Can someone explain to me how AIA smartrewards saver(ll) works?

Hi anon,

AIA smartrewards saver is a saving plans with a coupon feature.

After paying premiums for the first year, you will receive a guaranteed coupon starting from the second year. This coupon is 5% of the insured amount. Note that the insured amount is NOT the total premiums paid. This coupon is paid every year, and on maturity, another 5% of the insured amount (for the 25 year plan) or 25% of th einsured amount (for the 21 year plan) is paid out.

You may choose to cash out the coupon or re-invest it. If you re-invest it, you'll get non-guaranteed interest on the coupon.

Thus, if you use the coupon, you will lose out on the non-guaranteed interest that would have been credited if you left the coupon 'within' the plan. Your final maturity value will be just the 25% or 5% of the insured amount plus any terminal bonuses (the 'maturity payout')

Note that total premiums paid are lower than the guaranteed payouts of the plan, based on the examples that I have seen so far.