I have a pulsar policy - Premium payment term of 30 years. Can anybody explain to me how premium holiday works? Greatly appreciated.? - Seedly
 

Insurance

Investment Linked Policies (ILP)

Asked by Anonymous

Asked on 03 May 2019

I have a pulsar policy - Premium payment term of 30 years. Can anybody explain to me how premium holiday works? Greatly appreciated.?

0

Answers (3)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Zen Rogue Xuan
Zen Rogue Xuan
Level 6. Master
Answered on 27 Jun 2019

Premium holiday: you may temporarily suspend your regular premium payments by applying for a premium holiday after the Minimum Contribution Period, as long as the value of the Accumulation Units Account of the policy is sufficient to cover the relevant policy charges due. With no premium contribution during premium holiday, the account value of your Pulsar II policy will be significantly reduced due to fees and charges, which are still deductible during premium holiday, and your entitlement to loyalty bonuses may also be affected.

So basically after paying your premiums for a certain period of time, you can exercise the option to stop paying premiums. However, fees and charges will continue to apply, so what AXA will do is to sell the units you bought to service the premiums. In this manner, the value of your AXA Pulsar plan will fall signifcantly, and you may not get the loyalty bonuses too.

0 comments

1

It is not wise to do premium holiday for most ILPs, at least until 10 years have passed. For details, require the product summary and fees to really look into it.

0 comments

0
HO
Hazel Ong
Level 2. Rookie
Updated on 07 Jun 2019

I’m not sure about pulsar per se but premium holiday usually means you stop paying premiums but your coverage is still there by using the cash values of the plan to sustain provided it’s sufficient to last till you need it to.

1 comment

0
Peh Zhun Sen

06 May 2019

Hi I have a pulsar policy as well, I think you can only exercise the premium holiday option after the first 18mths of paying your regular premiums. In any way, it works by allowing you to stop paying premiums up to a max of 10 yrs if I remember correctly. But because of that, your account value will continue to face the policy account maintainenance fee and policy fee charges, resulting in a decrease in value for your accumulated sum in pulsar untill u decide to resume regular premium payments.