Is it safe to stay with AIA?

Dear Mr. Tan,
I have purchased some investments from AIA including a single premium 10-year plan with guaranteed 3.5% p.a. return.

As you are aware, AIG is seeking to sell some of its assets including AIA. If AIA is finally taken over by another financial instititution, what would you think will be the impact on the investors here like myself and many other policy holders?

Shall we terminate our policies/investments and cash out before the take over materializes?

Does the government's guarantee to cover financial institutions' obligations in Singapore also cover the obligations of insurance companies like AIA?

Many AIA customers are anxiously watching the development in the market concerning the deteriorating financial conditions of AIG and wish to have some advice from people like you as to how to react to such major changes which could affect our investments in AIA. Please share your view with us in your blog (no commitment).

REPLY
I believe that the interest of the policyholders of AIA will be protected in the event that AIA is sold to new owners. You should avoid terminating a life policy, as you are likely to suffer a big penalty.