HOW TO EXIT ENDOWMENT POLICIES 
MONEYMONK WEEKLY MESSAGE 7/2019

How to exit policies other than Term Insurance ( Endowment Policies) ?

Some are asking for guidelines on how to discontinue such policies. Here is what I recommend :

1. First ensure you have adequate term insurance before taking any action. Adequate means 10 times your annual income. If not first take that. Note that some companies deny term policy for three years after surrender of endowment policy.

2. Then do the review as under and decide:

l  Check with the insurer if the policy qualifies for surrender ? (normally  two/three years)

l  Check what is the surrender value ? it is usually much lower than premium amount paid. 

l  Check what amount you will get on maturity ? if you stop paying the further premiums but not take the surrender value.

l  Look for some rules on surrender on the back of the policy or sent separately with it.

l  Related to your financial situation and budget see what suits you best and decide.

Do not forget to keep insurance company informed of any change of address and also collect the amount due on maturity if you do not take the surrender value.

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