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My husband and I are thinking to buy Aviva My life savings plan with each of our kids as their education plans. We have two kids. If they need the money, we can take out. If they don’t, we can keep it? Understand that the sum is guaranteed at 15 years.
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Loh Tat Tian
07 Apr 2020
Founder at PolicyWoke (We Buy Insurance Policies)
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Tan Li Xing
06 Apr 2020
Financial Consultant at Prudential Assurance Company (Singapore)
Hi Bellez,
For such policies, it's ideal to only start withdrawing after 20 years. Also what happens is that such policies actually do not have a sum assured, it's a face value, meaning it's whatever cash value is available after factoring the sum of your premiums and bonuses less withdrawals.
Once there is no more cash value available, the policy will lapse. However, as long as there is still a face value on the policy, it will still be compounded till maturity.
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Hariz Arthur Maloy
05 Apr 2020
Independent Financial Advisor at Promiseland Independent
Hi Bellez.
Yes Aviva MyLifeSavings Plan is what we call a perpetual or whole life endowment. This ...
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If you are looking at such plans, I am wondering if you are able to hitting your Full Retirement Sum at Age 55 (and you can hit your retirement, and use the excess to pay for your children's education) but higher risk due to political risk (goal post shifting), or if not
Whether a Pepertual Fixed Deposit / or Peptual Short term endowments (of tenure 3 to 5 years) may suit you, because you want to use the money.
Such Plans (which include PruWealth, and what Hariz and Li Xing shared), you will want the terminal bonus (which gives the most interest and showed as the projected value). TYpcially they are meant to be held for 20 years and above.
I wouldn't want to be in the position to buyover your insurance policies because you could not wait until the terminal bonus.