facebookI recently bought a Whole life Insurance Policy 2 years ago called PruLife Multiplier Flex. I'm having thoughts now of switching to Term Life Insurance instead. Is it silly of me to surrender it at 0? - Seedly

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          Anonymous

          18 Jun 2020

          Insurance

          I recently bought a Whole life Insurance Policy 2 years ago called PruLife Multiplier Flex. I'm having thoughts now of switching to Term Life Insurance instead. Is it silly of me to surrender it at 0?

          Regarding whole life insurance policy, not sure if should surrender now at $0 value and buy term life insurance policy, and invest the rest.

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              Discussion (5)

              What are your thoughts?

              Elijah Lee

              Elijah Lee

              18 Jun 2020

              Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

              Hi anon,

              If you have a PruLife policy, it'll come with CI cover, and probably early CI cover as well. To give you an equivalent cover with a term policy, you'll need to have it run for many years, and pay for many years as well.

              Ultimate you need to look at the numbers between your options and see which one makes more sense. Right now, a whole life with critical illness/early critical illness rider has a good chance of being cheaper in total cost compared to a similar coverage term policy, with the added benefit that you retain CI cover for the rest of your life. Yes, premiums might be higher by a couple of hundreds on a yearly basis, but you probably pay only 20-25 years as opposed to every single year on a term. In this case, Whole Life has a strong case going for it.

              Your savings will be, at most, a few hundreds a year on a term policy with CI/ECI build in. With such numbers, you would likely be better off improving your human capital and increasing your salary. Furthermore, note that cost savings are really only for the first 20-25 years. When you finish paying for the whole life, you can start to invest that money, whereas your term plan will continue to be payable as long as the policy duration.

              In the end, most people will very likely end up spending those savings on a whole plethora of things other than investments. Unless you are very disciplined, those savings from buying term might end up on bubble tea or something.

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                  Hey there!

                  You might want to reconsider your objectives for getting a whole life plan at the start. There are always pros and cons to every plan you get and you have to make sure you have to evaluate what fits your present needs to make a decision.

                  The cash value shouldnt be your main objective in getting a whole life insurance since it's main objective is to provide life time coverage. Do consult your agent or someone trusted and reach out if you require some clarification.

                  Financial planning is an integral part of life. You can reach me here to find out more.​​​

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                      Tan Li Xing

                      Tan Li Xing

                      18 Jun 2020

                      Level 9·Financial Consultant at Prudential Assurance Company (Singapore)

                      Hi Anon,

                      I think it would be better to keep the policy, as you mentioned that if you were to surren...

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