Shld I adjust my GE ILP and add term?

Hello! I’m 27/F. Bought ILP 4 years ago ($12k Prem up to date). Regretted. Nonetheless, to avoid paying higher insurance when I get older, thinking of adding life / term insurance.

Shld I convert ILP to pure investment + Buy term or keep the insurance part of ILP + Buy term? Or downgrade my ILP prem? Understand from 4th year onwards 100% goes to investment (after minus insurance $ )

I invest in SG market (both stock picking + monthly sti etf). And I intend to buy US ETFs in the near future.

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Samuel Don Oh

10 Sep 2020

Hey there!

The ILP you bought is highly likely a protection based kind. I'll highly suggest you to convert your ILP to full investment. The reason is because there will be a relatively high mortality charge to it once you hit a certain age range. By the time you terminate it, the amount you pay for insurance will be marked up too due to age. But do check the T&Cs. The term plan you buy now compared to ten years later will have a marked difference in price. Either way, you will still need protection to cover your essential working years too.

If you decide to convert it to full investment, do check with your agent what are the funds invested, hows the fund performance and the cash value of your ILP.
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