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I’m a life policyholder with AIA and am contemplating of surrendering despite the assurance from AIA & MAS.
With investors losing confidence & its current reputation, the dividends & bonus payout I reckon may no longer be attractive.
Technically I have no loss on surrender as my policy has reached its ‘equilibrium’. To start all over again with another insurer, basically I still have my liquidity from AIA payout & similar or better coverage by having to pay a higher premium based on simple sum calculation. (ie age maturity vs coverage).
I’m at insurable age with clean health record. The agent has also advised that I hang on to my coverage while it takes about 6weeks for their policy to be effective.
Alternatively, I am not sure if I should just opt for paid-up arrangement with AIA? Pls advise.
ReplyI have an investment in AIA Asset Growth using my SRS funds. The contract has just been approved and I am still within the 14 days free look period. Should I proceed with the contract or cancel it?
ReplyHi Cathy,
Sorry, I missed out your message earlier.
What was the initial reason why you purchased the policy? Is it still valid?
Note that the product comes with a 5% bid-offer spread.
http://www.aia.com.sg/AIA_Asset_Growth.html
ReplyAIA and MAS has ensured the public they have sufficient assets to pay all policy holders.
However, if there is a mass cancellation of policies that AIA can’t pay with its immediate cash,they will have to sell some assets (equities or bonds) to pay the redemptions.
Selling at current low prices might have an impact on the short term performance of their funds.
If you are thinking of surrendering, you should consider all factors:
1) Whether your dad still needs the policy
2) The cost of surrendering and getting a new policy.
3) Whether your dad is still insurable at standard terms if he is getting a new policy.
Weigh all factors carefully before you make any decision.
ReplyMy father has a life policy with AIA.
Dunno should surrender or not.
Don’t think AIA will collapse in Singapore.
but will the dividends and bonus payout suffer?
heard ppl commenting about how all those who cancel their policies at a loss, will help to contribute to those still holding. True?