U-select | Investment-Linked Assurance Scheme | AIA Hong Kong

Investment-Linked Assurance Scheme

Benefit period

Whole Life

Issue age for the life insured

15 Days - 70 Years

PRODUCT INTRODUCTION

U-Select is an investment-linked assurance scheme combining life insurance coverage and investment. It is available to applicants between the age of 18 and 70 (inclusive) and life insured between the age of 15 days and 70 (inclusive).

There is a very substantial upfront charge which will be deducted from the premiums you paid in the first policy year. For details, please refer to the Product Key Facts Statement of U-Select.

Please refer to the offering documents for more details about the product features.

PREMIUM

You are required to pay a regular Basic Premium for you U-Select policy while it is in force. Basic Premium is usually subject to the Face Amount and the age, gender and class of risk of the life insured. For reference, the minimum Basic Premium for a non-smoking 40-year-old man applying for a Basic Policy with the minimum Face Amount of US$50,000 or HK$375,000 will be US$951 per annum or HK$7,132.50 per annum, respectively. You may also increase your investment by making contributions in the form of lump sum investment and/or regular investment. The minimum amount of lump sum investment (per transaction) and annualised regular investment is US$100 or HK$800.

For dealing of an Investment Option through allocation instruction, the minimum amount for Lump Sum Investment is US$100 or HK$800 and the minimum amount for Regular Investment is as follows:

Payment mode	Minimum Regular Investment amount
Monthly	US$8.33 or HK$66.64
Quarterly	US$25 or HK$200
Semi-annually	US$50 or HK$400
Annually	US$100 or HK$800

For dealing of an Investment Option (Cash Distribution) through allocation instruction, the minimum amount for Lump Sum Investment is US$2,000 or HK$16,000 and the minimum amount for Regular Investment is as follows:

Payment mode	Minimum Regular Investment amount
Monthly	US$2,000 or HK$16,000
Quarterly	US$6,000 or HK$48,000
Semi-annually	US$12,000 or HK$96,000
Annually	US$24,000 or HK$192,000

Investment Options (Cash Distribution) are not available for selection through allocation of Basic Premium.

By paying additional premium for optional supplementary contracts, you may also include in your U-Select policy additional insurance coverage such as life or critical illness protection. Please refer to the section “B) Premium payment for life insurance coverage and investment” in the product brochure for details.

PRODUCT FEATURES

Total Account Value

All premiums you pay for your Basic Policy and supplementary contracts (if applicable), after deduction of the premium charges, shall be used to subscribe units in accordance with your selection of investment option(s). Such units shall be notionally allocated to the Basic Policy for determination of the value and benefits under the Basic Policy. Please refer to the section “G) Investment Options information” in the product brochure for details.
Death Benefit

In the unfortunate event of death of the life insured, we will pay the beneficiary the Total Account Value plus the higher of (a) Face Amount; and (b) 5% of Total Account Value. You may specify the Face Amount according to your protection need (subject to minimum requirements of US$50,000 or HK$375,000 in the first seven policy year; and US$20,000 or HK$150,000 starting from the 8th policy year). Please refer to the subsection “Death benefit” under the section “C) Your benefits” in the product brochure for details.
Premium Holiday

You can temporarily suspend paying premium by applying for a premium holiday from the third policy year onwards as long as the Total Account Value is sufficient to cover the relevant fees and charges and premium of supplementary contracts (if applicable). Please note that, during premium holiday, such fees and charges and premium of supplementary contracts (if applicable) will continue to be deducted from the Basic Policy while it is in force. Please refer to the subsection “Premium holiday” under the section “B) Premium payment for life insurance coverage and investment” in the product brochure for details.
Investment Options and Switching

We have made a number of investment options available to U-Select for your selection depending on your risk tolerance level and your investment strategies. You may also switch the units in the investment options under your policy when there is any change in your strategies. Switching is free of charge. Switching for Investment Options should be at least US$100 or HK$800 per transaction. Switching into an Investment Option (Cash Distribution) is subject to a minimum investment amount of US$2,000 or HK$16,000 per transaction. Please refer to the section “G) Investment Options information” in the product brochure and the investment options brochure for details.
Partial Withdrawal

You can withdraw a portion of the Total Account Value by redeeming units free of charge. However, please note that once the partial withdrawal has been made from the Basic Account, you will no longer enjoy the conditional 10-year no lapse privilege and the Total Account Value and death benefit of your U-Select policy will be reduced. Please refer to the subsection “Partial withdrawal” under the section “C) Your benefits” in the product brochure for details.
Conditional 10-year No Lapse Privilege

In case of poor performance of the investment options you selected, the Total Account Value may fall significantly. With the conditional 10-year no lapse privilege, the Basic Policy and the relevant supplementary contracts (if any) shall guarantee to remain in force in the first 10 policy years even if the Total Account Value is insufficient to cover the relevant fees and charges. This privilege will remain in effect provided that in the first 10 policy years (i) no premium holidays have been exercised; (ii) no partial withdrawals have been made from the Basic Account; and (iii) the policy has not been lapsed and reinstated before. Please refer to the subsection “Conditional 10-year no lapse privilege” under the section “C) Your benefits” in the product brochure for details.
Loyalty Bonus

Provided that your policy is in force on the 20th policy anniversary and you have paid the Basic Premium for at least 120 policy months within the first 20 policy years, you will be entitled to receive a one-off loyalty bonus for which the maximum is equal to the amount of Basic Premium paid in the 1st policy year. The loyalty bonus will be reduced if premium holiday has been exercised or the Basic Premium has been reduced in the first 20 policy years. Please refer to the subsection “Loyalty bonus” under the section “C) Your benefits” in the product brochure for details.

INSURANCE LINGO EXPLAINED

Basic Account

It means the sub-account into which units are notionally allocated with the Basic Premium and premium of the unit deducting supplementary contracts (if applicable) after deducting any applicable premium charge.

Basic Policy

It means the policy contract of U-Select as amended, supplemented and/or revised by endorsement from time to time.

Basic Premium

It means the premium of the Basic Policy you pay regularly while the policy is in force, which generally depends on the Face Amount selected, the insured’s Issue age, gender and class of risk, which is subject to premium charge and other applicable fees and charges. However, starting from the 8th policy year, if you have ever reduced the Face Amount of the Basic Policy, the Basic Premium is no longer directly dependent on the reduced current Face Amount, and where you choose a new preferred Basic Premium based on a Face Amount in an amount ranging from the reduced current Face Amount up to the Face Amount at inception of the Basic Policy, the Basic Premium will refer to this new preferred Basic Premium.

Face Amount

It means the amount selected by you and approved by AIA International Limited as shown on the policy information page as the “Face Amount” (any subsequent reduction in the Face Amount upon your request or as a result of benefits payment to you under any applicable supplementary benefits attached to the Basic Policy will be amended by an endorsement). It is used to calculate the death benefits under the Basic Policy.

Premium Payment Year

It means the year for which the Basic Premium and unit deducting supplementary contract premium (if applicable) have been paid, and such period shall count as from the policy date with respect to Basic Premium, and from the commencement date with respect to the unit deducting supplementary contracts. Any period of premium holiday will be excluded from the counting of Premium Payment Year.

Total Account Value

It means the total sum of the Basic Account value, the lump sum investment account value and the regular investment account value.

Valuation Day

It means, in relation to an underlying fund, the day on which the assets of that underlying fund are valued, as determined by the fund manager of that underlying fund from time to time.

FEES AND CHARGES

This investment-linked assurance scheme includes the following charges:

Premium Charge

Up to 100% of the Basic Premium payable for the first 6 Premium Payment Years; 6% of each lump sum investment/regular investment received by us.

Account value charge

0.5% / 12 per month of the Basic Account value payable from the 7th policy year onwards.

Cost of Insurance

Subject to the Face Amount, Total Account Value and the attained age and/or issue age, gender and class of risk of the insured, and will be charged monthly from the 2nd policy year until the termination of the Basic Policy.

The underlying fund charges may include management fee, performance fee, bid-offer spread and/or switching fee and such fees will be deducted and reflected in the unit price of the underlying funds.

Please refer to the section “F) Summary of charges” in the product brochure for details of the investment-linked assurance scheme charges. For the underlying fund charges, details can be found in the offering documents of the underlying funds and the investment options brochure of U-Select, which are available from AIA International Limited upon request.

You can purchase this product from your intermediary.

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¹The Government of the Hong Kong Special Administrative Region has announced that the Capital Investment Entrant Scheme would be suspended with effect from 15 January 2015 until further notice.

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U-select | Investment-Linked Assurance Scheme | AIA Hong Kong

Whole Life

15 Days - 70 Years

PRODUCT INTRODUCTION

Get in touch

Talk To Us Now

PREMIUM

PRODUCT FEATURES

Total Account Value

Death Benefit

Premium Holiday

Investment Options and Switching

Partial Withdrawal

Conditional 10-year No Lapse Privilege

Loyalty Bonus

INSURANCE LINGO EXPLAINED

FEES AND CHARGES

This investment-linked assurance scheme includes the following charges:

Premium Charge

Account value charge

Cost of Insurance

Get in touch

Talk To Us Now

OTHER RELATED PRODUCTS