Life policy taken by a parent

Hi Mr. Tan,
My mother bought a $30,000 life policy for me when I was young. The cash surrender value is about $2500. I have calculated that premiums paid throughout the years is about $7000.

I am really surprised at the low surrender value because when I referred to the projection value that came with the policy, the guaranteed value by now should have been around $5000. Why is that so? And do you think I should cancel?

REPLY
Ask the insurance company to quote you the following:
a) Cash value now
b) Cash value in 5 years time
c) Premium payable for next 5 years
d) Coverage for next 5 years

You can make a better decision, when these figures are available. Read this FAQ
http://www.tankinlian.com/faq/exist.html

Ask the company to explain the difference between the cash value now, and the projection that was made when the policy was taken. You can send the documents to me, after they gave you a reply.