Surrender value of Living policy

Dear Mr Tan

I bought a couple of Living Policy in 1991. The insured sum is S$50k.

1) Do I surrender if the surrender value reaches S$50K?

Reply: If your surrender value reach $50k, your sum assured plus bonus will probably be worth $80k or more. If you continue, you can get the additional coverage as the total sum is payable in the event of contracting a critical illness.

It is better for you to keep the policy. However, if you are able to invest the surrender value to earn a higher return, and you do not need the coverage, you can terminate it.

2) If don't surrender, if contacted terminal disease, do we get surrender value plus Bonus?

Reply: You will receive the total of the sum assured plus bonus, in the event of a dread disease claim.

3) Bonus is useless if one still living and surrender the policy. Am I right?

Reply: If you surrender the Living policy, the cash value of the bonus is added to the cash value of the basic policy.