Keep or surrender AIA ILP?

I recently discovered that my (not very savvy) mum has 2 AIA ILPs bought back in 2001/2002. The two IPLs are the IGP PLUS ORDINARY ACCOUNT consisting of AIA Global Balanced and AIA Global Technology, and the IGP PLUS SPECIAL ACCOUNT consisting of Aia Portfolio 50. Both are Single Premium, Whole Life Investment Linked Policy. She's in her 50s, has an Integrated Shield plan, I think she's on the Dependants’ Protection Scheme, and does not invest as far as I know. Since I'm not that well-versed as well, I'm wondering if it still makes sense to keep or surrender the policies given all the bad rep ILP gets. Should I be concerned with things like the Mortality Risk Charge?

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CH

20 Feb 2023

First of all, get the latest statements and see how much premiums paid, how much surrender value, how much are the fees to keep the policy.

"mortality charges" should be the fees used for insurance coverage.

see overall how much of the money are actually used to buy the funds.

generally i say ILP fees are exorbitant for insurance coverage. a person will be better off buying own pure investment and separate pure coverage.

hope this helps.

not financial adviser. not financial advise.

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Tan Siak Lim

20 Feb 2023

CFP. Director, Financial Advisory Group at Financial Alliance

AIA IGP is single premium ILP, without insurance protection (or minimum), so they are very similar to unit trust. You should do fund comparison of funds available on AIA compared to a more open platform. This ILP is not the usual ones that people speaks negatively about.

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