Should I surrender the NTUC foundation policy which my parent bought for me since the time I was born?

Hi anon,

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NTUC's foundation policy is an old policy with very special benefits. Generally the policy's purpose is to fund two major milestones in life, namely tertiary education and marriage. You can encash the accumulated bonuses to fund these events, but It seems that you are working already so there's only really marriage left during which you may encash the bonuses. Generally you must encash within 6 months of said marriage (with proof)

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Encashing will affect the terminal bonuses of the policy, thus, if you are able to fund your marriage without the need for encashing, then the policy's maturity value will be much better.

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I don't recommend surrending foundation. Considering how long you have held the policy, the accumulated bonuses are significant and they will continue to compound the longer you hold. This policy was never meant to provide coverage for death/TPD/CI. Instead, it is an endowment policy meant to safely grow your monies for key life events.

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For protection purposes, please consider relevant plans for CI or death/TPD. The $3K/yr plan for $160K coverage sounds like a limited payment whole life plan with a full ECI riders, but it seems very expensive to me. Have you looked across multiple insurers to know what they can offer? Plans differ not just in premiums, but also scope of coverage. An independent financial advisor will be able to provide you quotes for similar plans from multiple insurers, but more importantly, it will be critical for you to know the type and amount of coverage you need before jumping the gun and committing to a policy.

Hi, it's important to read the policy in more details and understand the benefits and risks of each policy before deciding. If the policy does not cover the areas you're concerned about, it will not make sense to take it up even if the premium is lower. Bear in mind insurance is a long term commitment and should you surrender the policy before the maturity date, you may get back less than the total amount of premiums paid.