facebookDo you include your whole life insurance surrender value as part of your retirement funds? - Seedly

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Anonymous

12 Nov 2020

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General Investing

Do you include your whole life insurance surrender value as part of your retirement funds?

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Pang Zhe Liang

12 Nov 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

It depends on the nature of the whole life insurance policy. This is because some policies may allow you to obtain a partial withdrawal without affecting the insurance coverage. In this situation, it may be possible to consider the policy cash value as part of your retirement fund.

On the contrary, you mentioned the policy surrender value. Accordingly, I will assume that you are referring to the cash value when you surrender the policy fully. In this case, I may not include this cash value as part of your retirement fund. This is because the main purpose of a whole life insurance policy is to cover you for life. Therefore, it is unlikely that we will surrender the policy for its cash value.

For more information, you may read about a whole life insurance policy here: What is a Participating Whole Life Insurance Singapore

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