It depends on your life stage. At some point, protection based ILPs will cost quite a bit due to the mortality charges so it should be terminated at some point. AIA Family First is a protection-based ILP so the main crux here is getting protection while accumulating an investment-driven cash value to it.
It is better to usually get coverage either from term or Whole Life plans depending on your objectives. If you want limited premium payment with cash value, WL plans will work. If not, go for term. Its not wise to mix insurance and investment, in my opinion. The most you cans stretch it is get a 101 ILP that is investment-based plan that provides very minimal insurance coverage while 100% of your premiums are invested eg. AIA Pro Achiever.
Pruwealth is an endowment plan but you might want to check the benefits table if your guaranteed amount matches your premiums paid. If it's not, you may want to consult a licensed financial advisor as to whether this plan is worth keeping.
Its hard to tell you whether to keep or ditch the plans since you probably have an objective in purchasing it at some point. If the plans are out of your budget or it goes against your initial objectives, then you may want to reconsider keeping it. Do note that terminating these plans early usually means its hard to recoup your initial capital.
Do check with a licensed advisor to explore your options. Financial planning is an integral part of life. You can reach me here to find out more.
Hi Anon, AIA Family first is an ILP but Pruwealth is not. Pruwealth is a whole life participating endowment plan.
The AIA policy shouldn't be for investment but for protection, and the Prudential product is for long term conservative wealth accumulation with guaranteed compounded return with bonuses.
Do speak to a licensed trusted financial advisor before making any decisions on the policy. And if you are replacing them, which may not be advisable, make sure you get adequate and sufficient coverage instead and run the numbers for opportunity cost, etc.
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Hariz Arthur Maloy
06 Sep 2020
Protection, I would consider getting a term policy for death coverage but a whole life policy for Critical Illness coverage for all stages. Endowment would depend on your own risk profile and appetite. Investments have no guarantee and you can lose money, an endowment has guarantees that add up every year and you cannot practically lose money if you hold till maturity or in the case of PruWealth and similar products, after 20+ years. The projected IRR after 20+ years would be high 3 to low 4% p.a.