FREQUENTLY ASKED QUESTIONS

SURRENDERS

 

 

Contents

 

1.      How do I go about surrendering my life policy?

2.      Do I have to return my original policy document?

3.      How long do I have to wait before I get my surrender cheque?

4.      Can I request for the surrender proceeds to be paid to another person, i.e. a third party?

5.      Can I request for the cheque to be uncrossed?

6.      What if I am no longer residing in Singapore, and I do not have a bank account in Singapore?

7.      What are the charges the policyholder has to bear for requesting a bank draft or a telegraphic transfer of the surrender proceeds?

8.      What happens if the policy is assigned under Absolute Assignment?

9.      What happens if the policy is a Trust created under Section 73 of the Conveyancing and Law of Property Act?

10.    What happens if the policy is a Trust (Irrevocable Nomination) created under Section 49L(2) of the Insurance Act?

11.    What if the policyholder (or Assignee) is an organisation?

12.    What should I do if I did not receive the surrender cheque after an extended period of time?

13.    What if my policy was purchased with CPF funds? How long does it take for the surrender proceeds to be refunded to CPF Board?

14.    Is the procedure for surrendering an Investment-linked policy (ILP) the same as for a life policy?

15.    If I only want to surrender some units under my Investment-linked policy, what is the maximum number of units I can surrender?

16.    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?

 

 

 

 

Q1.      How do I go about surrendering my life policy?

A1.     You can surrender your policy as follows, depending on whether your life policy is with cash value or without cash value or whether it is an Investment Linked Policy (ILP).

a.              If you own a Life policy with cash value, you may request to surrender your policy by emailing to csquery@income.com.sg, or fax to 6338 1500 (Attention to Life Insurance Department). Alternatively, you can also contact NTUC Income hotline at 6788 1122 or visit at any of NTUC Income branches. We will send you these two forms for your completion:

·         Application for Early Surrender Form

·         Surrender Discharge Voucher indicating the cash value of your policy

 

                                       For a copy of the Application for Early Surrender Form, please click here.

 

You may return the completed forms with a copy of your NRIC/passport by:

·         emailing as attachments to li@income.com.sg; or

·         faxing to us at 6338 1500, attention to Life Insurance; or

·         posting to NTUC Income Centre, 75 Bras Basah Road, Singapore 189557.

 

When we receive the required documents, we will handle your surrender request.

 

          b.           If you own a Life policy without cash value, you may submit the completed Application for Early Surrender form to us with a copy of your NRIC/Passport. For a copy of the Application for Early Surrender Form,

                         please click here.

 

          c.            Investment-linked policy

      Please refer to Q14 below.

 

 

Q2.      Do I have to return my original policy document?

A2.       No. This will not be necessary.


Q3.      How long do I have to wait before I get my surrender cheque?


A3.      If your policy is not an investment-linked policy, you will receive the cheque within five working days from the time we receive your completed documents. Alternatively, you can also request for a direct credit to your

            bank account. Please provide your bank account number, the branch name and a copy of the bank book/statement.

 

            For investment-linked policies, it will take seven working days.

 


Q4.      Can I request for the surrender proceeds to be paid to another person, i.e. a third party?

A4.       No, we only pay the proceeds to the policy owner.

 

Q5.      Can I request for the cheque to be uncrossed?

 

A5.       No, all of our cheques must be crossed.

 

 

Q6.      What if I am no longer residing in Singapore, and I do not have a bank account in Singapore?

 

A6.       If you are overseas, you can call, email, or fax us your request to provide us with your contact details. We will send you the necessary forms (refer to Q1). The forms are to be witnessed either by an Official from the

              Singapore High Commission/Embassy of the Republic of Singapore 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 do not have a bank account in Singapore, you can request for a bank draft, or a telegraphic transfer (TT) of the surrender proceeds to your personal bank account overseas. Bank charges will have to be borne by you.

              A bank draft arrangement may take up to two weeks; while TT may take up to seven working days, from the day we receive complete information from you.

 

              We need the below information to facilitate the bank draft or TT.

 

Bank Draft

Telegrahic Transfer

Currency

Currency

Country and State

Name of Account holder

 

Bank Name

 

Bank Account number

 

SWIFT code*

 

Bank Address

 

Country and State

 

*SWIFT code: It is a standard format of Bank Identifier Codes (BIC) and it is unique identification code for a particular bank. You may contact your bank to obtain the SWIFT code.

 

 

Q7.      What are the charges the policyholder has to bear for requesting a bank draft or a telegraphic transfer of the surrender proceeds?

 

A7.       The charges may change from time to time depending on the paying bank. The currency exchange rate will depend on the prevailing rates at the actual time of transfer.

 

              These are the current charges:

 

Bank Draft

Telegraphic Transfer

0.125% of the surrender amount (minimum SGD25, maximum SGD150)

Cost of cable (minimum SGD20, maximum SGD40); plus

 

Local bank charges of 0.0625% of the surrender amount (minimum SGD20, maximum SGD100); plus

 

Foreign bank charges

 

 

Q8.      What happens if the policy is assigned under Absolute Assignment1?

 

A8.       The policyholder cannot give instruction to surrender the policy. Only the Assignee can give the instruction. Proceeds will be paid to the Assignee.

 

              1 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.

 

 

Q9.    What happens if the policy is under Trust created under Section 73 of the

              Conveyancing and Law of Property Act?

 

A9.     Surrender of the policy can be done with the consent of all trustees plus beneficiaries (at least age 21) named under the policy. If any of the beneficiaries is below age 21, surrenders will not be allowed.

 

              All trustees plus beneficiaries (at least age 21) are to give this consent by signing on the Surrender Form.

 

              The recipients of the surrender will be either all the trustees, or all the beneficiaries (at least age 21).

 

              However, if the Policyholder would like the surrender monies to be paid to him instead, we will provide a Letter of Consent and Indemnity which must be signed by all trustees plus beneficiaries (at least age 21).

 

 

Q10.    What happens if the policy is under Trust (Irrevocable Nomination) created under Section 49L(2) of the Insurance Act?

 

A10.     Surrender of the policy can be done with the consent of any one trustee (who is not the Policyholder); or all beneficiaries (at least age 18) named under the policy. If any of the beneficiaries

              is below age 18, a parent (who is not the Policyholder) can give consent on the particular beneficiary’s behalf.

 

             This trustee (who is not the Policyholder); or all beneficiaries (at least age 18) are to give this consent by signing on the Surrender Form.

 

             The recipients of the surrender will be either this trustee (who is not the Policyholder); or all the beneficiaries (at least age 18). If any of the beneficiaries is below age 18, a parent (who is not the Policyholder) can receive

              the monies on the particular beneficiary’s behalf.

 

             However, if the Policyholder would like the surrender monies to be paid to him instead, we will provide a Letter of Consent and Indemnity which must be signed by this trustee (who is not the Policyholder); or all

              beneficiaries (at least age 18).

 


Q11.    What if the policyholder (or Assignee) is an organisation?


A11.     Please refer to Q1 to obtain the necessary forms. We need the organisation to furnish the below documents.

a.      Application for Early Surrender Form

b.      Surrender Discharge Voucher indicating the cash value of your policy

c.       Business profile obtained from the governing body dated no more than 12 months

d.      Latest Board of Resolution

e.      Proof of signatories identities e.g. NRIC

 

The person completing and signing the forms must be the person who is authorised in the Latest Board of Resolution.

 

For a copy of the Application for Early Surrender form, please click here.

 

 

Q12.    What should I do if I did not receive the surrender cheque after an extended period of time?

 

A12.     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.

 

 

Q13.    What if my policy was purchased with CPF funds? How long does it take for the surrender proceeds to be refunded to CPF Board?

A13.     If the policy was bought with CPFOA or SRS funds, we will pay directly to your investment account with your agent bank. This is done within five working days from the date we receive the complete set of documents from

             you. If you need an urgent transfer of these funds to CPF Board, you may call your agent bank to authorise an immediate transfer.

 

              For CPFSA policies, we will pay directly to CPF Board. This is done within five working days from the date we receive the complete set of documents from you.

 

              If your policy is an investment-linked policy, the above process will take seven working days instead of five.

 

 

Q14.    Is the procedure for surrendering an Investment-linked policy (ILP) the same as for a life policy?

 

A14.     It is slightly different. For partial or full surrender of an ILP, you need to give us the Application for Withdrawal of Investment-Linked Policy form, and a copy of your NRIC.

 

              For a copy of the Application for Withdrawal of Investment-Linked Policy form, please click here.

 

Alternatively, you may request the form from any of these places:

·         Email to csquery@income.com.sg

·         NTUC Income hotline at 6788 1122

·         NTUC Income branches

 

You may also send us your ILP surrender request through our online portal (me@income) if you have the password.

 

All required documents should be submitted before 3pm. Any submission after 3pm will be considered as the next working day’s submission. The bid price will only be available two working days later (forward pricing).

 

 

Q15.    If I only want to surrender some units under my Investment-linked policy, what is the maximum number of units I can surrender?

 

A15.     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.

 

Plan Type

Minimum cash-in value

Flexilink & Ideal plan

$2000

Flexicash plan

$5000

Vivolink & Growthlink

$1750 per fund

$3500 per policy

 

 

Q16.    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?

 

A16.     If the policyholder were to pass away, 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. Please refer to Q1 on surrendering of life policy. We also need the Grant of Letter of

             Administration or Probate and copy of NRIC of the legal representatives.

 

The persons completing and signing the forms must be the legal representatives. Any proceeds will be paid to the Estate of the policyholder.

 

 

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IMPORTANT NOTES

 

This material is for general information only and is not a contract of insurance.  The precise terms, conditions and exclusions of any plan mentioned in this FAQ are specified in the Policy Contract. Please visit http://www.income.com.sg/ to read a copy of the Policy Contract.

 

If you are thinking of purchasing any insurance, you should seek advice from a qualified adviser if in doubt. If you choose not to, you will have to take sole responsibility to ensure that the product purchased is appropriate to your financial needs and insurance objectives.  Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than the total premiums paid.

 

Information is correct as of 14 Aug 2012.

                                                           

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Life Insurance

14 Aug 2012
N3104/3


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