Are my policies worth to keep?

Mr Tan,

I have 5 life policies. (Details of the policies taken by the policyholder and her children are provided). Are these policies worth to keep?

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REPLY:

I suggest that you ask the insurance company to give you the following information for each policy:

1. Total premiums paid to date
2. Cash value now
3. Current annual premium
4. Projected cash value in 10 years time
5. Current sum assured

In general, if you have already taken the policies and have incurred the high front end load, it is better to continue the policies.

The only reason to give up the policies is, if the return for the next 10 years is low, and you are able to buy term insurance (for the same cover) and invest the difference to get a better return.