Hi, I bought life insurance back in 2018. Every year, the investment report I received showed my principle amount going down and down. Now I am starting to think, It's another money pit and want to forfeit the plan. Can anyone explain the steps I should take (Or precautions) before closing the plan? What could be the penalties etc...
No penalty.
Just apply and you will get the amount being paid. Very minor to no deduction
read your terms and conditions clearly.
there is always a penalty.
was it life insurance only? or takaful? mutual funds with takaful? where is your money invested? whats the cash value of your investments?
life insurance reaches breakeven after 6-7 years. before this time you will end up losing 30-40% of your paid amount incase you choose to redeem it today. best is to keep it intact and keep paying for the whole tenure. like in state life insurance, you have to pay for 20 years and then get around 3.5-4 times of total paid on maturity.
Its Takaful life insurance offered by PakQatar Insurance. Investment= 4 lakh, Current Cash Value = 2.8 Lakh
you will get only cash value.
