I think many people don't know about this.
And I think this info would be useful for some people.
And some plans may have this ability, some plans might not allow this.
But you can always try and ask your financial adviser, or read your policy to check if this is available for the policy you bought. It might be helpful.
Ok...
So, there are some folks who might have bought some insurance policies which they are regretting.
Things like Whole Life, or Endowment plans or the worst kind... Investment Linked Policies.
All these plans are packaged plans.
They comprise of a Term Insurance component, and a savings/investment component.
The insurance company just packages these into one product and sells it to you.
Many folks like the idea of these packaged plans cos... the financial adviser sells it as "don't lose money", or you can get a substantial amount of money back. Stuff like that.
Many people, when they start out, don't like the idea of insurance being an expense. They want to get back the money.
After learning more about investments and financial planning, some people come to the realization that buying term insurance is probably a better idea and doing their own investments. Cos that's significantly cheaper.
There is a not so well known solution to this, and I'm not sure if ALL policies are eligible. But when I was selling insurance products, assuming my memory serves me well, I seem to recall that this is possible for a number of products.
*Disclaimer note, I've been out of the industry for many years. I may have remembered wrongly, etc...
Maybe this is available for policies only from one company, or only certain policies, whatever...
But IF you're interested... I'd recommend asking your financial adviser or reviewing the policy documents to see if you are eligible for this solution.
So... the solution is... from what I remember...
You can ask your financial adviser/insurance company, contact them and ask to remove or pause the savings/investment portion of your policy.
Then you'll be left with only paying the Term Insurance portion of the policy.
Yes, you'll potentially still have a Term Insurance policy to pay for, but it would likely be significantly cheaper.
I'm not sure if there are any penalties for this option.
But... as I said... it's worth a try. You can always check if this option is available for you and if it's worth it or not.
Never try, never know...
(If anyone knows more about this, could you kindly share in the comments section.)
Thanks
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