Asked by Anonymous
Asked on 03 Sep 2018
I signed up for an endowment plan with my agent friend earlier this year. I kinda regret it now. How do I go about cancelling it? I'm also a little worried that I'll be hurting my friend's commissions and this will affect our friendship. Kinda stupid, but well. Any advice?
When you cancel the plan, it is inevitable that your friend's commission will be affected. Cancelling the plan behind his/ her back may be worse and strain the relationship further. I suggest to go to your friend and share your thoughts and concerns that prompted you to want to cancel the plan, he / she may get upset or affected initially but should be understanding enough to help you process the cancellation. If he/ she gets angry over the commission, I'm not sure if he / she is genuinely a true friend.
To cancel the plan: Just cancel away the GIRO arrangement.
Don't do it to support your friend. If your friend just wants to earn your commission and you're out there to "support" him, you're better off without this friend. That's because this friend doesn't think for the best of your interests, but he simply wants to make a quick buck.
Please read my article on why SSB could be better than endowment plans, to equip yourself with some knowledge on alternative financial instruments out there.
Just go to customer service and cancel, or mail the cancellation form. In terms of commission, it will definitely be affected, but I’m afraid not much can be done. Another way of looking is, if you support your friend, who support you? If you have 100 friends who are all insurance agents, you buy from everyone? Hopefully, this incident will help you become better and accept or reject as needed. Also, you have to consider what is the impact of cancellation, be it on your coverage, or forced savings.
Top Contributor (Jun)
Dont worry about hurting your friend's commission or friendship. If they really cared they will understand.
You can ask your friend to process the cancellation or do it yourself at the insurance company customer service.
Can you share more info like why you got the endowment plan in the first place? And why did you regret getting it? I’m assuming too that the plan is way past the freelook period. If you felt the plan wasn’t suitable you can talk to your friend agent (assuming he/she isn’t pushy) and check out what are options available.
Cancelling a plan just because you think you don’t need it is actually a dumb thing to do. More often, we don’t see the needs for insurance product because we don’t know how it works, or we haven’t spoken with people who benefited from it. When you talk to people who have benefited from it, your views will confirm change.
A lot of situations can happen but fundamentally, endowment plan helps you lock money away for future use, and it’s generally provide better returns than placing money in banks. It’s also less risky than put money in shares or other investments.
So stick to the plan and see it through. You’ll be thankful to yourself later on.
This is based on personal experience.
In terms of cancellation, you may just go online to fill up a surrender form or to approach the Customer Service of the particular insurer. But I would suggest that you talk to your friend again to share about the reasons for cancellation.
Are there any particular reasons as to why you are intending to surrender the endowment plan? This is because you would lose all the premiums you had previously paid.
And yes, you would be hurting your friend's commissions as well as his persistency rate (which may affect his bonus). Having said so, these are not important. What matters most is that you have a financial plan that is suitable for you, and that you understand the implications of your money when you choose to surrender the policy now.
As for my company, if you indicate that you had been sold with a plan which is not suitable for you, you may switch over the premiums to another plan within 6 months.
You may always drop me a PM at [email protected] should you have any further questions since you did not provide sufficient information for us to provide you with proper advice.
just cancel the plan to prevent throwing money after bad money
most endowment plans are rubbish, ssb is a good benchmark to compare the returns
ur friend's commissions comes from your money after all
First of all, I hope you have thought through and come to a conclusion after weighing the pros and cons before you cancel the plan. I believe your agent friend has done his due diligence before proposing this plan that might be suited to your need.
I think you should speak to your agent friend and explain to him your reasons why you want to cancel. A good friend will take into account your considerations and go ahead to assist with the procedure.
As an agent myself, I would have hoped my friend tell me that they are cancelling and explain the reason behind it as compared to cancelling without my knowledge
I’m going to echo some of the thoughts which have already been shared here!
You probably signed it because the agent is your friend?
Just cancel it and be firm with your decision.
You are too nice a person haha, he should be happy that you are thinking of his commission but you will have to think of your own finances! And what is your plan.
it might affect his performance because you cancelled the plan And naturally your relationship with him/her but u must know that this is a service that he has provided Which now you as a user of that service feels like you want to cancel.
A deeper question for him would be Why would this situation even happen in the first place? Did he do a proper assessment in the first place?
If you really want to support him u need to know that by continuing on the plan it’s actually doing a bad thing cos now he will never fully understand why he may be losing clients also - probably due to inproper financial planning.
just my two cents!
Please seek advice from a financial advisor to determine if cancelling your endowment plan is the way forward. Should you then choose to cancel it, do not do so yet as there are other ways you can do to your endowment plan to get more money back than the surrender value when cancelled: