Investment Linked Policies (ILP)
Asked 4w ago
I currently own a Prulink Enhanced Protector (ILP life Plan) since 2016.
Only started reading up more on ILP after articles online. Do I cancel on the ILP to reduce losses or what I should do?
Hi Jun Jie,
This ILP does provide you with coverage, so I would recommend that you look for alternatives first if it is your intention to drop it. Anything can happen any time, and you are still being protected by your policy at the moment. Thus, don't surrender yet while you are covered.
Depending on what you want to cover (CI? Early CI? Death/TPD?), you will need to evaluate alternate options available to you. You might need a term plan, or a limited pay whole life, etc, depending on your needs. Once your alternative is in place, then you may decide what to do with the ILP.
Why did you sign up in the first place?
List down the pros and cons and your ability to continue to service it as well as the potential opportunity cost if you stick with it. Or give it up.
If you give it up, do you think how to utilize the cash intelligently?
Above all, you should not cancel your existing policy simply because you have read online articles that claimed that this policy is bad for you. This is because everyone's needs are different. Instead, I will suggest for you to speak with your agent to undertand more about this policy or to seek independent advicvce. Thereafter, we will evaluate whether the policy is capable to help you cover your needs and achieve your goals.
If not, then explore alternatives and ensure that the new options are the right fit before you make the switch. This is because early termination usually leads to losses. Therefore, I will suggest for you to 1) understand your current policies; 2) evaluate your policies; 3) explore whether alternatives are feasible.
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