Discontinuing a life insurance policy

Straits Times, 24 July 2012 


Surrendering insurance policies not the only option

WHILE insurance policies are aimed at helping consumers meet their long-term financial needs, individual circumstances may change and they may have to discontinue their policies.

Policyholders may believe that the only way forward is to surrender the policy and accept the cash value.

I surrendered one policy each with HSBC Insurance and Manulife this year because the customer service officers did not tell me about the other options, such as obtaining a loan via the policy, converting the policy to a paid-up policy, and selling to the resale market. It is important to stress the long-term benefits of policies, and that surrendering one should be the last resort.

Neo Chern Siang