Any AIA agents here? Would like to clarify a few things for my family with regards to the above policies.
Let's say any endowment plan with a periodic payout (i.e 21 yr policy with 7 3-yearly anniversaries). If the payout is paid out automatically by AIA but the cheque is not cashed and returned to AIA, shouldn't the face amount not be deducted by the amount of the payout?
And for the FG, is this considered a term or life plan? Looking at the policy period, it covers the person till 101 years old which probably assumes that the person should have passed away by that age. Is the person expected to pay for this plan all the way till the end of the policy?
I believe the AIA agent whom sold these products long ago did not clearly specify what exactly these policies do so my family may have been taken for a ride by the agent.
Any AIA agents here? Would like to clarify a few things for my family with regards to the above policies.
Let's say any endowment plan with a periodic payout (i.e 21 yr policy with 7 3-yearly anniversaries). If the payout is paid out automatically by AIA but the cheque is not cashed and returned to AIA, shouldn't the face amount not be deducted by the amount of the payout?
And for the FG, is this considered a term or life plan? Looking at the policy period, it covers the person till 101 years old which probably assumes that the person should have passed away by that age. Is the person expected to pay for this plan all the way till the end of the policy?
I believe the AIA agent whom sold these products long ago did not clearly specify what exactly these policies do so my family may have been taken for a ride by the agent.
Hi, I am from an IFA, where AIA is also one of our partners. For FG, it is a life plan which covers the insured till age 101 but also require the insured to pay till then. Old wholelife plans are structured that way, whereas new wholelife plans require insured to pay for a limited number of years and cover the person for wholelife. It may sometimes be more beneficial to restructure the portfolio to enjoy cost savings and yet get covered for the same amount.
For the endowment, what face amount are you referring to?
Perhaps it will be better if I am able to take a look at the existing policies. Do PM me if you would like my help =)
Hi, I am from an IFA, where AIA is also one of our partners. For FG, it is a life plan which covers the insured till age 101 but also require the insured to pay till then. Old wholelife plans are structured that way, whereas new wholelife plans require insured to pay for a limited number of years and cover the person for wholelife. It may sometimes be more beneficial to restructure the portfolio to enjoy cost savings and yet get covered for the same amount.
For the endowment, what face amount are you referring to?
Perhaps it will be better if I am able to take a look at the existing policies. Do PM me if you would like my help =)
For the endowment, I understand the payout is 10% of face amount every 3 years and on the 21st year, it will be 40% which totals up to 100%. The face amount concerned is $30k so the maturity amount as shown is $12k which is 40% plus the reversionary bonus and maturity bonus. Since some of the payouts were not cashed in, shouldn't the face amount be higher?
So the FG is essentially a term plan? Which means there's no surrender value?
For the endowment, I understand the payout is 10% of face amount every 3 years and on the 21st year, it will be 40% which totals up to 100%. The face amount concerned is $30k so the maturity amount as shown is $12k which is 40% plus the reversionary bonus and maturity bonus. Since some of the payouts were not cashed in, shouldn't the face amount be higher?
So the FG is essentially a term plan? Which means there's no surrender value?
Yes, in that case the final amount that you will get back at the end of 21 years will be higher since no withdrawals were made.
FG is a wholelife cover wholelife pay plan, which may or may not suit your parents' needs if they are planning to retire soon. There is cash value upon surrendering, depending on the bonuses declared over the years.
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