Existing Life Policies

Dear Mr Tan,

I visit your blog almost every day. I'm a GREAT FANS of yours. You have helped to educated many people and I have learned alot from your blog!

Unfortunately, I have already bought two life insurance policies more than 10 years ago, an investment linked and a Financial guardian.

After reading your blog, I understand that it's better to take up term insurance. Please advise me what can I do to reduce my insurance cost so that I can put my money into investments. Should I keep them or terminate my existing policies?

I would like to take this opportunity to Thank You once again for your effort in helping us understand more about insurance and so many other things.

REPLY

To make this decision, you need to get the following facts from each insurance company:
1. What is the cash value now, if you terminate the policy
2. What is the premium that you have to pay for the next 5 years
3. What is the projected cash value at the end of 5 years? What portion of this projected value is not guaranteed?
4. What are the assumptions in calculating the projected value.

I will be able to help you to make a decision after you have obtained the above information.