Poor return on ILP policy

Hi Mr. Tan,
Great to chance upon your website!

I have an issue with my ILP investment. My annual premium is $1200, and I have been paying it for 2 years and eight months, current cash value at only $600.

I'm aware it's too late to cancel the account. Even though my monthly premium is not high, I still don't like the idea of paying for mortality charges.

Do you think it's more worthwhile to cancel now, suffer some loss and start investing in better products for a longer term gain? Does this make sense?

REPLY
As you have paid two years of premium, most of the upfront charges have already been incurred. I suggest that you keep the current investment account.

You can ask the insurance company for the mortality charges for the next five years and compare them with the benchmark rates shown on the attached.
http://www.tankinlian.com/faq/benchmark.html

If the mortality charges are too high, you can cancel the life insurance cover and buy a term insurance policy. You can still keep the investments.

If the mortality charges are reasonable, you can continue the policy for the next 5 to 10 years. You can cancel it when you reach age 60 or 65.