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Answers: |
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1. |
What
is Investment-linked life product?
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It's
an insurance product offering protection and investment to the
policyholder. Policy values are directly linked to performance of
investment funds managed by a "AAA" financial
institution and that is American International Assurance Co., Ltd.
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2. |
How
does it work?
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A
portion of the policy premium is used to purchase units in the
investment-linked fund managed by the insurance company. The death
coverage under the policy is provided through insurance charge by
deduction of units from the Account.
Value of the policy is linked to units in a special unitized fund
managed by the insurance company. The values of the units directly
reflect the values of the underlying fund, and fluctuate according
to the performance of these investments. The benefits are therefore
expressed at their market value at the time the benefits are paid.
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3. |
What
are the funds AIA Co., Ltd. will invest in?
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AIA
offer 3 kinds of funds for our policyholders to choose from. They
have the option to allocate their premiums in percentage in
multiples of 5% and the total percentage must add up to 100%.
The funds are:
a) AIA Managed Fund - investment in equity and equity-related
securities listed on the Kuala Lumpur Stock Exchange (KLSE), fixed
income securities and money market instruments.
b) AIA Equity Fund - investment in equity and equity-related
securities listed on the KLSE.
c) AIA Fixed Income Fund - investments in fixed income securities
and money market securities.
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4. |
What
if I do not instruct AIA how to invest my funds?
Should
there be no instruction given to AIA, we will default the investment
allocation to 100% Managed Fund. |
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5. |
Are
there any fund management charges to these investments, and if yes,
what are the charges concerned?
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The
fund management charges for the funds are as follows and are charged
upfront at fund level:
a) AIA Managed Fund - 1.5% per annum
b) AIA Equity Fund - 1.5% per annum
c) AIA Fixed Income Fund - 0.5% per annum
Such charges are subject to revision up to a maximum as stipulated
in the contract.
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6. |
Who
are the fund managers you have appointed?
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These
funds are structured, monitored and managed internally by a
professional team of AIA fund managers. They will also be assisted
and advised by a team of experts from American International Group
(AIG) and AIA Group of Companies.
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7. |
How
often is fund valuation being carried out?
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Currently,
we are carrying it out once a week. Policyholders are able to track
the performance of the funds by checking the Bid Price and Offer
Price published daily in major newspapers.
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8. |
When
does my coverage start?
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Coverage
is based on the date of issue of policy by the Company on a
condition full initial premium payment had been received by AIA.
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9. |
Can
I sell some of my units?
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Yes,
we call this Partial Withdrawal. Policyowners will have to submit a
WITHDRAWAL/SURRENDER form and indicate the amount of money to
surrender and from which accounts - the Managed Fund, Equity Fund or
Fixed Income Fund.
Policyowners can withdraw the desired amount from any of the above
fund, combination of two funds or from all funds. However, the total
amount withdrawn must be more than RM1,000.00 and minimum amount to
remain in the funds must be at least RM5,000.00 (Single Premium) and
RM1,000.00 (Regular Premium).
No. of units to be sold off = Amount stated to withdraw/Bid Price
determined at the next Valuation Date.
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| 10. |
Can
I sell off ALL my units?
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Yes,
we call this Total Surrender. Policyowners will have to submit a
WITHDRAWAL/SURRENDER form and indicate to surrender all the units in
the funds.
Value of units = No. of units left x Bid Price determined at the
next valuation Date.
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| 11. |
What
if I feel I need to increase my investment?
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A
policyowner may top up their existing fund with minimum amount of
RM1,000.00 (for Single Premium only). Just submit the Top-up form
and pay the top up amount. It is subject to a 6.5% premium charge on
Top-up premium. |
| 12. |
What
if I feel that Fixed Income Fund and Managed Fund will fare better
than Equity Fund in the near future and I want to change my
investment portfolio later?
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A
Policyowner may exercise an option called Fund Switch. Submit a Fund
Switch form to us and instruct us the amount, in percentage form to
switch from Equity Fund to the other 2 funds. 1st switch will be
FREE of charge per policy year, subsequent switches in the policy
year are subject to RM25.00 per switch.
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| 13. |
When
will my policy go on a Premium Holiday?
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Premium
holiday will take effect when a Policyowner does not make any
payment of his Regular premiums and the policy will remain in force
as long as the Account Value is sufficient to cover all Policy
Charges and costs of any Supplementary Contracts or Riders attached
to the Basic policy (except during the late payment period). Units'
equivalent in value will be deducted. Policy will lapse if account
value is insufficient to cover such costs.
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| 14. |
What
if I want to reinstate my policy? (Only applicable to regular
premium)
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To
follow existing practice. However, the back premiums paid shall only
be allocated to units based on the Bid Price determined on the next
Valuation Date following policy reinstatement.
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| 15. |
What
if I want to reduce the basic regular premium? (Only applicable to
regular premium)
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Policyowners
may decrease the basic regular premium they are paying at any time
after the first policy year without changing the sum assured subject
to the minimum annual premium of RM1,200.00 and the maximum sum
assured requirement. |
| 16. |
What
if I want to increase or decrease the basic sum assured? (Only
applicable to regular premium)
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Policyowners
may increase or decrease the basic sum assured at any time after the
first policy year without changing the regular premium amount
subject to the maximum and minimum sum assured requirement. Any
increase in sum assured will subject to underwriting.
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| 17. |
How
is the Account Value determined?
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The
Account Value, which is the Cash Surrender Value, is equal to the
number of Units multiplied by the Bid Price determined on the next
Valuation Date following the request for surrender.
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