# Product Summary for AIA Pro Achiever 3.0

Version 2.0

To help you understand Investment-linked policies better, please refer to 'Your Guide To Investment-Linked Insurance Plans' (YGILIP), which can be found at www.aia.com.sg or www.lia.org.sg. YGILIP is also available from your AIA Financial Services Consultant or Insurance 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

[p.1] AIA Pro Achiever 3.0 is a regular premium investment-linked insurance policy (ILP) which focuses on helping you to accumulate your wealth. From the start, at least 100% of premium will be allocated to purchase units of the ILP subfunds that you have chosen. You will be rewarded with Welcome Bonus upon receipt of each payment of regular premium for the first to third policy year, depending on the annualised regular premium amount and Initial Investment Period option selected. You will also be rewarded with Special Bonus upon receipt of each payment of regular premium from the 10th annual premium onwards. In addition, it offers a wide range of investment-linked sub-funds ("ILP subfunds") which you could best use to personalise your investment strategy to reap potential attractive returns.

### Initial Investment Period ("IIP")

The plan offers IIP options of 10, 15 or 20 years, which you may select depending on your investment objectives. Once your policy has been issued, the IIP option cannot be changed.

During the IIP:
(a) certain charges may apply, such as Supplementary Charges (if applicable), Premium Holiday Charges, Premium Reduction Charges, Full Surrender Charges and Partial Withdrawal Charges; and
(b) any dividend payouts from any funds that include the option for you to accept dividend payments will be automatically reinvested into the policy.

The IIP will cease only after the relevant regular premium, as stated in the table below, has been paid:

| IIP Option | Number of Regular Premiums paid to and accepted by us | | | |
| --- | --- | --- | --- | --- |
| | Annual | Semi-Annual | Quarterly | Monthly |
| IIP 10 | 11th | 21st | 41st | 121st |
| IIP 15 | 16th | 31st | 61st | 181st |
| IIP 20 | 21st | 41st | 81st | 241st |

For the avoidance of doubt, should the Premium Pass or Premium Holiday feature of your policy be activated once or multiple times, the IIP will extend beyond 10, 15 or 20 policy years until the relevant regular premium has been paid to us.

This plan is available using cash only.

## 3. Benefits Under the Plan

You will be entitled to the following benefits under the policy:

### 3.1. Death Benefit

In the event of death of the Insured, we will pay the death benefit being the higher of the following:

[p.1-2] (a) total regular premium paid, plus total top-up premium and premium reduction top-up amount, less total withdrawals; or
(b) the policy value,

less applicable fees and charges (if any).

If a Secondary Insured was appointed before the death of the Insured, death benefit will not be paid on the death of the Insured. Please refer to Section 3.6. for more information on Secondary Insured Option.

Your policy will automatically terminate after we have paid the death benefit.

### 3.2. Accidental Death Benefit

If the Insured dies due to an injury within 90 days from the date of the accident that occurs within 2 policy years from the issue date of your policy, in addition to the death benefit set out above, we will pay 100% of total regular premium paid.

If a Secondary Insured was appointed before the death of the Insured, accidental death benefit will not be payable. Please refer to Section 3.6. for more information on Secondary Insured Option.

### 3.3. Welcome Bonus

While this basic policy is in force, we will pay a Welcome Bonus upon the receipt of each basic regular premium paid for the first (1st) to third (3rd) policy year, depending on the annualised regular premium amount and IIP option.

The Welcome Bonus rates will be based on the applicable table as follows:

#### IIP 10:

| Number of Regular Premiums paid to and accepted by us | | | | Welcome Bonus Rate (Based on Annualised Regular Premiums) | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | $2,400 - $4,799 | $4,800 - $7,199 | $7,200 - $11,999 | ≥ 12,000 |
| 1st | 1st – 2nd | 1st – 4th | 1st – 12th | 5% | 5% | 10% | 15% |
| 2nd | 3rd – 4th | 5th – 8th | 13th – 24th | - | 8% | 13% | 18% |
| 3rd | 5th – 6th | 9th – 12th | 25th – 36th | - | 10% | 15% | 20% |
| | | | Total | 5% | 23% | 38% | 53% |

#### IIP 15:

| Number of Regular Premiums paid to and accepted by us | | | | Welcome Bonus Rate (Based on Annualised Regular Premiums) | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | $2,400 - $4,799 | $4,800 - $7,199 | $7,200 - $11,999 | ≥ 12,000 |
| 1st | 1st – 2nd | 1st – 4th | 1st – 12th | 8% | 8% | 13% | 18% |
| 2nd | 3rd – 4th | 5th – 8th | 13th – 24th | - | 11% | 16% | 21% |
| 3rd | 5th – 6th | 9th – 12th | 25th – 36th | - | 14% | 19% | 24% |
| | | | Total | 8% | 33% | 48% | 63% |

#### IIP 20:

| Number of Regular Premiums paid to and accepted by us | | | | Welcome Bonus Rate (Based on Annualised Regular Premiums) | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | $2,400 - $4,799 | $4,800 - $7,199 | $7,200 - $11,999 | ≥ 12,000 |
| 1st | 1st – 2nd | 1st – 4th | 1st – 12th | 10% | 10% | 15% | 20% |
| 2nd | 3rd – 4th | 5th – 8th | 13th – 24th | - | 15% | 20% | 25% |
| 3rd | 5th – 6th | 9th – 12th | 25th – 36th | - | 20% | 25% | 30% |
| | | | Total | 10% | 45% | 60% | 75% |

### 3.4. Special Bonus

[p.3] While this basic policy is in force, we will pay a Special Bonus upon the receipt of each basic regular premium paid from the 10th annual / 19th semi-annual / 37th quarterly / 109th monthly regular premium paid onwards.

The Special Bonus rates will be based on the table as follows:

| Number of Regular Premiums paid to and accepted by us | | | | Special Bonus (% of Regular Premium) |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 10th – 20th | 19th – 40th | 37th – 80th | 109th – 240th | 5% |
| 21st onwards | 41st onwards | 81st onwards | 241st onwards | 8% |

### 3.5. Maturity Benefit

When your policy matures, we will pay you the policy value, less applicable fees and charges (if any). Your policy will automatically terminate on the maturity date.

### 3.6. Secondary Insured Option

During the term of the policy, a Secondary Insured can be appointed to ensure the continuity of the policy upon death of the Insured.

#### When can appointment of Secondary Insured be made?

Policyholder/Assignee can appoint, at the point of policy application or during the policy term, while the Insured is alive. Any application to change the Secondary Insured will supersede any existing appointment of Secondary Insured that was submitted to us previously.

#### Who can be the Secondary Insured?

The Policyholder/Assignee or the Policyholder/Assignee's spouse or child (who is below age 16). At the point of appointment, the Secondary Insured cannot exceed age 70.

#### Secondary Insured cannot be appointed if:

- the policy already has a nomination of beneficiary; or
- a trust is created under this policy; or
- the Policyholder/Assignee or Insured is not alive

If you wish to make a nomination of beneficiary or create a trust under this policy, you must first revoke the appointment of the Secondary Insured.

#### What happens in the event of death of the Insured, and a Secondary Insured has been appointed beforehand?

The Secondary Insured will become* the new Insured of the basic policy and the policy continues. We will only pay the death benefit on the death of the new Insured.

In the event of death of the Insured and when the Secondary Insured becomes the new Insured:
(a) the policy maturity date shall be based on the date specified in the policy schedule or policy anniversary occurring on or immediately following the new Insured's 100th birthday, whichever is earlier;
(b) any optional riders attached will be terminated;
(c) any premium payments shall continue to be payable;
(d) for the avoidance of doubt, if any supplementary agreement that waives premium has been activated, premium will continue to be waived under the same terms as established under the supplementary agreement; and
(e) benefit charge (if any) will continue to be charged based on the new Insured's gender and attained age.

#### What happens in the event of accidental death of the Insured, and a Secondary Insured has been appointed beforehand?

The Secondary Insured will become* the new Insured of the basic policy and the policy continues. We will only pay the accidental death benefit if the new Insured dies due to an Injury within 90 days from the date of the Accident that occurs within two policy years from the Issue Date of your basic policy.

*this is conditional upon satisfaction of our customer due diligence check and prevailing rules and guidelines. In the event that we are unable to accept the Secondary Insured as the new Insured, claims proceed will be paid out and the policy will terminate.

### 3.7. Premium Pass

While this basic policy is in force, you will be entitled to one Premium Pass after every 5th annual / 10th semi-annual / 20th quarterly / 60th monthly regular premium has been paid, subject to the maximum number of Premium Passes applicable for each IIP option.

The maximum number of Premium Passes will vary based on the IIP options as follows:

| IIP Option | Maximum number of Premium Passes |
| --- | --- |
| IIP 10 | 1 Premium Pass |
| IIP 15 | 2 Premium Pass |
| IIP 20 | 3 Premium Pass |

Each Premium Pass may be activated more than once, subject to the maximum cumulative duration of 12 policy months for use of the Premium Pass. If the policy is entitled to more than one Premium Pass, multiple Premium Passes may be used consecutively.

During the Premium Pass Period, Premium Holiday Charge and Supplementary Charge will not be applicable.

Please refer to Section 7.1 for more information on Premium Pass.

Please note that the policy value depends on the prices of the units of the ILP sub-funds which may fluctuate and your policy value is therefore not guaranteed.

## 4. Subscription of Units

### 4.1. Regular Premiums

100% of regular premium will be used to purchase regular premium units at bid price in the ILP sub-funds that you have chosen.

As an example, the number of units in an ILP sub-fund you will receive based on a regular premium amount of S$1,000 and at notional bid price of S$1.00:

| Regular Premium Amount | ÷ | Bid Price | = | Number of Units |
| --- | --- | --- | --- | --- |
| S$1,000 | ÷ | S$1.00 | = | 1,000 |

Premium paid in advance will not be accepted.

Back payments of regular premium are not allowed.

### 4.2. Top-Up Premium

[p.4] 100% of Top-Up Premium less Premium Charge will be used to purchase top-up premium units at bid price in the ILP sub-funds that you have chosen.

### 4.3. Welcome Bonus

Welcome Bonus will be paid to your basic policy as regular premium units upon the receipt of each basic regular premium paid for the first (1st) to third (3rd) policy year, depending on the annualised regular premium amount and IIP option. Please refer to Section 3.3. for more information on the Welcome Bonus payable.

### 4.4. Special Bonus

Special Bonus will be paid to your basic policy as regular premium units upon the receipt of each basic regular premium paid from the 10th annual / 19th semi-annual / 37th quarterly / 109th monthly regular premium paid onwards. Special Bonus payable will increase upon the receipt of each basic regular premium paid from the 21st annual / 41st semi-annual / 81st quarterly / 241st monthly regular premiums paid onwards. Please refer to Section 3.4. for more information on the Special Bonus payable.

### 4.5. Premium Reduction Top-Up Units

Premium Reduction Top-Up Amount will be used to purchase Premium Reduction Top-Up units at bid price in the ILP sub-funds that you have chosen. Please refer to Section 5.5. for more information on the Premium Reduction Top-Up Units.

## 5. Fees and Charges

### 5.1. Premium Charge

We will deduct Premium Charge from any Top-Up Premium.

Premium Charge = 5% of each Top-Up Premium.

The following fees and charges are deducted by cancelling units at bid price.

### 5.2. Supplementary Charge

Every month, a Supplementary Charge equivalent to (3.90% / 12) of the Regular Premium Policy Value will be deducted from your policy. The Supplementary Charge will not be imposed during the Premium Pass Period or if the Premium Holiday Charge is payable.

Such charge will only cease upon the payment of 11th annual / 21st semi-annual / 41st quarterly / 121st monthly regular premium.

This means that the charge will extend beyond 10 policy years if you missed paying any premiums during that period.

### 5.3. Benefit Charge

[p.5] Benefit Charge will be deducted on a monthly basis to provide for insurance cover. If the Sum-at-Risk is zero or negative in a given month, no Benefit Charge is payable for that month.

Benefit Charge = Annual Benefit Charge Rate/12 x Sum-at-Risk

Where:
Sum-at-Risk = 100% of total regular premiums paid + total top-ups + total premium reduction top-up amount – total withdrawals – policy value

Please refer to Appendix A for the current Benefit Charge rates (shown on an annual basis) that are applied according to the Insured's gender and attained age.

### 5.4. Premium Holiday Charge

If you missed paying premium when due during the IIP and your policy is on Premium Holiday, a Premium Holiday Charge will be charged on monthly basis. This charge will cease once you resume premium payment.

Such charge will only cease to apply once the relevant regular premium has been paid. This means that the charge will extend beyond 10 / 15 / 20 policy years if you missed paying any premiums during the relevant IIP.

For the avoidance of doubt, Premium Holiday Charge shall not be applicable during Premium Pass Period.

Premium Holiday Charge = Premium Holiday Charge Annual Rate/12 x Annualised Regular Premium

#### IIP 10:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Holiday Charge Annual Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 30% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 20% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 20% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 10% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 10% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 5% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 5% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 2.5% |
| 10th | 20th | 40th | 120th | 2.5% |
| 11th onwards* | 21st onwards* | 41st onwards* | 121st onwards* | 0% |

#### IIP 15:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Holiday Charge Annual Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 30% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 20% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 20% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 10% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 10% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 5% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 5% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 2.5% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 2.5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 2.5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 2.5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 2.5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 2.5% |
| 15th | 30th | 60th | 180th | 2.5% |
| 16th onwards* | 31st onwards* | 61st onwards* | 181st onwards* | 0% |

#### IIP 20:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Holiday Charge Annual Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 30% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 20% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 20% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 10% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 10% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 5% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 5% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 2.5% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 2.5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 2.5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 2.5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 2.5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 2.5% |
| 15th | 30th – 31st | 60th – 63rd | 180th – 191st | 2.5% |
| 16th | 32nd – 33rd | 64th – 67th | 192nd – 203rd | 2.5% |
| 17th | 34th – 35th | 68th – 71st | 204th – 215th | 2.5% |
| 18th | 36th – 37th | 72nd – 75th | 216th – 227th | 2.5% |
| 19th | 38th – 39th | 76th – 79th | 228th – 239th | 2.5% |
| 20th | 40th | 80th | 240th | 2.5% |
| 21st onwards* | 41st onwards* | 81st onwards* | 241st onwards* | 0% |

*You must have paid the relevant regular premium before the Premium Holiday Charge Annual Rate will be reduced to 0%.

**IMPORTANT NOTE:**
Buying a life insurance policy can be a long-term commitment. Prior to purchasing this plan, you should ensure that you have the ability to finance this policy for the entire term in order to maximize its benefits. Your policy may LAPSE if your premiums are not paid when they are due.

### 5.5. Premium Reduction Charge

[p.7] A Premium Reduction Charge shall apply if premium reduction is effected during the IIP and such charge shall be deducted from your Premium Reduction Policy Value.

Such charge will only cease to apply once the relevant regular premium has been paid. This means that the charge will extend beyond 10 / 15 / 20 policy years if you missed paying any premiums during the relevant IIP.

Premium Reduction Policy Value = (1 – new Regular Premium / prevailing Regular Premium) x Regular Premium Policy Value

Premium Reduction Charge = Premium Reduction Charge Rate x Premium Reduction Policy Value

#### IIP 10:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Reduction Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Premium reduction is not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th | 40th | 120th | 5% |
| 11th onwards* | 21st onwards* | 41st onwards* | 121st onwards* | 0% |

#### IIP 15:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Reduction Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Premium reduction is not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 5% |
| 15th | 30th | 60th | 180th | 5% |
| 16th onwards* | 31st onwards* | 61st onwards* | 181st onwards* | 0% |

#### IIP 20:

| Number of Regular Premiums paid to and accepted by us | | | | Premium Reduction Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Premium reduction is not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 5% |
| 15th | 30th – 31st | 60th – 63rd | 180th – 191st | 5% |
| 16th | 32nd – 33rd | 64th – 67th | 192nd – 203rd | 5% |
| 17th | 34th – 35th | 68th – 71st | 204th – 215th | 5% |
| 18th | 36th – 37th | 72nd – 75th | 216th – 227th | 5% |
| 19th | 38th – 39th | 76th – 79th | 228th – 239th | 5% |
| 20th | 40th | 80th | 240th | 5% |
| 21st onwards* | 41st onwards* | 81st onwards* | 241st onwards* | 0% |

*You must have paid the relevant regular premium before the Premium Holiday Charge Annual Rate will be reduced to 0%.

**IMPORTANT NOTE:**
Buying a life insurance policy can be a long-term commitment. Prior to purchasing this plan, you should ensure that you have the ability to finance this policy for the entire term in order to maximize its benefits. Your policy may LAPSE if your premiums are not paid when they are due.

Premium Reduction Charge shall be charged to your policy by the cancellation of units from your Premium Reduction Policy Value at Bid Price prevailing as at the Valuation Day immediately following the date of our receipt, approval and processing of your Premium Reduction application

The remaining Premium Reduction Policy Value after the deduction of Premium Reduction Charge ("premium reduction top-up amount") will be allocated as Premium Reduction Top Up Units. For the avoidance of doubt, Premium Charge, Supplementary Charge, Partial Withdrawal Charge and Full Surrender Charge shall not be applicable to the Premium Reduction Top Up Units.

### 5.6. Full Surrender Charge

[p.8] If you request to surrender your policy during the IIP, full surrender charge will be deducted from your policy value and any remaining policy value will then be paid out.

Such charge will only cease to apply once the relevant regular premium has been paid. This means that the charge will extend beyond 10 / 15 / 20 policy years if you missed paying any premiums during the relevant IIP.

Full Surrender Charge = Full Surrender Charge Rate x Regular Premium Policy Value

#### IIP 10:

| Number of Regular Premiums paid to and accepted by us | | | | Full Surrender Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 100% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 80% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th | 40th | 120th | 5% |
| 11th onwards* | 21st onwards* | 41st onwards* | 121st onwards* | 0% |

#### IIP 15:

| Number of Regular Premiums paid to and accepted by us | | | | Full Surrender Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 100% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 80% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 5% |
| 15th | 30th | 60th | 180th | 5% |
| 16th onwards* | 31st onwards* | 61st onwards* | 181st onwards* | 0% |

#### IIP 20:

| Number of Regular Premiums paid to and accepted by us | | | | Full Surrender Charge Rate |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | 100% |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | 100% |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 80% |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 70% |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 60% |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 50% |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 45% |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 35% |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 20% |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 5% |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 5% |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 5% |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 5% |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 5% |
| 15th | 30th – 31st | 60th – 63rd | 180th – 191st | 5% |
| 16th | 32nd – 33rd | 64th – 67th | 192nd – 203rd | 5% |
| 17th | 34th – 35th | 68th – 71st | 204th – 215th | 5% |
| 18th | 36th – 37th | 72nd – 75th | 216th – 227th | 5% |
| 19th | 38th – 39th | 76th – 79th | 228th – 239th | 5% |
| 20th | 40th | 80th | 240th | 5% |
| 21st onwards* | 41st onwards* | 81st onwards* | 241st onwards* | 0% |

*You must have paid the relevant regular premium before the Full Surrender Charge Rate will be reduced to 0%

### 5.7. Partial Withdrawal Charge

If you requested for partial withdrawal, a partial withdrawal charge will be charged based on the regular premium policy value withdrawn by the cancellation of units.

[p.10] Such charge will only cease to apply once the relevant regular premium has been paid. This means that the charge will extend beyond 10 / 15 / 20 policy years if you missed paying any premiums during the IIP.

Partial Withdrawal Charge = Partial Withdrawal Charge Factor x Regular Premium Policy Value Withdrawn

#### IIP 10:

| Number of Regular Premiums paid to and accepted by us | | | | Partial Withdrawal Charge Factor |
| --- | --- | --- | --- | --- |
| Annual | Semi-annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Withdrawals are not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 4.000 |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 2.333 |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 1.500 |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 1.000 |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 0.818 |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 0.539 |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 0.250 |
| 10th | 20th | 40th | 120th | 0.053 |
| 11th onwards* | 21st onwards* | 41st onwards* | 121st onwards* | 0 |

#### IIP 15:

| Number of Regular Premiums paid to and accepted by us | | | | Partial Withdrawal Charge Factor |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Withdrawals are not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 4.000 |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 2.333 |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 1.500 |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 1.000 |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 0.818 |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 0.539 |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 0.250 |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 0.053 |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 0.053 |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 0.053 |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 0.053 |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 0.053 |
| 15th | 30th | 60th | 180th | 0.053 |
| 16th onwards* | 31st onwards* | 61st onwards* | 181st onwards* | 0 |

#### IIP 20:

| Number of Regular Premiums paid to and accepted by us | | | | Partial Withdrawal Charge Factor |
| --- | --- | --- | --- | --- |
| Annual | Semi-Annual | Quarterly | Monthly | |
| 1st | 1st – 3rd | 1st – 7th | 1st – 23rd | Not applicable. Withdrawals are not allowed. |
| 2nd | 4th – 5th | 8th – 11th | 24th – 35th | |
| 3rd | 6th – 7th | 12th – 15th | 36th – 47th | 4.000 |
| 4th | 8th – 9th | 16th – 19th | 48th – 59th | 2.333 |
| 5th | 10th – 11th | 20th – 23rd | 60th – 71st | 1.500 |
| 6th | 12th – 13th | 24th – 27th | 72nd – 83rd | 1.000 |
| 7th | 14th – 15th | 28th – 31st | 84th – 95th | 0.818 |
| 8th | 16th – 17th | 32nd – 35th | 96th – 107th | 0.539 |
| 9th | 18th – 19th | 36th – 39th | 108th – 119th | 0.250 |
| 10th | 20th – 21st | 40th – 43rd | 120th – 131st | 0.053 |
| 11th | 22nd – 23rd | 44th – 47th | 132nd – 143rd | 0.053 |
| 12th | 24th – 25th | 48th – 51st | 144th – 155th | 0.053 |
| 13th | 26th – 27th | 52nd – 55th | 156th – 167th | 0.053 |
| 14th | 28th – 29th | 56th – 59th | 168th – 179th | 0.053 |
| 15th | 30th – 31st | 60th – 63rd | 180th – 191st | 0.053 |
| 16th | 32nd – 33rd | 64th – 67th | 192nd – 203rd | 0.053 |
| 17th | 34th – 35th | 68th – 71st | 204th – 215th | 0.053 |
| 18th | 36th – 37th | 72nd – 75th | 216th – 227th | 0.053 |
| 19th | 38th – 39th | 76th – 79th | 228th – 239th | 0.053 |
| 20th | 40th | 80th | 240th | 0.053 |
| 21st onwards* | 41st onwards* | 81st onwards* | 241st onwards* | 0 |

*You must have paid the relevant Regular Premium before the Partial Withdrawal Charge Factor will be reduced to 0%

### 5.8. Fund Management Charge

The fees and charges payable through deduction from the net asset value of each ILP sub-fund are set out in the AIA Investment Fund Product Summary.

## 6. Policy Options and Flexibilities

### 6.1. Vary Regular Premium

[p.11] No reduction in the amount of regular premium shall be allowed until the 4th annual / 8th semi-annual / 16th quarterly / 48th monthly regular premium has been paid. Reduction in the amount of regular premium during the IIP will be subjected to Premium Reduction Charge.

Increase in regular premium amount is not allowed.

The minimum regular premiums amount is S$2,400 (Annual); S$1,200 (Semi-annual); S$600 (Quarterly); S$200 (Monthly). We reserve the right to revise the minimum premium amount any time at our discretion.

### 6.2. Top-Up

You may request to pay additional top-up premium on an ad-hoc basis, provided all regular premiums are paid when they fall due.

100% of top-up premium less premium charge will be used to purchase units in ILP sub-funds that you have chosen at bid price. Premium charge is 5% of the top-up premium.

The minimum top-up premium is S$1,000. We reserve the right to revise the minimum top-up premium amount any time at our discretion.

As an example, the number of units in an ILP sub-fund you will receive based on a top-up premium amount of S$1,000 and at a notional bid price of S$1.00:

| Top-up Premium Amount | x | Top-up Premium Charge Rate (Net of Premium Charge) | ÷ | Bid Price | = | Number of Units |
| --- | --- | --- | --- | --- | --- | --- |
| S$1,000 | x | (100% - 5%) | ÷ | S$1.00 | = | 950 |

### 6.3. Full Surrender

[p.12] You may surrender your policy at any time by written notice to us, for its surrender value.

The surrender value of your policy is the policy value less full surrender charge. The full surrender charge is as set out in Section 5.6. on Fees and Charges section above.

The following example illustrates the amount of redemption proceeds that you will receive based on a redemption of 1,000 regular premium units, at a notional bid price of S$1.00 and a surrender charge of 100%:

| Number of Units to be Redeemed | X | Bid Price | = | Gross Redemption Proceeds | - | Surrender Charge (100%) | = | Net Redemption Proceeds |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1,000 | X | S$1.00 | = | S$1,000 | less | S$1,000 | = | S$0 |

The following example illustrates the amount of redemption proceeds that you will receive based on a redemption of 1,000 regular premium units, at a notional bid price of S$1.00 and a surrender charge of 70%:

| Number of Units to be Redeemed | X | Bid Price | = | Gross Redemption Proceeds | - | Surrender Charge (70%) | = | Net Redemption Proceeds |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1,000 | X | S$1.00 | = | S$1,000 | less | S$700 | = | S$300 |

### 6.4. Partial Withdrawal

After you have paid the 3rd annual / 6th semi-annual / 12th quarterly / 36th monthly regular premium, you may request to make a partial withdrawal from your policy value subjected to partial withdrawal charge as set out in Section 5.7. on Fees and Charges above.

The minimum withdrawal amount is S$1,000 and the policy value after withdrawal must be at least S$10,000. We reserve the right to revise the minimum withdrawal amount and minimum policy value any time at our discretion.

### 6.5. Fund Switching

You may instruct us to switch all or any of the units of one ILP sub-fund to units of another ILP sub-fund(s) offered under the policy.

The minimum total switch amount is S$50. However, this minimum switch amount requirement is waived in respect of units switched out from AIA S$ Money Market Fund only and provided that all such units are switched out.

Further details may be obtained in the Section on "Fund Switch" in your policy contract.

### 6.6. Automatic Fund Switching

You may instruct us to automatically switch your investments in the AIA S$ Money Market Fund to other specified ILP sub-fund(s) on a regular basis (i.e. monthly or quarterly basis), subject to our terms and conditions.

The minimum total amount to switch periodically is S$50. The minimum initial balance in AIA S$ Money Market Fund is S$1,000.

Further details may be obtained in the section on "Automatic Fund Switch" in the policy contract.

### 6.7. Automatic Fund Re-Balancing

You may also opt for the Automatic Fund Re-balancing feature to have your holdings in different ILP-sub funds automatically rebalance on a regular basis to conform to pre-specified fund allocations (subject to our terms and conditions).

We shall re-balance your funds in accordance with such changes in re-balancing subsequent to the date on which your request is received and accepted by us. We will not, however, effect any switches (whether in or out of an ILP sub-fund) of lesser than S$50 or 1% of the policy value (whichever is lower).

Further details may be obtained in the section on "Automatic Fund Re-balancing" in the policy contract.

## 7. Other Material Information (Product)

### 7.1. Non-Payment of Regular Premium

#### If Premium Pass is applicable

[p.13] If the full amount of a regular premium is not paid by the premium due date, your policy will be deemed to have lapsed unless it has acquired a policy value that is sufficient to pay for all applicable fees and charges for your policy and premiums for the premium-paying supplementary agreements, in which case your policy's Premium Pass will be automatically activated and your Premium Pass Period shall commence on the first due date immediately following 65 days from the premium due date.

Upon activation of a Premium Pass, the premium frequency for your policy will automatically be changed to monthly mode. The amount of premiums for your policy (including any premiums for supplementary agreements) will be revised with the change in premium frequency. For the avoidance of doubt, the amount of regular premium payable for the basic policy is a direct proportion for all premium frequency modes. However, the premium for any attaching supplementary agreements is not a direct proportion of the annual / semi-annual / quarterly / monthly premium.

Premium Pass may be terminated at anytime by resuming payment of regular premium. Any unutilized Premium Pass at the end of the relevant IIP will no longer be applicable. Upon resumption of premium payment, premiums for your policy (including any premiums for supplementary agreements) will be payable by you each month. You may, however, instruct us to revert to your previous choice of premium payment frequency or such other frequency as you may elect, upon resumption of premium payment.

In the event that the regular premium remains unpaid after the Premium Pass Period, your policy shall be on Premium Holiday, and the Premium Holiday Charge shall additionally be payable.

#### If Premium Pass is not applicable

If the full amount of a regular premium is not paid by the premium due date, your policy will be deemed to have lapsed unless it has acquired a policy value that is sufficient to pay for all applicable fees and charges for your policy and premiums for the premium-paying supplementary agreements, in which case your policy shall be on Premium Holiday and Premium Holiday Charge shall additionally be payable.

Your policy will remain on Premium Holiday until you resume payment of the full amount of regular premiums or until your policy lapses, whichever occurs first. As long as your policy is not lapsed, you may resume paying your regular premium, subject to you meeting our terms and conditions imposed.

When your policy is on Premium Holiday or during Premium Pass Period, the premiums payable for any premium-paying supplementary agreements will be deducted by cancellation of units. When you resume payment of regular premiums, the premiums for any premium-paying supplementary agreements will resume to be payable by cash premium.

Back payments of regular premiums are not allowed.

#### Implication of Premium Holiday on Fees and Charges

During premium holiday, supplementary charge will not be imposed. Instead, a premium holiday charge will be imposed monthly.

Certain charges will extend well beyond the 10th / 15th / 20th policy year until the relevant regular premium has been paid to us. Such charges include but are not limited to, supplementary charge (if applicable), premium reduction charge, full surrender charge, partial withdrawal charge and premium holiday charge.

#### Example 1

[p.14] - This example is based on insured profile of 45 years old who pays $6,000 annual regular premium and selects IIP 10.
- Policyholder only pays the 1st annual premium.
- During premium holiday from 2nd policy year onwards, premium holiday charge is imposed.

At 8% illustrated investment rate of returns with 1.45% Fund Management Charge, the policy will lapse in 3rd policy year when policy value drops to 0.

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) | Policy Value ($) |
| --- | --- | --- | --- | --- |
| 1 | 6,000 | 253 | 0 | 6,445 |
| 2 | 0 | 0 | 6,000 | 670 |
| 3 (Lapse) | 0 | 0 | 670 | 0 |

At 4% illustrated investment rate of returns with 1.45% Fund Management Charge, the policy will lapse in 3rd policy year when policy value drops to 0.

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) | Policy Value ($) |
| --- | --- | --- | --- | --- |
| 1 | 6,000 | 249 | 0 | 6,206 |
| 2 | 0 | 0 | 6,000 | 287 |
| 3 (Lapse) | 0 | 0 | 287 | 0 |

#### Example 2

- This example is based on insured profile of 45 years old who pays $6,000 annual regular premium and selects IIP 10.
- Policyholder did not pay the 3rd, 4th and 5th annual premium. Hence, supplementary charges will only cease on 13th policy year (this coincides with the payment of the 10th annual regular premium).
- During premium holiday, premium holiday charge is imposed.

The following graph shows the differences in supplementary charges and premium holiday charges incurred due to premium holiday taken.

At 8% illustrated investment rate of returns with 1.45% Fund Management Charge:

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) |
| --- | --- | --- | --- |
| 1 | 6,000 | 253 | 0 |
| 2 | 6,000 | 520 | 0 |
| 3 | 6,000 | 798 | 0 |
| 4 | 6,000 | 1,057 | 0 |
| 5 | 6,000 | 1,323 | 0 |
| 6 | 6,000 | 1,595 | 0 |
| 7 | 6,000 | 1,873 | 0 |
| 8 | 6,000 | 2,157 | 0 |
| 9 | 6,000 | 2,448 | 0 |
| 10 | 6,000 | 2,758 | 0 |
| 11 | 6,000 | 0 | 0 |
| TOTAL | 66,000 | 14,782 | 0 |

Total supplementary charge and premium holiday charge of $14,782 deducted over 10 policy years

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) |
| --- | --- | --- | --- |
| 1 | 6,000 | 253 | 0 |
| 2 | 6,000 | 520 | 0 |
| 3 | 0 | 0 | 1,800 |
| 4 | 0 | 0 | 1,800 |
| 5 | 0 | 0 | 1,800 |
| 6 | 6,000 | 668 | 0 |
| 7 | 6,000 | 925 | 0 |
| 8 | 6,000 | 1,187 | 0 |
| 9 | 6,000 | 1,456 | 0 |
| 10 | 6,000 | 1,730 | 0 |
| 11 | 6,000 | 2,012 | 0 |
| 12 | 6,000 | 2,299 | 0 |
| 13 | 6,000 | 2,605 | 0 |
| 14 | 6,000 | 0 | 0 |
| TOTAL | 66,000 | 13,655 | 5,400 |

Total supplementary charge and premium holiday charge of $19,055 deducted over 13 policy years

At 4% illustrated investment rate of returns with 1.45% Fund Management Charge:

[p.15]

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) |
| --- | --- | --- | --- |
| 1 | 6,000 | 249 | 0 |
| 2 | 6,000 | 501 | 0 |
| 3 | 6,000 | 754 | 0 |
| 4 | 6,000 | 980 | 0 |
| 5 | 6,000 | 1,202 | 0 |
| 6 | 6,000 | 1,421 | 0 |
| 7 | 6,000 | 1,637 | 0 |
| 8 | 6,000 | 1,849 | 0 |
| 9 | 6,000 | 2,058 | 0 |
| 10 | 6,000 | 2,276 | 0 |
| 11 | 6,000 | 0 | 0 |
| TOTAL | 66,000 | 12,927 | 0 |

Total supplementary charge and premium holiday charge of $12,927 deducted over 10 policy years

| End of Policy Year | Regular Premium paid ($) | Supplementary Charge ($) | Premium Holiday Charge ($) |
| --- | --- | --- | --- |
| 1 | 6,000 | 249 | 0 |
| 2 | 6,000 | 501 | 0 |
| 3 | 0 | 0 | 1,800 |
| 4 | 0 | 0 | 1,800 |
| 5 | 0 | 0 | 1,800 |
| 6 | 6,000 | 570 | 0 |
| 7 | 6,000 | 798 | 0 |
| 8 | 6,000 | 1,022 | 0 |
| 9 | 6,000 | 1,243 | 0 |
| 10 | 6,000 | 1,461 | 0 |
| 11 | 6,000 | 1,674 | 0 |
| 12 | 6,000 | 1,885 |