What are the options available to me if I foresee that I do not have sufficient CPF to continue paying the instalments on my regular premium insurance policy?
If you foresee difficulties in paying your future premiums using CPF, you may wish to consider the following options after consulting your insurance advisor:
- Pay the instalment using cash. Any proceeds from your insurance policy will then be apportioned according to the amount of premiums paid using cash and CPF;
- Change the payment frequency from yearly to half-yearly or even to quarterly or monthly, subject to the insurance company’s agreement, so that a lower premium will be deducted per payment;
- Reduce the sum assured, thus reducing the amount of premium payable; or
- Convert the policy to a paid-up policy.
After you have decided on the option, you need to liaise with your insurance company on the payment of the premium.
