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Help on manulink flexi (ILP)
Question: how are the monthly charges calculated? does it make a difference if i switch to different funds?
background: ILP was purchased more than 10 years ago. monthly premium paying. no adhoc top ups or withdrawal. agent disappeared.
i checked the underlying fund prices from manulife website and noticed that fund prices has increased over the years. but amazingly, after more than 10 years, the surrender value is still less than the premiums paid. i suspect is probably due to the monthly charges, which are > 50% of monthly premiums, according to the monthly statement received.
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Elijah Lee
31 Jul 2021
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Hi CH,
The product summary would explain the scehedule of charges. This was bought more than 10 years ago but if you are able to pull out the product summary, everything should be laid out for you.
If your surrender value is still less than your premiums paid after 10+ years, then I suspect that this policy has protection built in, from which you need to account for the deduction of the cost of insurance from your units. Thus surrender value will be lesser than premiums paid.
Alternatively, this policy may still have surrender penalties for early surrender. It depends on how the product is structured.
If you are comfortable to post the pictures of the product summary here perhaps I will be able to explain further.