Should I surrender my AXA Pulsar plan?

I bought this plan only last year (Mar 2021) and paid almost 8.4k to date (1.2k quarterly). My policy term is 10 years and I am having second thoughts if I should continue to pay the premiums or surrender it as I have seen a lot of bad reviews about this plan.

I arranged a discussion with my FA this morning to impulsively tell him that I wanted to surrender my plan after witnessing that I’ve been incurring 4-6% of monthly fees from the account value I have. In which, I’m losing more than what I’m putting into the account regardless of the fund performance as of today.

So long story short, I’m prepared for the surrender fee charges and I know there will only be a certain amount I’ll get from IUA + AUA accumulated amount. However, my FA is unsure how much percentage charge rate should be multiplied to the remaining IUA I have currently and just said that I’ll only get less than 10% since that I’ve been paying only for 21mths. So he suggested that I withdraw the AUA amount and take the premium holiday after 3years of my plan and I don't have to pay anything for the next 60mths (but, monthly fees will still continually be charged).

I am really lost and looking forward someone can advise me what to do. Am I too late to realize that this is just a waste of money and not a good foundation to enter the world of investment? Please help! 😢

Discussion (4)

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Paul Ee

27 Oct 2022

I saw all AXA fund is doing badly. I am considering surrender my AXA Asia Balanced fund too

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17 Oct 2022

Don't go for premium holiday. you will still incur insurance charges. market go down, your portfolio down even more (selling at low).

in my opinion, don't throw good money after bad. if this is a normal pure index ETF or pure investment portfolio, i will advise to continue DCA. but this is insurance ILP, market good or bad, only the insurance agent and company will make money.

my own experience of ILP, i terminate at 40% loss (after 10 years of continuing premiums) and my mother's ILP at 30% loss (after about 12 years). and that is on the background of a super bull market. after terminating, i felt happier, not because the market went down more, but because i no longer have to monitor the markets trying to catch a right time to sell to "break even".

but, i don't know what is your objective is and why the policy was even recommended in the first place. if it is meant, maybe, for coverage, please remember to look for protection plans after terminate.

hope this helps.

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