whole life policy, but a decision to terminate an existing whole life policy has to be considered separately on its merits.
2 comments:
To be fair to the insurance company, check whether the insurance agent has mis-sold you, misrepresented to you and whether he or she has breached section 27 of the FAA?
Did the agent do a need analysis, consider your circumstances, your needs and long term objectives?
Did the agent disclose the downsides other than the upsides of the products?
Did the agent tell you the truths about vivolife or only half truths?
If you asked me, I would advise termination if the premium you pay for this product is a big strain on your finance and yet you are NOT fully and adequately covered.
You may lose quite a sum of money but considering the long period to break even it is better to cut losses NOW and start a proper risk management plan using term products at low cost.
Don't let the insurance agent bullshit you that you need it for WHOLELIFE. You need a BIG COVERAGE NOW .Don't let them frighten you that you don't have discipline.If you don't have discipline can whole life vivolife help you? No, when you realised that you have the wrong product you will terminate and the sooner the better.
Always get an adviser you can trust and who is honest and competent and who can be your life coach and together work out a plan.
Don't be fooled by titles like financial consultant, senior or executive, they are only salesmen who push and peddle meaningless products to you for their own gain.
Secondly , if you have reasons to believe that the salesman has misrepresented to you or pressured you , mis-sold you ,you can lodge against him or her for compensation for the loss of the first 2 years of premium.
You should not lose because of the incompetence and inappropriate recommendation relative to your circumstances and needs.
Beware of predators.
If you are in your twenties and lock in for 5 years at a time the premium for a term of a $200K coverage won't cost you a limb unlike a whole life limited payment which can cost you a bomb. Of course the ntuc salesman won't sell you something that gives you peace of mind but his or her piece of the huge commission from vivolife.Whether you have enough coverage is not their concern so long the commission is good for them.
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