Wealth Enrich

Life Insurance - Savings and Retirement Income

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

GROWTH IN PROSPERITY   BOOST YOUR WEALTH POTENTIAL

Wealth Enrich helps you accumulate wealth towards an even brighter future.

Financial security and wealth growth opportunities are of utmost importance when it comes to gaining prosperity and stability for your hard-earned wealth. On top of setting a solid foundation with life protection in place, you need to have your wealth accumulated in a way that can withstand the test of time.

With Wealth Enrich, you may enjoy whole life coverage with the added flexibility to make withdrawals and meet your changing needs, while paving the way towards a brighter future for the ones you love.

As you reach different milestones in life, Wealth Enrich keeps pace with your financial obligations, so you can focus on your capital accumulation goals over time. Besides providing you with the peace of mind to tap into wealth growth opportunities, Wealth Enrich also protects your loved ones via a death benefit, so that your legacy can be preserved for the next generation.

No matter what life brings, you can still focus on enjoying your future years without any hassle – thanks to the financial assurance provided for you and your family. 

(I) Tap into wealth growth opportunities

When you are at your peak, it is important to secure avenues to grow and enrich your financial well-being.

Wealth Enrich is a participating whole life insurance plan that covers the entire lifespan of the insured, who is the person protected under the policy. The plan provides you with guaranteed cash value, non-guaranteed Annual Dividends and non[1]guaranteed Terminal Dividend – all of which form your policy values to help you achieve guaranteed and potential gains for long-term wealth accumulation.

(II) Safeguard your returns with a tailored option

In the face of unpredictable market conditions, you need a smart and steady solution to capture the opportunities to gain desirable returns.

Through the Terminal Dividend Lock-in Option, Wealth Enrich enables you to realise potential returns by transferring the latest value of the Terminal Dividend into a Terminal Dividend Lock-in Account to earn interest at a non-guaranteed rate.

What’s more, you can withdraw cash from the Terminal Dividend Lock-in Account anytime without reducing the principal amount of your policy for further financial flexibility. With this safety net in place, the plan allows you to focus on future capital accumulation, while giving you the added flexibility you need to meet financial obligations throughout different stages of your life.

(III) Meet life’s changing needs with flexible withdrawals

With Wealth Enrich, you can withdraw your policy values in one go or make withdrawals flexibly according to your changing needs in the future. Come what may, you are provided with a reliable solution to protect the assets you endeavour to gain over the years, even amid challenging situations.

You may request to withdraw part of the guaranteed cash value, the non-guaranteed accumulated Annual Dividends with interest and the non-guaranteed Terminal Dividend. However, this will reduce the future values of your policy. After withdrawal, the principal amount of the policy and the one-time premium paid for the basic plan under the death benefit may be reduced.

Should the needs arise, you may also choose to withdraw all cash values in the policy. Upon such withdrawal, you will receive the sum of the guaranteed cash value, any non-guaranteed Annual Dividends that have accumulated with interest under the policy, any non-guaranteed Terminal Dividend, and any remaining balance of the Terminal Dividend Lock-in Account (if applicable) – followed by the termination of your policy.

We will deduct all outstanding debt under the policy before we make the payment for your withdrawal.

(IV) Preserve your legacy for your loved ones 

Life is full of twists and turns, which is why Wealth Enrich has been designed to meet your changing needs while protecting your loved ones. Through the Death Benefit, Accidental Death Benefit, Death Benefit Settlement Option, Change of Insured Option, and Contingent Insured Option, you can rest assured whichever life stage you are in and focus on wealth accumulation to set the tone for the future. What’s more, should the unfortunate occur, your loved ones can gain access to a reliable source of funds for their financial security.

Death Benefit

If the insured passes away and no contingent insured has become the new insured, we will pay the death benefit to the person whom you select in your policy as beneficiary.

Accidental Death Benefit

To ease your financial burden during unforeseen challenges, Wealth Enrich offers extra protection through an accidental death benefit. This is paid in addition to the above death benefit if the insured passes away due to a covered accident within the first 12 months of the policy and no contingent insured has become the new insured.

Death Benefit Settlement Option

Apart from a lump sum payment, the death benefit and accidental death benefit can alternatively be paid to your beneficiary in regular instalments by applying the Death Benefit Settlement Option during the lifetime of the insured, according to the specific benefit amounts to be paid at regular intervals chosen by you.

Change of Insured Option and Contingent Insured Option

During the lifetime of the current insured and after the end of the 1st policy year, the Change of Insured Option allows you to change the insured to another loved one, in whom you and the beneficiary have insurable interest. That way, the value of your policy can be inherited by later generations, helping you pass on your wealth with extra flexibility.

With the Contingent Insured Option, during the lifetime of the current insured, you can designate another loved one as a contingent insured, in whom you and the beneficiary have insurable interest. There is no limit on the number of times you can designate, modify or remove a contingent insured, as long as it is done during the lifetime of the current insured, but you may only have one contingent insured per policy at any time during the benefit term. Upon the passing of the current insured, the contingent insured may become the new insured without affecting your policy values so as to protect your legacy for the next generation.

You may change the insured under the Change of Insured Option and / or the Contingent Insured Option as many times as you wish, subject to our approval.

(V) One-time premium payment for peace of mind

To provide you with greater control over your finances, Wealth Enrich only requires you to pay the premium once. You do not need to worry about any future premiums.

Cover at a glance

Important Information

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

This brochure is for distribution in Hong Kong / Macau only.

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

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

Dividend Philosophy

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 annual dividends and terminal dividends as specified in your policy.

We review and determine the dividend 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 dividend payments over time through a smoothing process by spreading out the gains and losses over a period of time. The actual dividends 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 dividends 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 dividend amounts to the Board of the Company. The committee is comprised of members from different control functions or departments within the organisation both at 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 dividends, which are recommended by the Appointed Actuary, will be decided upon the deliberation of the committee and finally approved by the Board of Directors of the Company, including one or more Independent Non-Executive Directors, 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 dividends 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 policy surrenders, partial surrenders and policy lapses; and their corresponding impact on the backing assets.

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

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. You have the right to request for historical accumulation interest rates before committing the purchase.

For dividend philosophy and dividend history, please visit our website at 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 dividends.

Key Product Risks

1. 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 dividend 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 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; or
   • any benefit is paid under the basic plan that triggers termination of the policy; or
   • the outstanding debt exceeds the guaranteed cash value of your policy.
3. 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.
4. 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.
5. 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 to Accidental Death Benefit

Accidental Death Benefit will not cover any conditions that 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, 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.

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 AIA 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.

After exercising the Change of Insured Option or upon the contingent insured becoming the new insured, if the new insured commits suicide within one year from the effective date of change as recorded by us, our liability will be limited to the refund of premiums paid of the basic plan (without interest) or the sum of guaranteed cash value, accumulated Annual Dividends with interest (if any), Terminal Dividend (if any) and any remaining balance of the Terminal Dividend Lock-in Account (if applicable) as at the date the new insured passes away, whichever is higher, less any outstanding debt.

Incontestability

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

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

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

• The Bank of East Asia, Limited (“BEA”), being registered with the Insurance Authority as a licensed insurance agency, act as an appointed licensed insurance agent for AIA International Limited (incorporated in Bermuda with limited liability) (“AIA”). This insurance plan is a product of AIA but not BEA.
• This insurance plan is underwritten by AIA and it is not a bank savings plan with free life insurance coverage. Part of the premium pays for the insurance and related costs. The premium paid is not a placement of a savings deposit with the bank and hence is not protected by the Deposit Protection Scheme in Hong Kong.
• Add-on plan (if any) is an add-on coverage for this insurance plan with additional premium paid required. BEA does not distribute any add-on plan; therefore, you cannot apply the add-on plan through BEA. If needed, you can contact AIA Customer Service Centre for inquiry after the policy is issued by AIA.
• In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between BEA and the customer out of the selling process or processing of the related transaction, BEA is required to enter into a Financial Dispute Resolution Scheme process with the customer.
• Claims under this insurance plan must be made by you to AIA directly. You can get the appropriate claim form by calling AIA Customer Service Hotline (852) 2232 8968 in Hong Kong or visiting www.aia.com.hk or any AIA Customer Service Centre. For details, please refer to the policy contract provided by AIA.
• BEA’s sales staff (including direct sales staff and authorised agents) are remunerated not only based on their financial performance, but also according to a range of other factors, including their adherence to best practices and their dedication to serving customers’ interests.
• 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. annual dividend, terminal dividend, interests) 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. Should you surrender the policy early, the total surrender value (if any) you get back may be less than the total premium you have paid. You may suffer a loss in case of early termination of this policy.
  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 dividend scales – non-guaranteed benefits are based on the dividend scales 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 annual dividend and terminal dividend you will receive. Under some circumstances, the non-guaranteed benefits may be zero.