Protect Elite Ultra 3 / Protect Elite Ultra 3 – First Gift

Our investment philosophy is to deliver stable returns in line with the product’s investment objectives and AIA’s business and financial objectives.

Our investment policy aims to achieve the targeted long-term investment results and minimise volatility in investment returns over time. It also aims to control and diversify risk exposures, maintain adequate liquidity and manage the assets with respect to the liabilities.

Our current long-term target strategy is to allocate assets attributed to this product as follows:

• Bonds and other fixed income instruments: 25% - 100%
• Equity-like assets: 0% - 75%

Our investment strategy is to actively manage the investment portfolio i.e.: adjust the asset mix in response to the external market conditions. The proportion of equity-like assets would be lower when interest rate level is low and would be even lower than the long-term target strategy so to protect the guaranteed liability and to minimise volatility in investment returns over time, and vice versa when interest rate is high.

The bonds and other fixed income instruments predominantly include government and corporate bonds, and are mainly invested in the geographic region of the United States and Asia-Pacific (excluding Japan). Equity-like assets may include listed equity, mutual funds and direct / indirect investment in commercial / residential properties, and are mainly invested in Asia. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments. Subject to our investment policy, derivatives may be utilised to manage our investment risk exposure and for matching between assets and liabilities.

Our currency strategy is to minimise currency mismatches. For bonds or other fixed income instruments, our current practice is to currency-match its bond purchases with the underlying policy denomination on best-efforts basis (i.e.: US Dollar assets will be used to support US Dollar liabilities and HK Dollar assets will be used to support HK Dollar liabilities). Subject to market availability and opportunity, bonds may be invested in currency other than the underlying policy denomination and currency swap will be used to minimise the currency risks. Currently assets are mainly invested in US Dollar. For equity-like assets, currency exposure depends on the geographic location of the underlying investment where the selection is done according to our investment philosophy, investment policy and mandate.

We will pool the investment returns from other long term insurance products (excluding investment linked assurance schemes and pension schemes) together with this participating insurance plan for determining the actual investment and the return will subsequently be allocated with reference to the target asset mix of the respective participating products. Actual investments (e.g. geographical mix, currency mix) would depend on market opportunities at the time of purchase. Hence it may differ from the target asset mix.

The investment strategy may be subject to change depending on the market conditions and economic outlook. Should there be any material changes in the investment strategy, we will inform policy owners of the changes, with underlying reasons and impact to the policies.

1. You should pay premium(s) on time and according to the selected premium payment schedule. If you stop paying the premium before completion of the premium payment term, you may elect one of the non-forfeiture options to surrender the policy or convert the policy to a non-participating insurance plan with life protection only. Compared with the original plan, such a plan will have less cover or a shorter term.
   
   

If no non-forfeiture option has been elected, the premium will be covered by a loan taken out on the policy automatically. When the loan balance exceeds the guaranteed cash value, the policy will lapse and you will lose the cover. The surrender value of the policy will be used to repay the loan balance, and we will refund any remaining value.


2. The plan may make certain portion of its investment in equity- like assets. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments, you should note the target asset mix of the product as disclosed in this product brochure, which will affect the bonus on the product. The savings component of the plan is subject to risks and possible loss. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid
   
   
3. We will terminate your policy and you / the insured will lose the cover when one of the following happens:
   
   
   • the insured passes away (except when the insured mother passes away but the insured child survives under Protect Elite Ultra 3 – First Gift);
     
   • you do not pay the premium within 31 days of the due date and the policy has no cash value;
     
   • the end of the benefit term if basic policy has been continued as a non-participating insurance plan;
     
   • the outstanding debt exceeds the guaranteed cash value of the policy. Where the premium is covered by a loan taken out on the policy automatically, the outstanding debt exceeds the guaranteed cash value of your policy;
     
   • the date of termination of pregnancy with loss or death of the fetus, whether occurring spontaneously or otherwise, and regardless of whether Compassionate Refund of Premium Benefit is paid (only applicable for Protect Elite Ultra 3 – First Gift); or
     
   • we do not receive the birth certificate of the new born baby 14 days before the first policy anniversary of the cover (only applicable for Protect Elite Ultra 3 – First Gift).
     
     
     
4. The Coverage Booster will be terminated when one of the following happens:
   
   
   • when the claims payments made in total for benefits under the Coverage Booster reach the Coverage Booster Amount (50% of Initial Sum Assured for the insured’s age 30 or below at policy application or 35% of Initial Sum Assured for the insured’s age 31 or above at policy application);
     
   • at the end of the 10th policy year; or
     
   • when the basic plan is terminated or converted to a non-participating insurance plan.
     
     
5. The Selected Critical Illness Shield Benefit and Cancer Treatment Flexi Option will be terminated when one of the following happens:
   
   
   • when the claims payments made in total for benefits under the basic policy (excluding the Coverage Booster) reach 500% of the Initial Sum Assured;
     
   • the payment of a total of 4 pay-outs under the Selected Critical Illness Shield Benefit and the Cancer Treatment Flexi Benefit;
     
   • at the anniversary of the cover immediately following the insured’s 85th birthday;
     
   • when the basic plan is terminated or converted to a non-participating insurance plan; or
     
   • the payment of 2 pay-out under Cancer Treatment Flexi Benefit (only applicable for Cancer Treatment Flexi Option).
     
     
6. The Waiver of Premium on Death (Parents) will be terminated when one of the following happens:
   
   
   • at the anniversary of the cover immediately following the insured’s 25th birthday;
     
   • for the policy owner, at the anniversary of cover immediately following the policy owner's 80th birthday; or
     
   • for the contingent owner, at the anniversary of cover immediately following the contingent owner's 80th birthday.
     
     
7. The Waiver of Premium on Death (Spouse) will be terminated at the anniversary of cover immediately following 80th birthday of the spouse of the insured.
   
   
8. The Super Lifestage Option will be terminated when one of the following happens:
   
   
   • at the anniversary of cover immediately following 60th birthday of the insured;
     
   • if claim is submitted to us or has been made under this policy (except for the Waiver of Premium on Death (Parents) and the Waiver of Premium on Death (Spouse)).
     
     
9. If Public Health Emergency of International Concern is no longer valid due to any change at or made by the World Health Organization (including if the World Health Organization ceases to exist), from that point onward, we will choose at our option to either follow the last such declaration by the World Health Organization or any other equivalent declaration from other health organisations.
   
   
10. We underwrite the plan and you are subject to our credit risk. If we are unable to satisfy the financial obligations of the policy, you may lose your premium paid and benefits.
    
    
11. You are subject to exchange rate risks for plans denominated in currencies other than the local currency. Exchange rates fluctuate from time to time. You may suffer a loss of your benefit values and the subsequent premium payments (if any) may be higher than your initial premium payment as a result of exchange rate fluctuations. You should consider the exchange rate risks and decide whether to take such risks.
    
    
12. Your current planned benefit may not be sufficient to meet your future needs since the future cost of living may become higher than they are today due to inflation. Where the actual rate of inflation is higher than expected, you may receive less in real terms even if we meet all of our contractual obligations.
    
    

Except for the death benefit, under this plan, we will not cover any of the following events or conditions that result from any of the following events:

• any illnesses with signs / symptoms or surgeries caused or triggered by conditions, which first occurred before or within 90 days after the policy is issued (only applicable for Protect Elite Ultra 3);
  
• Fulminant viral hepatitis or cancer of the insured due to AIDS or HIV infection; and
  
• a self-inflicted injury.

The above list is for reference only. Please refer to the policy contract of this plan for the complete list and details of exclusions.

In order to provide you with continuous protection, we will review the premium of your plan from time to time within the premium payment term and adjust accordingly if necessary. During the review, we may consider factors including but not limited to the following:

• claim costs incurred from all policies under this plan and the expected claim outgo in the future which reflects the impact of change in the incidence rate of deaths, covered illnesses and covered surgeries
  
• historical investment returns and the future outlook of the product’s backing asset
  
• historical investment returns and the future outlook of the product’s backing asset
  
• expenses directly related to the policy and indirect expenses allocated to this product
  
  

1. In case the insured reaches the age of 70 or above and makes any subsequent claim for prostate cancer resulting from the continuation of a previous prostate cancer for which a previous claim was made, the benefit will only be payable if the insured has received or is in the process of receiving the full course of cancer- directed surgery, radiotherapy, chemotherapy, targeted therapy or a combination of these treatments (excluding hormonal therapy) which is medically necessary during the intervening period between the diagnosis of the previous and subsequent prostate cancer.
   
   
2. Serious Infectious Disease Protection Benefit applies only if the insured stays in Intensive Care Unit due to the diagnosis of PHEIC disease for a Reasonable and Customary Hospital Confinement.
   
   Reasonable and Customary Hospital Confinement” means: A confinement in hospital for illness which is medically necessary, where the admission of the insured, length of confinement, and medical services and treatment received during confinement:
   
   • are all in accordance with standards of good medical practice; and
     
   • do not exceed the usual standard for the treatment of similar illness at the location where such confinement takes place.
     
     
   For the above-mentioned “medically necessary” means that the medical services, diagnosis and / or treatments are:
   
   • delivered according to standards of good medical practice;
     
   • necessary; and
     
   • cannot be safely delivered in a lower level of medical care.
     
     

Experimental, screening, and preventive services or supplies are not considered medically necessary.

If you wish to make a claim, you must send us the appropriate forms and relevant proof. You can get the appropriate claim forms in www.aia.com.hk, from your financial planner, by calling the AIA Customer Hotline (852) 2232 8888 in Hong Kong, or (853) 8988 1822 in Macau, or by visiting any AIA Customer Service Centre. For detail claim procedures, please refer to the Claim Procedure section in the policy contract.

If the insured commits suicide within one year from the date on which the policy takes effect, our liability will be limited to the refund of premiums paid (without interest) less any outstanding debt.

Except for fraud or non-payment of premiums, we will not contest the validity of this policy after it has been in force during the lifetime of the insured (i.e. the expectant mother and the subsequently child in respect of Protect Elite Ultra 3 – First Gift) for a continuous period of two years from the date on which the policy takes effect. This provision does not apply to any add-on plan providing accident, hospitalisation or disability benefits.

• You have the right to cancel and obtain a refund of any premiums and any levy paid by giving written notice to us.
  
• Such notice must be signed by you and submitted to the Customer Service Centre of AIA International Limited at 12/F, AIA Tower, 183 Electric Road, North Point, Hong Kong or the Customer Service Centre of AIA International Limited at Unit 1903, 19/F, AIA Tower, 251A-301 Avenida Comercial de Macau, Macau within 21 calendar days immediately following either the day of delivery of the policy or the Cooling-off Notice to you or your nominated representative , whichever is the earlier.