Should I cancel my insurance plan? I am reaching 55 next year, i am considering whether to cancel my WL insurance which i have brought in year 1985 and put it into CPF to earn 4% interest. Is it a good idea? - Seedly
Seedly logo
Seedly logo
 

Anonymous

Asked on 08 Aug 2020

Should I cancel my insurance plan? I am reaching 55 next year, i am considering whether to cancel my WL insurance which i have brought in year 1985 and put it into CPF to earn 4% interest. Is it a good idea?

0 comments

4 answers

Answer Now

Answers (4)

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.

1

Frankie Rappaport

Frankie Rappaport

11 Aug 2020

Thank you kindly for your honest perspective. I imagine that a lot of clients are not informed on the inferior investment issues with whole life. Also the 3% are based on historic facts and as are pendion plans prone to yield cutting when necessary? thank You!🍀

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

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.

https://www.policywoke.com/sell-to-us

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Frankie Rappaport

Frankie Rappaport

Level 10. Unicorn

Answered on 08 Aug 2020

Whole life are inferior investment products

.

some views, here

.

[https://www.investopedia.com/...

Read 2 other answers with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Continue with Facebook
Sign in with Apple

Sign up or login with an email here