Some people asked for my advice on whether they should continue their existing life insurance policies, or should terminate them and buy a term insurance policy.
Here are the general rules of thumb:
1. If the policies have been in force for more than 2 years, you should continue the policies as most of the upfront charges have already been incurred.
2. If the policies are taken for less than 6 months, it is generally advisable to terminate the policies and take a loss. However, you should buy a term insurance policy first.
3. You should avoid buying a new whole life, endowment or investment-linked policy as the charges are too high. It is better to buy term insurance for your insurance protection and to invest in a low cost investment fund.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
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