Pls help should i surrender Manulife ILP 13 years flexi 10
Hi! i know how bad investment-linked policy (ILP) reputation is but i should start by saying that i got bought into getting one when i was less financial literate and know less about investing.
Under the ILP i’m paying $4.2K a month, partially funded by dividends from investments in higher risk products. ILP payout is currently around 4%. So far with welcome bonus, account value is approx $50k, but total contributed premiums is ~$35K.
With more exposure to investments now where im more well equipped to invest in funds directly to earn a higher returns, im concerned about continuing the ILP since the returns are not great and its contributing to illiquidity- being much of my assets are locked up for a whopping 13 years, save for opportunity costs if i invest them somewhere else on a similar DCA basis.
The surrender charge is 100% though which is PAINFUL. I have enough to get by and probably will be more ok with promotions in the following years but feeling like its a stupid mistake i made when i didnt know better & the long lock up period is eating me. even if i dont invest all $4.2K/month on DCA basis feels like i’ll have more peace of mind knowing my cash is not locked. is there value to continuing the ILP though? again, hesitant bc im not sure if im too far in to make surrendering worth it. it could potentially be used as a savings plan…? but a v long haul one idk.
I have my own insurance btw so technically do not need coverage from the ILP.