Money Tips # 71 ~ 75

71. Always avoid cashing in an investment (endowment/universal) policy before its maturity date. Cashing in is costly. Not only could you receive less money than you have paid into the investment, but if there is life assurance cover attached to the policy, you may not be able to replace the cover in the future, particularly if you are less healthy.

72. When taking out life assurance cover against dying or being disabled, always establish whether the premiums are guaranteed – and for how long. It is preferable to get a longer term guarantee on your premiums.

73. If you have no option but to surrender a life assurance investment policy, always see if you cannot get more than the surrender value offered by the life assurance company by trading the policy on the secondhand market.

74. Rather than surrendering a policy, consider other options, such as making it paid-up so you can stop paying premiums. You may also be able to take a loan against the policy, but check the interest rate; sometimes it is higher than it would be if you used the policy as security to get a bank loan.

75. If you are concerned about volatile markets, one of the best investment products you can get is a life assurance smoothed bonus policy that guarantees your capital and smooths out the market returns.

Di pos oleh Arbain Muhayat pada 08 June 2008