facebookAnyone of you here surrendered your ILP or endowment before? - Seedly



07 Jun 2019


Anyone of you here surrendered your ILP or endowment before?

What was the final straw? As I have 2 30 year plans (1 ILP, 1 endowment) for each at about $250 a month premium and after consideration I feel that one should be surrendered due to tight finances. However , after paying for 3 years there will be loss of about 5k or 10k for both plans if cancelled. So I'm considering to surrender 1 but a bit worried on the losses. Any advice?

Discussion (30)

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Most Ilps will have surrender values below premium paid in the first 10 years. If you want high returns you should keep at least 20 years. Keep for 30 years to get even higher returns. All is stated in black and white in the policy document/benefits table

My ILP is about $500 less then my Premium Paid so far. It's been 10 years so definitely not doing well. So been thinking to surrender it. Especially since market recently down, I can probably make a better profit reinvesting into shares.

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Kenneth Lou

07 Jun 2019

Co-founder at Seedly

Hey there friend :) You are not alone. In fact you can consider this reading this: https://blog.seedly.sg/investment-linked-policy...

We understand the many negativity surrounding an ILP online. Like all of your other insurance policies and investment decisions, below are 5 questions to ask before coming to a conclusion.

  • What was your intention when getting the policy? Is the policy still on its way to helping you meet that objective?
  • Can you invest at a lower cost?
  • Are you able to invest on your own and fetch a higher return?
  • Are you well-covered or have plans to get insurance coverage after cancelling your ILP?
  • Does it make sense to carry on with the ILP in terms of cost and its functionality?

” In short, if you are disciplined and know enough to do better financially and in terms of coverage, go ahead and cancel that policy! If not, stick to it.”

You have two options:

1) Cancel cut loss and move on

"Had a monthly ILP of $200 and the fund was invested in the SG equity market.The policy only gave her a 10% return over 10 years. This was despite the market doing well Straits Times Index (STI) being at a high in early 2017.Should I had terminated it during a market downturn, I might not have broken even. Should I decide to do my own investing I can probably get around 5% yield a year simply by investing in REITs."

2) Make some changes to your existing ILP policy and carry on

"I had an ILP for 8 years and the investment results have been negative returns. I would have surrendered it if not for the health insurance component. The decision is partly due to my age, and the premiums to get a brand new health insurance coverage becomes too high.To overcome this, I surrender 90% of the investment after 10 instalments and took the funds out for other uses. So in essence, I still got my insurance policy but paid a small penalty to withdraw the funds out."

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Jonathan Chia Guangrong

07 Jun 2019

Cybersecurity Trainee at Bank in blue

I did assign away my 25 year endowment after close to 14 years of paying to REPs holdings. They paid me 5% above current surrender value of the policy. So if you are looking to surrender, you may want to consider this option.

Personally, not sure if I managed to break even, but not that big a concern as the premium was rather small on a monthly basis. Redeployed the funds into my main portfolio instead which is giving me 10X returns of an endowment.

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Cedric Jamie Soh

04 Jun 2019

Director at Seniorcare.com.sg

I did that after 7 years. I was relatively young then, so I thought the next 10 years or 20 years, I...

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