AIA Hong Kong Launches "Global Power Multi-Currency Plan 2"

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AIA Hong Kong Launches "Global Power Multi-Currency Plan 2"

5 October 2022

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AIA Hong Kong Launches "Global Power Multi-Currency Plan 2" with Multiple New Options Offering Extra Flexibility: First-in-Market "Bonus Unlock Option" to Accumulate Returns More Flexibly

Total Internal Rate of Return Expected to Exceed 7%　

"Policy Split Option" Allows Great Versatility to Cater to Different Needs and Changes in Life　

Apply Now to Enjoy Up to 25% Premium Refund

AIA Hong Kong announces the launch of the AIA "Global Power Multi-Currency Plan 2", an enhanced plan of the well-received AIA "Global Power Multi-Currency Plan" introduced last year. The new plan features multiple new options offering extra flexibility, including the first-in-market* "Bonus Unlock Option"¹ where customers can choose to reallocate locked-in bonuses according to their financial needs to enjoy potential returns. AIA "Global Power Multi-Currency Plan 2" helps customers further explore attractive potential returns in the long run, with total internal rate of return (Total IRR) for specific policy currencies expected to exceed 7%² at the end of the 100^th policy year. Moreover, the new plan's "Policy Split Option"³ enables customers to divide their policy into two individual policies each time they exercise the option for extra flexibility in legacy planning. This is a first-in-market^# insurance savings plan that offers seven currency choices and the "Currency Exchange Option"⁴, which allows customers to change their policy currency to another currency while at the same time exchanging their plan to the latest plan under the Global Power Series available at the time to suit their personal needs and enable them to seize global opportunities.

In addition, AIA "Global Power Multi-Currency Plan 2" provides customers with a choice of three premium payment terms and the "Extension of Grace Period Benefit"⁵, which allows customers to delay premium payment up to 365 days, among other benefits, catering to their personal financial plans and changing needs at different life stages. Customers who successfully apply for the AIA "Global Power Multi-Currency Plan 2" can enjoy up to 25% premium refund⁶.

Ms. Alice Liang, Chief Proposition Officer of AIA Hong Kong & Macau, said, "We recognise plans and goals will evolve at different life stages in the ever-changing world. A survey revealed a 40% jump⁷ in the number of students pursuing further studies outside of Hong Kong in the past two years, and the total expenditure for overseas education can be well over HK$1 million⁸. Moreover, the latest 'AIA Desired Retirement Tracker' survey showed that 67% of respondents do not have sufficient retirement funds with a savings shortfall as high as HK$2.3 million⁹. The AIA 'Global Power Multi-Currency Plan' rolled out last year, which addressed customers' specific needs for lifelong planning and demand for multi-currency, was met with overwhelming response. The AIA 'Global Power Multi-Currency Plan 2' we launch today is a stepped-up series with various enhancements and options that offer extra flexibility, including the first-in-market^* 'Bonus Unlock Option'¹ and the newly-added 'Policy Split Option'³, to suit customers' changes in life stages and needs. The projected return is very competitive – whether it's for children to study abroad, legacy or retirement planning, the new plan will further support customers in capturing global currency opportunities to grow their wealth over the long run and achieve their various goals in life."

The AIA "Global Power Multi-Currency Plan 2" is a participating whole-life insurance plan under the Global Power Series, covering the entire lifespan of the insured. Its key features include:

First-in-market* Bonus Unlock Option¹
- The "Bonus Lock-in Option"¹⁰ under the Global Power series enables customers to realise potential returns by transferring a certain percentage of the latest cash values of the non-guaranteed Reversionary Bonus and Terminal Bonus into a "Bonus Lock-in Account" to earn interest at a non-guaranteed rate.
- The newly-added "Bonus Unlock Option" of the AIA "Global Power Multi-Currency Plan 2" is the first of its kind in the market* and caters to customers' different needs and changes, allowing them to unlock a certain amount of the latest value of the "Bonus Lock-in Account" as non-guaranteed Reversionary Bonus and Terminal Bonus to accumulate returns to suit their financial needs.
Total IRR Expected to Exceed 7%² at the end of the 100^th policy year
- The plan is a participating whole-life insurance plan to achieve long-term wealth accumulation with guaranteed cash values and potentially attractive returns.
- Case Study: A customer chooses RMB as the policy currency with a five-year premium payment term. The annual premium is RMB60,000 and the total premiums paid is RMB300,000. At the end of the 100^th policy year, the projected total surrender value can reach up to RMB263,767,201 with the Total IRR expected to exceed 7%.
Newly-added "Policy Split Option"³
- The "Policy Split Option" allows customers to transfer certain policy values from the current policy to a separate policy while maintaining the policy duration and without requiring a medical examination.
- Furthermore, the plan offers additional options including the "Change of Insured Option" and the "Contingent Insured Option", providing extra flexibility in legacy planning and asset allocation that cater to customers' personal needs.
Three premium payment term options
- Customers can choose among a one-time premium payment term, a limited offer of three-year premium payment term or a five-year premium payment term to help meet their different financial goals.
Extension of Grace Period Benefit⁴
- Should the customer encounter an unexpected change that may cause an impact on their finances, they may apply for the "Extension of Grace Period Benefit" – where the grace period for late premium payment will be extended to up to 365 days to reduce their financial burden and give them extra financial flexibility while keeping the insured protected and the policy effective.

Online Video: AIA "Global Power Multi-Currency Plan 2"

Please watch the video:

https://youtu.be/BfKf7I66Xpo

Remarks:

This option is available once per policy year, starting from one year after bonus lock-in and within 30 days after the end of each policy year.
The Total IRR is neither indicative of future performance nor guaranteed. In the worst-case scenario, the actual Total IRR can be equal to the Guaranteed IRR, which is 0.39% at the end of the 100th policy year. The projected total surrender value illustrated is the sum of the policy's guaranteed cash value plus the non-guaranteed cash values of Reversionary Bonus (if any) and Terminal Bonus (if any) and is based on the current projected surrender value and bonus scales. The current projected surrender value and bonus scales are neither indicative of future performance nor are they guaranteed. Past performance or current performance of our business should not be interpreted as a guide for future performance. The actual face values and cash values of the Reversionary Bonus and Terminal Bonus payable throughout the duration of the policy are non-guaranteed and may vary from year to year at AIA's sole discretion, which may be greater or less than the previously declared amounts based on a number of factors and may be less or more favourable than those illustrated. The above example assumes that no cash withdrawal or no policy loans are taken throughout the term of the policy, and Bonus Lock-in Option, Bonus Unlock Option, Currency Exchange Option and Policy Split Option are not exercised. The projected breakeven year is not guaranteed. The Total IRR at the end of 100th policy year is rounded to the nearest percentage and is not guaranteed. The actual Total IRR at the end of 100th policy year may be higher or lower than that illustrated. The Total IRR at the end of 100th policy year assumes that (i) all premiums are paid in full when due and as planned; (ii) the total premiums paid excludes the levy collected by the Insurance Authority; (iii) no death benefit or surrender value has been paid before or becomes payable; (iv) no withdrawal has been made before and no indebtedness under the policy; and (v) the principal amount of the policy remains unchanged throughout the policy term. The calculation of the Total IRR at the end of 100th policy year takes into account: (i) the total premiums paid during the premium payment term for the basic plan; and (ii) the projected total surrender value at the end of the 100th policy year. The actual Total IRR may be based on several factors (including but not limited to investment returns, expenses, claims, surrenders, timing and frequency of exercising the Currency Exchange Option and Bonus Unlock Option) and may be less favourable or longer (as the case maybe) than those illustrated. There can be variance for IRR under different premium payment term, policy currency options and different plans under the Global Power Series since they are totally independent. For IRR of Global Power Multi-Currency Plan 2 policies with different plan options, please refer to relevant benefit illustrations. The Total IRR of Global Power Multi-Currency Plan 2 for specific policy currency is not indicative of future performance of future plans under the Global Power Series.
After the end of the 3rd policy year or the end of the premium payment term, whichever is later, customers can exercise the Policy Split Option according to their need and transfer certain policy values from the current policy to a separate policy, splitting one policy into two. The current policy will continue to be effective with no change in effective date, and the policy effective date of the split policy will be the same as the current policy. This option can be exercised once per policy year.
The Currency Exchange Option allows customers to change their policy currency to another currency selected by them (including Renminbi (RMB), British pound sterling (GBP), US dollar (US$), Australian dollar (AUD), Canadian dollar (CAD), HK dollar (HK$) and Macau pataca (MOP; only for policies issued in Macau), by exchanging their current plan (i.e. Global Power Multi-Currency Plan 2) to the latest plan under the Global Power Series in their designated policy currency, while maintaining the policy duration and without requiring a medical examination. From the end of the 3rd policy year onwards, customers can choose to exercise the Currency Exchange Option within 30 days after the end of each policy year. This option can only be exercised once per policy year. There could be a material difference between Global Power Multi-Currency Plan 2 and the latest plan available under the Global Power Series at the time when customers exercise the Currency Exchange Option. Material difference includes but not limited to: product features (i.e. benefits, policy terms and conditions, 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 the current plan depending on the future new plan's features. Customers shall not purchase this product solely for the Currency Exchange Option. Customers should carefully evaluate the difference between the current plan and the latest plan under the Global Power Series available for exchange when exercising the Currency Exchange Option and consider whether the latest plan suits their needs. Please refer to the product brochure for details and relevant risks.
Should one of the specified events happen to customers during the premium payment term of the basic plan, they may claim for the Extension of Grace Period Benefit (not applicable to one-time premium payment). AIA will extend the grace period for late premium payment from 31 days to up to 365 days to give customers extra financial flexibility while keeping the insured protected and the policy effective. The benefit will become payable if one of the specified events happen to the policy owner, these include (i) laid off and become involuntarily unemployed, (ii) legally married, (iii) legally divorced, (iv) his/her natural child is born, (v) adopted a child through legal means, (vi) purchased a new residential property or (vii) changed the principal location of residence (i.e. the city where the policy owner lives or intends to live for 185 days or more in policy year and which is shown as the place of residence of the policy owner in our records). The Extension of Grace Period Benefit is available once per policy.
The promotion period is from now until 15 November 2022. For details, please visit www.aia.com.hk.
Source: Education Bureau, "Secondary 6 Students' Pathway Survey" for 2019, 2020 and 2021 (data collection: August 2022)
Source: https://eduplus.hk/overseas/ and media news. A survey on overseas education expenditure conducted by GfK, which was commissioned by AIA (data collection date: April 2022)
Source: The 13th AIA Desired Retirement Tracker 2021
Within 30 days after the end of each policy year, starting from the end of the 15th policy year, customers may apply to exercise the Bonus Lock-in Option once per policy year. This option enables customers to transfer a certain percentage of the latest cash values of the non-guaranteed Reversionary Bonus and Terminal Bonus into a Bonus Lock-in Account to earn interest at a non-guaranteed rate. Customers can withdraw cash from the Bonus Lock-in Account anytime without reducing the principal amount of their policy.

As of 16 September 2022, compared with savings insurance products provided by Hong Kong major insurance companies.

According to AIA's internal survey conducted in May 2022, the remark on being "first-in-market" is based on the comparison of the dates of the first launch of participating savings insurance products with multiple policy currency options and Currency Exchange Option provided by Hong Kong major insurance companies and that AIA's multiple policy currency options and Currency Exchange Option is the first in Hong Kong. MOP is only applicable to policies issued in Macau.

All information above is for reference only and does not constitute any offer and/or insurance product recommendation. The product information in this material does not contain the full terms of the product, for the details of the product features, terms and conditions, exclusions and key product risks, please refer to the product brochure and policy contract of relevant products or visit the website. In case you want to read policy contract sample before making an application, you can obtain a copy from AIA. Life insurance policies are long-term contracts of insurance. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.

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About AIA Hong Kong & Macau

AIA Group Limited established its operations in Hong Kong in 1931. To date, AIA Hong Kong and AIA Macau have close to 19,000 financial planners¹, as well as an extensive network of brokerage and bancassurance partners. We serve over 3.4 million customers², offering them a wide selection of professional services and products ranging from individual life, group life, accident, medical and health, pension, personal lines insurance to investment-linked assurance schemes with numerous investment options. We are also dedicated to providing superb product solutions to meet the financial needs of high net worth customers.

^{1. as at 31 December 2021} ^{2. Including AIA Hong Kong and AIA Macau's individual life, group insurance and pension customers (as at 31 December 2021)}

AIA Hong Kong
Ms. Deronie Tan
+852 2881 4413

Bentley Communications Limited
Mr. Kim Tsoi

+852 3960 1913

AIA Group Limited is incorporated in Hong Kong with limited liability.
"AIA Hong Kong & Macau", "AIA Hong Kong", "AIA Macau", "AIA" or "the Company" herein refers to the Hong Kong Branch and/or Macau Branch of AIA International Limited (Incorporated in Bermuda with limited liability).
"Hong Kong" and "Macau" herein refer to "Hong Kong Special Administrative Region" and "Macao Special Administrative Region", respectively.