Should I continue my GE ILP that I'm already 5 years in, cancel it or upgrade it?

The worst decision to make is to base it on words from the internet or from people who don't understand your current situation. Therefore, the first thing to do is always to understand your situation completely, including your cashflow. At the same time, it is valued to have a clear picture of your entire insurance portfolio situation. Here is why: https://www.blog.pzl.sg/why-every-client-needs-...

Once we know you well enough, we can evaluate if it makes sense for your current life stage to keep your GE ILP. Then we set a goal together for your future and see if your GE ILP fits into your future. The crucial point is always to plan with your long-term future in mind - that is our key priority.

If you are planning to get only a Critical Illness coverage plan, then we have to calculate and ensure your affordability for the long-term as well. For instance, GE ILP may allow you to put the policy on premium holiday such that you continue to stay insured while the premium stops (subject to relevant T&C). Such feature may or may not be useful to you - we will only know the answer through proper planning.

Next question on getting only critical illness - what if in the future you decide to get basic life cover? Will you be willing to pay the higher premium then? As a result, have a holistic plan that works well for you.

Finally, on whether to get term or whole life. I have done a summary of comparison between the two. Here are some information to help you:

When to buy Term Insurance Policy: https://www.blog.pzl.sg/when-to-buy-term-insura...

Term vs Whole Life Insurance: https://www.blog.pzl.sg/term-vs-whole-life-insu...

When to buy Whole Life Insurance: https://www.blog.pzl.sg/when-to-buy-whole-life-...

To help you, speak with your consultant or a trusted professional and evaluate your situation together. I believe that will help you clear up the air and build a goal that is right for your future.

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Hi anon,

We'll have to understand a little more about your situation before you finally make the call. I don't advise mixing insurance with investments.

Why did you get the ILP in the first place? Every insurance policy is a committment and you'll want to make sure that the plan is suitable for you in the long run. I suppose you have concerns about the escalating mortality charges in your golden years, and yes, this is something that can cause the plan to terminate due to insufficient value. There's no guarantee whether you'll have coverage with an ILP in your later years, contrast this with term or whole life whereby cover is guaranteed for the appropriate duration.

Firstly, if you are planning to get only a CI plan, then definitely there are options besides ILP. One common alternative is a whole life limited pay plan which will allow you to pay premiums only during working years, and provide you with CI cover for life. There are also other options such as multipay plans and a term plan with a CI rider; in order to understand which plan suits you, you need to understand how these plans work. You'll want to sit with an independent financial advisor in order to understand all options available to you before deciding between term or whole life.

Next, are you insurable? Today is always the healthiest day of your life, every day we grow a little old and less healthy. If one wants to get a plan to cover CI, regardless of what kind of plan, it is always better to get it when you are healthy with no issues.

Then, what amount of coverage do you need? You'll want to work it out, there are some rules of thumb with respect to the amount of cover, people look at 5 x annual income, some look at 5 x annual expenses plus an amount to cover out of pocket, etc.

As always; your individual situation must be taken into account, and I'd advise you to speak to an independent financial advisor before proceeding with any next steps. If you have further questions, you can reply to this post.