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A consumer asked if she should continue this policy
29 Jul 2020 (250 views)

Miss X bought this policy 9 years ago. She asked me if she should continue or give up the policy.

Here is my reply.
Here is my analysis of the policy.
By the end of 10 years, you would have paid a total premium of $13,013.
The cash value of the policy, based on the average of the two projections, is $12,546.
Your return for the 10 years is slightly negative. 
So, it was a poor "investment".
You only obtained a cover of $31,000 under the policy, which was rather small.

However, you should now focus on the future.
The premium under the policy stopped after ten years. You do not need to pay any additional premium after 10 years. 
The cash value at the end of 15 years, based on the average of the two projections is $15,925.
So you can keep the policy for another five years without paying any premium, and get a return of 4.88% per annum for the next five years. 
As this return is quite good, you should keep the policy for the next five years (if you do not have any need to take out the money).

Tan Kin Lian


A consumer asked if she should continue this policy
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Miss X bought this policy 9 years ago. She asked me if she should continue or give up the policy.

Here is my reply.
Here is my analysis of the policy.
By the end of 10 years, you would have paid a total premium of $13,013.
The cash value of the policy, based on the average of the two projections, is $12,546.
Your return for the 10 years is slightly negative. 
So, it was a poor "investment".
You only obtained a cover of $31,000 under the policy, which was rather small.

However, you should now focus on the future.
The premium under the policy stopped after ten years. You do not need to pay any additional premium after 10 years. 
The cash value at the end of 15 years, based on the average of the two projections is $15,925.
So you can keep the policy for another five years without paying any premium, and get a return of 4.88% per annum for the next five years. 
As this return is quite good, you should keep the policy for the next five years (if you do not have any need to take out the money).

Tan Kin Lian