Got roped into Pruwealth ii by my RM 3 yrs ago before I left SG. Can I downgrade the sum assured? If I surrender, I get nothing back. Need help.

I'm single, no kids, and thought this was a good idea for when I get old, sick, and unemployed and still no family. Plan was to get a job again in SG but unfortunately, it has been quite tough due to clamp down on hiring foreigners. And because of this, I fear should anything happen, money would be out of reach. Surrendering is not ideal as more than 50% has been paid already so I wanted to downgrade instead of losing out. Would be grateful for any info or help on my situation. TIA.

Generally for a regular premium insurance endowment policy, it takes a lengthy period of time before your policy reaches the breakeven point. As a result, if you choose to surrender your policy early, then you will likely suffer from monetary loss. To that end, unless there is a financial emergency and you have exhausted all other means, otherwise, I won't encourage you to terminate your endowment policy.

Next, in the event that you cannot afford to pay the premium for a short period of time, e.g. due to unemployment, then you may opt to take up an insurance policy loan. However, as its name suggest, this is a loan and you are kind of borrowing money from your own endowment policy. As a result, you will need to pay interest for that loan. With this in mind, this is something that I won't encourage you to do as well.

Thirdly, as you have mentioned, you may also choose to reduce the sum assured for the policy. In effect, this will reduce the premium contribution that you need to make, thereby reducing your financial load. However, this has a long-term impact as it will likely reduce the bonuses and cash value that you will receive from your policy in time to come. Hence, this is a factor that you may wish to take into account as well.

Summing up, there are various options to explore and various factors to consider when you wish to make any adjustments to your existing endowment policy. In order to help you to make the right decision, I would encourage you to speak to your Relationship Manager or an independent advisor for an honest review.