Should I continue to hold my whole life policy?

If you have your own policy, then you can certainly go ahead to redeem it. Otherwise, better to keep it.

Hold onto it if you dont need the money urgently

Without the specific details, you have to consider the different components of your whole life plan like your premium payments, coverage needs, investment options, and potential alternatives like term life insurance or other investment vehicles.
For example:

• Alternatives: if you surrender the policy, where will you re-deploy the money? Having a fund that provides 3% to 4% compounding with the flexibility to draw on it any time is usually limited to select saving accounts that come with many different entry requirements

• Over- or under-insurance: Evaluate this plan in the context of your entire coverage portfolio using this insurance calculator to ensure that you do not end up over or under insured.

Hi anon,

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While I don't know the full details of your policy, nor of your situation, here are some things to consider.

1. Is there any critical illness payout on the policy? Critical Illness payouts are meant for YOU in the event you need money while very ill, so if there is, I would suggest holding on to the policy. You mentioned that you've paid off everything to your mom (i.e. repaid her the premiums that she has forked out over the years), but you didn't mention if the policy is still premium paying (i.e. you still need to service it), having said that, if there's CI coverage, and its a lifetime premium term with $40K value, I'd wager that the premium should not exceed $1K/yr, which should not then be a financial strain.
2. Yes, the irr is quite good simply because you've held it for quite a while and the cash value has just compounded over time. 3% to 4% is quite solid and I'd hold on if I were you, more so if there's CI cover.
3. You are right in that if you surrender the policy, where will you re-deploy the money? There's hardly anything on the market that gives 3% to 4% compounding (and this value can only go up, never down) with the flexibility to draw on it any time.
4. Even if its a pure death/TPD plan, please hold on to it for now. I don't know what your age is, but till you have no dependents, death/TPD coverage will be helpful.
5. Lastly, evaluate this portfolio in the context of your entire coverage portfolio as well. Ensure you are not underinsured.

Good luck!