How to get out of the "time bomb" in your ILP plan

Question:

I bought an investment-linked product from another insurance company (not NTUC Income). It has increasing charges for my life insurance cover. How do I get out of this "time bomb" ?

Reply:

Ask your insurer to give you the coverage and premium that you have to pay for the current and the next few years.

You can compare them with the cost of similar coverage under the Family Insurance Policy offered by NTUC Income.

If our cost is lower (which is likely to be the case), you can ask your current insurer to terminate the insurance coverage. Ask them to state if they have imposed any penalty for this termination. You can continue with the investment with your current ILP plan.

I think that some insurers charge high premium rates for the coverage under their ILP plan.