AIA Pro Lifetime Protector: To surrender or make partial withdrawal?

Hi! I am female, 34 years old and have been paying for my premium of $7200/month for AIA Pro Lifetime Protector for close to 4 years. I have max coverage of 300K for Total death, disability, critial illness as well as $250K for 1 rider - double critical cover & $125K for 1 rider- double critical-special condition.

This is my only life insurance which explains the maximum coverage that I've signed up in the first place. Despite investing so much, total premiums invested is only $18K. Recently, it has dawned upon me that I am not saving as much as I ought to, partly due to paying too much money into this ILPs, when my salary is only $4K+

I have a few deciding factors that I need to consider if I chose to surrender and purchase a NEW term life insurance. That is

A it will not be able to cover my existing health conditions.

B I will lose total of $5K of what was invested.

So I thought of Plan B which is to do partial withdrawal so I can place it in robo advisors or SSB etc. However, my AIA financial advisor is against this idea as he said I should wait till the market is stablized as it has gotten worse due to the ukarian war.

My concern is that it is also uncertain if my investment will drop further as there is no guarantee returns in the first 10 years.

Any advice on this? Thanks!

AIA Pro Lifetime Protector (II) ILP

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Glen Goh

22 Sep 2022

Hi there. I recently decided to let this policy lapse after one year of paying

while I don't have the 2 riders you have and my base coverage is half of yours, my considerations are as such:

not being able to pay the premiums for the long term
investment not doing well enough to sustain the policy
coverage not sufficient. my plan was always to add on term in the future and this plan would be the last resort

but seeing that I could buy term and invest the rest, it would be safer and cheaper to have a fully secured insurance (won't lapse due to investments) and investment (won't be affected by insurance premiums) plan

I would think B is not as crucial as money can always be earned back. But if A is a major drawback then perhaps you can look to lowering your premiums and sum assured (SA) to something that you're more comfortable with and topping up the rest with a term plan which may/may not exclude your preexisting conditions. lowering of premiums might only be allowed during different milestones of your life so do remember to plan ahead 👍🏼

hope you find the solution that fits you! Atb (:

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