AIA Hong Kong announces the launch of the new AIA "Brighter Tomorrow"1. Customers only need to pay premiums for two years to reap an up to 5% Total Internal Rate of Return (IRR) at maturity2 over a 12-year benefit term, which is equivalent to 1.75 times of the total premiums paid. Such a high projected return is rare for medium-term savings products3 in the market under the prevalent low interest rate environment. The plan also offers life protection, Unemployment Benefit4 and flexible settlement options for death benefit. Application for the policy is simple and easy as no medical examinations5 are required. It helps customers accumulate their wealth and achieve their respective life plans, such as planning for a carefree retirement or overseas education for their children, at ease. AIA "Brighter Tomorrow" is available as a limited offer1 while applications are still open.
The average life expectancy of Hong Kong people is getting longer and longer, reaching 83 years for men and 88 years for women6. People are increasingly concerned about the need of doing protection planning. According to a recent survey by AIA Hong Kong, the average desired retirement age of Hong Kong people is 62 years old7, implying a longer retirement and requiring more savings as reserves. Another survey revealed that 39% of parents plan to send their children abroad for education8, which usually entails over HK$1 million in expenses9, pointing to a need to plan for their education fund as early as possible.
Mr. Felix Fung, Director, Product Innovation, Development & Delivery at AIA Hong Kong & Macau, said: "While quite a few whole life and long-term savings insurance plans were launched in the market in recent years, there is only a limited choice of medium-term savings insurance products, hardly able to satisfy the demand of customers in planning for retirement or education for their children. Considering the difference in investment strategies, long-term savings insurance products may not be able to address customers' need for medium-term returns. We have tailored the product structure and investment strategy of the new AIA ‘Brighter Tomorrow' to optimise medium-term returns for customers. As a trusted partner on their life journey, we enable customers to achieve their financial goals at different stages, helping them to live Healthier, Longer, Better Lives."
AIA "Brighter Tomorrow" is a participating insurance plan that provides 12 years of life protection, combining protection and savings to cater for customers' different financial objectives. Its key features include: