Wednesday, January 09, 2008

Whole life policies

Hi, Mr. Tan,

I have two whole life which I bought in 1994 and 1995. I am now a pensioner. Should I continue with the policies? I wish to convert them into a life annuity, but I was told that it is not possible. The return from buying insurance is not very encouraging as the returns have been revised downwards in the past years.

REPLY:

You can ask the insurance company to quote the cash value of each policy as follows:

a) if you terminate the policy now
b) if you terminate the policy in 5 years time
c) premium payable for the next 5 years
d) if you temrinate the policy in 10 years time
e) premium payable for the next 10 years

You can make a better decision when these figures are available. You can show me the figures and we can decide together on which option is best for you.

Read this FAQ:
http://www.tankinlian.com/faq/exist.html
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2 comments:

Anonymous said...

My advice is to cancel them and cash out the money . The longer you hold the more you lose because of increasing mortality charge. Meantime
you are paying premium which should be used to fund your retirement and not paying something which is useless
to you. You may consider selling to your children if the death benefit is substantial.

January 09, 2008 6:27 PM
Anonymous said...

It is difficult to get the answers to those questions you have mentioned. The insurance companies are not keen to provide the answers.

January 14, 2008 3:50 PM

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