Should I surrender my AIA Wealth Pro Advantage Plan?

I signed up for this plan after I ORDed and found myself a job. At that point in time I had some savings and the bank returns weren't great so I thought why not put the money into this savings and investment plan and let it grow.

I ended up getting burnt out at work and decided to enroll into uni to pursue a different path but that didn't work out either. I wasted three years there as I dropped out and I am struggling to pay off my student loan and the policy premium.

While browsing online for ways to be financially independant, I stumbled across several people mentioning that IPS are bad and you should withdraw asap because the returns are very low and not worth the long commitment period (25 years). It has been almost 7 years since I signed up for the plan and I've invested 21k thus far but the surrender value is not even half the amount. Is it too late to withdraw because of the sunk cost? I am still managing to stay afloat but I am really worried about the years to come as my parents are at retirement age.

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Em Lee

11 Apr 2024

Hey, im caught in exactly your situation now. Just wondering if you have withdrawn from this insurance?

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CH

15 Feb 2023

At this point in time, do understand that it is highly unlikely you will breakeven, even if you terminate, withdraw the cash value and reinvest in other markets.

There are two parts to this plan. one part is like an endowment, the other is investment. Endowment part is alright, since you got 7 years ago, the long term yield should be about 3%. It is the investment part which will eat up your returns.

Don't think it is possible, but do try to speak to your adviser any alternative to keep only the endowment portion but terminate or suspend the investment portion. or use the cash value from investment to continue servicing the endowment portion.

But do ask whether are there fees or costs to do so. And do not allow your adviser to trick you into signing up for another investment plan.

If there are no alterntive solution, or the adviser give you half-F answers, i will seriously consider to terminate. Becasue the adviser not interested to advise me anymore, I do not think he will help me at times of need.