facebookI have a Whole life with profits , 2nd series insurance (Prudential), which has been in force since 1990. I am wondering whether I should just surrender the policy to benefit from the cash? - Seedly

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Anonymous

15 Aug 2019

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Insurance

I have a Whole life with profits , 2nd series insurance (Prudential), which has been in force since 1990. I am wondering whether I should just surrender the policy to benefit from the cash?

I am not in dire need of the cash but am wondering why I need to continue paying an annual premium (more than $2000) for so many years. Will it make sense to get the cash and invest in other insurance-linked policies to enjoy the cash inflow?

Discussion (12)

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Hariz Arthur Maloy

15 Aug 2019

Independent Financial Advisor at Promiseland Independent

Your policy right now is almost entering it's 30 yr period. This means that it would have broken even by now and everytime you pay a premium, the policy could be earning a 6-7% return.

Because there's a compounding effect on the policy, I suggest you calculate the projected year on year returns from this year onwards. It may be the best low risk product to own at the moment.

View 3 replies

So you brought a whole life plan for investment?

have you calculated your irr?

seeing the agents' answers below are very entertaining lol

Loh Tat Tian

14 Aug 2019

Founder at PolicyWoke (We Buy Insurance Policies)

Most whole life policies returns plateau at age 70. So that is a good thought if you are not looking...

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