Insurance

Investment Linked Policies (ILP)

Asked by Anonymous

Updated 3w ago

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

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Answers (2)

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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.

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HO
Hazel Ong,
Level 1. Freshie
Updated 3w ago

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.

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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.