Advertisement
I have yet to withdraw the cash benefit for the past 3 years. If I do withdraw, what are the differences in payouts during my maturity? And I know that the 25 years term doesn't have any maturity bonus. What are the differences here?
6
Discussion (6)
Learn how to style your text
Elijah Lee
30 May 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Reply
Save
Hey there!
Do check with your advisor or the Policy Illustration document of your plan.
Usually, savings plan comes with non-guaranteed interests that are compounded on the existing pool of money in your plan. Taking out your money early on will mean there is lesser money for interest to be compounded. Not sure if you're okay with that since compounding works best over a extensive period of time. Also, you will have to check whether there is a maturity bonus (or terminal bonus, just terminologies) with your plan.
Financial planning is an integral part of life. You can reach me here to find out more.βββ
Reply
Save
Loh Tat Tian
29 May 2020
Founder at PolicyWoke (We Buy Insurance Policies)
Er, wow. I mean there are quite a number to address over here.
1) If you withdraw your cash benefit...
Read 2 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Products
4.8
782 Reviews
Maximum Interest: 2.50% p.a. for balances up to S$50,000
INTEREST RATES
$0
MIN. INITIAL DEPOSIT
$0
MIN. AVG DAILY BALANCE
4.4
321 Reviews
4.7
212 Reviews
Related Posts
Advertisement
Hi Candy,
Your policy illustration should have two scenarios, one whereby you reinvest the cash benefit at a non-guaranteed interest rate till maturity (which is relevant to your situation now), and one where yo withdraw.
If you intend to start withdrawing, you will definitely impact the maturity payout. Should you choose to do so, you can request for a new illustration to reflect the impact of your withdrawals.
Every year, reversionary bonuses will be credited to your policy and become guaranteed. Upon maturity, there will be a terminal bonus as well (subject to the insurer's discretion, par fund returns, etc). Thus it is too premature to say that there is no maturity bonus. It's probably non-guaranteed from what I know, but you can't rule it out until your policy matures.