A policyholder asked if it is possible to make an early withdrawal under the single premium endowment (Growth policy) and get back the invested sum, with interest.
The Growth policy allows early withdrawal (ie surrender) but it will be based on the cash value.
During the early years, the cash value may be less than the invested sum, as the commision, charges and other expeses are deducted.
After 3 to 5 years, the cash value may be more than the invested sum, giving a modest return.
It is best to keep the Growth policy to its maturity date, to earn a fairly attractive return.
Usually, the charges for a single premium policy is much lower than a regular premium policy. This allows the Growth policy to reach a break even point at an earlier date, ie 3 to 5 years.
The Growth policy also provide some life insurance cover. In the event of death during the term, the total sum assured and accumulated bonus is paid immediately (without any discount). This will be much higher than the invested sum.
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