Asked on 08 Aug 2020
Tan Yu Ji, Economics at Nanyang Technological University
Answered on 11 Aug 2020
As someone who has been in the insurance industry, I would say that Whole life insurance are not meant to be an investment product. The cash value inside a whole life plan (3% on average) is inferior compared to investing (at least 3%). Hence, I would definitely recommend you to buy a term and invest the rest.
However, do note that you are already at the age of 55 and buying a term plan now might not be worth it since the premiums are higher at older age. Additionally, if your Whole life plan has already been fully paid and building up cash value, you can keep it till you are at retirement age to use that amount of money. That is, if you have no one to leave a legacy behind for.
Loh Tat Tian, Founder at PolicyWoke (We Buy Insurance Policies)
Answered on 13 Aug 2020
You have to do your opportunity cost analysis.
You can write to us with your policy and we may wish to takeover your whole life plan.
Whole life are inferior investment products
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