Asked by Anonymous

Asked a loved one of mine to cancel their pulsar plan and I dont know if it it the right decision to make?

There is surrender value of about 1.5k after surrendering. After reading many threads, I do feel insurance should not be mixed with investment. Am I giving the right advice to cancel?

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  • Luke Ho
    Luke Ho, Money Maverick at Money Maverick
    175 Answers, 294 Upvotes
    Answered on 02 Jan 2019

    It's very reckless to cancel something based on reading off a bunch of threads. Accurately, Pulsar typically doesn't have an insurance element.

    There still has to be a lot more specifics like how long the plan has been going on - and you have to remember that high fees are offset by the starting bonus. Something that has that much of a headstart and compounding exponentially can easily offset high fees. Easily.

    And you can only determine exponential compounding by going over the asset allocation. Which you should do. Justify the cancellation on a wide range of information, not limited ones.

    Aside from that, if you're going to tell someone to cancel a plan and lose their money, TAKE responsibility for it. They have to be actively doing something to make that the money and show them projections for reassurance, at the very least.

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  • Loh Tat Tian
    Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding
    238 Answers, 341 Upvotes
    Answered on 01 Jan 2019

    I think it really depends on the Pulsar Policy etc. We are looking and moving forward instead of lamenting on what's done.

    We will need to evaluate the fees involved. If its just starting (which should be from the surrender value), need to evaluate whether does it make sense to continue or surrender. No straight answer, it depends.

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  • Yixiong Chang
    Yixiong Chang
    205 Answers, 269 Upvotes
    Answered on 31 Dec 2018

    Pulsar doesnt have much of an insurance unless u choose the enhanced death benefit.

    But to me the cost structure is too high. ( Account Maintenance Fee , Investment Management Fee, Administrative Fee, Policy Maintenance Fee ) There are way lower cost platforms in the market.

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  • Alan Kor
    Alan Kor
    64 Answers, 104 Upvotes
    Answered on 02 Jan 2019

    yes you are right, never mix insurance with investment.

    the only pple who advocates mixing insurance with investment are the pple who are selling the plans and profitting heavily from the huge commissions.

    pulsar is a rubbish plan, better surrender before more losses are incurred.

    likewise, when agents tell you that they "managed to get double digit returns on my client's pulsar policies over the last 2 years even after after the recent sell off", take it with a pinch of salt lol

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    • Loh Tat Tian
      Your comments hold water now. It's a case by case basis. Not sure if you know that 20 years ago, there are really not a lot of information and ILPs and unit trust / mutual funds are considered the more readily available avenue.
      02 Jan 2019
  • Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Feb)

    378 Answers, 632 Upvotes
    Answered on 31 Dec 2018

    If your reason is because investment shouldn't mix with insurance, then it's bad advice.

    Pulsar almost no insurance.

    It's an investment plan that allows you to invest in UTs usually not available to retail clients.

    Instead, you should have looked at the portfolio allocation. I've managed to get double digit returns on my client's pulsar policies over the last 2 years even after after the recent sell off.

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