Hansel,
m i correct to say that u meaning 'the critical year' = when u dun need to pay premium anymore???
if it is, we best really have a look at his policy...in terms of how much he is paying for it. remember guys...that the cost of insurance increases with age.
if he was paying 100 a month when he was 20+ n still paying d same amount..cash value is VERY low. aka extended years.
u have a choice to either get a new policy or top up on the existing policy. n since it's more then 5 years old...best just get a new one cos the current policies has more coverage then those previously.
NOTE to all, no more 36 critical illness...it's getting almost to 40 now...previously a cardiac procedure that inserts a valve into the artery n balloon it open is now INCLUDED.
hahaha...to the last bit...if he wants to manage his own investment go for it
u do get more back with it. if u r looking for a lower entry level and higher return compared to FD...endowment...like wat was mentioned a few posting ago.
QUOTE(Hansel @ Oct 27 2010, 05:14 AM)
Coolpajames, thank you.
My friend bought a policy when he was young. It is not too much, it's only of a 40K coverage. He bought it when he was 20+, and he is, I think 41 today, not too sure about this.
He been paying his premium diligently for the last 17 years without a single miss. The Critical Year was 4 years ago, in 2006. and it was extended by the insurance company up to 2012.
Who knows if the insurance company will not extend it again come 2012 ? What else can he do, besides cancelling ?
I think the main reason he is contemplating to cancel the policy and take back the money is because he is pretty mad that his Critical Year has been extended without his knowledge. He has other policies too, and those were not extended.
Yes, there is a loss if he cancels, but it's better to lose now than to lose more later. He has been paying for 17 Years and his Surrender Value is still ONLY about 66% of the total amount paid in the last 17 Years. This is NOT worth it, right ?
Secondly, he feels having a coverage of 40K is not much today. With his current wealth level today, he always has 40K in his Emergency Funds, and he figures he can invest the Surrender Value himself better today rather than leave it with the insurance company.
Appreciate everybody's comments here.
Added on October 27, 2010, 11:16 pmhahaha good one vilim...not many ppl will know how to take advantage of certain plans when it is offered. good on u
QUOTE(vilim @ Oct 26 2010, 09:41 PM)
You know something guys... I don't know about you all.. but I really like traditional policies. I think investment-link policies are great.. but still cannot beat the traditional policies like a whole-life policy.
I bought one in 2006 from Great Eastern called the Supreme Living Care Plus.. At that time, I really thought I had bought a house with purchasing my first insurance policy. In fact, it is better than a house because buying a house comes with housing loan which is a liability. I couldn't be happier with my purchase.. but now.. 4 yrs down the road.. I just regret how come I didn't buy a BIGGER house (insurance policy)! LOL!!
Added on October 26, 2010, 9:51 pmi just did a research on PRU health.. please check out their premiums on their medical cards.. it's so0o0o0o ex*******. this is the link:
http://www2.prudential.com.my/corporate/li...ts_download.phpknock yourself out. compare prices cause we work very hard, don't we? just download the brochure for PRU health and the premiums are at the back of the brochures.. nobody ever reads them, i'm sure.
btw, plans that can earn money in insurance are always endowment plans. great plans.. IF you can afford them.
Oct 26 2010, 09:41 PM
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Bravo.. 
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