Life Insurance - Savings and Retirement Income
Underwritten by AIA International Limited (Incorporated in Bermuda with limited liability)
Flex your future, indulge your love
LIFE DOESN’T STOP - AND NEITHER SHOULD YOUR FINANCIAL PLAN
Imagine a financial plan that grows with you, no matter where life leads.
Whether saving for your child’s education, dreaming of retirement, planning a family legacy, or establishing a safety net, GlobalFlexi Savings Insurance Plan gives you the power to move forward with flexibility and control.
With guaranteed cash value, non-guaranteed bonuses, and flexible access to your funds when you need them, this plan grows as you do. Together with the options and benefits offered under the plan to protect your wealth, your loved ones, and your legacy, you’re committing to more than just savings — you’re committing to the life you’ve always envisioned.
Flexible financial solutions that help you achieve your aspirations
We are aware of your needs
Grow wealth with confidence
HK$1.03 million1 in savings is what Hong Kong people need to feel secure
Stay ready for life's changes
39%1 of respondents reserved their savings for unexpected needs
Preserve lasting legacy
Over half of respondents2 replied their families lack a clear wealth management and inheritance plan
Plan against adversities
44.3% of deaths in Hong Kong3 in 2023 were caused by malignant neoplasms (cancer), heart diseases and cerebrovascular diseases (stroke)
1. Source: https://www.media-outreach.com/news/hong-kong/2024/11/26/344878/ (media news: November 2024)
2. Source: https://www.hk01.com/社會新聞/1050951/ (media news: August 2024)
3. Source: Website of the Centre for Health Protection, Department of Health(https://www.chp.gov.hk/en/statistics/data/10/27/340.html)
Plan Highlights
Wealth Accumulation
• Guaranteed Cash Value
• Non-guaranteed Reversionary Bonus and non-guaranteed Terminal Bonus
• First-in-market# Currency Exchange Option
Liquidity
• Rare-in-market^ Flexi Withdrawal Option
• Rare-in-market^ Value Safeguard Option
• Bonus Lock-in Option
• Bonus Unlock Option
Legacy Planning
• Value-Added Services▲ Transitional Owner Arrangement with First-in-market★ Future Guard Option
• Policy Split Option
• First-in-market* Beneficiary Flexi Option
• Death Benefit Settlement Option
Plan Against the Uncertainties
• First-in-market+ Health Impairment Option
• Terminal Illness Benefit
# Currency Exchange Option was pioneered by AIA in the Global Power Multi-Currency Plan on 1 June 2021.
^ As of 23 June 2025, compared with savings insurance products provided by Hong Kong major insurance companies.
▲ Transitional Owner Arrangement is only available to specified insurance plans and designated policies which meet our eligibility requirements. It is not applicable to corporate owned policies. It is a value-added service and not a product feature, therefore it does not form part of the policy contract of GlobalFlexi Savings Insurance Plan.
★ Future Guard Option is first-in-market when compared against similar service offered by Hong Kong major insurance companies, pioneered by AIA in the Wealth Generation on 23 June 2025.
* First-in-market refers to the Beneficiary Flexi Option’s specific feature where the policy owner allows the beneficiary to choose to receive the death benefit payment in accordance with the beneficiary’s selected settlement option when the beneficiary has attained the Designated Age chosen by the policy owner or when the beneficiary is diagnosed with a Specified Illness under Beneficiary Flexi Option. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the FlexiAchiever Savings Plan on 8 January 2025.
+ First-in-market refers to the Health Impairment Option’s specific feature where the policy owner can designate up to 2 different designated recipients and elect for both benefit payment and transfer of ownership under this option at the same time. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the Wealth Generation on 23 June 2025.
Wealth Accumulation
Accumulate wealth without hassle
GlobalFlexi Savings Insurance Plan is a participating whole-life insurance plan under the GlobalFlexi Series with guaranteed and non-guaranteed returns. The plan helps you accumulate wealth by offering guaranteed cash value and, starting from the end of the 3rd policy year, we may at our sole discretion declare a non-guaranteed Reversionary Bonus and a non-guaranteed Terminal Bonus once per policy year. You can enjoy peace of mind knowing that your wealth is growing effortlessly alongside you.
First-in-market#
Seize global opportunities with Currency Exchange Option
Sometimes new and exciting opportunities arise. To take full advantage of them, starting from the end of the 2nd policy year and within 30 days after the end of a policy year, you can apply to switch your policy currency to one of the following 9 different currencies, including Renminbi (RMB), British pound sterling (GBP), US dollar (US$), Australian dollar (AUD), Canadian dollar (CAD), HK dollar (HK$), Macau pataca (MOP; only for policies issued in Macau), Euro (EUR) and Singapore dollar (SGD), by exchanging your GlobalFlexi Savings Insurance Plan policy to the latest plan under the GlobalFlexi Series which we offer in the new policy currency at the time of currency exchange. After currency exchange, your policy’s effective date will remain unchanged, and policy values will be recalculated and continue to grow based on the new policy currency.
For more details on the Currency Exchange Option, please refer to “Cover at a glance” and “Key Product Risks” in this brochure.
Liquidity
Flexible cash withdrawals to enhance liquidity
With GlobalFlexi Savings Insurance Plan, you can manage your cashflow easily. To meet your changing needs in the future, you can request to withdraw part or all of the cash value of the Reversionary Bonus (if any) together with the corresponding cash value of Terminal Bonus (if any) and / or part of the guaranteed cash value together with the corresponding cash value of the Terminal Bonus (if any). However, after withdrawal of part of the guaranteed cash value, the principal amount of the policy and the total premiums paid or one-time premium paid (as applicable) for the basic plan as used in the calculation of the death benefit will be reduced※.
Alternatively, you may choose to withdraw all values of your policy. Upon such withdrawal, you will receive the sum of the guaranteed cash value, non-guaranteed cash values of the Reversionary Bonus and Terminal Bonus, and the remaining balance in the Value Safeguard Account (if any) and in the Bonus Lock-in Account (if any). Your policy will end upon such withdrawal.
We will deduct any amounts you owe us and all outstanding debt (if any) under your policy before we make any payments.
Rare-in-market^
Access your wealth at ease with Flexi Withdrawal Option
Starting from the later of (i) the end of the 5th policy year and (ii) the end of the premium payment term of your basic policy, you can apply to set up instruction to withdraw the policy values from your policy on a regular basis during a period specified by you and to designate a recipient, who can be yourself or a loved one, to receive such withdrawal payments. Making it easier to plan your wealth, you may change the recipient and / or the frequency of payments at any time and as many times as you wish, subject to our approval.
For more details on the Flexi Withdrawal Option, please refer to “Cover at a glance” in this brochure.
Rare-in-market^
Value Safeguard Option to meet your evolving needs
We understand that plans cannot always keep pace with changes. To help you reserve cash on hand for upcoming needs, starting from the end of the 6th policy year, you can withdraw part or all of the cash value of any Reversionary Bonus and the corresponding cash value of any Terminal Bonus for transfer to the Value Safeguard Account without reducing the principal amount of your policy**. You can also withdraw part of the guaranteed cash value and the corresponding cash value of any Terminal Bonus for transfer to the Value Safeguard Account, however this will reduce the principal amount of your policy**.
By transferring an amount to the Value Safeguard Account, you can earn non-guaranteed interest in the account before making any withdrawals from the account, empowering you to plan for the future with financial assurance.
For more details on the Value Safeguard Option, please refer to “Cover at a glance” in this brochure.
# Currency Exchange Option was pioneered by AIA in the Global Power Multi-Currency Plan on 1 June 2021.
♣ Macau pataca (MOP) is only available for policies issued in Macau.
※ The subsequent guaranteed cash value, cash value and face value of Terminal Bonus (if any) and the total premiums paid or one-time premium paid (as applicable) for the basic plan as used in the calculation of the death benefit will all be reduced based on the reduced principal amount, and that any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. Therefore, such withdrawal will reduce the death benefit, the surrender benefit and the value of your policy as well as its sustainability and potential growth.
^ As of 23 June 2025, compared with savings insurance products provided by Hong Kong major insurance companies.
** If the withdrawal amount consists of the cash value of any Reversionary Bonus and corresponding cash value of any Terminal Bonus, it will lead to reduction of the cash values and face values of the Reversionary Bonus and Terminal Bonus, and that any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. If the withdrawal amount consists of part of the guaranteed cash value and the corresponding cash value of Terminal Bonus, it will lead to a reduction of the principal amount of your policy. The subsequent guaranteed cash value, the face value and cash value of Terminal Bonus, and the one-time premium paid or the total premiums paid (as applicable) for the basic plan as used in the calculation of the death benefit will all be reduced based on the reduced principal amount, and any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. Therefore, such withdrawal will reduce the death benefit, the surrender benefit, the value of your policy as well as its sustainability and potential growth.
Bonus Lock-in Option and Bonus Unlock Option for flexible money management
It is crucial to secure your hard-earned assets, particularly in the face of market volatility. Through the Bonus Lock-in Option, GlobalFlexi Savings Insurance Plan enables you to realise potential returns by transferring an identical percentage of the latest cash value of each of the Reversionary Bonus (if any) and the Terminal Bonus (if any) into a Bonus Lock-in Account◆ to earn non-guaranteed interest. This is available once per policy year starting from the end of the 15th policy year, and application for such transfer must be made within 30 days after the end of a policy year.
To provide flexibility for your financial needs throughout various life stages, you can make cash withdrawals from the Bonus Lock-in Account at any time without reducing the principal amount of your policy.
Unlock your financial freedom to meet your needs
By exercising the Bonus Unlock Option, you can unlock and transfer a certain amount of the latest value of the Bonus Lock-in Account as the non-guaranteed Reversionary Bonus and the non-guaranteed Terminal Bonus※ to suit your financial needs. This is available once per policy year starting from 1 year after bonus lock-in has been made, and application for such transfer must be made within 30 days after the end of a policy year.
◆ After the cash value of each of the Reversionary Bonus and Terminal Bonus are transferred to the Bonus Lock-in Account, any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly.
※ The unlock amount will be changed from guaranteed value in the Bonus Lock-in Account to non-guaranteed value as Reversionary Bonus and Terminal Bonus.
Legacy Planning
Preserve your legacy with diverse planning options
Life is full of unexpected changes. GlobalFlexi Savings Insurance Plan is crafted to evolve alongside your needs, enabling your loved ones to be safeguarded and your legacy to be seamlessly transferred. You can exercise a diverse range of legacy tools as many times as you wish, subject to our prevailing rules and conditions and our approval, which will help you to create a future that aligns with your vision for generations to come.
Secured ownership transition with contingent owner
To enjoy flexible legacy planning, during the lifetime of the insured, you can designate a loved one as the contingent owner. In the event of your passing, the ownership of your policy will be seamlessly transferred to the contingent owner upon our approval of the contingent owner’s application for change of ownership, ensuring your wealth is managed according to your wish.
Value-Added Services
Trustworthy policy oversight with Transitional Owner Arrangement
Under the Transitional Owner Arrangement▲, you can designate a family member as the contingent owner of the policy and another aged 18 or above family member as the transitional owner of the policy. After your passing, the transitional owner will oversee your policy with limited administrative rights until your designated contingent owner takes over the ownership of your policy upon reaching the specified date or specified age as chosen by you.
With First-in-market★ Future Guard Option▲, the transitional owner may opt to split the policy into two policies and to designate a family member of the current contingent owner under the Transitional Owner Arrangement as the new contingent owner and the new insured of the Split Policy, who may take over the ownership of the Split Policy upon reaching the specified date or specified age as chosen by the transitional owner.
For details of the Transitional Owner Arrangement and the Future Guard Option (including but not limited to the eligibility, risks and limitations), please refer to the value-added service leaflet of Transitional Owner Arrangement.
Seamless transfer with Change of Insured Option
During the lifetime of current insured and after the end of the 1st policy year, you may change the insured to another loved one as many times as you wish, subject to our approval. Immediately after exercising the Change of Insured Option, your policy values will remain unaffected, and your policy will continue to be effective which can be inherited by future generations, helping you pass on your wealth with ease.
For more details on the Change of Insured Option, please refer to “Cover at a glance” in this brochure.
Uninterrupted protection with Contingent Insured Option
During the lifetime of current insured, you can designate one of your loved ones as the contingent insured. Upon the passing of the current insured, the contingent insured may become the new insured without affecting your policy values, ensuring your legacy is safeguarded for the generations to come.
For more details on the Contingent Insured Option, please refer to “Cover at a glance” in this brochure.
Customise your asset allocation with Policy Split Option
Needs change from time to time and GlobalFlexi Savings Insurance Plan is designed to help you adapt to your evolving needs. Starting from the later of (i) the end of the premium payment term of your basic policy and (ii) the end of the 1st policy year, the Policy Split Option allows you to manage your wealth with precision by seamlessly transferring certain policy values from your policy (“Principal Policy”) to a separate policy (“Split Policy”). Immediately after exercising the Policy Split Option, your policy will split into two policies each with a smaller principal amount, with no change to the effective date of the Principal Policy while the effective date of the Split Policy will be the same as the Principal Policy.
After the Policy Split Option is exercised, you can apply to change the policy currency of the Split Policy pursuant to the Currency Exchange Option and / or to change the insured of the Split Policy pursuant to the Change of Insured Option. This flexibility allows you to allocate your assets strategically through multi-currency policies and to create a legacy tailored to you and your family.
For more details on the Policy Split Option, please refer to “Cover at a glance” in this brochure.
Note: The “Principal Policy” is the original policy that you purchase with full premium payment.
▲ Transitional Owner Arrangement is only available to specified insurance plans and designated policies which meet our eligibility requirements. It is not applicable to corporate owned policies. It is a value-added service and not a product feature, therefore it does not form part of the policy contract of GlobalFlexi Savings Insurance Plan. Application is subject to our approval to be determined at our discretion. We reserve the right to withdraw the Transitional Owner Arrangement or change its terms and conditions or any related requirements at any time at our sole and absolute discretion. Future Guard Option is one of the service features under the Transitional Owner Arrangement.
* Future Guard Option is first-in-market when compared against similar service offered by Hong Kong major insurance companies, pioneered by AIA in the Wealth Generation on 23 June 2025.
Create the ideal settlement option for your loved ones
In the unfortunate event that the insured passes away and no contingent insured becomes the new insured, the death benefit will be paid to the beneficiary(ies) whom you have selected for your policy, ensuring your loved ones receive the protection you intend.
GlobalFlexi Savings Insurance Plan provides additional protection through an accidental death benefit. This is paid in addition to the death benefit if the insured passes away due to a covered accident within the first policy year, provided no contingent insured becomes the new insured.
Craft the ideal settlement option
* First-in-market refers to the Beneficiary Flexi Option’s specific feature where the policy owner allows the beneficiary to choose to receive the death benefit payment in accordance with the beneficiary’s selected settlement option when the beneficiary has attained the Designated Age chosen by the policy owner or when the beneficiary is diagnosed with a Specified Illness under Beneficiary Flexi Option. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the FlexiAchiever Savings Plan on 8 January 2025.
You can also customise the Death Benefit Settlement Option to address the unique needs of each beneficiary in receiving the death benefit and accidental death benefit (if any). You have the flexibility to decide the amount of each instalment and the payment interval – including monthly, quarterly, semi-annually, or annually – and you may also specify the date of the first or last instalment payment.
If you have chosen the Death Benefit Settlement Option, you may also choose the Beneficiary Flexi Option. Upon the beneficiary attaining the designated age chosen by you ("Designated Age") or being diagnosed with a specified illness, including cancer, stroke, heart attack, terminal illness and kidney failure (“Specified Illness under Beneficiary Flexi Option”), such beneficiary can receive his / her share of the unpaid death benefit and accidental death benefit (if any) according to his / her selected settlement option.
※ If the insured passes away and no contingent insured becomes the new insured, the beneficiary may apply to select the settlement option for his / her unpaid share of the death benefit and accidental death benefit (if any), provided the beneficiary must be aged 18 or above when he / she applies to select his / her settlement option. The settlement options available for selection by the beneficiary will be subject to the settlement options made available by us under this Beneficiary Flexi Option at the time of the beneficiary’s application and our prevailing rules and conditions. If the beneficiary’s application is approved, his / her selected settlement option will only become effective upon the beneficiary has attained the Designated Age or he / she is diagnosed with a Specified Illness under Beneficiary Flexi Option.
Plan Against the Uncertainties
First-in-market+ Health Impairment Option gives your family extra peace of mind in the face of the unknown
GlobalFlexi Savings Insurance Plan offers Health Impairment Option which is designed to help you secure your loved one’s financial wellbeing in case you suffer from a mental issue or become unconscious for a certain period due to a specified illness including Apallic Syndrome and Coma (“Specified Illness under Health Impairment Option”).
You may designate up to 2 family members aged 18 or above as designated recipients and the applicable designated percentage of policy value for benefit payment and / or ownership transfer. If you are diagnosed as a permanent mentally incapacitated person or become unconscious for a certain period due to a Specified Illness under Health Impairment Option, upon our approval of the application of a designated recipient, and subject to applicable laws and our prevailing rules and conditions, such designated recipient may in accordance with your instructions (i) receive a lump sum benefit payment; or (ii) become the policy owner of part or all of your policy; or (iii) receive a lump sum benefit payment and become the policy owner of part of your policy. The amount of such benefit payment and transfer of ownership will be based on the designated percentage of policy value selected by you.
We will deduct all amount you owe us and all outstanding debt (if any) under your policy before we make any payment under this option.
+ First-in-market refers to the Health Impairment Option’s specific feature where the policy owner can designate up to 2 different designated recipients and elect for both benefit payment and transfer of ownership under this option at the same time. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the Wealth Generation on 23 June 2025.
Terminal Illness Protection for immediate access to funds in difficult times
GlobalFlexi Savings Insurance Plan also helps alleviate financial burden through the Terminal Illness Benefit. In the unfortunate event that the insured is diagnosed with a terminal illness and is expected to pass away within 12 months as a result of the illness, we will pay a Terminal Illness Benefit, which is a one-off advance payment of the death benefit. If the Terminal Illness Benefit is paid, no death benefit will be paid under your policy and all benefits under your basic policy will cease. The Terminal Illness Benefit will end on the policy anniversary which falls on or immediately following the insured’s 85th birthday.
For more details on the Terminal Illness Benefit, please refer to “Cover at a glance” in this brochure.
Additional Benefits
Rewards for academic excellence
To motivate the insured to strive for academic excellence, we will reward certain academic achievement by offering the Educational Merit Benefit. After the policy has been in force for at least 1 year, if the insured obtains any one of the following achievements before the age of 25, GlobalFlexi Savings Insurance Plan will pay the corresponding award amount as long as the policy is still effective. The Educational Merit Benefit will only be payable once under all GlobalFlexi Savings Insurance Plan policies covering the same insured.
Educational Merit Benefit
■ If the policy currency is in a currency other than US$, the award amount will be paid in the relevant policy currency at the time of payment and the prevailing exchange rate (as determined by us at our discretion) will be used to calculate the amount of such payment. The Educational Merit Benefit can only be paid once under the Principal Policy, and it is not applicable to any Split Policy. Once Health Impairment Option is exercised, Educational Merit Benefit will no longer be available under the policy.
※ The ranking is based on a source as determined by us from time to time. For the latest details, please visit www.aia.com.hk/en/products/save/global-flexi.
Extended grace period for premium payments
Circumstances can change and you may encounter an unexpected issue that impacts on your finances. If one of the specified events occurs during the premium payment term of your basic policy, you can claim the Extension of Grace Period Benefit (not applicable to one-time premium payment). These specified events also include hospitalisation in Hong Kong or Macau for at least 180 consecutive days as well as consultations with psychiatrist and / or clinical psychologist in Hong Kong or Macau for at least 6 visits within 180 days, offering even greater support when you need it most. If we approve your application for this benefit, we will extend the grace period for late premium payment from 31 days to up to 365 days, giving you greater financial flexibility while maintaining the policy and protection for the insured. The Extension of Grace Period Benefit can be claimed once only.
For more details on the Extension of Grace Period Benefit, please refer to “Cover at a glance” in this brochure.
Corporate owned policies
We accept policy applications from corporations. A corporation may apply for GlobalFlexi Savings Insurance Plan as part of their financial planning or to offer as an employee benefit, naming an employee as the insured. If the named employee leaves the company, the Change of Insured Option can be exercised to designate another employee as the new insured (subject to our prevailing rules and conditions and our approval). That way, the policy can continue to be effective and the policy value will not be impacted by changes in workforce within a corporation.
Add-on cover for extra protection
(Not applicable to corporate owned policy and one-time premium payment)
You may select an add-on plan, under which we will waive all future premiums of your GlobalFlexi Savings Insurance Plan if the insured becomes totally and permanently disabled before the age of 60, providing support in difficult circumstances.
In addition, you may also select the Payor Benefit Rider. If you pass away or suffer total and permanent disability before the age of 60, we will waive the future premiums of your GlobalFlexi Savings Insurance Plan until the insured reaches the age of 25.
Cover at a glance
♣ Macau pataca (MOP) is only available for policies issued in Macau.
# Currency Exchange Option was pioneered by AIA in the Global Power Multi-Currency Plan on 1 June 2021.
^ As of 23 June 2025, compared with savings insurance products provided by Hong Kong major insurance companies.
* First-in-market refers to the Beneficiary Flexi Option’s specific feature where the policy owner allows the beneficiary to choose to receive the death benefit payment in accordance with the beneficiary’s selected settlement option when the beneficiary has attained the Designated Age chosen by the policy owner or when the beneficiary is diagnosed with a Specified Illness under Beneficiary Flexi Option. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the FlexiAchiever Savings Plan on 8 January 2025.
+ First-in-market refers to the Health Impairment Option’s specific feature where the policy owner can designate up to 2 different designated recipients and elect for both benefit payment and transfer of ownership under this option at the same time. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA in the Wealth Generation on 23 June 2025.
^ If the insured passes away after your chosen first instalment payment date, the first instalment payment of death benefit and accidental death benefit (if any) will be paid immediately after the death claim is approved. If the insured passes away after your chosen beneficiary’s age to receive the last instalment payment, the death benefit and accidental death benefit (if any) will be paid immediately after the death claim is approved in a lump sum.
## i.e. the city where the policy owner lives or intends to live for 185 days or more in policy year and which is shown as the place of residence of the policy owner in our records.
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.
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 or surrender, 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 reversionary bonuses, and terminal bonuses (if applicable) 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 and any other insured benefits under the insurance plan.
Surrenders: include the behaviours of cash withdrawals, policy surrenders, partial surrenders and policy lapses of the policies of this plan and the participating policies of other similar plans or similar groups of policies as determined by us; 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).
Some participating insurance plans allow the policy owners to place their annual dividends, guaranteed and non-guaranteed cash payments, guaranteed and non-guaranteed incomes, guaranteed and non-guaranteed annuity payments, and / or bonus and terminal dividend lock-in accounts with us, earning interest at a non-guaranteed interest rate. To determine such non-guaranteed interest rate, we consider the returns on the pool of assets in which these amounts 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 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 | 20%-100% |
| Growth assets | 0%-80% |
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 thanthe 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 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 non-guaranteed cash value of Reversionary Bonus (if any) of the basic policy, the policy will be terminated and you will lose the cover. The surrender value of the policy will be used to repay the loan balance, and we will return to you 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. For one-time premium payment policy, they are subject to higher investment return volatility and thus are expected to have higher volatility on the bonuses payable, as compared to policies with a 5-year premium payment term which can benefit from cost averaging effect.
4. You may apply in writing to withdraw part or all of the Reversionary Bonus (if any) and the corresponding cash value of the Terminal Bonus (if any) we have declared for your policy, or to partial surrender your policy to receive part of the guaranteed cash value and the corresponding cash value of the Terminal Bonus (if any). While such cash withdrawal options offer flexibility, they will reduce the value of your policy and the sustainability and potential growth of the value of your policy. Any repeated withdrawals may not be sustainable in the long term and which may cause you to lose the cover. Before your policy application, you may request for benefit illustrations with specific withdrawal amounts reflected to understand any potential financial impact on you.
5. 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:
• the insured passes away, except when the contingent insured becomes the new insured;
• 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 and the policy has no cash value (only applicable for a 5-year premium payment policy);
• 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 sum of guaranteed cash value and the non-guaranteed cash value of the Reversionary Bonus (if any) of the basic policy.
6. 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.
7. 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.
8. In case the policy currency is changed under the Currency Exchange Option, by exchanging your plan (i.e. GlobalFlexi Savings Insurance Plan) to the latest plan available for exchange under the GlobalFlexi Series at the time of when you exercise the option, the adjustments on policy value may be significant (either increase or decrease) and the amount of policy value after exercising the Currency Exchange Option may be considerably less than the total amount of premiums paid. Any future premiums will be adjusted if the Currency Exchange Option is exercised within the premium payment term. The approval of Currency Exchange Option’s application and the availability of currency for selection at the time of exercising the Currency Exchange Option will be subject to the prevailing laws and regulations, and our prevailing rules and conditions.
Please note that there could be a material difference between your plan and the latest plan available for exchange under the GlobalFlexi Series at the time when you exercise the Currency Exchange Option. Material difference includes but not limited to:
• product features (such as benefits, options, policy terms and conditions, product risks and limitations, investment strategy, target asset mix and relevant investment return and limitation); and
• the availability of Currency Exchange Option, and in a worst case scenario, it may only be a one-time option under your current plan depending on the features of the new plan after exchange.
You shall not purchase this product solely for the Currency Exchange Option.
Please carefully evaluate the difference between the current plan and the latest plan under the GlobalFlexi Series available for exchange when you exercise the Currency Exchange Option and consider whether the latest plan suits your needs.
9. When applying for the Bonus Unlock Option, a new benefit illustration must be signed and the application cannot be withdrawn once submitted. After exercising the Bonus Unlock Option, the unlocked part will be subject to the risk of higher investment return volatility because the latest value in the Bonus Lock-in Account will be unlocked as non-guaranteed Reversionary Bonus and non-guaranteed Terminal Bonus. The cash value of Reversionary Bonus, cash value and face value of Terminal Bonus may be adjusted in our subsequent declarations of the bonuses and the amount in each declaration may be greater or less than the previous declared amount based on a number of factors, including but not limited to investment returns and general market volatility. Even if you are dissatisfied with the investment return after exercising the Bonus Unlock Option, the unlock amount which is transferred as Reversionary Bonus and Terminal Bonus cannot be reversed to the original value under the Bonus Lock-in Account. You may apply for the Bonus Lock-in Option again at least 1 year later and such action cannot offset any loss you may suffer after exercising the Bonus Unlock Option.
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. As the cash value of Reversionary Bonus is non-guaranteed, there may be a risk of overloan when there is adjustment on the cash value of Reversionary Bonus. Loan repayment within one month is required when there is an overloan, otherwise your policy will be terminated and you or the insured will lose the cover.
Note for Health Impairment Option
• All designations made by you under the Health Impairment Option will be automatically revoked when one of the following happens (unless such actions (ii) to (iii) below have been made pursuant to this option):
(i) we are notified of the death of the insured;
(ii) any change of policy owner or the insured of the policy; or
(iii) exercising any of the benefits or options of the policy or withdraw any policy value from the policy which triggers a reduction of the principal amount of the policy.
• The Health Impairment Option will be cancelled and revoked when one of the following happens:
(a) we are notified or become aware that the policy owner has been adjudged bankrupt or bankruptcy proceedings have been initiated against the policy owner; or
(b) we are notified or become aware that there is a guardian or committee appointed under the Mental Health Ordinance (Cap. 136 of the Laws of Hong Kong or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued) or an attorney appointed by the policy owner pursuant to an enduring power of attorney covering the policy (except if we have received the written consent of such guardian, committee or attorney (as the case may be) for us to make the benefit payment to the designated payment recipient and / or to make the ownership transfer to the designated ownership recipient).
Prior to the occurrence of any of the above events (a) and (b), if we have already paid the benefit payment to the designated payment recipient or if we have already made the ownership transfer to the designated ownership recipient pursuant to this option, such payment or ownership transfer shall not be cancelled or reversed, and we shall not be liable to the policy owner, the designated ownership recipient, the designated payment recipient, the beneficiary(ies), guardian, committee, attorney and / or any other person as a result of payment or ownership transfer made under this option.
• We have the right to revoke the designation of the designated payment recipient or the designated ownership recipient, or to withhold or reject the payment or transfer of ownership under this option, if such designation or payment or transfer of ownership may constitute a breach of or conflict with any law or may render us to incur or potentially incur any liability.
• If there is (or in our reasonable belief there is) a dispute between the designated payment recipient, designated ownership recipient, beneficiary(ies), guardian, committee, attorney and / or any other person, we have the right to withhold the payment or transfer of ownership under this option until such dispute or matter is resolved to our satisfaction.
• Once we have paid the benefit payment to the designated payment recipient or we have made the ownership transfer to the designated ownership recipient in the event the policy owner is diagnosed with a Specified Illness under Health Impairment Option or as a permanent mentally incapacitated person, such payment or ownership transfer cannot be cancelled or reversed even if the policy owner subsequently recovered from such illness.
• “Specified Illness under Health Impairment Option” means any of the following illnesses: Apallic Syndrome, Coma, and any other illnesses which we may determine at our discretion from time to time as set out in our prescribed form.
• “Apallic Syndrome” means universal necrosis of the brain cortex with the brainstem remaining intact. A definite diagnosis of apallic syndrome must be confirmed by a registered medical practitioner who is a neurologist, and the condition must be medically documented for at least one month.
• “Coma” means a state of unconsciousness with no reaction or response to external stimuli or internal needs, which is associated with a permanent neurological deficit, persists continuously for at least 96 hours, and requires the use of a life support system. The Coma must be diagnosed and confirmed by a registered medical practitioner who is a neurologist. Irrespective of the above, Coma resulting directly from self-inflicted injury, alcohol or drug mis-use is excluded.
• A “mentally incapacitated person” means a person who is incapable, by reason of mental incapacity (as defined under the Mental Health Ordinance, Cap. 136 Laws of Hong Kong SAR or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued), of managing and administering his / her property and affairs. The diagnosis must be supported by 2 registered medical practitioners who are psychiatrists or neurologists (or proof provided pursuant to applicable laws which is acceptable to us).
Key Exclusions to Accidental Death Benefit
Accidental Death Benefit will not cover any conditions that directly or indirectly result from any of the following:
• self-destruction while sane or insane, participation in a fight or affray, being under the influence of alcohol or a non-prescribed drug
• war, service in armed forces in time of war or restoration of public order, riot, industrial action, terrorist activity, violation or attempted violation of the law or resistance to arrest
• racing on wheels or horse, participation in scuba diving
• ptomaines or bacterial infection (except pyogenic infection occurring through an accidental cut or wound)
• air travel, including entering, exiting, operating, servicing or being transported by any aerial device or conveyance (except as a passenger of a commercial passenger airline on a regular scheduled passenger trip over its established passenger route)
The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.
Key Exclusions to the Terminal Illness Benefit
No Terminal Illness Benefit will be paid if:
• the signs or symptoms of which first occur or commence on or before 90 days from issue date or commencement date of the policy (whichever is later); or
• any dates of the Terminal Illness Period (i.e. the 12-month period commencing from the date of the second certification of the terminal illness made by the Company’s appointed registered medical practitioner) falls on or after the policy anniversary on or immediately following the insured’s 85th birthday; or
• the terminal illness is a pre-existing illness, disease, impairment or condition from which the insured was suffering prior to the policy being issued or being reinstated (if applicable), whichever is later, unless the insured makes a declaration in the application for the policy or in the application for reinstatement of the policy (as applicable), and such application is specifically accepted by us; or
• the terminal illness is the result of or is related (directly or indirectly) to Acquired Immunodeficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV) according to the Company’s opinion; or
• the terminal illness is due (directly or indirectly) to a congenital defect or disease which manifests or is diagnosed before the insured attains the age of 17; or
• the terminal illness is the result of self-inflicted injury or injuries; or
• the terminal illness is the result of any physical or mental condition existing before the policy was issued or being reinstated (if applicable), whichever is later, and which was not disclosed in any application or in any health statement relating to the policy (as applicable) before the commencement of cover or reinstatement of the policy (as applicable); or • the diagnosis of terminal illness is made in any hospital in mainland China which is not one of the designated hospitals in mainland China. Regarding the designated hospitals in mainland China, please visit the Company’s website (www.aia.com.hk) for retrieval of the most current hospital list. The list of designated hospitals in mainland China may be varied, updated and amended from time to time at the Company’s discretion, and any change shall be deemed as effective on the date of publication on the Company’s website irrespective of whether any separate notice is given.
The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.
Note for Extension of Grace Period Benefit
The Extension of Grace Period Benefit will cease on the earliest of the following dates:
i. at the end of Extended Grace Period;
ii. in the case of involuntary unemployment, you fail to provide proof of continuous status of unemployment upon our request;
iii. the date we approve a change of ownership of the policy;
iv. the date on which any claims for waiver of premium under your basic policy is approved;
v. the date on which your basic policy is fully paid up (meaning that the basic policy is providing coverage without any further required premiums);
vi. 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
vii. 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 be eligible for a severance payment upon termination under the employment or labour laws of Hong Kong or Macau (according to the place of policy issuance) 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. 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 within the specified time period with the required documentary proof.
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 the 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 1 year from the date on which the policy takes effect, our liability will be limited to the refund of premiums paid (without interest) less all amount you owe us and any outstanding debt.
After exercising the Change of Insured Option or upon the contingent insured becoming the new insured, if the new insured commits suicide within 1 year from the effective date of change as recorded by us, our liability will be limited to (i) the refund of premiums paid (without interest) or (ii) the sum of guaranteed cash value, cash value of Reversionary Bonus (if any), cash value of Terminal Bonus (if any), the remaining balance of the Value Safeguard Account (if any) and the Bonus Lock-in Account (if any), whichever is higher, calculated as at the date the new insured passes away. We will deduct all amount you owe us and any outstanding debt before making such payment.
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. After exercising the Change of Insured Option or upon the contingent insured becoming the new insured, such two-year period will be counted again starting from the effective date of change as recorded by us.
Warning Statement and Cancellation Right (Applicable to Principal Policy)
GlobalFlexi Savings Insurance Plan is an insurance plan with a saving 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.
KEY FACTSHEET
Key Features
Policy Values
The policy values include guaranteed cash value and non-guaranteed bonuses (Reversionary Bonus and Terminal Bonus).
Death Benefit and Accidental Death Benefit
Payment of a death benefit if the insured dies (provided no named and surviving contingent insured becomes the new insured), which is the higher of (i) the sum of guaranteed cash value, and the latest face values of any non-guaranteed Reversionary Bonus and Terminal Bonus, and (ii) 105% of the total premiums paid or one-time premium paid (as applicable) for the basic plan. The death benefit also includes the remaining balance in the Value Safeguard Account (if any) and in the Bonus Lock-in Account (if any).
Payment of an accidental death benefit equivalent to 100% of the total premiums paid or one-time premium paid (as applicable) for the basic plan, if the insured dies due to a covered accident within the first policy year (provided no named and surviving contingent insured becomes the new insured), subject to the limit that no more than US$100,000 or HK$/MOP750,000 can be claimed for accidental death benefit with respect to the same insured under all GlobalFlexi Savings Insurance Plan policies.
Flexi Withdrawal Option
After the later of (i) the end of the 5th policy year and (ii) the end of the premium payment term, you may apply to set up instruction to withdraw policy values from your policy on a regular basis during a period specified by you and to designate a recipient to receive such withdrawal payments.
Value Safeguard Option
Starting from the end of the 6th policy year, you may apply to withdraw certain amount of policy values and transfer the amount into a Value Safeguard Account to earn non-guaranteed interest. Withdrawal of policy values for transfer to the Value Safeguard Account may trigger partial surrender, whereas part or all of the amount in a Value Safeguard Account can be withdrawn at any time without surrendering the policy.
Bonus Lock-in Option and Bonus Unlock Option
Within 30 days after the end of a policy year starting from the end of the 15th policy year, you may apply to exercise the Bonus Lock-in Option once per policy year by transferring an identical percentage of the non-guaranteed Reversionary Bonus and Terminal Bonus into a Bonus Lock-in Account to earn non-guaranteed interest. Part or all of the amount in a Bonus Lock-in Account can be withdrawn at any time without surrendering the policy.
Within 30 days after the end of a policy year starting from 1 year after you have exercised the Bonus Lock-in Option, you may apply to exercise the Bonus Unlock Option once per policy year by unlocking a certain amount of the latest value of the Bonus Lock-in Account as non-guaranteed Reversionary Bonus and non-guaranteed Terminal Bonus.
Policy Split Option
Starting from the later of (i) the end of the premium payment term of your basic policy and (ii) the end of the 1st policy year, option to split the policy into 2 policies each with a smaller principal amount by transferring certain policy values of the policy to a separate policy. Your guaranteed and non-guaranteed policy values will also be split in proportion to the split principal amount.
Currency Exchange Option
Starting from the end of the 2nd policy year and within 30 days after the end of a policy year, you may apply once per policy year to switch your policy currency to one of the following 9 different currencies, including Renminbi (RMB), British pound sterling (GBP), US dollar (US$), Australian dollar (AUD), Canadian dollar (CAD), HK dollar (HK$), Macau pataca (MOP; only for policies issued in Macau), Euro (EUR) and Singapore dollar (SGD), by exchanging your GlobalFlexi Savings Insurance Plan policy for the latest plan under the GlobalFlexi Series which we offer in the new policy currency at the time of currency exchange.
Terminal Illness Benefit
If the insured is expected to pass away within 12 months due to a terminal illness, as confirmed by both the registered medical practitioner in the appropriate medical specialty and the Company’s appointed registered medical practitioner, a one-off advance payment will be paid as Terminal Illness Benefit to you. If such benefit is paid, no death benefit will be paid and all benefits under your basic policy will cease. The Terminal Illness Benefit will end upon the policy anniversary on or immediately following the insured's 85th birthday.
Health Impairment Option
You may designate up to 2 family members aged 18 or above as designated recipients and the applicable designated percentage of policy value for benefit payment and / or ownership transfer. If you are diagnosed as a permanent mentally incapacitated person or become unconscious for a certain period due to a Specified Illness under Health Impairment Option, a designated recipient may in accordance with your instructions and based on your designated percentage of policy value (i) receive a lump sum benefit payment; or (ii) become the policy owner of part or all of your policy; or (iii) receive a lump sum benefit payment and become the policy owner of part of your policy.
We will deduct all amounts you owe us under your policy before we make any payments under your policy.
Key Product Risks
1. Investment Risks
Investment returns are inherently uncertain, where 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 the plan’s 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.
2. Termination
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 if (i) the insured passes away (except when the contingent insured becomes the new insured); (ii) 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; (iii) any benefit is paid under the basic plan or add-on plan which triggers termination of the policy; or (iv) the outstanding debt exceeds the sum of guaranteed cash value and the non-guaranteed cash value of the Reversionary Bonus.
3. Withdrawal and / or Partial Surrender
If the withdrawal amount consists of the cash value of any Reversionary Bonus and corresponding cash value of any Terminal Bonus, it will lead to reduction of the cash values and face values of the Reversionary Bonus and Terminal Bonus, and that any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. If the withdrawal amount consists of part of the guaranteed cash value and the corresponding non-guaranteed cash value of Terminal Bonus will reduce the principal amount of your policy. The subsequent guaranteed cash value, face value and cash value of the Terminal Bonus and the total premiums paid or one-time premium paid (as applicable) for the basic plan will all be reduced based on the reduced principal amount. Any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. This will reduce the death benefit and the surrender benefit. Withdrawal from the policy will reduce the value of your policy as well as its sustainability and potential growth. Any repeated withdrawals may not be sustainable in the long term and which may cause you to lose the cover.
4. Bonus Lock-in Option / Bonus Unlock Option
After exercising the Bonus Lock-in Option, any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. After exercising the Bonus Unlock Option, the unlocked part will be subject to the risk of higher investment return volatility because the latest value in the Bonus Lock-in Account will be unlocked as non-guaranteed Reversionary Bonus and Terminal Bonus.
5. Currency Exchange Option
The application to exercise the Currency Exchange Option will be subject to the prevailing laws and regulations, our prevailing rules and conditions and our approval. If the policy currency is changed under the Currency Exchange Option, the adjustments on policy value may be significant (either increase or decrease) and the amount of policy value after exercising the Currency Exchange Option may be considerably less than the total amount of premiums paid. Any future premiums will be adjusted if the Currency Exchange Option is exercised within the premium payment term. There could be a material difference between your plan and the latest plan available for exchange under the GlobalFlexi Series when you exercise the Currency Exchange Option and in a worst case scenario, Currency Exchange Option may only be a one-time option under your current plan depending on the features of the new plan after exchange. Please carefully evaluate the difference between the current plan and the latest plan under the GlobalFlexi Series available for exchange when you exercise the Currency Exchange Option and consider whether the latest plan suits your needs.
6. Health Impairment Option
The Health Impairment Option will be cancelled and revoked if: (a) we are notified or become aware that the policy owner has been adjudged bankrupt or bankruptcy proceedings have been initiated against the policy owner; or (b) we become aware that there is a guardian or committee appointed under the Mental Health Ordinance (Cap. 136 of the Laws of Hong Kong or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued) or an attorney appointed by the policy owner pursuant to an enduring power of attorney covering the policy (except if we have received the written consent of such guardian, committee or attorney for us to make the benefit payment and / or ownership transfer). Once benefit payment or ownership transfer has been made under this option, such payment and ownership transfer cannot be cancelled or reversed.
7. Overloan
As the cash value of Reversionary Bonus is non-guaranteed, there may be a risk of overloan when there is adjustment on the cash value of Reversionary Bonus. Loan repayment within 1 month is required when there is an overloan, otherwise your policy will be terminated.
This Key Factsheet only provides a general overview. This Key Factsheet should be read along with the product brochure which provides further details and important considerations about this product.
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.
- 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. reversionary bonus, 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.
- 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 reversionary bonus and terminal bonus you will receive. Under some circumstances, the non-guaranteed benefits may be zero.
4. Risk relating to RMB insurance products – The value of RMB is subject to the fluctuation of its exchange rate. There may be exchange rate loss suffered by you due to such fluctuation if you convert RMB into other currencies (including Hong Kong Dollars).
[For personal customer] – RMB is currently not completely freely convertible. Personal customers can be offered to conduct conversion of RMB by the bank using offshore rates and may occasionally not be able to do so fully or immediately as it is subject to the RMB position and market conditions at that time.
[For corporate customer] – RMB is currently not completely freely convertible. Corporate customers can be offered to conduct conversion of RMB by the bank using offshore rates or onshore rates depending on the objective of conversion and may occasionally not be able to conduct fully or immediately as it is subject to the RMB position and market conditions at that time.
You should understand and consider the possible impact on the liquidity of RMB funds. The exchange rate for the offshore RMB market in Hong Kong may be at a premium or discount when compared to the onshore market in People’s Republic of China and there may be significant bid and offer spreads.
