Investment Linked Policies (ILP)
Whole Life Insurance
Asked 2w ago
I realized my parents bought the AIA Prime Life for me when I was born - in 1995. The maturity of the plan is 2095. Is it a whole life plan or ILP?
There's a lot of terms which I don't recognized.
The FaceAmount is 100K. Is that the covered amount?
The accumulated reversionary bonus is around 20.5k? is that the guaranteed sum I will get if I were to surrender? The net surrender value I see on my AIA account is around 26k.
The premium is 700/year till 2095. So that means need pay till 2095?
This is a whole life plan.
Face amount is another way of looking at sum assured. This is the amount that will be paid out in event of death/TPD, before bonuses. Depending on the riders added to the plan, there may be critical illness coverage also.
If you surrender, you will get the surrender value of the plan (the 26K). Reversionary bonuses are added to the plan and become guaranteed (the 20.5K), but if you were to claim, you also need to factor in the terminal bonus as well (probably 5.5K looking at it). The reason why the net surrender value is higher is due to the effect of terminal bonuses.
Yes, the premiums are to be paid till 2095 or until a claim occurs.
AIA Prime Life is a wholelife plan. Its a pay until claim / death / surrender
Face amount in this case is the sum assured
Reversionary bonus is the declared bonus from the par funds, which accumulates as the surrender value.
Yes you have to pay unitl 2095 where it matures. But you can choose to surrender it later at age 65/70 if you have no children and wants to boast retirement monies.