Why I surrender my wholelife insurance at 60yo

Painful & sad to surrender my ILP PrudLink today.


Imagine I am a believer in endowments & insurance, and yet to surrender one, due to rising mortality cost.

To-date, I have 20 endowment policies (one just matured) , and 14 insurance protection under my name; excludes this PrudLink.

Over time, if not surrendered, it will eat up my policy cash value & eventually forced lower my actual death coverage value.

At the rate of increasing morality charge after age 60, my annual premium already inadequate to cover my insurance cost; net loss is $54 per month x 12 = $648 p.a. loss. (This net loss over my annual premium was provided by the Prud Counter staff).

Any insurance policy (be it ILP or traditional) will encounter rising mortality cost when one gets very old above 60yo. 

The annual premiums which we pay will not be adequate to cover the insurance cost.

This will eat into my cash value till zero; then the coverage will be reduced over the years.

~~~ 

My TPD & Disability Cover expires this Nov 23.

The remaining CI n Death Assured coverage will continue to lose by at least $648 p.a. x 20 yrs = $13k; from $100k - $13k = $87k worth upon Death.

$100k Death -- > reduced to $87k  due to rising mortality cost.

~~~

I have since used this Surrender Value to buy another younger chap's wholelife plan.

Somehow he surrendered when his policy has breakeven.  When I buy his policy, over time, my Surrender Value will ×2 in 10 years' time over my premium, × 3 in 20 years' time.

And it is guaranteed!!! surrender value.

This way, I switch from one Sunset policy to another Sunrise policy.

Wait hoh. Not ILP Prudlink !! 


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