Last Updated on 16, May 2014
The AIA Platinum Legacy and AIA Platinum Legacy Preserver are whole life non-participating plans denominated in US dollars. Underwritten by AIA with a minimum sum assured of US$500,000. The following are the plan details and my comments:
These two plans are what we called Universal Life Insurance. Features are:
1. Whole life insurance;
2. Strictly covers death only. No TPD, TI or CI riders.
3. Cash values;
4. Choice of Death coverage = sum assured + cash value or death coverage = higher of (sum assured, cash values);
5. Only one fund called “cash”;
6. Premium limited pay selectable from 1 year (single premium) to 5 years.
7. Withdrawal of cash can be done penalty free subjected to terms and conditions. For example, surrender of up to 4.5% of cash value is penalty free from year 11 onwards.
8. The “cash” attracts interest of at least 3% per annum (guaranteed by AIA). Currently the interest rate is 5% and 4.35% for Legacy and Preserver respectively.
9. Similar to ILP, the insurance cost is deducted from the cash values. If there is insufficient cash values, the policy will lapse. The “Preserver” version guarantees that the policy will not lapse even if the cash value is zero. Of course this guarantee comes at a price because the premium is higher than the non-guarantee version.
10. The coverage of the two plans cover up to age 100. At the end of age 100, if there is still no claim (i.e. the life assured is still alive), the policy terminates and the cash value will be refunded.
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