Remember that I wrote about surrendering my AIA Prime Life Special policy last year in August?
This is a follow up post on that. Quick and easy, I promise!
Let’s go back in time for twenty years, and it would be the year 1997. Ignore the glaring red words and focus somewhere near 1997, and it isn’t difficult to note the peak there and then.
With 72% allocation in fixed income, it is needless to say that the projections made back then would be pretty tough to achieve. Especially with the prolonged low interest rate environment. Well, it is what it is.
On the 6th of June 2017, the policy reached its 20th year anniversary. Before surrendering my policy, there are a couple of things to do – just in case.
What I did was to log in to AIA eCare portal, an extremely nifty website that AIA has for its policy owners. I’m not sure if this particular feature works for all policies, but it sure did for AIA Prime Life Special.
After logging in, I can get the updated Policy Value and Post Sales Benefit Illustration (PSBI) generated on-the-fly. All it takes is a couple of seconds.
This is how the Policy Value looks like. What we’re interested in is the Net Surrender Value. This is the *keching* you would get if you surrender the policy.
This is how the Post Sales Benefit Illustration looks like. This document gives a projection of your future policy surrender value.
As you can see from my policy, the 20th year mark sees a massive jump in terms of net surrender value. If you have a similar policy like mine, you can tell how long you still need to “hang on” on the policy if you choose to do it.
Once you have crunched the numbers and made the decision to surrender your policy, the actual surrender process is pretty efficient and hassle-free.
First, to speed things up, you can head over to AIA’s website and download an updated copy of the AIA Surrender Traditional Policy form. Fill it up.
Just Google for it – I don’t want to put a web link now and have it point to an outdated form few years down the road. If that happens, you would end up filling up another copy at the AIA customer service counter.
Then, I went to AIA Customer Care Centre (1 Finlayson Green, Singapore 049246) when I was rather free, thinking it would be a long wait. By the way, don’t forget to bring your identification! I went over to the concierge counter and got a queue number. It was a Thursday around 12:45pm, and my waiting time was less than 15-minutes. There is a coffee machine inside! If you wait near to the entrance, you won’t see it. Drink to your heart’s content.
Once my number was called (barely drank my latte as it was still hot), I went over to the service counter and told the lady that I was there to surrender my AIA Prime Life Special policy, handling over my pre-filled surrender form.
She re-printed the Policy Value for me, just so that I know the exact amount I would be getting before I proceed to surrender it. Did some admin work like photocopies of identification etc, signing here and there, and that’s it.
She did explain why I shouldn’t surrender my policy, because that’s part of her job (die die, still must say mah). Otherwise, she didn’t really care if I surrender my policy or not LOL since she was just a paid employee. The processing was done in less than 10-minutes. Same day cheque collection!
Then, it’s back to waiting at the seating area. The same concierge counter where I got my queue number called out my name once the cheque is ready for collection. This took another 5-minutes or so.
Done! If you’re depositing it into POSB/DBS, you can head over to DBS Treasures at Raffles Place. I wanted to get rid of the cheque ASAP to eliminate any risk of losing it etc. There is a quick cheque deposit machine – no queuing needed 🙂 Just drop it in and one working day later, you should see the money in your account.
DBS Treasures Centre
22 Malacca Street
#02-00 Royal RB Capital Building
There you go. Wasn’t too daunting, right? Seems like my robo-advisors are going to have some funds to play with!