Well, we did it. Or she did it rather. My wife decided to surrender her only whole life insurance policy. We concluded that there was really no value in her owning such a policy when there's really no need to have such a sum to protect either myself or the kids.
As a housewife, why is there still a need for her to own this insurance policy? No point waiting for "till death do us part for" the returns from this policy.
The insurance agent was nifty and processed it in due course. The cheque for $29,000+ came in within a week, and is now safely deposited.
A Matter of Choices
Next question, what to do with it? Memories of the squandered $million$ case that went down the tube came to mind. Of course, this is several magnitude less of a problem. A happy problem in fact.
- Leave it in the bank savings account - build up the emergency fund, low interest rate, but risk free?
- Contribute to her CPF Medisave account to bring it to the the limit, earn 4% returns at the same time, but locked in?
- Buy more dividend yielding stocks on SGX, accept the risks of volatility?
- Buy Unit Trust to diversify globally, accept the leakage from annual charges?
- Buy ETFs to diversift globally, accept the risk of poor liquidity?
What would you do? For now, my wife says, she wants to see the sum appear on her savings account first. Feels *shiok* first mah.
Either way, that's also a few hundred dollars (avoidance from not having to pay the monthly insurance) freed up to do other things with. Invest that sum too?
Related:
Whole Life Insurance - A Good Deal or a Dead Deal?
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