Life Insurance Products

To stand well across every stage of life calls for more than wealth alone — it calls for a plan that stays with you and channels what you have built to your loved ones, when the time comes.

Wealth Elite Life Insurance Plan 3 is a participating whole-life insurance plan, established from the outset to endure across a lifetime — quietly safeguarding those who matter most.

With Wealth Elite Life Insurance Plan 3, lifelong protection is balanced with flexible policy options, enabling you to stay confident at every stage of your life. Together with a choice of legacy planning options, it helps safeguard the financial wellbeing of your loved ones.

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

 



Important Information

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

This brochure is for distribution in Hong Kong only.

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 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 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 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.

In addition, a Participating Business Committee has been established according to applicable regulatory requirements. The Participating Business Committee operates independently and reports directly to the Board of Directors, and at least half of its members are independent of the Company. It provides independent and objective opinions to the Board of Directors on key matters related to the Company’s management of the participating business1, such as the determination of bonus amounts and the allocation of divisible surplus between policy owners and shareholders. To support informed decision making by the Board of Directors, the opinions of the Participating Business Committee will take into account the principle of fair treatment of policy owners, and the equitable balance between policy owners and shareholders and among different groups of policy owners. The members of the Participating Business Committee have a range of skills, knowledge and relevant experience to discharge their duties as members of the committee.

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.

Note:
1. According to applicable regulatory requirements, the Participating Business Committee will provide independent and objective opinions to the Board of Directors on the following key matters related to the Company's management of the participating business: (a) whether the level of bonuses provided in the benefit illustration is clear, fair and reasonably achievable; (b) the policy and mechanism for allocation of divisible surplus and bonuses declaration mechanism (including smoothing mechanisms), taking into account reasonable expectations of policy owners (including but not limited to their expectations relating to reasonable achievement of bonuses), fairness, equity and sustainability; (c) fairness, equity and reasonableness in allocation of expenses and charges (if applicable) to and within participating funds;(d) the risk and investment profile of participating funds, including the appropriateness of the risk appetite and risk level taken, the management and reasonable balance of risk and return etc.; (e) the impact of management actions planned or implemented (if any); (f) the Company's strategy for future sales of insurance policies in participating business and their impact on surplus (if any); (g) the use, purpose and terms of shareholder capital support to a participating fund (if any); (h) the Company's communications with existing and potential policy owners relating to the participating business, including fairness and transparency of disclosed information (such as information relating to risks and benefits) which may affect policy owners' decisions; and
(i) other issues which the Company or the Participating Business Committee considers appropriate in relation to the Company's management of its participating business (if any).

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:

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

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

Our general currency strategy is to minimise currency mismatches for bonds and other fixed income instruments. For these investments, our current practice is to endeavour to currency-match asset purchases with the currency of the underlying policy (e.g. US Dollar assets will be used to back US Dollar insurance plans). However, subject to market availability and opportunity, bonds or other fixed income instruments may be invested in a currency other than the currency of the underlying policy and currency swaps may be used to minimise the currency risks. Currently assets are mainly invested in US dollar. Growth assets may be invested in a currency other than the currency of the underlying policy and the selection of the currency is made according to our investment philosophy, investment objectives and mandate.
We will pool similar participating insurance plans for investment to determine the return and we will then allocate the return to specific participating insurance plans with reference to their target asset mix. Actual investments (e.g. geographical mix, currency mix) would depend on market opportunities at the time of purchase, hence may be different from the target asset mix.

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


Key Product Risks

1. 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.
2. You may apply in writing to partial surrender your policy to receive part of the guaranteed cash value and the corresponding non-guaranteed cash value of the Terminal Bonus (if any), but which will lead to a reduction of the sum assured of your policy. 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 / the insured 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.
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;
   • any benefit is paid under the basic plan that triggers termination of the policy; or
   • the outstanding debt exceeds the guaranteed cash value of the basic policy.
4. 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.
5. 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 as a result of exchange rate fluctuations. You should consider the exchange rate risks and decide whether to take such risks.
6. 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.
7. “Pre-underwriting Option” is not a product feature and it is not guaranteed to be offered. Application for the Pre-underwriting Option is subject to our approval, our prevailing rules and conditions and the insured’s underwriting result including health assessment. If we approve your application for the Pre-underwriting Option, it will only be available and valid for 36 months from the date of our approval. This option and any remaining approved pre-underwriting limit under this option will be terminated upon product closure of Wealth Elite Life Insurance Plan 3. Any approved pre-underwriting limit for the insured under this option cannot be transferred or carried forward to any existing or new AIA policies or products. Pre-underwriting Option does not represent any additional life protection amount recommended by sales intermediary nor AIA, and customers are reminded to select and purchase suitable life protection amount based on their own financial needs.

• 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 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 sum assured of the policy.
  If the designations made by you under the Health Impairment Option have been revoked, we will reject all applications for benefit payment and ownership transfer received by us and which are in progress. If ownership transfer or benefit payment has already been made before we are notified of the death of the insured, regardless of the date of death of the insured, the amount of the death benefit payable will be calculated by reference to the latest sum assured of the policy on the date of our approval of such payment.

• 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; o
  (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 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 for whatever reason, including 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 of the Laws of Hong Kong), 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).

Note for Pre-underwriting Option
Application for the Pre-underwriting Option is subject to the underwriting requirements determined by us from time to time. We have the right to reject application for this option if the insured’s medical underwriting result does not meet our requirements. If we approve your application for the Pre-underwriting Option, it will simplify the medical underwriting process for your subsequent applications for Wealth Elite Life Insurance Plan 3 policies, as the insured can undergo simplified medical underwriting by answering pre-set health questions. The insured must answer the health questions truthfully. If the insured does not answer the health questions truthfully or fails to disclose or withholds any pre-existing health conditions, the approval of the policy application or any future claims of the policy will be affected. If the insured does not pass the pre-set health questions, the insured will need to undergo full medical underwriting. Under the Pre-underwriting Option, except for medical underwriting, all other requirements and limits of the policy application shall remain unchanged.

The approved pre-underwriting limit will expire after 36 months from the date of our approval of your application for the Pre-underwriting Option. The Pre-underwriting Option and any remaining approved pre-underwriting limit under this option will be terminated when there is product closure of Wealth Elite Life Insurance Plan 3. We will give you a written notice 30 days before product closure of Wealth Elite Life Insurance Plan 3.


Important Notes for Policy Reverse Mortgage Programme (“PRMP”)
Please note that Wealth Elite Life Insurance Plan 3 is an eligible life insurance plan under PRMP, but it does not necessarily mean that your PRMP application will be approved. The eligibility of this product under the PRMP is based on the features of the product. You and your life insurance policy are still required to meet the eligibility criteria under PRMP before you apply for the policy reverse mortgage loan.

The general information provided by us on PRMP is for reference only, and you should not make any decisions based on such information alone. You should always seek for advice from professional bodies if you have any doubts. Please note that the information provided is subject to change including the eligibility criteria for PRMP. We do not take any responsibility to inform you about any changes and how they may affect you. The Policy Reverse Mortgage Programme is operated by HKMC Insurance Limited, a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited. For further information, please refer to The Hong Kong Mortgage Corporation Limited website: www.hkmc.com.hk.

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.

Incontestability
Except for fraud, 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.

Warning Statement and Cancellation Right (Applicable to Principal Policy)
Wealth Elite Life Insurance Plan 3 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.


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.
• 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. 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 terminal bonus you will receive. Under some circumstances, the non-guaranteed benefits may be zero.
  
  
  
  

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