[Newsletter]We can only surrender our insurance policies back to the insurer. True or False?

The answer is FALSE.

Before proceeding on surrendering your policy, do take note the following:
1) Insurance purchased is meant for long term
2) If you intend to surrender/sell your insurance policy because you plan to buy new ones, it's recommended to get the new policy approved first (clear any additional underwriting) before surrendering the old one. If everything is the same (no extra condition/underwriting e.g. health is as good), then can consider to proceed surrendering your old policy.
3) Do note also that though some old insurance policy covers lesser things e.g. number of Critical Illness, but the terms used is more generic also. The more generic the term, someway it can mean more coverage. Currently the new terms used are quite specific like which specific artery burst then only can be claimed.

Recently I wanted to surrender my policy (for personal reasons), I checked the company website and the amount indicated is the exact amount in the "Projected 5.25% investment return" column in my policy 5 years ago. So far this is the only company that never gives below the higher end of the projected target. My policy:

   Company: Tokio Marine
   Plan: Towards My Legacy Plus (LP)

Yup, it's "Tokio Marine". The famous company that so far, the only company that never fails to pay at the higher end of the projected investment return column in your policy.

Luckily or coincidentally, I read an article from "The Edge" (dated 20th June 2016) about selling your life policies to 3rd party. You can even submit it online for a free quote. Since I plan on selling, I gave it a try. I emailed them my details and within 2 working days, they came back with a quote. And to my surprise, it's about 5% (~$300) more than the surrender amount that my original company provides.
According to the PIC, if the policy is endowment policy, the surrender amount is even higher.
Especially if you bought an endowment for the first year and plans to sell it the 2nd year. Normally the original company (or provider) have no surrender value for first year or two. But the 3rd party does. And I heard, it's quite substantial also.

So I agreed with him on the amount, and he ask me to go directly to Tokio Marine office to meet him. There I sign a "Absolute Assignment of Insurance Policy Proceeds" form to the company. Once signed, the cheque of the full amount is given to me immediately.

Currently the 3rd party companies which I know that accepts policy selling are:
1. Purvis Capital - Accepts both Endowment & Whole Life Policies
2. REPs Holdings - Accepts only Endowment Policies
As my policy is Whole Life, I used "Purvis Capital" and the service is quite prompt.

So if you plan to surrender your policy, check out some of the 3rd party website for "free quotation".