My new "Cash Critical Illness" coverage

 1. Today I signed to takeover the 2 resale insurance; mainly TI11 & TI12.


2. At INCOME Branch, I tallied and confirmed the Policies Cash Values are as sold to me.

3. Interestingly, both policies are not endowments, but someone's wholelife policies,
They started at their ages 13 & 21 on 2005 & 2006 respectively.

4. It was the first time buying someone's wholelife policies.  

The irony:
I surrendered both my PrudLink and Manulife Estate Protector policies as my own CI will expire by my age 63 in a few years' time. 

Yet now, I buy someone's much younger wholelife policies which have breakeven.  I buy their wholelife which have Cash Values to form my Cash CI which covers me from now and beyond.

5.  Both policies have guaranteed surrendered value upon maturity payout in 8~9years (Xirr: 5%)

6. In 2032/33, age 67/68,
Total premiums paid $55.2k,
Total combined guaranteed maturity payout = $81.7k. (XIRR =5%.)

7. While it was guaranteed upto my age 67/68, they are lifetime wholelife policies.

8. Both actually continue beyond my age 68, up to the Assured age 63; by then I am age 84.
His age upon policy matured: 63yo
I am age 84 yo in 2048!

~~~~

9. These two policies serve many purposes to me.

* They are my Critical Illness $$ which I can surrender anytime I need, without any early or late stage sickness.

* They are my Emergency Cash, which I can surrender anytime I wish.

* During my youth, my purchased wholelife insurance Critical Illness would have expired at age ~60.

* Cheapest CI premium through Mindef-Aviva Living Care policy, which is also expensive ~$1k p.a. for $100k assured.  And max coverage only upto age 70 at escalating annual premium.

* These 2 Resale Wholelife insurance become my "CI policies".

Can you follow my thought ?

~~~~
[Not able to attach my chart]

1. Put aside $25k sum to pay for my annual premium of $1,483 x 17 (for age 60 to 77).

2. After that, I can choose to surrender at age 77, to cashout $130k lump sum, if I wish. No question asked. 

Caveat: I trust INCOME will keep their Surrender Value (SV).

~~~~~

The bigger picture:
if I can buy another 3 more resale wholelife policies, I would have build up an emergency fund of $130k x 3 = $390k at age 77; (putting aside $25k x 3 = $75k lump sum as annual premiums for age 60 to age 77).

Confused you already?

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