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Anonymous
Bought it in 2014 and am paying 1.9k annually, took the survival cash benefit (not sure if that's the right term) of 1k each in 2017 and 2018. Current surrender Vue is 1.8k. Thinking of cancelling because I have an existing ILP which I'm paying 2.4k for annually and I feel like I'm paying too much for insurance. I'm fully covered for hospitalisation, critical illness and death.
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Hariz Arthur Maloy
10 Apr 2019
Independent Financial Advisor at Promiseland Independent
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Your endowment policy shouldn't be considered as paying for insurance. Treat it as a low risk investment product.
Every portfolio has room to add bonds or guaranteed products to make sure there's cashflow and cushion against market corrections.
Your GE plan works similarly to a coupon paying bond. You're investing yearly and getting some cashflow from the policy while it's still growing in value.
If you want to get into the numbers, provide me with your projected maturity benefit, total cash payouts collected and I can calculate the opportunity cost if you cut the policy now and the required rate of return required to break even from the decision.