Understanding Policy Surrender with Allianz Ayudhya

Policy expropriation is an act in which the insured requests for a cancellation of their policy. The insured will receive funds back according to a specified policy expropriation value
in the policy value table. Expropriation causes the coverage according to the policy, regular contracts and riders to terminate according to the expropriation value.

Options: If the insured is unable to pay premiums but still wishes to receive coverage, the insured has these options:

1. Converting the policy into an extended-term policy: The company will take the entire remaining expropriation value to calculate a one-time premium payment. The insured will receive coverage according to the original assured sum, but the insurance duration will be shortened.

2. Converting the policy into reduced paid-up insurance: The company will take the entire remaining expropriation value to calculate a one-time premium payment. The insured will receive coverage according to the original insurance duration, but the assured sum might be lower, depending on the existing policy expropriation value.

Important Information Before Surrendering Your Policy

For any person looking to expropriate their policy, they should first understand the following before requesting for expropriation:

Policy expropriation can be requested only after the policy already has a policy expropriation value. In general, policy expropriation value will be created in the 2nd year or 3rd year and onward, and some insurance plans are not eligible for expropriation due to having no policy expropriation value.
You will lose your coverage and rights in your original policy.
The funds to be returned from policy expropriation might be less than the insurance premiums already paid, especially in the initial years of insurance.
Purchasing a new insurance plan might be more expensive due to older age or changes in health.
When a policy is expropriated such that it expires before 10 years, it will cause previously received tax benefits to not comply with the regulations of the Revenue Department, so the insured might be required to pay taxes retrospectively.

Preparing for an Expropriation:

1. Contact a service representative to have the representative check existing rights in the policy and policy expropriation value, along with various documents required for policy expropriation; or

2. The insured can send the following documents for the company to consider:

Life insurance policy book. (If the policy is lost, it is necessary to also attach a daily police report of a missing policy).
Policy expropriation letter according to company specifications Download the document and state the insurance policy number you wish to apply for expropriation. Then sign the insured person’s name* along with 2 witnesses.
A signed and certified copy of your valid national identification card or valid passport (if you are a foreigner).*

* Please sign your name identically to the signature you most recently gave to the company.

3. Send all documents to Allianz Ayudhya Life Insurance PCL. at the Policy Management Department, 1st Floor, Phloen Chit Tower, No. 898, Phloen Chit Road, Pathum Wan, Bangkok 10330.

The processing time is no more than 20 days after the company receives all relevant documents.