The Bank of East Asia

Insurance, MPF & Trust

Underwritten by AIA International Limited

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PLAN AHEAD FOR A STABLE STREAM OF RETIREMENT ANNUITY INCOME

AIA Deferred Annuity Plan provides you guaranteed Monthly Annuity Payment, helping you to realise a fulfilling retirement life.

We understand that you want to have a stable guaranteed annuity income stream that you can rely on for your retirement. With AIA Deferred Annuity Plan, you can choose Annuity Payment Start Age for the annuitant (as the insured) to start receiving high guaranteed portion of annuity income at age 50, 55, 60, 65 or 70, and enjoy a regular annuity income stream for 10 years.


Stable returns for retirement

AIA Deferred Annuity Plan is a participating insurance plan that provides guaranteed cash value, guaranteed Monthly Annuity Payment and non-guaranteed Monthly Annuity Payment for retirement. You can specify a person to become the annuitant+, who is the person to receive the Monthly Annuity Payment during the Annuity Period. You can choose for the annuitant to start receiving Monthly Annuity Payment at age 50, 55, 60, 65 or 70 (i.e. the Annuity Payment Start Age). Alternatively, you can choose to accumulate the Monthly Annuity Payment in your policy to potentially gain interest for your withdrawal later. If no payment option has been chosen by you, we will pay the Monthly Annuity Payment to the annuitant monthly. You can change your payment option without additional charge.

Also, once the policy has been in force for a year, we will provide you with a one-off non-guaranteed cash amount (if any), called a Terminal Dividend if:

  1. you surrender the policy;
  2. the annuitant as the insured, who is the person protected under the policy, passes away before the policy matures and the death benefit is payable in lump sum (according to the death benefit calculation); or
  3. the policy matures.

Monthly Annuity Payment is comprised of both guaranteed and non-guaranteed portions. During the Annuity Period, the guaranteed cash value of this plan will decrease when the guaranteed Monthly Annuity Payment begins whilst non-guaranteed Monthly Annuity Payment will be credited into your policy on a monthly basis.

Both Terminal Dividend and non-guaranteed Monthly Annuity Payment are a share of divisible surplus (if any) from this product group. Please refer to Dividend Philosophy for details.

You can also choose for the annuitant to receive the guaranteed Monthly Annuity Payment under the level pattern or the increasing pattern when applying for this plan:

Guaranteed Monthly Annuity Payment Pattern Description
Level pattern A fixed amount of guaranteed Monthly Annuity Payment is paid monthly giving the annuitant greater stability during retirement. 
Increasing pattern Guaranteed Monthly Annuity Payment amount increases by 5% every 3 years to help with the effects of inflation.

The range of minimum to maximum Internal Rate of Return (i.e. IRR) at maturity, assuming the Monthly Annuity Payments are received monthly by the annuitant who is a 45-year-old non-smoking male at application, is shown in the table below.

The IRR at maturity varies with Insured’s Age at Application, Annuity Payment Start Age, Guaranteed Monthly Annuity Payment Pattern and premium payment mode.

+ In order to be eligible for tax deduction, the annuitant must be you or your spouse. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice.

Annuity Period Guaranteed Monthly Annuity Payment Pattern Annuity Payment Start Age Range of Guaranteed IRR at maturity Range of Total IRR^ at maturity
10 years Level pattern Age 55 0.25% - 1.12% 2.29% - 3.12%
Age 60 0.82% - 1.44% 2.53% - 3.12%
Age 65 1.13% - 1.61% 2.66% - 3.12%
Age 70 1.32% - 1.71% 2.74% - 3.12%
Increasing pattern Age 55 0.27% - 1.13% 2.29% - 3.11%
Age 60 0.82% - 1.44% 2.52% - 3.11%
Age 65 1.14% - 1.61% 2.65% - 3.12%
Age 70 1.32% - 1.72% 2.75% - 3.13%

The calculation of guaranteed IRR includes guaranteed Monthly Annuity Payment and guaranteed cash value, while the calculation of total IRR includes guaranteed Monthly Annuity Payment, any non-guaranteed Monthly Annuity Payment, guaranteed cash value and any Terminal Dividend.

This plan is designed to be held for a long term period. Should you surrender (or partially surrender) your policy early, you may receive an amount considerably less than the total amount of premiums paid. If you surrender your policy at the end of the first policy year, the range of surrender value^ which includes guaranteed cash value and any non-guaranteed Terminal Dividend that you will receive per US$10,000 annual premium, is shown in the table below. The surrender value at the end of the first policy year varies with Insured’s Age at Application.

Annuity Period Range of surrender value^ per US$10,000 annual premium at the end of the first policy year
10 years US$4,110 – US$4,130
(41.1% - 41.3% of annual premium) 

To give you additional financial flexibility in times of need, you can borrow up to the guaranteed cash value of the policy before the commencement of the Annuity Period. Interest on a policy loan will be charged at a rate solely determined by us.

^ The value illustrated is based on the current dividend scale which is neither indicative of future performance nor guaranteed. Past performance or current performance of our business should not be interpreted as a guide for future performance. The actual amount of any non-guaranteed Monthly Annuity Payment and any Terminal Dividend payable throughout the duration of the policy may vary at AIA’s sole discretion, which may be more or less favourable than those illustrated. The value illustrated assumes that no cash withdrawal or policy loans are taken throughout the term of the policy and that all premiums are paid in full when due.


5-year premium payment term

AIA Deferred Annuity Plan is denominated in US dollars, the minimum annual premium is US$4,800. With a 5-year premium payment term and premium amounts are guaranteed to remain stable throughout the entire period of your payments.


Your choice of annuity arrangement for your retirement

AIA Deferred Annuity Plan offers Annuity Period of 10 years, helping you to enjoy your retirement.

You have to select the 1) Annuity Payment Start Age and 2) Guaranteed Monthly Annuity Payment Pattern when you apply the policy (see the table below).

To provide you with a greater flexibility, you may opt to change once for each of these options during the following period:

  1. from the end of the 2nd policy year or when the annuitant reaches age 49 (whichever is later), to
  2. for the change of Annuity Payment Start Age, you should apply for 30 days before both the originally and newly selected Annuity Payment Start Age; for the change of Guaranteed Monthly Annuity Payment Pattern, you should apply for 30 days before your selected Annuity Payment Start Age.

All subsequent guaranteed Monthly Annuity Payment, any non-guaranteed Monthly Annuity Payment, guaranteed cash value and any Terminal Dividend will be adjusted according to your choice of Annuity Payment Start Age and / or Guaranteed Monthly Annuity Payment Pattern.

Premium Payment Term Annuity Period Insured’s Age at Application 1) Annuity Payment Start Age 2) Guaranteed Monthly Annuity Payment Pattern Benefit Term
5 years 10 years Age 18 - 40 Age 50 
  • Level
  • Increasing
From policy issue to the end of Annuity Period
Age 18 - 45 Age 55
Age 18 - 50 Age 60
Age 18 - 55 Age 65
Age 18 - 60 Age 70

You can decide the amount of guaranteed Monthly Annuity Payment at the time of your application. The amount of any non-guaranteed Monthly Annuity Payment may fluctuate during the Annuity Period.

Before we make payments, including Monthly Annuity Payment, surrender value, policy value at maturity and death benefit, we will deduct all outstanding debt under your policy.


Benefit received when policy matures

Provided that the insured is alive at the end of the benefit term, the policy will mature and we will pay you any accumulated Monthly Annuity Payment with interest accrued (if accumulation has been chosen as the payment option of Monthly Annuity Payment) and any Terminal Dividend in a lump sum.


If the worst should happen

If the insured passes away, we will pay the death benefit to the person whom you select in your policy as beneficiary. The amount of death benefit will be calculated according to the tables below.

  Death Benefit

If the insured passes away before

the commencement of the Annuity Period

The higher of:

  1. 110% of total premiums paid for the basic plan; and
  2. the guaranteed cash value of the policy plus any Terminal Dividend.

If the insured passes away on or after

the commencement of the Annuity Period but before the policy matures

The higher of:

  1. 110% of total premiums paid for the basic plan minus any guaranteed Monthly Annuity Payment paid; and
  2. the guaranteed cash value of the policy plus any Terminal Dividend;

Plus, any accumulated Monthly Annuity Payment with interest.

In either of the cases above, we will deduct all outstanding debt under your policy before we make the payment of death benefit to the beneficiary.


Protection for your loved ones

Apart from lump sum payment, during the insured’s lifetime, you can choose in advance to let the beneficiary continue receiving the unpaid Monthly Annuity Payment from the insured’s death (the death should occur on or after the commencement of the Annuity Period) until the end of the Annuity Period. If there is any accumulated Monthly Annuity Payment accrued before the insured passes away, such amount with any interest will be paid in a lump sum to the beneficiary at the time of the insured’s death.


Easy to join

No medical examination is required for new applications, as long as the total annual premiums do not exceed the aggregate limit set for each insured, subject to our prevailing rules and regulations.


Delay premium payments in case of unemployment

Unemployment may cause a significant impact on your finances. Hence, the Unemployment Benefit helps ease your financial burden during tough times while keeping the insured protected, even if life takes an unexpected turn. Subject to terms and conditions and our approval, if you are laid off and become involuntarily unemployed during the premium payment term of your basic plan, you may claim for the Unemployment Benefit. Once it is approved, the grace period for late premium payment under the basic plan and any add-on plans will be extended from 31 days up to 365 days to give you a safe buffer. Your Unemployment Benefit claim needs to be submitted within 30 days of your involuntary unemployment. The Unemployment Benefit is available once per policy and relevant proof is required.


Extra cover for more protection

To help support you against unfortunate circumstances, depending on your needs you can select an add-on plan under which we will waive the future premiums for your AIA Deferred Annuity Plan if the insured becomes totally and permanently disabled before the age of 60.

Please note that all add-on plans are subject to additional premiums, underwriting and exclusions. However, add-on plans premiums are not eligible for tax deduction. All benefits under add-on plans will be terminated when your AIA Deferred Annuity Plan terminates.


Save more while planning your retirement

AIA Deferred Annuity Plan is certified by the Insurance Authority as a qualifying deferred annuity policy where you can apply to deduct your premiums paid from your annual taxable income. This means if you are taxpayer in Hong Kong, you can apply for tax deduction of up to HK$60,000* per taxpayer each year which allows you to plan ahead to grow wealth for your retirement while also enjoying a tax deduction.

As an example, the illustration below shows the maximum tax deduction amount you could claim for you and your spouse as a policy owner applying AIA Deferred Annuity Plan.

* HK$60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice.


Important Information

The product information in this material does not contain the full terms of the product, for the details of the product features, terms and conditions, exclusions and key product risks, you may refer to the product brochure and policy contract of relevant products.

“AIA”, “the Company”, “We”, “our” or “us” herein refers to AIA International Limited (Incorporated in Bermuda with limited liability).

This plan can be only purchased through Bank of East Asia as a basic plan.

Effective from 1 January 2018, all policy owners are required to pay a levy on each premium payment made for both new and in-force Hong Kong policies to the Insurance Authority (IA). For levy details, please visit our website at www.aia.com.hk/useful-information-ia-en or IA’s website at www.ia.org.hk.


Dividend Philosophy

This is a participating insurance plan designed to be held long term. Your premiums will be invested in a variety of assets according to our investment strategy, with the cost of policy benefits (such as charges to support guarantees (if applicable)) and expenses deducted as appropriate from premiums or assets. Your policy can share the divisible surplus (if any) from related product groups determined by us. We aim to ensure a fair sharing of profits between policy owners and shareholders, and among different groups of policy owners.

Future investment performance is unpredictable. Through our smoothing process, we aim to deliver more stable dividend payments, by spreading out the gains and losses over a longer period of time. Stable dividend payments will ease your financial planning.

We will review and determine the dividend amounts to be payable to policy owners at least once per year. The actual dividends declared may be different from those illustrated in any product information provided (e.g. benefit illustrations). If there are any changes in the actual dividends against the illustration or in the projected future dividends, such changes will be reflected in the policy anniversary statement.

A committee has been set up to provide independent advice on the determination of the dividend amounts to  the  Board  of the Company. The committee is comprised of members from different control functions or departments within the organisation both at AIA Group level as well as Hong Kong local level, such as office of the Chief Executive, legal, compliance, finance and risk management. Each member of the committee will exercise due care, diligence and skill in the performance of his or her duties as a member. The committee will utilise the knowledge, experience, and perspectives of each individual member to assist the Board in the discharge of its duty to make independent decision and to manage the risk of conflict of interests, in order to ensure fair treatment between policy owners and shareholders, and among different groups of policy owners. The actual dividends, which are recommended by the Appointed Actuary, will be decided upon the deliberation of the committee and finally approved by the Board of Directors of the Company, including one or more Independent Non-Executive Directors.

To determine the dividends of the policy, we consider both past experiences and the future outlook for all the factors including, but not limited to, the following:

Investment returns: include interest earnings, dividends and any changes in the market value of the product’s backing assets. Depending on the asset allocation adopted for the product, investment returns could be affected by fluctuations in interest income (both interest earnings and the outlook for interest rates) and various market risks, including credit spread and default risk, fluctuations in equity prices, property prices and foreign exchange currency fluctuation of the backing asset against the policy currency.

Claims: include the cost of providing death benefits and other insured benefits under the product(s).

Surrenders: include policy surrenders, partial surrenders and policy lapses; and the corresponding impact on the investments backing the product(s).

Expenses: include both expenses directly related to the policy (e.g. commission, underwriting, issue and premium collection expenses) and indirect expenses allocated to the product group (e.g. general administrative costs).

Some participating products (if applicable) allow the policyholder to leave annual dividends, guaranteed and non-guaranteed cash payments, guaranteed and non-guaranteed incomes, guaranteed and non-guaranteed annuity payments with us, potentially earning interest at a non-guaranteed interest rate. To determine such interest rate, we consider the returns on the pool of assets in which the annual dividends, guaranteed and non-guaranteed cash payments, guaranteed and non-guaranteed incomes, guaranteed and non-guaranteed annuity payments are invested with reference to the past experience and future outlook. This pool of assets is segregated from other investments of the Company and may include bonds and other fixed income instruments.

For dividend & bonus philosophy and dividend / bonus history, please visit AIA's website at www.aia.com.hk/en/dividend-philosophy-history.html.


Investment Philosophy, Policy and Strategy

Our investment philosophy is to deliver stable returns in line with the product’s investment objectives and AIA’s business and financial objectives.

Our investment policy aims to achieve the targeted long-term investment results and minimise volatility in investment returns over time. It also aims to control and diversify risk exposures, maintain adequate liquidity and manage the assets with respect to the liabilities. Our current long-term target strategy is to allocate assets attributed to this product as follows:

Asset Class Target Asset Mix (%)
Bonds and other fixed income instruments 75% - 95% 
Equity-like assets  5% - 25%

Our investment strategy is to actively manage the investment portfolio i.e.: adjust the asset mix in response to the external market conditions. The proportion of equity-like assets would be lower when interest rate level is low and would be even lower than the long-term target strategy so to protect the guaranteed liability and to minimise volatility in investment returns over time, and vice versa when interest rate is high.

The bonds and other fixed income instruments predominantly include government and corporate bonds, and are mainly invested in the geographic region of the United States and Asia-Pacific (excluding Japan). Equity-like assets may include listed equity, mutual funds and direct / indirect investment in commercial / residential properties, which are mainly invested in Asia. Equity-like assets may also include private equity, which is typically invested in the United States. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments. Subject to our investment policy, material amount of derivatives may be utilised to manage our investment risk exposure and for matching between assets and liabilities.

Our currency strategy is to minimise currency mismatches. For bonds or other fixed income instruments, our current practice is to currency-match their bond purchases with the underlying policy denomination on best-efforts basis (e.g. US Dollar assets will be used to support US Dollar liabilities and HK Dollar assets will be used to support HK Dollar liabilities). Subject to market availability and opportunity, bonds may be invested in currency other than the underlying policy denomination and currency swap will be used to minimise the currency risks. Currently assets are mainly invested in US Dollar. For equity-like assets, currency exposure depends on the geographic location of the underlying investment where the selection is done according to our investment philosophy, investment policy and mandate.

We will pool the investment returns from other long term insurance products (excluding investment linked assurance schemes and pension schemes) together with this participating insurance plan for determining the actual investment and the return will subsequently be allocated with reference to the target asset mix of the respective participating products. Actual investments (e.g. geographical mix, currency mix) would depend on market opportunities at the time of purchase. Hence it may differ from the target asset mix.

The investment strategy may be subject to change depending on the market conditions and economic outlook. Should there be any material changes in the investment strategy, we will inform policy owners of the changes, with underlying reasons and impact to the policies.


Key Product Risks

  1. Investment and Early Surrender Risk

    The plan may make certain portion of its investment in equity-like assets. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments, you should note the target asset mix of the product as disclosed in this product brochure, which will affect the non-guaranteed Monthly Annuity Payment and Terminal Dividend on the product. The savings component of the plan is subject to risks and possible loss. The policy is designed to be held for a long term period. Should you surrender (or partially surrender which will be allowed after the end of the premium payment term and all premiums when due have been paid) the policy early, you may receive an amount considerably less than the total amount of premiums paid.

  2. Non-payment of Premium Risk

    You should pay premium(s) on time and according to the selected premium payment schedule. If you stop paying the premium before completion of the premium payment term, you may surrender the policy, otherwise, the premium will be covered by a loan taken out on the policy automatically. When the loan balance exceeds the sum of guaranteed cash value and any accumulated Monthly Annuity Payment with interest of the basic plan less any outstanding debt of your policy, the policy will terminate and you will lose the cover. The surrender value of the policy will be used to repay the loan balance, and we will refund any remaining value. You may receive an amount considerably less than the total amount of premiums paid in case you reduce or stop paying the premium.

  3. Termination Conditions

    You may request for the termination of your policy by notifying us in written notice. Also, we will terminate your policy and you / the insured will lose the cover when one of the following happens before the policy matures:
    • the insured passes away and
    i. the death benefit is payable in a lump sum; or
    ii. when all the due amounts of the death benefit have been paid if the death benefit is payable monthly in the form of guaranteed Monthly Annuity Payment and any non-guaranteed Monthly Annuity Payment;
    • you do not pay the premium within 31 days (or 365 days under Unemployment Benefit) of the due date and the policy has no cash value;
    • any benefit is paid under the basic plan or an add-on plan that triggers termination of the policy; or
    • the outstanding debt exceeds the guaranteed cash value of the policy. Where the premium is covered by a loan taken out on the policy automatically, the outstanding debt exceeds the sum of guaranteed cash value and any accumulated Monthly Annuity Payment with interest of the basic plan less any outstanding debt of your policy.

  4. Payment Options of Monthly Annuity Payment

    The annuitant / insured will receive Monthly Annuity Payment if you choose to receive the Monthly Annuity Payment in cash. If you choose to accumulate the Monthly Annuity Payment in the policy, the surrender value will be paid to you upon surrender of your policy. You have the absolute right to change and choose the payment options of Monthly Annuity Payment. Under both scenarios, you will receive the policy value (if any) at maturity.

  5. Credit Risk

    We underwrite the plan and you are subject to our credit risk. If we are unable to satisfy the financial obligations of the policy, you may lose your premium paid and benefits.

  6. Exchange Rate and Currency Risk

    You are subject to exchange rate risks for plans denominated in currencies other than the local currency. Exchange rates fluctuate from time to time. You may suffer a loss of your benefit values and the subsequent premium payments (if any) may be higher than your initial premium payment as a result of exchange rate fluctuations. You should consider the exchange rate risks and decide whether to take such risks.

  7. Inflation Risk

    Your current planned benefit may not be sufficient to meet your future needs since the future cost of living may become higher than they are today due to inflation. Where the actual rate of inflation is higher than expected, you may receive less in real terms even if we meet all of our contractual obligations.


Note for Unemployment Benefit

You must be employed under a continuous contract for not less than 24 months and be eligible for a severance payment upon termination under the employment or labour laws of Hong Kong prior to the involuntary unemployment. Further, such employment cannot be self-employment, employment by a family member (including spouse, parent, grandparent, child or grandchild) or employment as a domestic servant. The Unemployment Benefit starts on the premium due date at the time when we approve your claim and continues for up to 365 days. Proof of continuous unemployment is required by you upon our request. The Unemployment Benefit is not available if you were informed of your pending involuntary unemployment on or before the issue date or commencement date of the policy, whichever is later. The Unemployment Benefit will cease on the earliest of the following dates: (i) at the end of extended grace period, (ii) you fail to provide proof of continuous unemployment upon our request, (iii) the date on which the policy owner has been changed, (iv) the date on which any claims on waiver of premium under your basic plan is approved, (v) at the end of premium payment term of your basic plan, (vi) the date when any claims of your basic plan and/or add-on plans is made, if the premium payment mode is not changed to monthly, (vii) the date when you pay all outstanding premiums and (viii) termination date of your basic policy. Claim for Unemployment Benefit must be submitted within 30 days of your involuntary unemployment. The Unemployment Benefit could only be claimed once per policy and relevant proof is required. Please note that, during application of tax deduction, deductible amount should be qualifying annuity premiums paid, delay of premium payments may affect the tax deductions. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice. The approval of the Unemployment Benefit is subject to our prevailing rules and regulations, and the handling of policy during the extended grace period will be subject to our discretion. 


Tax Implication of Qualifying Deferred Annuity Policy (QDAP)

Please note that the qualifying deferred annuity policy (QDAP) status of this product does not necessarily mean you are eligible for the tax deduction available for QDAP premiums paid. This product’s QDAP status is based on the features of the product as well as certification by the Insurance Authority (IA) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department (IRD) of HKSAR before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws regulations or interpretations, and how they may affect you. Further information may be found in IA’s website at www.ia.org.hk


Certification by Insurance Authority (IA)

The IA certification is not a recommendation or endorsement of the policy nor does it guarantee the commercial merits of the policy or its performance. It does not mean the policy is suitable for all policyholders / policy owners nor is it an endorsement of its suitability for any particular policyholder / policy owner or class of policyholders / policy owners. The policy has been certified by the IA but such certification does not imply official recommendation. The IA does not take any responsibility for the contents of the product brochure of the policy, makes no representation as to its accuracy or completeness, expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the product brochure of the policy.


Suicide

If the insured commits suicide within one year from the date on which the policy takes effect, our liability will be limited to the refund of premiums paid (without interest) less any outstanding debt.


Incontestability

Except for fraud or non-payment of premiums, we will not contest the validity of this policy after it has been in force during the lifetime of the insured for a continuous period of two years from the date on which the policy takes effect. This provision does not apply to any add-on plan providing accident, hospitalisation or disability benefits.


Warning Statement and Cancellation Right

AIA Deferred Annuity Plan is an insurance plan with a savings element. Part of the premium pays for the insurance and related costs. If you are not happy with your policy, you have a right to cancel it within the cooling-off period and obtain a refund of any premiums and levy paid. A written notice signed by you should be received by the Customer Service Centre of AIA International Limited at 12/F, AIA Tower, 183 Electric Road, North Point, Hong Kong within the cooling-off period (that is, 21 calendar days immediately following either the day of delivery of the policy or cooling-off notice (informing you/your nominated representative about the availability of the policy and expiry date of the cooling-off period, whichever is earlier). After the expiration of the cooling-off period, if you cancel the policy before the end of the term, the projected total cash value may be substantially less than the total premium you have paid.


Important Notes from the Insurance Agent of The Bank of East Asia, Limited

  1. Liquidity risk – this insurance plan is designed to be held till the end of the policy term. You should only apply for this insurance plan if it is intended to pay the premium for the whole of the premium payment  term. If you fail to pay the premium for the whole of the premium payment term, this will cause the policy to lapse or to be terminated earlier than the original policy term, and the total  surrender value (if any) that get back by you may be less than the total premiums paid.
  2. Risk from surrender – if you cancel the policy before the end of the policy term, you may suffer a significant loss, and the total surrender value received may be substantially less than the total premiums paid.
  3. Non-guaranteed dividend scale – non-guaranteed benefits are based on the dividend scale of AIA determined under current assumed investment return. The actual amount payable may change anytime with the values being higher or lower than those being projected. In other words, a change in the current assumed investment return will affect the terminal dividend and non-guaranteed monthly annuity payment you will receive. Under some circumstances, the non-guaranteed benefits may be zero.
  4. Risk associated with different death benefit payment options – you can opt for the option to allow the beneficiary(ies) to receive the death benefit in lump sum upon the death of the insured, or if the death occur on or after the commencement of the Annuity Period, to receive the unpaid monthly annuity payment from the insured’s death until the end of Annuity Period.  The amount of death benefit the beneficiary(ies) received in lump sum may be less than the total amount of the unpaid monthly annuity payment.


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