|Question on whether to terminate an ILP|
|Written by Wilfred Ling|
|Tuesday, 21 September 2010|
Question: Hi, I am 27years of age, i have an ILP with one of the Insurance company. My emergency cash savings is rock bottom. My Financial Advisor gotten me to sign up for ILP Insurance 4years ago, saying that this ILP can be used as my Critical Illness/Death/TPD Insurance instead of WholeLife/Term. Should i cancel my ILP and get a WholeLife/Term Plan now instead? Seeing that ILP actually does not benefit and DIY in unit trust when i am financially stable?
Answer: It is too late to terminate your ILP. The capital lost is too great. If you terminate and buy a WL, you are just paying another round of commissions and thus enriching the next adviser. Your ILP now is likely not paying anymore commissions or very little of it. So moving forward, it will not be very costing for you. However, do bear in mind that the insurance charges will escalate when you are older.
The next time, it is important to choose whom you trust and always safe guard your own interest by doing your own due diligent. No one will take care of you except yourself.
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