Frequently Asked Questions
Surrender procedure payment
Q:What do I need to take note of before surrendering my policy?A:
Do consider the risks carefully before surrendering a policy. Upon surrendering, you would lose all valuable benefits under the policy. In addition, you may not be able to obtain a similar level of protection or returns on the same terms in the future.
If you would like to continue your plan but are seeking assistance with premium payments, we may offer other ways to service your policy. For advice on options such as loans and converting to a paid-up policy, you may speak to your adviser or send us your query via our online form.
Q:How will I receive my surrender payment?A:
We will send a cheque unless otherwise stated on your surrender form. For policies bought with CPFOA or SRS funds, we will pay directly to your investment account with your agent bank. For CPFSA/CPFRSS policies, we will pay directly to the CPF Board.
Q:If the policyholder has taken up a policy insuring his child, and subsequently passes away, can the legal representatives of the Estate of the policyholder terminate the policy?A:
If the policyholder has passed on, the policy continues as long as the life assured survives and premiums are paid to maintain the policy. If the policy has a vesting date, the policy’s ownership will be transferred to the life assured when the policy reaches the vesting date. There is an implied trust created on this policy for the benefit of the life assured. Therefore, the legal representatives are unable to terminate the policy. The life assured can decide if he wants to surrender the policy after the policy is vested to him and he is at least 21 years of age.
If the policy has no vesting date, the legal representatives may act for the deceased policyholder to terminate the policy. We also need the Grant of Probate or Letters of Administration and a clear copy of NRIC (front/back) of each legal representative.
The persons completing and signing the forms must be the legal representatives. Any proceeds will be paid to the Estate of the policyholder.
Q:What happens if the policy is assigned under absolute assignment?A:
If the policy is assigned under absolute assignment, only the assignee can give the instruction to surrender and proceeds will be paid to the assignee.
An absolute assignment is the transfer of a life policy to another person. The person who transfers the policy is called the assignor. The person who takes over the ownership of the policy is called the assignee.
Q:What happens if the policy is a trust created under Section 73 of the Conveyancing and Law of Property Act?A:
We need consent of all trustees plus beneficiaries (at least age 21) named under the policy. Proceeds will be paid to all trustees, or all beneficiaries (at least age 21).
Q:What happens if a policy is a trust (Irrevocable Nomination) created under Section 49L(2) of the Insurance Act?A:
Proceeds will be paid to the trustee (who is not the policyholder), or all beneficiaries (at least age 18). Parental consent is required if any of the beneficiaries is below age 18. The parent who gives consent must not be the policyholder.
Q:What if I am no longer residing in Singapore, and I do not have a bank account in Singapore?A:
If you are residing overseas, you may send us your request via our online form and we will send you the surrender forms. The forms are to be witnessed either by an Official from the Singapore High Commission/Embassy of the Republic of Singapore (for Singaporeans) or a Notary Public. A Notary Public is a state appointed officer who can witness and authenticate documents.
When documents originate from or are signed in another country, it is common for most institutions to require them to be notarised before they can be used for official purposes. This is a matter of prudence to ensure that the person signing the documents is actually who he purports to be. The Notary mainly acts as an impartial and legally trained witness. You can locate a registry of notaries by conducting a search on the internet.
If you have difficulty in obtaining this official witness, you may submit the documents here (Select “iManage” → "Request for waiver of notarisation").
We need a copy of your Singapore NRIC or a valid Passport. If the identification document does not contain your address, please provide an additional document which shows your residential address (e.g. a utility/credit card bill issued within the last six months).
If you do not have a bank account in Singapore, you can request for a telegraphic transfer (TT) of the surrender proceeds to your personal bank account overseas. Bank charges will have to be borne by you. TT may take up to 14 working days, from the day we receive complete information from you.
We need the below information to facilitate a TT. We may contact you if additional information is needed.
Telegraphic Transfer Remittance currency Intermediary bank for remittance in SGD Name of account holder Bank name Bank account number SWIFT code* IBAN number BSB Code (For Australia only) Fedwire/CHIPS Universal ID/CHIPS Participant ID or ABA (for USA only) Bank address Country and State
- * SWIFT code: It is a standard format of Bank Identifier Codes (BIC) and a unique identification code for a particular bank. You may contact your bank to obtain the SWIFT code.
- Telegraphic Transfers are subjected to approval.
Q:Do I have to return my original policy document?A:
No. This will not be necessary.
Q:Can I request for the surrender proceeds to be paid to another person, i.e. a third party?A:
No, we only pay the proceeds to the policy owner. If the policy is assigned under absolute assignment, the proceeds will be paid to the assignee.
Q:Can I request for the cheque to be uncrossed?A:
No, all of our cheques must be crossed.
Q:What should I do if I did not receive the surrender cheque after an extended period of time?A:
Please contact NTUC Income hotline at 6788 1122. We will verify the status of the cheque with our bank. We will issue a replacement cheque for you after our bank confirms that the earlier cheque has not been cleared.
Q:What if the policyholder (or Assignee) is an Entity?A:
We need the Entity to furnish the below documents.
- Completed Application for Early Surrender Form
- Business profile obtained from the governing body dated no more than three months prior
- Latest Board of Resolution or Authorised signatories list
- Photocopy of the NRIC/Long-Term Pass^/Passport^ (front and back) of person(s) appointed to act on behalf of the Entity.
^ If Long-Term Pass/Passport is submitted, please provide documentary proof of residential address. You may provide a recent copy of utility, telephone bill, bank statement or correspondence from a government agency (dated within the last 6 months)
The person completing and signing the forms must be the person who is authorised in the Latest Board of Resolution or Authorised signatories list.
Q:If I only want to surrender some units under my Investment-linked policy, what is the maximum number of units I can surrender?A:
The policy is required to retain a certain cash-in value following each partial surrender. This table shows the minimum cash-in value for the various plans.
ILP Product Minimum remaining cash value after the partial withdrawal Minimum partial withdrawal amount Flexilink/Ideal $2000 $500 Vivolink/Growthlink $1,750 per fund or total cash value $3,500(all funds) Vivalink Total cash value $1,000(all funds) Flexicash $5000