Hi, I signed up for to HSBC Income Goal Insurance Plan about 9 months ago
I realise now what a mistake it is in that the accumulation period is 10 years and then annuity period another 10 years after by which time I would be around 55 yrs old. Feel like I have been scammed as I initially believed it would just take 6 years to break even of my initial premiums .
The plan I am on is for 3 years annual premium payment, I am heading into the second premium in May. I am considering whether it is worth it to terminate it now so I "save" second & third year premiums from being locked into this income goal insurance plan.
i.e. Cut my loss so I will have more cash to do things now.
My premium is around 600k a year. I will lose about 180k to 220k if I terminate now, but the remaining premiums (1.2M) won't be locked in the next 10-20 years.
I would have (0.3 guaranteed cash from the termination + 1.2M = 1.5M) to invest or purchase property now over the next 10-20 years.
So in fact the 180-220k loss may not be that significant over 10 year period.
If i pay for the coming year's premium it would be point of no return as I would lose significantly more than 30% from the premiums until 6-10 year in accumulation period.
I appreciate if someone could give me advice or their thoughts on my situation.
Thanks!