Essence – On Your Side Insurance Plan




Life Insurance - Critical Illness Protection

Underwritten by AIA International Limited (Incorporated in Bermuda with limited liability)


Smart shield, extended support
EMPOWER YOUR PRIME — MAXIMISE YOUR CRITICAL ILLNESS PROTECTION

Smart coverage that adapts to your journey
Life is full of possibilities, and your health should never stand in the way. Essence – On Your Side Insurance Plan offers critical illness protection tailored to your life’s journey. The plan gives you extensive coverage for 58 critical illnesses and additional support against serious health challenges including cancer, heart attack and stroke, which helps to provide a safety net for life’s uncertainties, so that you can concentrate on living fully, knowing you are protected. The value-added service, One-Stop Oncology Service, gives you an additional support for cancer.



Plan Highlights

  • 58 diseases covered
    Cover for 58 critical illnesses (including 57 major illnesses and 1 minor illness).

  • Big 3 Critical Illness Shield Benefit
    Additional claim for cancer, heart attack or stroke to provide extended coverage.

  • Prime Age Critical Illness Extra Coverage Booster
    Additional payment up to 40% of the Initial Sum Assured when Critical Illness Benefit or Big 3 Critical Illness Shield Benefit is paid during the Designated Period6.

  • Whole Life Extra Coverage Booster for Death
    Additional payment to your loved ones up to 40% of the Initial Sum Assured in the event of death of the insured7.

  • Extension of grace period for premium payment
    Up to 365 days of grace period for late premium payment if a specified event occurs8.



Notes:
1. “We”, “our”, or “us” herein refers to AIA International Limited (Incorporated in Bermuda with limited liability) ("AIA").
2. The above insurance plan can only be purchased through The Bank of East Asia, Limited ("BEA") as a basic plan. The above 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. In case you want to read policy contract sample before making an application, you can obtain a copy from AIA. Life insurance policies are long-term contracts of insurance. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.
3. We would like to remind you to review the relevant product materials and proposal illustrations (if applicable) provided to you and seek independent professional advice if necessary.
4. AIA Vitality (the “Membership Programme”) is not an insurance product. It is a membership programme and obligation of the AIA International Limited (“AIA”) and not of The Bank of East Asia, Limited (“BEA”). BEA’s role is limited to introducing the Membership Programme only and you should obtain further details about the Membership Programme directly from AIA. BEA shall not be responsible for any matters in relation to the Membership Programme provided by AIA.
5. The applicants for AIA Vitality must be aged 18 or above and must be the life insured of the in-force policy of an AIA Vitality selected insurance product. An annual membership fee will be charged for AIA Vitality and a member has to renew the AIA Vitality membership annually on time in order to maintain the membership and enjoy premium discount (if any) in the subsequent policy years. The membership fee of AIA Vitality may vary at any time without prior notice. Likewise, programme benefits may be added or removed without prior notice.
6. Designated Period refers to the period starting from the policy effective date until the later of (i) the day before the policy anniversary on or immediately following the insured’s 70th birthday; and (ii) the end of the 10th policy year.
7. The Whole Life Extra Coverage Booster for Death terminates upon the earlier of (a) payment(s) under the Prime Age Critical Illness Extra Coverage Booster reach 100% of the Extra Coverage Booster Amount and (b) the Big 3 Critical Illness Shield Benefit is payable under the basic policy.
8. Subject to our approval and our prevailing rules and conditions. For details of the specified events and the eligibility requirements of this benefit, please refer to “Cover at a glance” and the “Extension of Grace Period Benefit” section under “Important Information”.



Please refer to the Product Brochure for the details, coverage, key risks, major exclusions, terms and conditions of the plan.

 

 

 



Important Information

This brochure does not contain the full terms and conditions of the policy. It is not, and does not form part of, a contract of insurance and is designed to provide an overview of the key features of this product. The precise terms and conditions of this plan are specified in the policy contract. Please refer to the policy contract for the definitions of capitalised terms, and the exact and complete terms and conditions of cover. In case you want to read policy contract sample before making an application, you can obtain a copy from AIA. This brochure should be read along with the illustrative document (if any) and other relevant marketing materials,  which  include additional information and important considerations about this product. We would like to remind you to review  the relevant product materials provided to you and seek independent professional advice if necessary.

You may choose to purchase this Plan as a standalone plan without purchasing other type(s) of insurance products at the same time.
 
This brochure is for distribution in Hong Kong / Macau only.
 
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.
 

Bonus Philosophy
This is a participating insurance plan in which we share a portion of the profits earned on it and related participating insurance plans with the policy owners. It is designed to be held long term. The premiums of a participating insurance plan will be invested in a variety of assets according to our investment strategy. The cost of policy benefits (including guaranteed and non-guaranteed benefits as specified in your plan that may be payable on death, surrender or the occurrence of certain events such as hospitalization or diagnosis of a critical illness, as well as charges we make    to support policy guarantees (if applicable)) and expenses will be deducted as appropriate from premiums of the participating insurance plan or from the invested assets. We aim to ensure a fair sharing of profits between policy owners and shareholders, and among different groups of policy owners.
 
Divisible surplus refers to profits available for distribution back to policy owners as determined by us. The divisible surplus that will be shared with policy owners will be based on the profits earned from your plan and similar plans or similar groups of policies (as determined by us from time to time by considering factors such as benefit features, policy currencies and period of policy issuance). Divisible surplus may be shared with the policy owners in the form of terminal bonuses as specified in your policy.
 
We review and  determine  the  bonus  amounts  payable  to policy owners at least once per year. Divisible surplus depends on the investment performance of the assets which we invest in and the amounts of  benefits  and expenses we need to pay for the plan. It is therefore inherently uncertain. Nevertheless, we aim to deliver relatively stable bonus payments over time through a smoothing process by spreading out the gains and losses over a period of time. The actual bonuses declared may be different from those illustrated or projected in any insurance plan information provided (e.g. benefit illustrations) depending on whether the divisible surplus, past experience and / or outlook are different from what we expected. If bonuses are different from our last communication, this will be reflected in the policy anniversary statement.
 
A committee has been set up to provide independent advice on the determination of the bonus amounts to the Board  of the Company. The committee is comprised of members from different control functions or departments within the organisation both at the AIA Group level as well as Hong Kong local level, such as office of the Chief Executive of the Company, legal, compliance, finance, investment and risk management. Each member of the committee will endeavour to 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 decisions 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 bonuses, 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, and with written declaration by the Chairman of the Board, an Independent Non-Executive Director and the Appointed Actuary on the management of fair treatment between policy owners and shareholders.
 
To determine the bonuses of a participating policy, we consider both past experience and the future outlook of all factors including, but not limited to, the following:
 
Investment returns: include interest earnings, dividends and any changes in the market value of the backing assets, i.e. the assets in which we invest your premiums (after deducting the cost of policy benefits and expenses). Depending on the asset allocation adopted for the insurance plan, investment returns could be affected by fluctuations in interest income (both interest earnings and the outlook for interest rates) and various market risks, including interest rate risk, credit spread and default risk, fluctuations in listed and private equity prices, real estate prices as well as foreign exchange rates if the currency of the backing assets is different from the policy currency, etc.
 
Claims: include claims for death benefits, critical illness benefits and any other insured benefits under the insurance plan.

Surrenders: include policy surrenders, partial surrenders and policy lapses; and their corresponding impact on the backing assets.

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

For bonus philosophy and bonus history, please visit our website at https://www.aia.com.hk/en/dividend-philosophy- history.html

 
Investment Philosophy, Objective and Strategy
Our investment philosophy aims to deliver sustainable long- term returns in line with the insurance plan’s investment objectives and the Company’s business and financial objectives.
 
Our aforementioned objectives are to achieve the targeted long-term investment results while minimising volatility in investment returns to support the liabilities over time. They also aim 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 insurance plan as follows:

Asset Class  Target Asset Mix (%)
Bonds and other fixed income instruments 25%-100%
Growth assets  0%-75%


The bonds and other fixed income instruments predominantly include government and corporate bonds and are mainly invested in the United States and Asia-Pacific. Growth assets may include listed equity, equity mutual funds, physical real estate, real estate funds, private equity funds and private credit funds, and are mainly invested in the United States, Asia-Pacific and Europe. Growth assets generally have a higher long-term expected return than bonds and fixed income assets but may be more volatile in the short term. The range of target asset mix may be different for different participating insurance plans. Our investment strategy is to actively manage the investment portfolio i.e. adjust the asset mix dynamically over a range that can be wider than the target range in response to the external market conditions and the financial condition of the participating business. For example, there may be a smaller proportion of growth assets when interest rates are low and a larger proportion of growth assets when interest rates are high. When interest rates are low, the proportion of growth assets may be even smaller than the long-term target strategy, so as to allow us to minimise volatility in investment returns and to protect our ability to pay the guaranteed benefits under the insurance plans, whereas the proportion of the growth assets may be even larger than the long-term target strategy when interest rates are high to allow for the possibility that we may share more investment opportunities in growth assets with the policy owners.

Subject to our investment objectives, we may use a material amount of derivatives (such as  through  pre-investing partly or fully expected future premiums) to manage our investment risk exposure and for matching between assets and liabilities, for example, the effects of changes in interest rates may be moderated while allowing for more flexibility in asset allocation.

Our general currency strategy is to minimise currency mismatches for bonds and other fixed income instruments. For these investments, our current practice is to endeavour to currency-match asset purchases with the currency  of the underlying policy (e.g. US Dollar assets will be used to back US Dollar insurance plans). However, subject to market availability and opportunity, bonds or other fixed income instruments may be invested in a currency other than the currency of the underlying policy and currency swaps may be used to minimise the currency risks. Currently assets are mainly invested in US Dollar. Growth assets may be invested in a currency other than the currency of the underlying policy and the selection of the currency is made according to our investment philosophy, investment objectives and mandate.

We will pool similar participating insurance plans for investment to determine the return and we will then allocate the return to specific participating insurance plans with reference to their target asset mix. Actual investments (e.g. geographical mix, currency mix) would depend on market opportunities at the time of purchase, hence may be different from the target asset mix.

The investment strategy is 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 expected impact to the bonuses.

 
Key Product Risks

  1. 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 elect one of the non-forfeiture options to surrender the policy or convert the policy to a non-participating insurance plan with life protection only. Compared with the original plan, such a plan will have less cover and may have a shorter term.
    If no non-forfeiture option has been elected, the premium will be covered by a loan taken out on the policy automatically. When the loan balance exceeds the guaranteed cash value, the policy will lapse and you / the insured 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.
  2. The plan may make certain portion of its investment in growth assets. Returns of growth 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 bonus on the product. The savings component of the plan is subject to risks and possible loss. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.
  3. The  policy  value  including  guaranteed  cash  value and terminal bonus and both will be reduced when an advance payment is paid under the basic policy. Under such condition, this plan may not serve the purpose of wealth accumulation.
  4. 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 on the occurrence of the earliest of any of the following:
    • the insured passes away;
    • you do not pay the premium within 31 days (or up to 365 days under the Extension of Grace Period Benefit) of the due date;
    • the end of the benefit term if basic policy has been continued as a non-participating insurance plan; 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 (including the policy loan and interest) exceeds the guaranteed cash value of your policy.
  5. The Prime Age Critical Illness Extra Coverage Booster will be terminated on the occurrence of the earliest of any of the following:
    • when the claims payments made in total reach 200% of the Extra Coverage Booster Amount (i.e. 80% of the Initial Sum Assured);
    • the later of (a) the policy anniversary on or immediately following the insured’s 70th birthday; and (b) the 10th policy anniversary of the policy; or
    • when the basic plan is terminated or converted to a non-participating insurance plan.
  6. The Whole Life Extra Coverage Booster for Death will be terminated on the occurrence of the earliest of any of the following:
    • when the total payments made under the Prime Age Critical Illness Extra Coverage Booster reach 100% of the Extra Coverage Booster Amount (i.e. 40% of the Initial Sum Assured);
    • Big 3 Critical Illness Shield Benefit is payable under the basic policy; or
    • when the basic plan is terminated or converted to a non-participating insurance plan.
  7. The Big 3 Critical Illness Shield Benefit will be terminated on the occurrence of the earliest of any of the following:
    • when a claim payment has been made under the Big 3 Critical Illness Shield Benefit;
    • at the policy anniversary on or immediately following the insured’s 85th birthday; or
    • when the basic plan is terminated or converted to a non-participating insurance plan.
  8. 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.
  9. 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.
  10. 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.
  11. Future premiums will be reviewed and adjusted if necessary to reflect overall claim experience and other factors, the detailed list of which are set out under Premium Adjustment section.
     

Key Exclusions
Except for the death benefit, under this plan, we will not cover any of the following events or conditions that result from any of the following events:
  • any illnesses with signs / symptoms or surgeries caused or triggered by conditions, which first occurred before or within 90 days after the policy is issued; and
  • Fulminant viral hepatitis or cancer of the insured due to AIDS or HIV infection; and
  • a self-inflicted injury; and
  • any illnesses existed before the policy is issued and was not disclosed in the application for insurance or health statement.
The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.


Premium Adjustment
In order to provide you with continuous protection, we will review the premium of your policy from time to time within the premium payment term and adjust accordingly at the end of policy year if necessary. During the review, we may consider factors including but not limited to the following:
  • claim costs incurred from all policies under this plan and any other similar plans as determined by us, and the expected claim outgo in the future of such policies, which reflects the impact of change in the incidence rate of deaths, covered illnesses and covered surgeries
  • historical investment returns and the future outlook of this plan’s backing asset
  • policy surrenders and lapses of this plan
  • expenses directly related to this plan and indirect expenses allocated to this plan
We will give you a written notice of any revision 31 days before the end of policy year.
 

Product Limitation
  1. In case the insured reaches the age of  70  or  above and makes any subsequent claim for prostate cancer resulting from the continuation of a previous prostate cancer for which a previous claim was made under the policy, the Big 3 Critical Illness Shield Benefit will only be payable for the subsequent claim for prostate cancer if the insured has received or is in the process of receiving the full course of cancer-directed surgery, radiotherapy, chemotherapy, targeted therapy or a combination of these treatments (excluding hormonal therapy) which  is medically necessary during the intervening period between the diagnosis of the previous and subsequent prostate cancer.
  2. The term “medically necessary” as stated above means that the medical service, procedure or supply is, in our opinion:
    • consistent with the generally accepted professional standards of medical practice;
    • required to establish a diagnosis and / or to provide treatment; and
    • cannot be safely delivered in a lower level of medical care.

    Experimental, screening, and preventive services or supplies are not considered medically necessary.
  3. One-Stop Oncology Service is additional value-added service, which is not guaranteed subject to the terms and conditions thereof, and does not form part of the contractual benefit of Essence – On Your Side Insurance Plan. One-Stop Oncology Service is provided in Hong Kong by designated independent third party service providers and not applicable to Macau region. The multi- disciplinary team of the medical specialists under One- Stop Oncology Service is designated by independent third party service provider and is subject to change from time to time without prior notice. AIA shall not   be responsible for any act, negligence or omission of the service providers in the provision of any service, treatment, advice and opinion.

    One-Stop Oncology Service is subject to the eligibility  of the insured (including review of the insured’s relevant medical reports of pathological or diagnostic imaging tests by the designated service providers), the availability of the service, the terms and conditions and any applicable terms and conditions imposed by the service providers relating to the service. AIA reserves the right to amend, suspend or terminate One-Stop Oncology Service or any part of service thereunder (including the service providers, any details or terms and conditions relating thereto) at any time without any prior notice.
    Please note that the Pre-approval - Medical Expense & Cashless Service and the administrative support related thereto under One-Stop Oncology Service are not available to be used by the insured of Essence – On Your Side Insurance Plan.

    For details, please refer to the service leaflet of One-Stop Oncology Service and AIA’s website: https://www.aia. com.hk/en/health-and-wellness/healthcare-services/ aia-carepass/one-stop-oncology-service.

 
Note for Extension of Grace Period Benefit
The Extension of Grace Period Benefit starts on the premium due date at the time when we approve your claim and continues until the earlier of (a) 365 days from the Start Date of the Extension of Grace Period and (b) when the Extension of Grace Period Benefit automatically ends on the earliest of the following dates:
  1. at the end of Extended Grace Period,
  2. in the case of involuntary unemployment, you fail to provide proof of continuous status of unemployment upon our request,
  3. the date we approve a change of ownership of the policy,
  4. the date on which any claim on waiver of premium of  your basic plan is approved,
  5. the date on which your basic policy is fully paid up (meaning that the basic policy is providing coverage without any required premiums);
  6. the date any amount is paid under your basic policy and / or add-on plans as a result of any withdrawal or claim made, if the premium payment mode of the policy after the payment of such amount is not monthly; and
  7. the date when you pay all premiums in default.

In the case of involuntary unemployment under the Extension of Grace Period Benefit, you must be employed under a continuous contract for not less than 24 months and (a) for Policy issued in Hong Kong: you are dismissed by your employer due to redundancy or is laid off, and is entitled to a severance payment pursuant to the employment / labour laws of Hong Kong; or (b) for Policy issued in Macau: your employment contact is terminated by rescission without just cause on the initiative of the employer, and you are entitled to a compensation payment pursuant to the employment / labour laws of Macau. 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. Proof of continuous unemployment is required by you upon our request. The Extension of Grace Period 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.

Claim for Extension of Grace Period Benefit must be submitted together with the required documentary proof within the specified period. Please refer to the policy contract for details of the required documentary proof and the specified period for submission of application.

The Extension of Grace Period Benefit can only be claimed once per policy. The application for the Extension of Grace Period Benefit is subject to our approval, our prevailing rules and conditions, and the handling of policy during the Extended Grace Period will be subject to our discretion.

 
Claim Procedure
If you wish to make a claim, you must send us the appropriate forms and relevant proof. You can get the appropriate claim forms in www.aia.com.hk, from your financial planner, by calling the AIA Customer Hotline (852) 2232 8968 in Hong Kong, or by visiting any AIA Customer Service Centre. For details related to making a claim, please refer to the policy contract. If you wish to know more about claim related matter, you may visit “File A Claim” section under our company website www.aia.com.hk.

 
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 2 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
Essence – On Your Side Insurance 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
  • The Bank of East Asia, Limited (“BEA”), being registered with the Insurance Authority as a licensed insurance agency, act as an appointed licensed insurance agent for AIA International Limited (incorporated in Bermuda with limited liability) (“AIA”). This insurance plan is a product of AIA but not BEA.
  • This insurance plan is underwritten by AIA and it is not a bank savings plan with free life insurance coverage. Part of the premium pays for the insurance and related costs. The premium paid is not a placement of a savings deposit with the bank and hence is not protected by the Deposit Protection Scheme in Hong Kong.
  • Add-on plan (if any) is an add-on coverage for this insurance plan with additional premium paid required. BEA does not distribute any add-on plan; therefore, you cannot apply the add-on plan through BEA. If needed, you can contact AIA Customer Service Centre for inquiry after the policy is issued by AIA.
  • In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between BEA and the customer out of the selling process or processing of the related transaction, BEA is required to enter into a Financial Dispute Resolution Scheme process with the customer.
  • Claims under this insurance plan must be made by you to AIA directly. You can get the appropriate claim form by calling AIA Customer Service Hotline +852 2232 8968 in Hong Kong or visiting www.aia.com.hk or any AIA Customer Service Centre. For details, please refer to the policy contract provided by AIA.
  • BEA’s sales staff (including direct sales staff and authorised agents) are remunerated not only based on their financial performance, but also according to a range of other factors, including their adherence to best practices and their dedication to serving customers’ interests.
  • You can refer to the benefit illustration for the amounts of premium you have to pay.
  • The information you disclosed in response to all AIA’s questions must be true, complete and correct. Failure to disclose true, complete and correct information to AIA may render AIA unable to accept or process your application or the policy void.
  • You are reminded to carefully review the relevant product materials provided to you and be advised to seek professional / independent advice when considered necessary.
  • For the benefits and returns mentioned throughout the product brochure and Important Notes, please note that the policy owner is subject to the credit risk of AIA. If the policy owner discontinues and / or surrenders this policy in early policy years, the amount of benefits he / she will get back may be considerably less than the total premiums he / she has paid. Projected and / or potential benefits and / or returns (e.g. terminal bonus) presented in the product brochure are not guaranteed and are for illustrative purposes only. The actual future amounts of benefits and / or returns may be lower than or higher than the currently quoted benefits and / or returns.
  • AIA Vitality (the “Membership Programme”) is not an insurance product. It is a membership programme and obligation of AIA and not of BEA. BEA’s role is limited to introducing the Membership Programme only and you should obtain further details about the Membership Programme directly from AIA. BEA shall not be responsible for any matters in relation to the Membership Programme provided by AIA.
  • Apart from the key product risks mentioned in product brochure, you are also reminded of the following risks:
1. Liquidity risk – this insurance plan is designed to be held long 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 benefit 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 benefit 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 bonus scale – non-guaranteed benefits are based on the bonus 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 bonus you will receive. Under some circumstances, the non-guaranteed benefits may be zero.



 

For enquiries, please visit your nearest BEA branch or call 2232 8968.