Stop paying premiums earlier

Dear Mr Tan

I bought a living policy (to cover critical illness) from NTUC Income. It requires me to pay premium until age 85. I am not prepared to pay premium for so many years. What should I do with this policy?

------------------

REPLY:

You can decide on when you wish to stop paying the premium, say at age 60, 65 or 70. At that time, you have the following options:

* cancel the policy and receive the cash value

* convert the policy to a "paid-up policy"; you do not have to pay any more premium, and will be covered for a reduced sum assured

You can ask the adviser to get NTUC Income to quote the cash and paid up value at age 60, 65 and 70. You can decide on when is the best time to stop paying the premium