Recently, I met a biz associate’s wife for insurance discussion. It was my first time meeting her. I was shocked to learn that they were actually financially strapped and had to sell their house to free up cash. Currently, they are now staying in a rented house. On top of that, they downgraded their shield plans and are now unable to resume the original plans due to medical conditions.
Upon looking briefly at her existing insurance policies, I told her that she could have tapped on these policies’ cash values, either by taking policy loans (and incur interests) or surrendering partially/fully. They also have investment-linked policies bought many years ago with substantial cash value which they could have made withdrawals without incurring interests and affecting their sum assured. She lamented that she was not aware of all these, and the only solution they could think of was to sell their house.
Insurance policies have many uses which not many people are aware of. An insurance portfolio review is not just about buying more insurance policies or replacing your policies. In short, it need not be sales driven. A competent consultant will be able to help you tide through times of financial difficulty if you are facing one.
Disclaimer: All information are for informational purposes only and should not be relied upon as financial advice.