AIA Prime Life (AB): Is a Final Payout upon death?

My dad bought the Prime Life in 2000s. He loss his sight during 2010s. We have been receiving the payouts since then. I was told by my mum that the book (insurance book) was returned to my agent when we receive the payouts. I did not get to see what was on the contract.

Currently my dad's illness has been deteriorating. Will there be any final payout after my dad pass away or the payouts are only given when he is alive with the disability?

How does this policy works?

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Elijah Lee

19 Jan 2022

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Prime Life is a whole of life plan that pays upon death, and there are many possible riders that can be added. This plan was launched many years ago, consequently, what I know about the plan will be from my experience reviewing my clients portfolios.

The riders that can be added to the plan include

Renewable term rider
Waiver of premium riders
CI payout

What I have not seen (but I suspect is that case for your dad) would be the disability income rider. If this rider does exist for your dad's plan, then it pays out a monthly income probably up to 75% of your dad's income at point of inception of the policy. This regular payout has no bearing on the actual death payout. This should be the payments you are getting now. Thus, there will likely be a final payout upon death, it really depends on how the payout was configured in the plan.

I'll have to see the riders attached to this plan; if you can call the hotline to ask more, I may be able to provide an insight.

Take care.

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Yong

17 Jan 2022

Hi,

How life/term plan payout is as long as diagnosed with any of the conditions: death, total disabilities, terminal illnesses or CI illnesses, the company will payout the sum assured to the policy owner.

The payout benefits are pretty much the same throughout all companies for the death and tpd.

Best is to get the current servicing agent to follow up on this issue. Else if there isn't any servicing agent, I would love to help you out for the processing and administrative work.

If you would like to discuss it in detail, I would love to connect with you!
https://www.instagram.com/thefinancialrab/

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