facebookShould I surrender or keep my PruWealth Endowment plan? I purchased 3 years ago with 10 yr premium term. After reviewing it carefully again it seems to have poor guaranteed returns. Thoughts? - Seedly
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MG

m g

Level 2

14 Nov 2020

Should I surrender or keep my PruWealth Endowment plan? I purchased 3 years ago with 10 yr premium term. After reviewing it carefully again it seems to have poor guaranteed returns. Thoughts?

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    Discussion (3)

    What are your thoughts?

    Hi mg!

    Nowadays, there is a third option you can consider instead of surrendering vs keeping your endowment plan, which is to sell it/trade it to platforms such as PolicyXchange for better encashment value.

    For endowment plans, we typically look at 2 options: Guaranteed Value + Non-guaranteed Projection Value. Depending on your overall asset allocation strategy as well as risk profile, you may want to keep this policy. Otherwise, do a quick calculation on your nett losses vs investment vehicles you will take to recoup this loss and see if you're comfortable with short term losses for long-term gains :)

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      Pang Zhe Liang

      Pang Zhe Liang

      04 Nov 2020

      Level 14ยทSenior Financial Services Consultant at AIA Singapore Private Limited

      I will suggest you to not make a rash decision. Instead, go back to your needs and understand why you got this plan in the first place. Thereafter, evaluate and determine whether and how this plan is capable of helping you reach your goals in the long run.

      Additionally, spend some time to speak to your agent, and to study the insurer's participating fund. This is because you may receive non-guaranteed bonuses from the participating fund. This will in turn give you higher maturity value.

      More Details:

      What is a Participating Fund Singapore

      Reversionary Bonus and Terminal Bonus Singapore

      All in all, we won't be able to give you any better advice without understanding you further. Therefore you should spend quality time on your own to understand your needs again and to speak to your agent to help you make an informed decision.

      I share quality content on estate planning and financial planning here.

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        Surrender if you know this sum of money can bring you better returns else where...

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