Surrendering my AIA ILP (AIA Wealth pro advantage with wealth pro enhancer rider)

Hi All,

I plan to surrender my ILP with AIA once it turns 3 years. As in my contract it states there will be 0% surrender charge if the policy is 3 years and above.

I have paid a premium total of $11,379 and my fund value is $2,405 which accumulates to $13,784.

I'm planning to go down straight to AIA one finalysopn green to surrender this policy for lesser hassle.

I know there is an admin fee of 5% of the ILP hence I just want to ask what is the amount that i will be getting back? And if there is any hidden fees that I should know when surrendering

Hey there, I understand the frustration of realizing your ILP hasn't performed as expected. It's a common pain point for many investors who were sold on the potential gains without fully grasping the risks and fees involved.

I recently had a client in a similar situation with an AIA ILP. After 3 years, his fund value was only a fraction of his total premiums paid. He was considering surrendering too. I walked him through the surrender process and helped him calculate the net surrender value, factoring in the 5% admin fee and other potential charges like any outstanding premium payments. In the end, he got back less than 20% of what he had paid in.

A lot of people think surrendering an underperforming ILP after the surrender charge period is a smart move to cut losses. But the reality is, you're likely to get back much less than you paid due to the high fees and poor fund performance. Even without surrender charges, hefty admin fees and fund management fees eat away at your returns.

In my opinion, the best thing to do before surrendering is to thoroughly assess your financial goals and risk tolerance. An ILP may still have a role as a small part of a diversified portfolio for some. For others, cutting losses and reinvesting in lower-cost, more transparent investment vehicles may be preferable. It really depends on your unique circumstances.

If you're unsure about what to do with your AIA ILP or want an objective second opinion on your overall financial plan, feel free to DM me on IG @ngooooied. I'm happy to review your case in more detail and explore some options. There may be alternatives to surrendering that could put you in a better long-term position. Cheers!