I started to read your blog recently and realised that I might be ripped off. Please see attached policy I brought 3 years ago. Am I right to say the effects of deduction is 51%? What your advice? Terminate after I can break even say after 4-5 years?
The effect of deduction at the end of 30 years is 35% compuated as follows:
- Total cash value (including non guaranteed): $53935 65%
- Effect of deduction $29132 35%
- Accumulated premium $83067 100%
To decide whether to continue or cancel the policy is a difficult question. Read my FAQ on "existing insurance policy" in my blog. Or read my book, Practical Guide on Financial Planning, available at www.easysearch.sg/ishop