Smart Elite Ultra

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 according to the target asset mix on the asset class below:

Bonds and other fixed income instruments: 55% - 75%

Equity-like assets: 25% - 45%

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, which are mainly invested in Asia. Equity-like assets may also include private equity, which is typically invested in the United States. Returns of equity-like assets are generally more volatile than bonds and other fixed income instruments. Subject to our investment policy, material amount of 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 their bond purchases with the underlying policy denomination on best-efforts basis (e.g. US Dollar assets will be used to support US Dollar liabilities, HK Dollar assets will be used to support HK Dollar liabilities and RMB assets will be used to support RMB 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 (excluding compassionate cash benefit in the policy conversion). 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 sum of guaranteed cash value and accumulated Annual Dividends with interest (if any) of the basic plan, 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 dividend 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. You may request for the termination of your policy by notifying us in written notice. Also, we will terminate your policy and you / the insured will lose the cover when one of the following happens:
   
   
   • the insured passes away;
     
   • 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; or
     
   • 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 sum of guaranteed cash value and accumulated Annual Dividends with interest (if any) of your policy.
     
     
4. Multiple illnesses protection will be terminated when one of the following happens:
   
   
   • when the claims payments made in total for benefits under the Critical Illness Group reach the maximum benefit of the corresponding Critical Illness Group as shown in the table under the section “115 illnesses protection with multiple cover" on page 5 in product brochure; or
     
   • at the anniversary of the cover immediately following the insured’s 85th birthday. Afterwards, advance claims payments for illnesses suffered across any and all the Critical Illness Groups will be capped at 100% of the Initial Sum Assured.
     
     
5. Benign Extra Benefit of an organ will be terminated when one of the following happens:
   
   
   • upon successful re-assessment and cover extension to full cancer protection for the respective organ between the 2nd and 6th policy year;
     
   • when 20% of Initial Sum Assured in aggregate is paid for cancer, Carcinomas-in-situ and Early Stage Malignancy occurring in the respective organ with covered benign conditions; or
     
   • when critical illness benefit is ceased under the basic policy, i.e.:
     
     
     • before the insured reaches the age of 85: when the claims payments made in total for benefits under all Critical Illness Groups have reached the maximum benefit of each of the Critical Illness Groups;
       
     • after the insured reaches the age of 85: when the claims payments made in total for benefits under any and all Critical Illness Groups have reached 100% of the Initial Sum Assured; or
       
     • when the basic plan is converted to a non-participating insurance plan.
       
       
6. 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);
     
   • at the end of the 15th policy year (for the insured’s age 40 or below at policy issue) or 10th policy year (for theinsured’s age 41 or above at policy issue); or
     
   • when the basic plan is terminated or converted to a non-participating insurance plan.
     
     
7. 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.
   
   
8. 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.
   
   
9. 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 and compassionate cash 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;
• 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
• policy surrenders and lapses
  
• expenses directly related to the policy and indirect expenses allocated to this product

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.

“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 you wish to know more about claim related matter, you may visit “File A Claim” section under our company website www.aia.com.hk.

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 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.