Surrender AIA Gen 3 policy with value of $98.7k for home?

Hi anon,

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The Gen 3 policy provides regular cash flow after a certain point.

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I can't tell if your cash flow has started yet, however what I can say is that the anniversary date is the renewal date of your policy, so your policy has been paid up to 28 May 2024.

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There may be premiums still after this, so consider the premiums you have paid vs the cash value to see if it may be in your advantage to hold on to it. Older policies which have compounded for some years may be worth keeping. You'll need a revised policy illustration to do the analysis.

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If you can settle the down payment without the need for surrendering, do consider it. Cash flow from Gen3 can then be used to offset condo costs such as MCST and utility bills (just my take). Or, you could just leave the cash payouts to compound which may then function as a form of emergency funds for you down the road if you choose to upgrade your property.

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Coverage-wise I cannot comment if you do have sufficient coverage as I don't know your exact circumstances.

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Use the following guidelines to establish a baseline for yourself

• 10x annual income for death/TPD at a minimum (if the mortgage is more than that, you may need to increase)
• 4x to 5 x annual income for CI (with buffer to account for wage increases in the coming years). Some of this coverage should be on early CI.
• You're likely born in 1993 so you would be eligible for careshield life and thus do consider upgrading with a supplement plan.

This isn't to be taken as advice so if you need a complete analysis of your situation, please speak with a competent advisor.

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All the best!

How much have you paid in premium till now vs. how much is the value you are getting.