(a) What are the chances that I will lose my principle for my Insurance savings plan that does not guarantee the principle? (b) Should I withdraw the guaranteed interest?

Any bonuses declared to your policy over the last 9 years are guaranteed. The interest earned is also earning a compunded of (up to) 3.25% when left inside the policy.

So if you do not require the cashflow, leave it inside the policy. It's already guaranteed.

Your main concern would only come on the year of maturity. Most flexible endowment plans have significantly high Terminal Bonus (the amount paid in the last year just before it matures), in fact most of your yield would come from said TB.

When insurers cut bonuses for the year, usually on TB is affected. So if you suay and NTUC decides to cut bonuses on the final year of your policy, then you may not receive the bonuses of the last year as stated in the BI. But again, every bonus posted since, is guaranteed once declared.

Do you have the benefit illustration? That would make it easy to compute. Though as i am a professional, i do charge fees for doing up the complete report for thinking of surrendering or not.

For general enquiries, what i can share with you is this.

1) Any guaranteed amount in the benefit illustration is guaranteed.

2) Any non-guaranteed component is guaranteed, once the yearly bonus is declared by income.

The surrender value currently consist of both sections. Do contact me further if you really want an answer for an unbias opnion on loss-minimising or best yield for surrendering (and it may not be at maturity too). https://www.facebook.com/Singapore-Insurance-Va...