I am paying 20k annually for an endowment plans. I would like to cut as the premium is too high. Is it advisable to terminate one of the policies that I already paid first year of 3k with payment year of 15 years?

Seems like ILP are not good at all

Hi anon,

I'm sorry to hear about your situation. Unfortunately I do see such things happen, I have seen someone who ended up spending almost 50%-60% of her cashflow on a mix of ILPs and saving plans, as she was sold a plan by her old advisor every year for the past 5-6 years.

Generally I would not recommend putting aside too much of your cash flow (as a percent of your take home) into endowments. However, your situation being what it is now, you will have to make the painful decision to see if your situation will improve.

For policies that are very close to the end of their premium payment term, it is in your best interest to complete it. For those that have just started, you will have to make the final call, but be aware that you won't be getting anything back.

I do not know how many plans you have, but I would suggest that you sit down with an advisor for a complete and thorough review to assess which plans to keep, and which plans that you might need to take action on.