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Product Summary for AIA US$ Guaranteed 8 for Life Version 14.0 To help you understand Life Participating Insurance policies better, please refer to `Your Guide To Participating Policies’ (YGTPP), which can be found at www.aia.com.sg or www.lia.org.sg. YGTPP is also available from your AIA Financial Services Consultant, your Financial Adviser or their representatives. 1.
Provider of the Plan AIA Singapore Private Limited (Reg. No. 201106386R) ("we, our, us, AIA Singapore") 1 Robinson Road AIA Tower Singapore 048542
2.
Nature & Objective of the Plan AIA US$ Guaranteed 8 for Life is a US dollar denominated limited payment participating whole life insurance policy that provides insurance protection in the event of death up to age 100 and total and permanent disability up to age 65, with a limited payment term of 8 years. It is a participating life insurance policy, which allows the policyholder to participate in the performance of the participating fund in the form of dividends that are not guaranteed.
3.
Benefits under the Plan AIA US$ Guaranteed 8 for Life provides you with the following benefits: a.
Death Benefit In the event of death of the Insured, we will pay the higher of: (a) the Insured Amount; or (b) the total annual s paid (including any s waived on your basic policy, and excluding any additional s paid for a non-Standard Life, adjustment for size of Insured Amount or payment mode), without interest, plus terminal dividend (if any), and any annual dividends which have been left to accumulate with us, after deducting any amounts owing to us. Your policy will automatically terminate on the death of the Insured.
b.
Total & Permanent Disability (TPD) Benefit In the event of TPD of the Insured before the policy anniversary occurring on or immediately following the Insured’s 65th birthday, we will pay in one lump sum, the Insured Amount plus applicable terminal dividends, after deducting any amounts owing to us. The TPD Benefit is an accelerated benefit that accelerates the payment of the Insured Amount under the basic policy. The Insured Amount will be reduced by the TPD Benefit accordingly. Upon the acceleration of the full Insured Amount under the basic policy, we will also pay any annual dividends which have been left to accumulate with us. Your policy will automatically terminate once the Insured Amount is accelerated in full. TPD means the Insured is not capable of doing or carrying out any work, occupation or profession, to earn or obtain any wages, compensation or profit. Such disability must continue uninterrupted for at least 6 consecutive months and there is no possibility of improvement for an indefinite time. However, any of the following conditions* will be immediately recognised as TPD: (i) total and irrecoverable loss of sight of both eyes; or (ii) loss by complete severance or the total and irrecoverable loss of use of 2 limbs at or above the wrist or ankle; or AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG
PS-G8_ver. 14.0 (092018) E. & O. E.
Page 1 of 6
(iii) total and irrecoverable loss of sight of 1 eye; and a. loss by complete severance of 1 limb at or above the wrist or at or above the ankle; or b. total and irrecoverable loss of use of 1 limb at or above the wrist or at or above the ankle. *If the Insured is a juvenile, we will only it these conditions as TPD. Besides other underwriting limits applicable to this plan, this benefit is also subject to the TPD per life limit of S$7,500,000 (aggregated with other policies or supplementary benefits issued on the same life). For policies issued in other currencies, a conversion rate as determined by the company will apply. c.
Maturity Benefit Upon maturity, we will pay in one lump sum the higher of: (a) the Insured Amount; or (b) the total annual s paid (including any s waived on your basic policy, and excluding any additional s paid for a non-Standard Life, adjustment for size of Insured Amount or payment mode), without interest, plus terminal dividend (if any), and any annual dividends which have been left to accumulate with us, after deducting any amounts owing to us. Your policy will mature on the policy anniversary occurring on or immediately following the Insured’s 100th birthday, and will automatically terminate once the Maturity Benefit is paid.
d.
Surrender Value You may surrender your policy for its cash value. Your policy will automatically terminate once it is surrendered in full.
Dividends You can receive dividends in the form of Annual Dividend (AD) and Terminal Dividend (TD). a.
Annual Dividend The AD is a discretionary dividend that we may credit to your policy on an annual basis depending on the experience of the participating fund. Once declared and credited to your policy, AD, forms part of the guaranteed benefits of the policy and will not be affected by any subsequent years’ revisions. You may withdraw it at any time, apply it to offset the of your policy, or leave it with us to accumulate interest at the prevailing rate. The AD declared in a particular year (if any) could be different from what is illustrated in the Policy Illustration at the time you purchased this policy or in subsequent projected illustrations that may be quoted to you.
b.
Terminal Dividend The TD is a non-guaranteed, discretionary dividend that may be payable upon claim, maturity or surrender.
Please refer to the Policy Illustration for the illustrated dividends (including annual and terminal dividends) you may receive at an Illustrated Investment Rate of Return of 4.00% per annum and 5.75% per annum respectively. The Illustrated Investment Rate of Return is not guaranteed. The actual Investment Rate of Return will depend on the investment returns earned by the participating fund. As the dividend rates used for the benefits illustrated above are not guaranteed, the actual benefits payable may vary according to the future experience of the participating fund. All guaranteed benefits, including dividends, which have already been credited to your policy, will be provided for regardless of the future performance of the participating fund.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 2 of 6
Future dividends (including annual and terminal dividends) are not guaranteed and are adjusted depending on the experience of the Participating Fund. This includes, the past, prevailing and projected future investment returns and other experience factors. In particular, investment returns can be volatile and we may vary dividends from time to time. As such, the actual dividends credited in a particular year could differ from previous projections or illustrations. In times of substantial decline in investment returns, we may reduce dividends significantly. Conversely, in times of substantial increases in investment returns, we may increase dividends to higher than those originally projected at the time of purchase of your policy. Dividends declared each year will be recommended, in writing, by the Appointed Actuary and approved by AIA Singapore’s Board of Directors. 4.
Exclusions There are certain conditions under which no benefits will be payable. These are stated as exclusions in the policy contract. The exclusions for this plan include, but are not limited to, the following conditions. You are advised to read the policy contract for the full list of exclusions. Death Benefit If the life insured commits suicide within one year from the policy issue date or date of reinstatement, whichever is later, our liability will be limited to a return of s paid without interest. TPD Benefit Any disability caused directly or indirectly, wholly or partly, by any of the following occurrences:
5.
a)
self-destruction or any attempt at self-destruction while sane or insane; or
b)
engaging in or taking part in air, military or naval service in time of declared or undeclared war or while under order for warlike operations or restoration of public order; or
c)
entering, operating, or servicing, riding in or on, ascending or descending from or with any aerial device or conveyance (except where the Insured is in an aircraft operated by a commercial enger airline on a regular scheduled enger trip over its established enger route or by the Republic of Singapore Air Force).
Investment of Assets The s of the participating policies in the participating fund are invested in a range of assets and reflect the investment objectives which are: (a) to ensure that the participating fund is financially sound and is able to meet the regulatory fund solvency requirements at all times; and (b) to achieve an investment return sufficient to meet the guaranteed liabilities and (c) to enable the declaration of dividends at reasonable levels. The participating fund is managed by: AIA Investment Management Private Limited 1 Robinson Road, AIA Tower #08-00, Singapore 048542 The target and current investment mix as at 31 December 2017 were as follows: Asset Class Target Current Bonds 80% 86% Risky Assets* 20% 14% Total 100% 100% *Includes listed common stocks, private equity, alternative investments, investments into funds and real estate. We may vary the risk assets allocation depending on market conditions.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 3 of 6
Investment Rate of Return For our Participating Fund, the past investment rates of return (after deducting investment expenses only) are shown in the table below. The Participating Fund can be separated into a different sub-groups; the figures below refer to the investment returns for the sub-group or class of products that this policy belongs to. 2015
2016
Investment -2.4% 7.7% Returns # No past experience available
2017
Averaged over the last 3 years
Averaged over the last 5 years
Averaged over the last 10 years
13.1%
6.0%
5.3%
N/A#
Please note that past performance may not be indicative of future performance. Total Expense Ratio The Total Expense Ratio is the proportion of total expenses incurred by the Participating Fund to the assets of the Participating Fund. These expenses include costs such as investment, management, distribution, taxation and other expenses. An expected level of expenses to be incurred by the Participating Fund has been allowed for in the s payable for your policy and is not an additional cost to you. If the actual level of expenses vary significantly from the expected level of expenses, it may affect the non-guaranteed benefits you may receive. For our Participating Fund, the past Total Expense Ratios are shown in the table below. 2015
2016
2017
Averaged over the last 3 years
Total Expense 2.4% 1.7% 1.6% 1.9% Ratio^ ^The Total Expense Ratio is for the whole Participating Fund.
Averaged over the last 5 years
Averaged over the last 10 years
1.7%
1.6%
Please note that past expense ratios may not be indicative of actual expenses that may be incurred in the future.
6.
Types of Risks Affecting the Level of Dividends The key factors affecting the performance of the participating fund are investment returns, mortality and morbidity experience, lapse and surrender experience, business risks (including but not limited to product design, selling and marketing practices, and demographic changes) and expense experience of the participating fund as a whole. We will determine the level of dividends taking into the current performance as well as future outlook for the participating fund.
7.
Sharing of Risks Investment risks are shared among all the policies within the same group or class of products. The other key risks affecting the value of the Participating Fund including mortality, morbidity, lapses and surrenders, expenses and business risks are mostly shared by all the policies in the Participating Fund. In determining the level of dividends that can be paid, the assets available to the group or class of products that this participating policy belongs to are derived by accumulating the s paid and investment income, minus the payments attributed to the group of policies (e.g. death benefits, survival benefits, surrender benefits, annual dividend paid out (if any), distribution to shareholders, tax and expenses).
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 4 of 6
8.
Smoothing of Dividends In order to provide an element of stability in the returns to policyholders, smoothing is applied by spreading profits and losses from one year to the next. This means that in years where experience is good, not all the profits will be distributed to policyholders through dividends declared, but instead such profits may be used to maintain returns to policyholders in years where experience is poor. The long-term cost of smoothing is intended to be broadly neutral across generations of policyholders. For AD, the scales are usually reviewed once a year. There is no maximum amount by which the scales may change from one year to the next. For TD, the scales are usually reviewed once a year. However, TD may be changed at any time, particularly in adverse financial conditions. The ADs declared for a male non-smoker with issue age 35 and Insured Amount of US$100,000 were as follows: Policy Incepted Since
2015 2016 2017
1
US$ 178 US$ 178 US$ 178
Policy Year 2
US$ 372 US$ 372
3
US$585
Please note that past performance is not necessarily indicative of future performance.
9.
Fees and Charges This plan shares in the experience of the participating fund. This means that any expenses incurred by the plan can be charged to the policy including: commissions relating to participating policies; costs of acquiring new participating business (e.g. underwriting and issue expenses); costs of maintaining in-force participating business (e.g. collection, issuing renewal statements, istration system maintenance, financial and statutory reporting); investment expenses; taxation expenses; a proportion of the general management and overhead expenses claim expenses (e.g. mortality/morbidity, surrender); and any other expenses and charges properly attributable to the participating fund. All expenses, except for commissions, are shared and charged to the assets backing the policy according to the Sharing of Risk described earlier. For commissions, the actual amount is charged to each individual policy. All fees and charges have been included in the calculation of the and will not be charged separately to you.
10.
Adjustment in Rates The rates are guaranteed.
11.
Impact of Early Surrender You may wish to refer to the Policy Illustration which illustrates the surrender value you will receive if you intend to surrender your policy. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total s paid. You should consider carefully before terminating the policy or switching to a new one as there may be disadvantages in doing so. The new policy may cost more or have fewer benefits at the same cost.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 5 of 6
12.
Update on Performance You will receive an annual performance update which consists of the following: Participating Policy Annual Statement that sets out the illustrated benefits at maturity / surrender on your policy anniversary; and Participating Fund Commentary on the performance of the participating fund and the outlook, usually by July every year.
13.
Conflict of Interest Potential conflicting interests may arise from time to time between this policy and other policies issued by us, or between the participating fund of this policy and other funds of other policies or other funds managed by us. In such cases, we will act fairly in respect of all policies issued us and all funds managed by us and to balance the interests of this policy and the relevant fund.
14.
Related Parties Transactions AIA Investment Management Private Limited, the manager of AIA participating funds, is a related party to AIA Singapore. We will ensure that all related parties transactions are done in a just and equitable manner and carried out at arms’ length. For related party transactions which are considered material outsourcing, AIA Singapore will comply with its outsourcing guidelines which would require, among others, that the of the transaction are documented and that risks relating to business continuity management, monitoring and control, audit and inspection and performance standards are clearly set out.
15.
Free-Look Period After purchasing a life insurance policy, you have a 14-day free-look period starting from the day you receive your policy documents to review the documents carefully. During this time, if you choose to cancel your policy, the insurer will refund you the s you have paid, less any medical fees and other expenses, such as payments for medical check-ups and medical reports, incurred by the insurer. If we have posted the policy to you, the 14-day free-look period will start 7 days from the date we posted the policy.
Important Notes: This insurance plan is underwritten by AIA Singapore. All insurance applications are subject to our underwriting and acceptance. Submission of an application and payment of does not constitute and should not be construed as acceptance by us. We reserve the right to withdraw the plan or reject applications, at anytime or for any reason without notice. This product summary does not form a part of any contract of insurance. It is intended only to be a simplified description of the product features applicable to this plan and is not exhaustive. The contents of this product summary may vary from the of cover eventually issued. Please refer to the actual policy contract for all and conditions, including exclusions whereby the benefits under your policy may not be paid out. You are advised to read the policy contract. For the avoidance of doubt, only the and conditions as set out in the policy contract will bind the parties.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 6 of 6
Provider of the Plan AIA Singapore Private Limited (Reg. No. 201106386R) ("we, our, us, AIA Singapore") 1 Robinson Road AIA Tower Singapore 048542
2.
Nature & Objective of the Plan AIA US$ Guaranteed 8 for Life is a US dollar denominated limited payment participating whole life insurance policy that provides insurance protection in the event of death up to age 100 and total and permanent disability up to age 65, with a limited payment term of 8 years. It is a participating life insurance policy, which allows the policyholder to participate in the performance of the participating fund in the form of dividends that are not guaranteed.
3.
Benefits under the Plan AIA US$ Guaranteed 8 for Life provides you with the following benefits: a.
Death Benefit In the event of death of the Insured, we will pay the higher of: (a) the Insured Amount; or (b) the total annual s paid (including any s waived on your basic policy, and excluding any additional s paid for a non-Standard Life, adjustment for size of Insured Amount or payment mode), without interest, plus terminal dividend (if any), and any annual dividends which have been left to accumulate with us, after deducting any amounts owing to us. Your policy will automatically terminate on the death of the Insured.
b.
Total & Permanent Disability (TPD) Benefit In the event of TPD of the Insured before the policy anniversary occurring on or immediately following the Insured’s 65th birthday, we will pay in one lump sum, the Insured Amount plus applicable terminal dividends, after deducting any amounts owing to us. The TPD Benefit is an accelerated benefit that accelerates the payment of the Insured Amount under the basic policy. The Insured Amount will be reduced by the TPD Benefit accordingly. Upon the acceleration of the full Insured Amount under the basic policy, we will also pay any annual dividends which have been left to accumulate with us. Your policy will automatically terminate once the Insured Amount is accelerated in full. TPD means the Insured is not capable of doing or carrying out any work, occupation or profession, to earn or obtain any wages, compensation or profit. Such disability must continue uninterrupted for at least 6 consecutive months and there is no possibility of improvement for an indefinite time. However, any of the following conditions* will be immediately recognised as TPD: (i) total and irrecoverable loss of sight of both eyes; or (ii) loss by complete severance or the total and irrecoverable loss of use of 2 limbs at or above the wrist or ankle; or AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG
PS-G8_ver. 14.0 (092018) E. & O. E.
Page 1 of 6
(iii) total and irrecoverable loss of sight of 1 eye; and a. loss by complete severance of 1 limb at or above the wrist or at or above the ankle; or b. total and irrecoverable loss of use of 1 limb at or above the wrist or at or above the ankle. *If the Insured is a juvenile, we will only it these conditions as TPD. Besides other underwriting limits applicable to this plan, this benefit is also subject to the TPD per life limit of S$7,500,000 (aggregated with other policies or supplementary benefits issued on the same life). For policies issued in other currencies, a conversion rate as determined by the company will apply. c.
Maturity Benefit Upon maturity, we will pay in one lump sum the higher of: (a) the Insured Amount; or (b) the total annual s paid (including any s waived on your basic policy, and excluding any additional s paid for a non-Standard Life, adjustment for size of Insured Amount or payment mode), without interest, plus terminal dividend (if any), and any annual dividends which have been left to accumulate with us, after deducting any amounts owing to us. Your policy will mature on the policy anniversary occurring on or immediately following the Insured’s 100th birthday, and will automatically terminate once the Maturity Benefit is paid.
d.
Surrender Value You may surrender your policy for its cash value. Your policy will automatically terminate once it is surrendered in full.
Dividends You can receive dividends in the form of Annual Dividend (AD) and Terminal Dividend (TD). a.
Annual Dividend The AD is a discretionary dividend that we may credit to your policy on an annual basis depending on the experience of the participating fund. Once declared and credited to your policy, AD, forms part of the guaranteed benefits of the policy and will not be affected by any subsequent years’ revisions. You may withdraw it at any time, apply it to offset the of your policy, or leave it with us to accumulate interest at the prevailing rate. The AD declared in a particular year (if any) could be different from what is illustrated in the Policy Illustration at the time you purchased this policy or in subsequent projected illustrations that may be quoted to you.
b.
Terminal Dividend The TD is a non-guaranteed, discretionary dividend that may be payable upon claim, maturity or surrender.
Please refer to the Policy Illustration for the illustrated dividends (including annual and terminal dividends) you may receive at an Illustrated Investment Rate of Return of 4.00% per annum and 5.75% per annum respectively. The Illustrated Investment Rate of Return is not guaranteed. The actual Investment Rate of Return will depend on the investment returns earned by the participating fund. As the dividend rates used for the benefits illustrated above are not guaranteed, the actual benefits payable may vary according to the future experience of the participating fund. All guaranteed benefits, including dividends, which have already been credited to your policy, will be provided for regardless of the future performance of the participating fund.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 2 of 6
Future dividends (including annual and terminal dividends) are not guaranteed and are adjusted depending on the experience of the Participating Fund. This includes, the past, prevailing and projected future investment returns and other experience factors. In particular, investment returns can be volatile and we may vary dividends from time to time. As such, the actual dividends credited in a particular year could differ from previous projections or illustrations. In times of substantial decline in investment returns, we may reduce dividends significantly. Conversely, in times of substantial increases in investment returns, we may increase dividends to higher than those originally projected at the time of purchase of your policy. Dividends declared each year will be recommended, in writing, by the Appointed Actuary and approved by AIA Singapore’s Board of Directors. 4.
Exclusions There are certain conditions under which no benefits will be payable. These are stated as exclusions in the policy contract. The exclusions for this plan include, but are not limited to, the following conditions. You are advised to read the policy contract for the full list of exclusions. Death Benefit If the life insured commits suicide within one year from the policy issue date or date of reinstatement, whichever is later, our liability will be limited to a return of s paid without interest. TPD Benefit Any disability caused directly or indirectly, wholly or partly, by any of the following occurrences:
5.
a)
self-destruction or any attempt at self-destruction while sane or insane; or
b)
engaging in or taking part in air, military or naval service in time of declared or undeclared war or while under order for warlike operations or restoration of public order; or
c)
entering, operating, or servicing, riding in or on, ascending or descending from or with any aerial device or conveyance (except where the Insured is in an aircraft operated by a commercial enger airline on a regular scheduled enger trip over its established enger route or by the Republic of Singapore Air Force).
Investment of Assets The s of the participating policies in the participating fund are invested in a range of assets and reflect the investment objectives which are: (a) to ensure that the participating fund is financially sound and is able to meet the regulatory fund solvency requirements at all times; and (b) to achieve an investment return sufficient to meet the guaranteed liabilities and (c) to enable the declaration of dividends at reasonable levels. The participating fund is managed by: AIA Investment Management Private Limited 1 Robinson Road, AIA Tower #08-00, Singapore 048542 The target and current investment mix as at 31 December 2017 were as follows: Asset Class Target Current Bonds 80% 86% Risky Assets* 20% 14% Total 100% 100% *Includes listed common stocks, private equity, alternative investments, investments into funds and real estate. We may vary the risk assets allocation depending on market conditions.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 3 of 6
Investment Rate of Return For our Participating Fund, the past investment rates of return (after deducting investment expenses only) are shown in the table below. The Participating Fund can be separated into a different sub-groups; the figures below refer to the investment returns for the sub-group or class of products that this policy belongs to. 2015
2016
Investment -2.4% 7.7% Returns # No past experience available
2017
Averaged over the last 3 years
Averaged over the last 5 years
Averaged over the last 10 years
13.1%
6.0%
5.3%
N/A#
Please note that past performance may not be indicative of future performance. Total Expense Ratio The Total Expense Ratio is the proportion of total expenses incurred by the Participating Fund to the assets of the Participating Fund. These expenses include costs such as investment, management, distribution, taxation and other expenses. An expected level of expenses to be incurred by the Participating Fund has been allowed for in the s payable for your policy and is not an additional cost to you. If the actual level of expenses vary significantly from the expected level of expenses, it may affect the non-guaranteed benefits you may receive. For our Participating Fund, the past Total Expense Ratios are shown in the table below. 2015
2016
2017
Averaged over the last 3 years
Total Expense 2.4% 1.7% 1.6% 1.9% Ratio^ ^The Total Expense Ratio is for the whole Participating Fund.
Averaged over the last 5 years
Averaged over the last 10 years
1.7%
1.6%
Please note that past expense ratios may not be indicative of actual expenses that may be incurred in the future.
6.
Types of Risks Affecting the Level of Dividends The key factors affecting the performance of the participating fund are investment returns, mortality and morbidity experience, lapse and surrender experience, business risks (including but not limited to product design, selling and marketing practices, and demographic changes) and expense experience of the participating fund as a whole. We will determine the level of dividends taking into the current performance as well as future outlook for the participating fund.
7.
Sharing of Risks Investment risks are shared among all the policies within the same group or class of products. The other key risks affecting the value of the Participating Fund including mortality, morbidity, lapses and surrenders, expenses and business risks are mostly shared by all the policies in the Participating Fund. In determining the level of dividends that can be paid, the assets available to the group or class of products that this participating policy belongs to are derived by accumulating the s paid and investment income, minus the payments attributed to the group of policies (e.g. death benefits, survival benefits, surrender benefits, annual dividend paid out (if any), distribution to shareholders, tax and expenses).
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 4 of 6
8.
Smoothing of Dividends In order to provide an element of stability in the returns to policyholders, smoothing is applied by spreading profits and losses from one year to the next. This means that in years where experience is good, not all the profits will be distributed to policyholders through dividends declared, but instead such profits may be used to maintain returns to policyholders in years where experience is poor. The long-term cost of smoothing is intended to be broadly neutral across generations of policyholders. For AD, the scales are usually reviewed once a year. There is no maximum amount by which the scales may change from one year to the next. For TD, the scales are usually reviewed once a year. However, TD may be changed at any time, particularly in adverse financial conditions. The ADs declared for a male non-smoker with issue age 35 and Insured Amount of US$100,000 were as follows: Policy Incepted Since
2015 2016 2017
1
US$ 178 US$ 178 US$ 178
Policy Year 2
US$ 372 US$ 372
3
US$585
Please note that past performance is not necessarily indicative of future performance.
9.
Fees and Charges This plan shares in the experience of the participating fund. This means that any expenses incurred by the plan can be charged to the policy including: commissions relating to participating policies; costs of acquiring new participating business (e.g. underwriting and issue expenses); costs of maintaining in-force participating business (e.g. collection, issuing renewal statements, istration system maintenance, financial and statutory reporting); investment expenses; taxation expenses; a proportion of the general management and overhead expenses claim expenses (e.g. mortality/morbidity, surrender); and any other expenses and charges properly attributable to the participating fund. All expenses, except for commissions, are shared and charged to the assets backing the policy according to the Sharing of Risk described earlier. For commissions, the actual amount is charged to each individual policy. All fees and charges have been included in the calculation of the and will not be charged separately to you.
10.
Adjustment in Rates The rates are guaranteed.
11.
Impact of Early Surrender You may wish to refer to the Policy Illustration which illustrates the surrender value you will receive if you intend to surrender your policy. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total s paid. You should consider carefully before terminating the policy or switching to a new one as there may be disadvantages in doing so. The new policy may cost more or have fewer benefits at the same cost.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
Page 5 of 6
12.
Update on Performance You will receive an annual performance update which consists of the following: Participating Policy Annual Statement that sets out the illustrated benefits at maturity / surrender on your policy anniversary; and Participating Fund Commentary on the performance of the participating fund and the outlook, usually by July every year.
13.
Conflict of Interest Potential conflicting interests may arise from time to time between this policy and other policies issued by us, or between the participating fund of this policy and other funds of other policies or other funds managed by us. In such cases, we will act fairly in respect of all policies issued us and all funds managed by us and to balance the interests of this policy and the relevant fund.
14.
Related Parties Transactions AIA Investment Management Private Limited, the manager of AIA participating funds, is a related party to AIA Singapore. We will ensure that all related parties transactions are done in a just and equitable manner and carried out at arms’ length. For related party transactions which are considered material outsourcing, AIA Singapore will comply with its outsourcing guidelines which would require, among others, that the of the transaction are documented and that risks relating to business continuity management, monitoring and control, audit and inspection and performance standards are clearly set out.
15.
Free-Look Period After purchasing a life insurance policy, you have a 14-day free-look period starting from the day you receive your policy documents to review the documents carefully. During this time, if you choose to cancel your policy, the insurer will refund you the s you have paid, less any medical fees and other expenses, such as payments for medical check-ups and medical reports, incurred by the insurer. If we have posted the policy to you, the 14-day free-look period will start 7 days from the date we posted the policy.
Important Notes: This insurance plan is underwritten by AIA Singapore. All insurance applications are subject to our underwriting and acceptance. Submission of an application and payment of does not constitute and should not be construed as acceptance by us. We reserve the right to withdraw the plan or reject applications, at anytime or for any reason without notice. This product summary does not form a part of any contract of insurance. It is intended only to be a simplified description of the product features applicable to this plan and is not exhaustive. The contents of this product summary may vary from the of cover eventually issued. Please refer to the actual policy contract for all and conditions, including exclusions whereby the benefits under your policy may not be paid out. You are advised to read the policy contract. For the avoidance of doubt, only the and conditions as set out in the policy contract will bind the parties.
AIA Singapore Private Limited (Reg. No. 201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 AIA Customer Care Hotline: 1800 248 8000 AIA.COM.SG PS-G8_ver. 14.0 (092018) E. & O. E.
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