My boyfriend has 2 investment linked policies which he has been paying for about 2 years. One of it is AXA Pulsar. He has paid about 10k for each, should we continue to pay or surrender?

Hello there, Let me add some clarification on the plan plusar. This plan has insurance charges if your boyfriend has chosen "enhanced death benefit". That is something which you should check first especially if you wish the plan to be solely focusing on investment.

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Secondly, you did not highlight how long is the premium term. Just for your info, the longer the premium term, the higher the surrender charge starting from 1st year.

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Thirdly, is the premium Sustainable for your boyfriend in the long term?

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4thly what is the objective of having this plan & the other plan?? Gotten identify this.

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So before any surrendering of a plan, you have to identify what is your main concern(s) & whether is there any step(s) to address to it?

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last & not least, here is the link to summary(brochure) of pulsar; https://myaxa-singapore.cdn.axa-contento-118412...

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however please take note that you have to refer to policy wording for the exact details & the start up bonus may be different too.

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If you need any personal discussion, do feel free to approach me or you may continue on this thread. Hope these pointers are able to help you & bf to sort out the thought

AXA Pulsar is an ILP with no Sum Assured. He doesn't pay for any insurance component.

It's a purely invested plan that allows him to invest in a couple of Accredited Investor Funds that have been performing pretty well.

He also has the flexibility to withdraw from the policy up to the minimum required to keep inside. Plus choose to take a premium holiday of up to 60 months (depending on the premium term).

He should look to generate at least double digit returns from the invested funds to justify the costs of the policy.

You'll need to check with him if his advisor has been monitoring thr portfolio, rebalancing, or doing any fund switching when the market outlook doesn't look that good.

This ILP is just a wrapper for investing in the mutual funds AXA has on boarded.

never mix insurance with investment, period.

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you can thank me later!

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cheers!

Hey,

You probably alraeady have the answer you are looking.

The answer is it's really a tough choice.

If you surrender now, for Pulsar(or Optimus), you may not get anything back and you might in fact even need to pay them extra out of your pocket.

For Optimus, early surrender fee= Startup bonus + Remaining Acc Main. Fee =

6% x Annual Premium x Term + 5.2% x Annual Premium x Remaining Terms

If you are surrendering on 4th year for $21600 premium, the surrender fee will be=

6% x 21600 x 30 + 5.2% x 21600 x 27 = $69206.4

By 4th year, you should probably have about $97041 in your account.

The maintenance/charges fees paid are estimated about $2000 every year.

After deducting the surrender fese you will only get back $27835. (You paid 64800 premium). Add up to $36965 losses.

Basically, if you want to make any profit early on, just contnuing praying that you can somehow make 30% or more profit from your stocks/funds.

Alternatively, take that 65k go to RWS or MBS, find a good roulette table, bet 5k 13 times on black. You might have a better chance of making profit this way.

Cheers.