Why am I not getting a full refund from surrendering my AIA ILP? - Seedly
 

AIA Life Protection

Investment Linked Policies (ILP)

Insurance

Asked by Anonymous

Asked on 02 Aug 2019

Why am I not getting a full refund from surrendering my AIA ILP?

I have decided to cancel my ILP after 1 year. I called AIA customer service the day I received the payment notice of $3k (on 12 Jul) to cancel it because they automatically charged it to my credit card. They told me that I need to cancel it before 12 Aug to get the refund from AIA, so I can use the money to pay for my credit card. I met up with my agent to submit the withdrawal forms. However, instead of receiving the full $3k, I only got $800 from it? Why is this so even though I cancelled it?

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Answers (1)

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You have to let us know what do you mean by full refund?

If you are beyond the freelook period of 15 days, you will likely not be entitled to any refund of premiums.

If you are looking at surrendering, there are surrender charges, as insurance is a long time commitment.

Hope you let us know exactly what do you mean.

2 comments

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Question Poster

Updated on 04 Aug 2019

Basically, I was supposed to pay annual premiums for my second year on 12 Jul. Before that I already told my agent that I have no intentions to carry on with the plan. When I received the charge to my credit card, I immediately called AIA customer service and told them I want to cancel and not pay for the 2nd year premiums. The guy over the phone told me that I need to do it before 12 Aug. But now AIA has only refunded me partially because it is considered surrendering the plan instead of lapsing/cancelling it.
Loh Tat Tian
Loh Tat Tian

on 04 Aug 2019

There are two parts of the plan 1) The current surrender value of the 1st year. You should have received maybe only 25% of the premiums paid for the first year (because of the surrender charge etc). So this is a "partial refund". 2) For the 2nd year premiums, likely you need to dispute with them in totality. Do you have a whatsapp message, recorded call or email to say that you have no intention to pay the 2nd year? With that, its is more possible to get a refund for the 2nd year premium.