Insurance Services

Important Information

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

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

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


Bonus Philosophy
This is a participating insurance plan in which we share a portion of the profits earned on it and related participating insurance plans with the policy owners. It is designed to be held long term. The premiums of a participating insurance plan will be invested in a variety of assets according to our investment strategy. The cost of policy benefits (including guaranteed and non-guaranteed benefits as specified in your plan that may be payable on death or surrender, as well as charges we make to support policy guarantees (if applicable)) and expenses will be deducted as appropriate from premiums of the participating insurance plan or from the invested assets. We aim to ensure a fair sharing of profits between policy owners and shareholders, and among different groups of policy owners.

Divisible surplus refers to profits available for distribution back to policy owners as determined by us. The divisible surplus that will be shared with policy owners will be based on the profits earned from your plan and similar plans or similar groups of policies (as determined by us from time to time by considering factors such as benefit features, policy currencies and period of policy issuance). Divisible surplus may be shared with the policy owners in the form of reversionary bonuses, and terminal bonuses (if applicable) as specified in your policy.

We review and determine the bonus amounts payable to policy owners at least once per year. Divisible surplus depends on the investment performance of the assets which we invest in and the amounts of benefits and expenses we need to pay for the plan. It is therefore inherently uncertain. Nevertheless, we aim to deliver relatively stable bonus payments over time through a smoothing process by spreading out the gains and losses over a period of time. The actual bonuses declared may be different from those illustrated or projected in any insurance plan information provided (e.g. benefit illustrations) depending on whether the divisible surplus, past experience and / or outlook are different from what we expected. If bonuses are different from our last communication, this will be reflected in the policy anniversary statement.

A committee has been set up to provide 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. You should pay premium(s) on time and according to the selected premium payment schedule. If you stop paying the premium before completion of the premium payment term, you may surrender the policy, otherwise, the premium will be covered by a loan taken out on the policy automatically. When the loan balance exceeds the sum of guaranteed cash value and non-guaranteed cash value of Reversionary Bonus (if any) of the basic policy, the policy will be terminated and you will lose the cover. The surrender value of the policy will be used to repay the loan balance, and we will return to you any remaining value.
2. The plan may make certain portion of its investment in growth assets. Returns of growth assets are generally more volatile than bonds and other fixed income instruments, you should note the target asset mix of the product as disclosed in this product brochure, which will affect the bonus on the product. The savings component of the plan is subject to risks and possible loss. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.
3. For one-time premium payment policy, they are subject to higher investment return volatility and thus are expected to have higher volatility on the bonuses payable, as compared to policies with a 5-year premium payment term which can benefit from cost averaging effect.
4. You may apply in writing to withdraw part or all of the cash value of the Reversionary Bonus (if any) and the corresponding cash value of the Terminal Bonus (if any) we have declared for your policy, or to partial surrender your policy to receive part of the guaranteed cash value and the corresponding cash value of the Terminal Bonus (if any) but which will lead to a reduction of the principal amount 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 to lose the cover. Before your policy application, you may request for benefit illustrations with specific withdrawal amounts reflected to understand any potential financial impact on you.
5. You may request for the termination of your policy by notifying us in written notice. Also, we will terminate your policy and you / the insured will lose the cover when one of the following happens:
   • the insured passes away, except when the contingent insured becomes the new insured;
   • you do not pay the premium within 31 days (or up to 365 days under the Extension of Grace Period Benefit) of the due date and the policy has no cash value (only applicable for a 5-year premium payment policy);
   • any benefit is paid under the basic plan that triggers termination of the policy; or
   • the outstanding debt exceeds the sum of guaranteed cash value and the non-guaranteed cash value of the Reversionary Bonus (if any) of the basic policy.
6. We underwrite the plan and you are subject to our credit risk. If we are unable to satisfy the financial obligations of the policy, you may lose your premium paid and benefits.
7. You are subject to exchange rate risks for plans denominated in currencies other than the local currency. Exchange rates fluctuate from time to time. You may suffer a loss of your benefit values and the subsequent premium payments (if any) may be higher than your initial premium payment as a result of exchange rate fluctuations. You should consider the exchange rate risks and decide whether to take such risks.
8. In case the policy currency is changed under the Currency Exchange Option, by exchanging your plan (i.e. Wealth Flexi Savings Insurance Plan ) to the latest plan in your designated policy currency available for exchange under the Wealth Flexi Series at the time of when you exercise the option, the adjustments on policy value may be significant (either increase or decrease) and the amount of policy value after exercising the Currency Exchange Option may be considerably less than the total amount of premiums paid. Any future premiums will be adjusted if the Currency Exchange Option is exercised within the premium payment term. The approval of Currency Exchange Option’s application and the availability of currency for selection at the time of exercising the Currency Exchange Option will be subject to the prevailing laws and regulations, and our prevailing rules and conditions.
   Please note that there could be a material difference between your plan and the latest plan in your designated policy currency available for exchange under the Wealth Flexi Series at the time when you exercise the Currency Exchange Option. Material difference includes but not limited to:
   • product features (such as benefits, options, policy terms and conditions, product risks and limitations, investment strategy, target asset mix and relevant investment return and limitation); and
   • the availability of Currency Exchange Option, and in a worst case scenario, it may only be a one-time option under your current plan depending on the features of the new plan after exchange.
   You shall not purchase this product solely for the Currency Exchange Option.
   Please carefully evaluate the difference between the current plan and the latest plan in your designated policy currency under the Wealth Flexi Series available for exchange when you exercise the Currency Exchange Option and consider whether the latest plan suits your needs.
9. When applying for the Bonus Unlock Option, a new benefit illustration must be signed and the application cannot be withdrawn once submitted. After exercising the Bonus Unlock Option, the unlocked part will be subject to the risk of higher investment return volatility because the latest value in the Bonus Lock-in Account will be unlocked as non-guaranteed Reversionary Bonus and non-guaranteed Terminal Bonus. The cash value of Reversionary Bonus, cash value and face value of Terminal Bonus may be adjusted in our subsequent declarations of the bonuses and the amount in each declaration may be greater or less than the previous declared amount based on a number of factors, including but not limited to investment returns and general market volatility. Even if you are dissatisfied with the investment return after exercising the Bonus Unlock Option, the unlock amount which is transferred as Reversionary Bonus and Terminal Bonus cannot be reversed to the original value under the Bonus Lock-in Account. You may apply for the Bonus Lock-in Option again at least 1 year later and such action cannot offset any loss you may suffer after exercising the Bonus Unlock Option.
10. Your current planned benefit may not be sufficient to meet your future needs since the future cost of living may become higher than they are today due to inflation. Where the actual rate of inflation is higher than expected, you may receive less in real terms even if we meet all of our contractual obligations.
11. As the cash value of Reversionary Bonus is non-guaranteed, there may be a risk of overloan when there is adjustment on the cash value of Reversionary Bonus. Loan repayment within one month is required when there is an overloan, otherwise your policy will be terminated and you or the insured will lose the cover.

• All designations made by you under the Health Impairment Option will be automatically revoked when one of the following happens (unless such actions (ii) to (iii) below have been made pursuant to this option):
  (i) we are notified of the death of the insured;
  (ii) any change of policy owner or the insured of the policy; or
  (iii) exercising any of the benefits or options of the policy or withdraw any policy value from the policy which triggers a reduction of the principal amount of the policy.
• The Health Impairment Option will be cancelled and revoked when one of the following happens:
  (a) we are notified or become aware that the policy owner has been adjudged bankrupt or bankruptcy proceedings have been initiated against the policy owner; or
  (b) we are notified or become aware that there is a guardian or committee appointed under the Mental Health Ordinance (Cap. 136 of the Laws of Hong Kong or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued) or an attorney appointed by the policy owner pursuant to an enduring power of attorney covering the policy (except if we have received the written consent of such guardian, committee or attorney (as the case may be) for us to make the benefit payment to the designated payment recipient and / or to make the ownership transfer to the designated ownership recipient).
  Prior to the occurrence of any of the above events (a) and (b), if we have already paid the benefit payment to the designated payment recipient or if we have already made the ownership transfer to the designated ownership recipient pursuant to this option, such payment or ownership transfer shall not be cancelled or reversed, and we shall not be liable to the policy owner, the designated ownership recipient, the designated payment recipient, the beneficiary(ies), guardian, committee, attorney and / or any other person as a result of payment or ownership transfer made under this option.
• We have the right to revoke the designation of the designated payment recipient or the designated ownership recipient, or to withhold or reject the payment or transfer of ownership under this option, if such designation or payment or transfer of ownership may constitute a breach of or conflict with any law or may render us to incur or potentially incur any liability.
• If there is (or in our reasonable belief there is) a dispute between the designated payment recipient, designated ownership recipient, beneficiary(ies), guardian, committee, attorney and / or any other person, we have the right to withhold the payment or transfer of ownership under this option until such dispute or matter is resolved to our satisfaction.
• Once we have paid the benefit payment to the designated payment recipient or we have made the ownership transfer to the designated ownership recipient in the event the policy owner is diagnosed with a Specified Illness under Health Impairment Option or as a permanent mentally incapacitated person, such payment or ownership transfer cannot be cancelled or reversed even if the policy owner subsequently recovered from such illness.
• “Specified Illness under Health Impairment Option” means any of the following illnesses: Apallic Syndrome, Coma, and any other illnesses which we may determine at our discretion from time to time as set out in our prescribed form.
• “Apallic Syndrome” means universal necrosis of the brain cortex with the brainstem remaining intact. A definite diagnosis of apallic syndrome must be confirmed by a registered medical practitioner who is a neurologist, and the condition must be medically documented for at least one month.
• “Coma” means a state of unconsciousness with no reaction or response to external stimuli or internal needs, which is associated with a permanent neurological deficit, persists continuously for at least 96 hours, and requires the use of a life support system. The Coma must be diagnosed and confirmed by a registered medical practitioner who is a neurologist. Irrespective of the above, Coma resulting directly from self-inflicted injury, alcohol or drug mis-use is excluded.
• A“mentally incapacitated person” means a person who is incapable, by reason of mental incapacity (as defined under the Mental Health Ordinance, Cap. 136 of the Laws of Hong Kong or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued), of managing and administering his / her property and affairs. The diagnosis must be supported by 2 registered medical practitioners who are psychiatrists or neurologists (or proof provided pursuant to applicable laws which is acceptable to us).

Key Exclusions to Accidental Death Benefit

Accidental Death Benefit will not cover any conditions that directly or indirectly result from any of the following:

• self-destruction while sane or insane, participation in a fight or affray, being under the influence of alcohol or a non-prescribed drug

• war, service in armed forces in time of war or restoration of public order, riot, industrial action, terrorist activity, violation or attempted violation of the law or resistance to arrest

• racing on wheels or horse, participation in scuba diving

• ptomaines or bacterial infection (except pyogenic infection occurring through an accidental cut or wound)

• air travel, including entering, exiting, operating, servicing or being transported by any aerial device or conveyance (except as a passenger of a commercial passenger airline on a regular scheduled passenger trip over its established passenger route)
  
  The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.
  
  

• the signs or symptoms of which first occur or commence on or before 90 days from issue date or commencement date of the policy (whichever is later); or
• any dates of the Terminal Illness Period (i.e. the 12-month period commencing from the date of the medical certification made by the Company’s appointed registered medical practitioner confirming the terminal illness) falls on or after the policy anniversary on or immediately following the insured’s 85th birthday; or
• the terminal illness is a pre-existing illness, disease, impairment or condition from which the insured was suffering prior to the policy being issued or being reinstated (if applicable), whichever is later, unless the insured makes a relevant declaration in the application for the policy or in the application for reinstatement of the policy (as applicable), and such application is specifically accepted by us; or
• the terminal illness is the result of or is related (directly or indirectly) to Acquired Immunodeficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV) according to the Company’s opinion; or
• the terminal illness is due (directly or indirectly) to a congenital defect or disease which manifests or is diagnosed before the insured attains the age of 17; or
• the terminal illness is the result of self-inflicted injury or injuries; or
• the terminal illness is the result of any physical or mental condition existing before the policy was issued or being reinstated (if applicable), whichever is later, and which was not disclosed in any application or in any health statement relating to the policy (as applicable) before the commencement of cover or reinstatement of the policy (as applicable); or
• the diagnosis of terminal illness is made in any hospital in mainland China which is not one of the designated hospitals in mainland China. Regarding the designated hospitals in mainland China, please visit the Company’s website (www.aia.com.hk) for retrieval of the most current hospital list. The list of designated hospitals in mainland China may be varied, updated and amended from time to time at the Company’s discretion, and any change shall be deemed as effective on the date of publication on the Company’s website irrespective of whether any separate notice is given.
  
  The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.

Note for Extension of Grace Period Benefit
The Extension of Grace Period Benefit will cease on the earliest of the following dates:

1. at the end of Extended Grace Period;
2. in the case of involuntary unemployment, you fail to provide proof of continuous status of involuntary unemployment upon our request;
3. the date we approve a change of ownership of the policy;
4. the date on which any claim for waiver of premium benefit to waive the premiums of your basic policy is approved;
5. the date on which your basic policy is fully paid up (meaning that the basic policy is providing coverage without any further required premiums);
6. the date any amount is paid under your basic policy as a result of any withdrawal or claim made, unless the premium payment mode of the policy after the payment of such amount is monthly and we have approved the continuity of the Extended Grace Period; and
7. the date when you pay all premiums in default.
   In the case of involuntary unemployment under the Extension of Grace Period Benefit, you must be employed under a continuous contract for not less than 24 months prior to the involuntary employment and (i) you are dismissed due to redundancy or is laid off and you are eligible for a severance payment pursuant to the employment or labour laws of Hong Kong (applicable to policies issued in Hong Kong); or (ii) your employment contract is terminated by rescission without just cause on the initiative of the employer and you are eligible for a compensation payment pursuant to the employment or labour laws of Macau (applicable to policies issued in Macau). Further, such employment cannot be self-employment, employment by a family member (including spouse, parent, grandparent, child or grandchild) or employment as a domestic servant. Proof of continuous unemployment is required by you upon our request. The Extension of Grace Period Benefit is not available if you were informed of your pending involuntary unemployment on or before the issue date or commencement date of the policy, whichever is later.
   Claim for Extension of Grace Period Benefit must be submitted within the specified time period and with the required documentary proof.
   The Extension of Grace Period Benefit can only be claimed once per policy. The application for the Extension of Grace Period Benefit is subject to our approval, our prevailing rules and conditions, and the handling of the policy during the Extended Grace Period will be subject to our discretion.

1. Investment Risks
   Investment returns are inherently uncertain, where returns of growth assets are generally more volatile than bonds and other fixed income instruments, you should note the target asset mix of the product as disclosed in the plan’s product brochure, which will affect the bonus on the product. The savings component of the plan is subject to risks and possible loss. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.
   
   
2. Termination
   You may request for the termination of your policy by notifying us in written notice. Also, we will terminate your policy and you / the insured will lose the cover if (i) the insured passes away (except when the contingent insured becomes the new insured); (ii) you do not pay the premium within 31 days (or up to 365 days under the Extension of Grace Period Benefit) of the due date; (iii) any benefit is paid under the basic plan which triggers termination of the policy; or (iv) the outstanding debt exceeds the sum of guaranteed cash value and the non-guaranteed cash value of the Reversionary Bonus.
   
   
3. Withdrawal and / or Partial Surrender
   If the withdrawal amount consists of the cash value of any Reversionary Bonus and corresponding cash value of any Terminal Bonus, it will lead to reduction of the cash values and face values of the Reversionary Bonus and Terminal Bonus, and that any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. If the withdrawal amount consists of part of the guaranteed cash value and the corresponding non-guaranteed cash value of Terminal Bonus, it will reduce the principal amount of your policy. The subsequent guaranteed cash value, face value and cash value of the Terminal Bonus and the total premiums paid or one-time premium paid (as applicable) for the basic plan will all be reduced based on the reduced principal amount. Any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. This will reduce the death benefit and the surrender benefit. Withdrawal from the policy will reduce the value of your policy as well as its sustainability and potential growth. Any repeated withdrawals may not be sustainable in the long term and which may cause you to lose the cover.
   
   
4. Bonus Lock-in Option / Bonus Unlock Option
   After exercising the Bonus Lock-in Option, any Reversionary Bonus and any Terminal Bonus which the Company may declare subsequently will be reduced accordingly. After exercising the Bonus Unlock Option, the unlocked part will be subject to the risk of higher investment return volatility because the latest value in the Bonus Lock-in Account will be unlocked as non-guaranteed Reversionary Bonus and Terminal Bonus.
   
   
5. Currency Exchange Option
   The application to exercise the Currency Exchange Option will be subject to the prevailing laws and regulations, our prevailing rules and conditions and our approval. If the policy currency is changed under the Currency Exchange Option, the adjustments on policy value may be significant (either increase or decrease) and the amount of policy value after exercising the Currency Exchange Option may be considerably less than the total amount of premiums paid. Any future premiums will be adjusted if the Currency Exchange Option is exercised within the premium payment term. There could be a material difference between your plan and the latest plan in your designated policy currency available for exchange under the Wealth Flexi Series when you exercise the Currency Exchange Option and in a worst case scenario, Currency Exchange Option may only be a one-time option under your current plan depending on the features of the new plan after exchange. Please carefully evaluate the difference between the current plan and the latest plan under the Wealth Flexi Series available for exchange when you exercise the Currency Exchange Option and consider whether the latest plan suits your needs.
   
   
6. Health Impairment Option
   The Health Impairment Option will be cancelled and revoked if: (a) we are notified or become aware that the policy owner has been adjudged bankrupt or bankruptcy proceedings have been initiated against the policy owner; or (b) we become aware that there is a guardian or committee appointed under the Mental Health Ordinance (Cap. 136 of the Laws of Hong Kong or under Article 122 of the Macau Civil Code, depending on the place where the policy is issued) or an attorney appointed by the policy owner pursuant to an enduring power of attorney covering the policy (except if we have received the written consent of such guardian, committee or attorney for us to make the benefit payment and / or ownership transfer). Once benefit payment or ownership transfer has been made under this option, such payment and ownership transfer cannot be cancelled or reversed.
   
   
7. Overloan
   As the cash value of Reversionary Bonus is non-guaranteed, there may be a risk of overloan when there is adjustment on the cash value of Reversionary Bonus. Loan repayment within 1 month is required when there is an overloan, otherwise your policy will be terminated.
   
   This Key Factsheet only provides a general overview. This Key Factsheet should be read along with the product brochure which provides further details and important considerations about this product.
   
   

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

• The Bank of East Asia, Limited (“BEA”), being registered with the Insurance Authority as a licensed insurance agency, act as an appointed licensed insurance agent for AIA International Limited (incorporated in Bermuda with limited liability) (“AIA”). This insurance plan is a product of AIA but not BEA.
• This insurance plan is underwritten by AIA and it is not a bank savings plan with free life insurance coverage. Part of the premium pays for the insurance and related costs. The premium paid is not a placement of a savings deposit with the bank.
• Risk relating to insurance plan with Currency Exchange Option – The insurance plan contains various policy currencies which may have significant different guaranteed breakeven years and the policy currency(ies) in the Benefit Illustration(s) is / are provided in accordance with your indication in the Financial Needs Analysis Form at the point of sale. If you wish to compare the guaranteed breakeven years among various available policy currencies, you may request BEA’s sales staff to provide relevant Benefit Illustrations for reference.
  Upon your request to exercise the Currency Exchange Option, you may refer to AIA Customer Service or BEA’s sales staff for details. The exact arrangement of exercising such option should always follow the latest information provided by AIA.
• Add-on plan (if any) is an add-on coverage for this insurance plan with additional premium paid required. BEA does not distribute any add-on plan; therefore, you cannot apply the add-on plan through BEA. If needed, you can contact AIA Customer Service Centre for inquiry after the policy is issued by AIA.
• In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between BEA and the customer out of the selling process or processing of the related transaction, BEA is required to enter into a Financial Dispute Resolution Scheme process with the customer.
• Claims under this insurance plan must be made by you to AIA directly. You can get the appropriate claim form by calling AIA Customer Service Hotline +852 2232 8968 in Hong Kong or visiting www.aia.com.hk or any AIA Customer Service Centre. For details, please refer to the policy contract provided by AIA.
• BEA’s sales staff (including direct sales staff and authorised agents) are remunerated not only based on their financial performance, but also according to a range of other factors, including their adherence to best practices and their dedication to serving customers’ interests.
• The information you disclosed in response to all AIA’s questions must be true, complete and correct. Failure to disclose true, complete and correct information to AIA may render AIA unable to accept or process your application or the policy void.
• You are reminded to carefully review the relevant product materials provided to you and be advised to seek professional / independent advice when considered necessary.
• For the benefits and returns mentioned throughout the product brochure and Important Notes, please note that the policy owner is subject to the credit risk of AIA. If the policy owner discontinues and / or surrenders this policy in early policy years, the amount of benefits he / she will get back may be considerably less than the total premiums he / she has paid. Projected and / or potential benefits and / or returns (e.g. reversionary bonus, terminal bonus) presented in the product brochure are not guaranteed and are for illustrative purposes only. The actual future amounts of benefits and / or returns may be lower than or higher than the currently quoted benefits and / or returns.
• Apart from the key product risks mentioned in product brochure, you are also reminded of the following risks:
  1. Liquidity risk – this insurance plan is designed to be held long term. You should only apply for this insurance plan if it is intended to pay the premium for the whole of the premium payment term. If you fail to pay the premium for the whole of the premium payment term, this will cause the policy to lapse or to be terminated earlier than the original benefit term, and the total surrender value (if any) that get back by you may be less than the total premiums paid.
  2. Risk from surrender – if you cancel the policy before the end of the benefit term, you may suffer a significant loss, and the total surrender value received may be substantially less than the total premiums paid.
  3. Non-guaranteed bonus scale – non-guaranteed benefits are based on the bonus scale of AIA determined under current assumed investment return. The actual amount payable may change anytime with the values being higher or lower than those being projected. In other words, a change in the current assumed investment return will affect the reversionary bonus and terminal bonus you will receive. Under some circumstances, the non-guaranteed benefits may be zero.
  4. Risk relating to RMB insurance products – The value of RMB is subject to the fluctuation of its exchange rate. There may be exchange rate loss suffered by you due to such fluctuation if you convert RMB into other currencies (including Hong Kong Dollars).
  
  [For personal customer] – RMB is currently not completely freely convertible. Personal customers can be offered to conduct conversion of RMB by the bank using onshore rates and may occasionally not be able to do so fully or immediately as it is subject to the RMB position and market conditions at that time.
  
  [For corporate customer] – RMB is currently not completely freely convertible. Corporate customers can be offered to conduct conversion of RMB by the bank using offshore rates or onshore rates depending on the objective of conversion and may occasionally not be able to conduct fully or immediately as it is subject to the RMB position and market conditions at that time.
  
  You should understand and consider the possible impact on the liquidity of RMB funds. The exchange rate for the offshore RMB market in Hong Kong may be at a premium or discount when compared to the onshore market in People’s Republic of China and there may be significant bid and offer spreads.