The Bank of East Asia

Insurance, MPF & Trust

Underwritten by AIA International Limited


COMPREHENSIVE PROTECTION FOR YOUR CURRENT AND FUTURE NEEDS

Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift offers advanced multi-claim critical illness protection, along with specific cover for serious infectious diseases. Join AIA Vitality and receive an instant 10% extra cover for life protection or major illness benefit as well as an array of rewards and discounts that help you live a healthier lifestyle.

The emergence of unknown infectious diseases and unexpected critical illness can strike when you least expect it, placing a heavy financial burden on the whole family. What’s more, with life expectancy rising, there is now an even greater chance of suffering multiple critical illnesses. Without adequate financial support, hefty medical cost can disrupt your plans for their future.

To provide a safety net in the face of an uncertain future, Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift offers comprehensive cover for 115 illnesses. This is supplemented by multiple protection features, including cover for serious infectious diseases, like COVID-19*, as well as the Selected Critical Illness Shield Benefit, Cancer Treatment Flexi Option and family protection benefit.

First in the market, Protect Elite Ultra 3 – First Gift even accepts applications before the birth of a child to give your baby protection and savings from day one after birth, giving you a peace of mind even if congenital conditions and other critical illness strike. That way, you can equip your unborn child for whatever life brings and face the future with confidence – together.

* Applicable while COVID-19 is still a PHEIC according to the World Health Organization (WHO).

Plan Hightlights

^ Premium for the basic plan will be waived for the insured child until age 25.
* Applicable to Protect Elite Ultra 3 – First Gift only.


Critical illness protection · Life insurance

Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift is a participating insurance plan that offers life insurance, critical illness protection in lump sum payment and the opportunity to enhance your savings (for the exact benefits of Protect Elite Ultra 3 – First Gift, please refer to “Critical illness protection and savings from day one after birth”. This plan can be purchased as a basic plan. It provides all-round cover for 58 critical illnesses (including 57 major illnesses and 1 minor illness), 44 early stage critical illnesses and 13 severe child diseases, along with flexible support, in case cancer, heart attack or stroke strike multiple times. It also offers specific cover for any severe infectious disease which is a Public Health Emergency of International Concern (PHEIC) according to the World Health Organization (WHO).

Protect Elite Ultra 3 – First Gift is designed especially for parents-to-be who want to cover their unborn baby right after birth. Application can begin from the 22nd week of mother’s pregnancy to cover the baby, ensuring they have peace of mind against congenital conditions from birth, for true lifelong support throughout every stage. During gestation, the expectant mother as the insured will only be covered under the Compassionate Refund of Premium Benefit upon a miscarriage, stillbirth, a pregnancy termination that is recommended by a registered specialist doctor or the passing of both the mother and baby. Please note that she will not enjoy life insurance and / or critical illness protection. After the birth of baby, the child will become the insured and the mother will cease to be the insured. The child will be covered with benefits under Protect Elite Ultra 3, including life insurance, covered illnesses protection, Serious Infectious Disease Protection Benefit, Selected Critical Illness Shield Benefit, Cancer Treatment Flexi Option and Super Lifestage Option, for more details, please refer to “Critical illness protection and savings from day one after birth”. In the following sections, "insured", who is the person protected under the policy, (if any) generally refers to your insured child after birth:


If the worst should happen

If the insured passes away, we will pay the death benefit to the person whom you select in your policy as the beneficiary.

The death benefit will include:

  1. Current Sum Assured; and
  2. a one-off non-guaranteed cash amount (if any), called Terminal Bonus, provided that the policy has been in force for 5 years or more.

Current Sum Assured means the Sum Assured left after the deduction of all advance payment(s) made for the benefits for a major illness, minor illness, early stage critical illness, severe child disease and the Serious Infectious Disease Protection Benefit from the Initial Sum Assured. The Initial Sum Assured means the protection amount that you have purchased.

If the insured is diagnosed with any covered major illness, minor illness, early stage critical illness, severe child disease and / or meets the criteria for the Serious Infectious Disease Protection Benefit, we will pay:

  1. the benefit amount for the covered illness (see the Covered Illnesses Benefit Schedule); and
  2. the corresponding non-guaranteed Terminal Bonus (if any), provided that the policy has been in force for 5 years or more.

Except the Selected Critical Illness Shield Benefit and the Cancer Treatment Flexi Option, the claims payments made in total for benefits under the policy cannot exceed 100% of the Initial Sum Assured (excluding any Terminal Bonus). Any advance payment(s) made will reduce the Current Sum Assured of the basic policy. The premium, guaranteed cash value, and any Terminal Bonus will also be reduced accordingly. Once advance payments for covered illnesses reach 100% of the Initial Sum Assured, the Terminal Bonus will no longer be declared.

We will deduct all outstanding debt under your policy before making any claim payment.


Upgraded protection for the first 10 years

During the first 10 years of the policy, we will provide the Coverage Booster which is an additional one-off payment applicable to 58 critical illnesses (including 57 major illnesses and 1 minor illness) or the death benefit. The Coverage Booster is not affected by any advance payment for early stage critical illness, severe child disease and Serious Infectious Disease Protection Benefit.

The upgraded protection for the first 10 years under Protect Elite Ultra 3:

Insured's Age at Application Benefit
Age 30 or below Additional 50% of the Initial Sum Assured 
Age 31 or above Additional 35% of the Initial Sum Assured 

The upgraded protection for the first 10 years under Protect Elite Ultra 3 – First Gift could be an extra support after the birth of baby where they could receive an additional 50% of the Initial Sum Assured.

Subject to our underwriting decision at policy inception, we may offer you a conversion right for the Coverage Booster. Starting from the last year of the Coverage Booster effective period or the anniversary of your cover immediately following the insured’s 64th birthday (whichever is earlier), you can convert the remaining unpaid amount of the Coverage Booster into a whole-life or whole-life with critical illness protection insurance plan subject to additional premium, and no further health information will be required. Upon conversion, the Coverage Booster will be surrendered and the new converted plan will be dated as of the date of such surrender.


Serious Infectious Disease Protection Benefit

We will pay you an advance payment of 20% of the Initial Sum Assured# if the insured is diagnosed with a disease that is a PHEIC according to the WHO within 1 year after the diagnosis and he / she has stayed in the ICU for 3 or more consecutive days as a result of that disease.

# Subject to a maximum of US$50,000 per insured.


Selected Critical Illness Shield Benefit safeguards you time after time

Critical illnesses can unfortunately occur more than once in a lifetime. To enhance your protection, the upgraded Selected Critical Illness Shield Benefit and Cancer Treatment Flexi Option (see next page) provide flexible cover for cancer, heart attack and stroke. Total benefits under Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift may reach up to 500% of the Initial Sum Assured, providing long-term financial support to help ease your burden on the insured's road to recovery. 

Once you have claimed 100% of the Initial Sum Assured for any covered illness(es) (including both cancer and non-cancer covered illnesses), no further premium will be required. Subsequently, the Selected Critical Illness Shield Benefit will pay up to 4 additional claims in total for cancer (including a continuation, metastasis or recurrence of a previous covered cancer or a new covered cancer), heart attack or stroke, each for 100% of the Initial Sum Assured.

All 4 claims under the Selected Critical Illness Shield Benefit are subject to a survival period of 15 days from the date of diagnosis, as well as a waiting period. The waiting period will be 1 year, except where the previous and subsequent diagnoses are both for cancer, in which case the waiting period will be 3 years. Once you have made a claim for heart attack or stroke, each subsequent heart attack or stroke must be newly diagnosed (see below for details). If the last claim was made for an early stage critical illness, severe child disease, minor illness or Serious Infectious Disease Protection Benefit, no waiting period will be applicable.

The cover period of the Selected Critical Illness Shield Benefit is up until age 85 of the insured. 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, the benefit will only be payable 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.

* The waiting period will be 1 year, except where the previous and subsequent claim are both for cancer, in which case the waiting period will be 3 years. Each subsequent heart attack must be newly diagnosed and must relate to a separate cardiac incident with fresh diagnostic findings that meet the definition for a heart attack. Each subsequent stroke must be newly diagnosed and must relate to a separate cerebrovascular accident or incident producing new findings of new or increased neurological functional impairment that meet the definition for a stroke. Please refer to the policy contract for the definition of covered illnesses.


Cancer Treatment Flexi Option to meet your treatment needs

It is the unforeseen that always happens, cancer treatment costs may exceed expectations. If you need additional support, you may select the Cancer Treatment Flexi Option, which gives you the flexibility to speed up the next cancer claim under the Selected Critical Illness Shield Benefit by claiming 50% of the Initial Sum Assured, helping you meet urgent treatment needs.

Under the Selected Critical Illness Shield Benefit, there is a 3-year waiting period between previous and subsequent cancer diagnosis and a 1-year waiting period for other major illnesses. In order to meet your urgent treatment needs, the market-first Cancer Treatment Flexi Option lets you shorten the 3-year cancer waiting period to just 1 year, giving you extra flexibility to support treatment for the insured.

After just a 1-year waiting period^, if the insured is still suffering from cancer and is still receiving active treatment+ or end-of-life care**, you can opt to claim 50% of the Initial Sum Assured under the Cancer Treatment Flexi Benefit to help lighten your financial load when urgent treatment needs arise.

This option is available after a 1-year waiting period^, provided that the cover for the Selected Critical Illness Shield Benefit has not ceased. You may exercise this option twice whilst the policy is in force. Please note that if you make a claim under the Cancer Treatment Flexi Benefit, such payment will replace 1 pay-out under the Selected Critical Illness Shield Benefit. Hence, there will only be up to 2 payouts under the Selected Critical Illness Shield Benefit if this option is exercised twice, as illustrated in the diagram below. Your next claim under the Selected Critical Illness Shield Benefit (if any) will be available after 3 years for a cancer claim or 1 year for a heart attack or stroke claim, counting from the diagnosis date of the previous cancer claim under major illness benefit or the Selected Critical Illness Shield Benefit, regardless of whether the Cancer Treatment Flexi Option was exercised.

The cover period of the Cancer Treatment Flexi Option is up until age 85 of the insured. This benefit is subject to a survival period of 15 days.

 

^ 1-year waiting period following a preceding cancer diagnosis (if the previous cancer payment was made under major illness benefit or the Selected Critical Illness Shield Benefit) or from the date we receive your claim notice under the Cancer Treatment Flexi Option (if the previous cancer payment was made under
the Cancer Treatment Flexi Option).
+ Active treatment means the full course of cancer-directed surgery, radiotherapy, chemotherapy, targeted therapy or a combination of these treatments (excluding hormonal therapy), which is medically necessary.
** End-of-life care means any treatment in hospital or a registered hospice specifically to relieve cancer symptoms in which the cancer is progressing due to lack of available treatment to cure or control the cancer.
* Please note that such payment will replace 1 pay-out under the Selected Critical Illness Shield Benefit. Hence, there will only be up to 2 pay-outs under the Selected Critical Illness Shield Benefit after 2 pay-outs under the Cancer Treatment Flexi Benefit.
# The next claim under the Selected Critical Illness Shield Benefit (if any) will be available after 3 years for a cancer claim or 1 year for a heart attack or stroke claim, counting from the diagnosis date of the previous cancer claim under major illness benefit or the Selected Critical Illness Shield Benefit, regardless of whether the Cancer Treatment Flexi Option was exercised.


Extended cover for your loved ones

Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift could help you extend a safety net over your loved ones - with no health information required. If the parent of an insured child or the spouse of an insured adult passes away before the age of 80, we will activate the Waiver of Premium on Death (Parents) or the Waiver of Premium on Death (Spouse) (see below), which waives the future policy premiums to lighten your burden, without affecting your protection and policy values.

These benefits, which come with the basic policy, will become effective once the policy has been in force for 2 years, provided that the parent of an insured child or the spouse of an insured adult is at or below the age of 50 at the time of policy application.

To give you more flexibility, if there is a change in your family status, you may reassign a new family member who is at or below the age of 50 as the policy owner, contingent owner (if any) or beneficiary any time while the policy is in effect. The existing waiver of premium benefit will be suspended for a period of 2 years from the effective date of the relevant reassignment, after which it will resume, subject to the age and relationship requirements described above.


Super Lifestage Option to enhance your protection

You may need better life insurance protection when you enter another stage of life. Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift offers you an option to purchase an additional whole-life protection insurance plan without requiring further health information upon any of the following milestone events, subject to the choices of products then made available for the purpose of this option:

You may exercise the Super Lifestage Option under all applicable policies:

The Sum Assured of each additional whole-life protection insurance plan cannot exceed:

whichever is lower.

Eligibility of this benefit is subject to underwriting requirements determined by us from time to time.


Critical illness protection and savings from day one after birth (applicable to Protect Elite Ultra 3 – First Gift)

Give your child a head-start with the precious gift of critical illness protection and savings from birth, for secure foundations they can rely on for life. Simply take up Protect Elite Ultra 3 – First Gift during the pregnancy, which will immediately cover your unborn baby with 20% of the benefit amount for covered illnesses right after birth, with full cover commencing 90 days after the date of baby’s birth. Even if a congenital condition is discovered, your child will still be protected. Savings under the plan will also begin accumulating from the time they are in the womb – and continue growing with your child to provide support in adulthood. Please note that the baby’s birth certificate is required to be submitted by 14 days before the first policy anniversary. Otherwise, the policy will terminate on the first policy anniversary.

In the unfortunate event of a miscarriage, stillbirth, the passing of both the mother and baby, or a pregnancy termination that is recommended by a registered specialist doctor, you will receive 105% of the total premiums paid and the policy will terminate.

  Pregnancy stage After Birth
Insured person Mother Child
Miscarriage / stillbirth / undergoing of a pregnancy termination that is recommended by a registered specialist doctor Compassionate Refund of Premium Benefit equivalent to 105% of the total premiums paid under Protect Elite Ultra 3 - First Gift N/A
Covered illnesses  N/A
  • 20% of the covered illness benefits# within 90 days after birth; or
  • Full cover for covered illnesses# after 90 days after birth.
Death  Compassionate Refund of Premium Benefit equivalent to 105% of the total premiums paid under Protect Elite Ultra 3 - First Gift (only applicable for the passing of both the mother and baby) 
  • 20% of the death benefit within 180 days after birth; or
  • 100% of the death benefit after 180 days after birth.

# Please refer to the “Covered Illnesses Benefit Schedule” for details. 


Cover for undetected congenital conditions in children

The younger you are when your critical illness protection begins, the lower the premium and the longer the cover period you obtain. That is why parents usually buy insurance policies for their children. Undetected congenital conditions may remain undetected for years and could develop into a critical illness. However, policies often fail to cover diseases caused by congenital diseases. We provide your children with thorough cover for critical illnesses related to congenital diseases with symptoms which remain undetected at policy issue, and protecting your financial plans from any surprise discovery of a life-changing hereditary trait.


Continuous protection

Once claims for covered illnesses reach 100% of the Initial Sum Assured, the subsequent premiums of the basic policy will be waived. Add-on plans (if any) attached to the basic policy will remain in force and provide cover if their respective premiums continue to be paid.


Wealth accumulation for lifelong benefits

Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift offers guaranteed cash value to help you accumulate wealth.

Once the basic policy has been in force for 5 years, Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift also declares a non-guaranteed Terminal Bonus (if any) to you at least once per year that may grow your wealth. You may receive the Terminal Bonus when:

  1. you surrender the policy;
  2. the insured passes away; or
  3. we pay out the benefits for major illness, minor illness, early stage critical illness, severe child disease and / or the Serious Infectious Disease Protection Benefit (Terminal Bonus will be determined in accordance with the proportion of the benefits), other than the benefits pay out for the Selected Critical Illness Shield Benefit and / or the Cancer Treatment Flexi Option.

Terminal Bonus is a non-cumulative, non-guaranteed bonus, the amount of which is valid until the next declaration. The amount in each declaration may be greater or less than the previous amount based on a number of factors, including but not limited to investment returns and general market conditions.

Payment of the Terminal Bonus is not guaranteed. We determine the amount based on actual experience and it may vary based on the above. In the case of policy surrender, it may be less compared to other situations.

Please note that after the advance payments made in total for benefits under the policy reach 100% of the Initial Sum Assured, the policy will not provide any further Terminal Bonus.


Greater financial flexibility with 4 premium payment terms

Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift is denominated in US dollars. You can choose from 4 premium payment terms and enjoy life insurance and critical illness protection throughout the lifetime of the insured.

For Protect Elite Ultra 3:

Premium Payment Term Insured's Age at Application Benefit Term for Critical Illness
10 years 15 days to age 65 Lifetime Cover^
18 years 15 days to age 62
25 years 15 days to age 55
30 years 15 days to age 50

For Protect Elite Ultra 3 – First Gift:

Premium Payment Term Insured's Age at Application Benefit Term for Critical Illness
10 years Age 18 to age 45 with gestation period of 22nd week or above
  • Insured Mother:

    N/A

  • Insured Child:

    Lifetime cover^

18 years
25 years
30 years

^ Excluding 13 Severe Child Diseases, Osteoporosis with Fractures, Loss of Independent Existence, Selected Critical Illness Shield Benefit and Cancer Treatment Flexi Option. Please refer to the “Covered Illnesses Schedule” for details.

At the time of application, we determine the amount of premium based on the age of the insured under the chosen payment term (only applicable to Protect Elite Ultra 3), and the premium is not expected to increase with age. The premium of the basic policy is not guaranteed, and we reserve our right to review and adjust the premium from time to time (please refer to “Premium Adjustment” under Important Information for details).


AIA Vitality

Earn rewards for your healthy lifestyle.

AIA Vitality is a wellness programme which aims to reward customers to live a healthy lifestyle.

Purchase a selected AIA Vitality insurance product and be an AIA Vitality member1, instantly you will get 10% extra cover (known as AIA Vitality Power Up Coverage2) for life protection or major illness benefit, plus an array of rewards and discounts offered by our partners right from the start of your policy. As long as you keep up a healthy lifestyle, you an even enjoy a minimum 10% extra cover each year3.

Simply by being active in daily life and having a healthy diet, you can earn points and upgrade your status for more extra cover and rewards.


Enjoy AIA Vitality Power Up Coverage and lifestyle rewards

AIA Vitality rewards you with extra cover to encourage you to live a healthy life, so you can enjoy life with all-round protection in a smart way.

You can also enjoy a wide range of rewards6 under AIA Vitality and you can refer to www.aia.com.hk/aiavitality for more details.

AIA Vitality is not an insurance product that falls under the jurisdiction of the insurance regulation. Annual membership fee is required for joining7. For details related to the membership and membership fee, please visit “How to join” section under www.aia.com.hk/aiavitality.

Remarks:

  1. The applicants for AIA Vitality must be 18 years old or above and must be the insured of the in-force policy of an AIA Vitality selected insurance product.
  2. AIA Vitality Power Up Coverage is a percentage of Initial Sum Assured added for the sole purpose of computing the death benefit or the major illness benefit for once when it becomes payable. AIA Vitality Power Up Coverage is not applicable to Protect Elite Ultra 3 – First Gift. In all circumstances, the extra cover percentage will be calculated in accordance with the insured’s AIA Vitality Status achieved on each policy anniversary. The policy anniversary of AIA Vitality selected insurance products and AIA Vitality membership anniversary may not be the same. For details and offers of AIA Vitality selected insurance products, please visit www.aia.com.hk/aiavitality.
  3. To enjoy a 10% extra cover for life protection or major illness benefit each year, members must become Gold Members during their first year and maintain Gold Status from then on.
  4. Members will enjoy 15% extra cover in the subsequent year of policy renewal if they currently enjoy 10% extra cover and maintain the Platinum Status for 5 consecutive years.
  5. AIA Vitality Power Up Coverage percentage is in the range of 0% - 15%. After the 20th policy anniversary, the extra cover percentage the insured could get is taken from the snapshot of the AIA Vitality Power Up Coverage percentage (if any) as at the 20th policy anniversary. It would not be available if the AIA Vitality membership is terminated for any reason or the designated policy is converted to Reduced Paid-Up Insurance or Extended Term Insurance.
  6. AIA Vitality gives the member access to an array of rewards and discounts offered by our partners. For up-to-date information on each benefit, please visit www.aia.com.hk/aiavitality. Partners and benefits may vary at any time without prior notice.
  7. 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 AIA Vitality Power Up Coverage (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.
  8. Members can earn a total of 5,500 points after completing the AIA Vitality Health Review, Stressor Assessment, Exercise Assessment, Online Nutrition Assessment, Non-smoker’s Declaration and Sleep Assessment. Online assessments may change from time to time without prior notice.
  9. Members can earn up to 15,000 points a year for fitness activities including walking and visiting partner gym centres, etc.
  10. For the details of synchronising the step count with AIA Vitality, please visit www.aia.com.hk/aiavitality.

Important Note:

Members must log in AIA Vitality through “AIA Connect” mobile application (“Platform”). The Platform is available to use under certain mobile phone operating systems. Please refer to App Store (iOS) and Google Play (Android) for the latest system requirements. AIA gives no warranty on the compatibility or reliability of the Platform, and accepts no responsibility in the event that you are not able to earn or record points due to incompatibility between Platform and / or mobile phone operating systems and fitness devices / fitness-tracking mobile apps.

For the relevant terms and conditions, and the latest details of all assessments, point-earning activities, rewards and offers, please visit www.aia.com.hk/aiavitality.

  1. For up-to-date information on each benefit, please visit www.aia.com.hk/aiavitality. Partners and benefits may vary at any time without prior notice. All representations within this document made on behalf of AIA International Ltd have been thoroughly researched, and are verifiable by documentary evidence. Representations within this document made on behalf of our AIA Vitality partners are based upon information that AIA International Ltd has received from them, and such information has been provided to us along with an assurance from our AIA Vitality partners that it is accurate.
  2. The AIA Vitality Power Up Coverage is not applicable to Protect Elite Ultra 3 – First Gift. The AIA Vitality Power Up Coverage is not extended to any other policies unless it is specifically stated otherwise.
  3. The AIA Vitality Power Up Percentage is capped at 15% and floored at 0%.
  4. The Death Benefit or the Lump Sum Advance Payment for Critical Illness (as the case may be), the value of which is dependent on the Initial Sum Assured, may be increased.
  5. The insured has to be an AIA Vitality member in order to enjoy the AIA Vitality Power Up Coverage. There are other prerequisite, terms and conditions which dictate the availability of the AIA Vitality Power Up Coverage. Please refer to the policy contract for details.
  6. 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 AIA Vitality Power Up Coverage (if any) in the subsequent policy years.
  7. If the AIA Vitality member is insured by more than one policy or supplementary contract under the AIA Vitality Series, the AIA Vitality Power Up Coverage or AIA Vitality Insurance Premium Discount applied, as the case may be, should be calculated independently for each policy or supplementary contract. For the avoidance of doubt, AIA Vitality Power Up Coverage and AIA Vitality Insurance Premium Discount are mutually exclusive. Please check the illustration of each policy or supplementary contract to find out which one applies.
  8. Whether to apply for AIA Vitality is your / the insured’s own individual decision.
  9. Please note that any change / modification of structure or terms of AIA Vitality may possibly affect the accumulation of points, and therefore the AIA Vitality status and also the benefits under a Vitality policy (including without limitation, power up coverage).
  10. Please note that if an AIA Vitality member is insured by more than one policy or supplementary contract under the AIA Vitality Series, you / the insured is only required to pay the Vitality membership fee once annually to enjoy the related benefits.


Important Information

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

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

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

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


Dividend and Bonus Philosophy

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

Future investment performance is unpredictable. Through our smoothing process, we aim to deliver more stable Terminal Bonus payments by spreading out the gains and losses over a longer period of time. Stable Terminal Bonus payments will ease your financial planning. We will review and determine the Terminal Bonus amounts to be payable to policy owners at least once per year. The actual Terminal Bonus declared may be different from those illustrated in any product information provided (e.g. benefit illustrations). If there are any changes in Terminal Bonus against the illustration or in the projected future Terminal Bonus, such changes will be reflected in the policy anniversary statement.

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

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

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

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

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

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

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

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


Investment Philosophy, Policy and Strategy

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

Our investment policy aims to achieve the targeted long-term investment results and minimise volatility in investment returns over time. It also aims to control and diversify risk exposures, maintain adequate liquidity and manage the assets with respect to the liabilities.

Our current long-term target strategy is to allocate assets attributed to this product as follows:

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

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

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

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

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

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


Key Product Risks

  1. 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 or 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 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 equity-like assets. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments, you should note the target asset mix of the product as disclosed in this product brochure, which will affect the 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. 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 insured mother passes away but the insured child survives under Protect Elite Ultra 3 – First Gift);
    • you do not pay the premium within 31 days of the due date and the policy has no cash value;
    • the end of the benefit term if basic policy has been continued as a non-participating insurance plan;
    • the outstanding debt exceeds the guaranteed cash value of the policy. Where the premium is covered by a loan taken out on the policy automatically, the outstanding debt exceeds the guaranteed cash value of your policy;
    • the date of termination of pregnancy with loss or death of the fetus, whether occurring spontaneously or otherwise, and regardless of whether Compassionate Refund of Premium Benefit is paid (only applicable for Protect Elite Ultra 3 – First Gift); or
    • we do not receive the birth certificate of the new born baby 14 days before the first policy anniversary of the cover (only applicable for Protect Elite Ultra 3 – First Gift).

  4. The Coverage Booster will be terminated when one of the following happens:
    • when the claims payments made in total for benefits under the Coverage Booster reach the Coverage Booster Amount (50% of Initial Sum Assured for the insured’s age 30 or below at policy application or 35% of Initial Sum Assured for the insured’s age 31 or above at policy application);
    • at the end of the 10th policy year; or
    • when the basic plan is terminated or converted to a non-participating insurance plan.
  5. The Selected Critical Illness Shield Benefit and Cancer Treatment Flexi Option will be terminated when one of the following happens:
    • when the claims payments made in total for benefits under the basic policy (excluding the Coverage Booster) reach 500% of the Initial Sum Assured;
    • the payment of a total of 4 pay-outs under the Selected Critical Illness Shield Benefit and the Cancer Treatment Flexi Benefit;
    • at the anniversary of the cover immediately following the insured’s 85th birthday;
    • when the basic plan is terminated or converted to a non-participating insurance plan; or
    • the payment of 2 pay-outs under Cancer Treatment Flexi Benefit (only applicable for Cancer Treatment Flexi Option).

  6. The Waiver of Premium on Death (Parents) will be terminated when one of the following happens:
    • at the anniversary of the cover immediately following the insured’s 25th birthday;
    • for the policy owner, at the anniversary of cover immediately following the policy owner's 80th birthday; or
    • for the contingent owner, at the anniversary of cover immediately following the contingent owner's 80th birthday.

  7. The Waiver of Premium on Death (Spouse) will be terminated at the anniversary of cover immediately following 80th birthday of the spouse of the insured.

  8. The Super Lifestage Option will be terminated when one of the following happens:
    • at the anniversary of cover immediately following 60th birthday of the insured;
    • if claim is submitted to us or has been made under this policy (except for the Waiver of Premium on Death (Parents) and the Waiver of Premium on Death (Spouse)).

  9. If Public Health Emergency of International Concern is no longer valid due to any change at or made by the World Health Organization (including if the World Health Organization ceases to exist), from that point onward, we will choose at our option to either follow the last such declaration by the World Health Organization or any other equivalent declaration from other health organisations.

  10. 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.

  11. 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.

  12. 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.


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:

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 plan from time to time and adjust it accordingly at the end of each renewal period if necessary. During the review, we may consider factors including but not limited to the following:


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, the benefit will only be payable 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. Serious Infectious Disease Protection Benefit applies only if the insured stays in Intensive Care Unit due to the diagnosis of PHEIC disease for a Reasonable and Customary Hospital Confinement.

    "Reasonable and Customary Hospital Confinement” means: A confinement in hospital for illness which is medically necessary, where the admission of the insured, length of confinement, and medical services and treatment received during confinement:
    • are all in accordance with standards of good medical practice; and
    • do not exceed the usual standard for the treatment of similar illness at the location where such confinement takes place.

    For the above-mentioned “medically necessary” means that the medical services, diagnosis and / or treatments are:
    • delivered according to standards of good medical practice;
    • necessary; and
    • cannot be safely delivered in a lower level of medical care.

    Experimental, screening, and preventive services or supplies are not considered medically necessary.


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, by calling the AIA Customer Hotline (852) 2232 8968 in Hong Kong, or by visiting any AIA Customer Service Centre. For detail claim procedures, please refer to the Claim Procedure section in 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 (i.e. the expectant mother and the subsequently child in respect of Protect Elite Ultra 3 – First Gift) for a continuous period of two years from the date on which the policy takes effect. This provision does not apply to any add-on plan providing accident, hospitalisation or disability benefits.


Warning Statement and Cancellation Right

Protect Elite Ultra 3/ Protect Elite Ultra 3 – First Gift 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