Should I discontinue a savings policy bought 6 months ago from an agent? It is stated that I will not be getting back a single cent if I discontinue this policy (a long term of 15 yrs with a cashback feature at end of 2nd year but pay only 10 yrs)? - Seedly

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Asked by Anonymous

Asked on 19 Jun 2018

Should I discontinue a savings policy bought 6 months ago from an agent? It is stated that I will not be getting back a single cent if I discontinue this policy (a long term of 15 yrs with a cashback feature at end of 2nd year but pay only 10 yrs)?

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Hariz Arthur Maloy
Hariz Arthur Maloy
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Top Contributor (Aug)

Level 8. Wizard
Answered on 19 Jun 2018

Hi Anon, maybe you might want to clarify why you are thinking of surrendering this policy in the first place? Because no product is bad or good, it's about if it fits in your personal goals.

But at hand, it is correct that you will get $0 back. But if it's not saving in this medium, what is your alternative? Does it also provide flexibility in withdrawals plus a guarantee after 15 years?

You'll need to do quite a bit of opportunity cost calculation to see if an alternative is worthwhile.

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Isabella Jo
Isabella Jo

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Level 4. Prodigy
Answered on 22 Jul 2018

I think we need to understand your sudden change of mind. Is it due to you have other commitment which suddenly pops out, making this savings plan a challenge to fulfill? Is it because you feel the interest rate is low? If you are able to meet the savings commitment, my suggestion is to keep, so as not to incur loss as you have committed for 6 months.

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Alan Kor
Alan Kor
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Top Contributor (Jan)

Level 5. Genius
Answered on 21 Jun 2018

Need more information about this savings plan

compare with SSB or high yield saving acct, which one gives better returns?

if lock in 15yrs, pls ensure the guaranteed returns is better than cpf rate.

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