Cautions for purchasing Unit Linked life insurance

For Unit Linked life insurance customers.

Suggestion

Contact a seller who has a life insurance broker license and who is an Investment Consultant (IC).
Receive a prospectus containing details of important information (Fund Fact Sheet) which shows the fund allocations when purchasing Unit Linked life insurance.
Study product information details before making a decision on purchasing Unit Linked life insurance as follows.
- Coverage and benefits that you will receive, including general conditions and exclusions.
- Premium amount, coverage period, premium paying period. Paid premiums will be deducted for premium charges, an administration fee and COI. The remaining amount will be invested in the mutual funds as specified.
- If the fund selected by a customer is a foreign investment fund, the fund may not have a policy to fully hedge against foreign exchange risk according to the fund manager’s discretion. Therefore, the Insured may have foreign exchange losses or gains from investment or may receive a return lower than the initial investment amount.
- They premium payment channels for the first year and following instalments (if any).
- The right on premiums for tax deduction as stipulated by the Revenue Department.

Select an insurance plan that suits your needs and risk appetite.
Make your own informed decision on an investment.
Fill in the forms yourself and check all the details on the forms before signing your name, every single time.
Make sure you receive “a copy” of the Benefit Illustration (BI) / Sales Sheet / prospectus containing the details of important fund information (Fund Fact Sheet) / KYC & RPQ forms / Annual Statement illustration / payment documents every time, and check that the information is correct.
When receiving the policy, please study the details, terms and conditions of the policy. The Insured may cancel the policy within 15 days from the receipt date of the policy (Free Look Period). In this case, the insurance company shall return the policy fees and redemption value less a charge of 500 baht and the cost of the medical check-up (if any).

Disclaimers

Bangkok Bank does not have a policy of receiving cash when offsite.
Unit linked life insurance is not a bank deposit and involves risks. Neither free insurance coverage offered with mutual funds, nor free mutual fund units are offered with this insurance.
The premium charge, COI and administration fees are tax deductible. The Investment portion is not eligible for tax deduction.

Coverage and Benefits

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Coverage

Benefits

1. If death occurs during the policy period

The Company will pay the following benefit, whichever amount is greater between (1) or (2)

The sum assured as specified in the policy, or endorsement (if any) deduct withdrawal amount from NAV of total regular premium (if any), or
of investment units of the regular premium plus 1 time of first-year regular premium

Including the redemption value of investment units purchased through any top up premiums (if applicable)

2. If no death occurs during the policy period

Receive the redemption value of investment units at a valuation date after the maturity date of the contract.

Requirements

Coverage period: Whole life (until the age of 99) or as long as the redemption value of investment units is sufficient for the deduction of expenses as stipulated in the policy fee schedule.
Sum assured: Minimum 15 million baht, maximum 150 times of the regular premium
Regular premium: Regular premium Conditions as specified by AIA Com., Ltd. Regular premium depends on age, gender, target age, sum assured, years of premium payment, selected fund, substandard COI, etc.
Insurable age: Separated by plan, target age and premium payment period

 
Insurable age table

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Plan	Target age (Years)	Insurable age (Years)
		Premium payment period
		5 years	10 years	15 years	20 years
Gift	20	15 days – 10	15 days – 10	15 days – 5	-
	30	15 days - 17	15 days - 17	15 days - 15	15 days - 10
	40	15 days - 17	15 days - 17	15 days - 17	15 days - 17
Retirement	55	18 - 45	18 - 45	18 - 40	18 - 35
	60	18 - 50	18 - 50	18 - 45	18 - 40
	65	18 - 55	18 - 55	18 - 50	18 - 45
	70	18 - 60	18 - 60	18 - 55	18 - 50
Legacy	99	18 - 65	18 - 65	18 - 60	18 - 60

Payment mode: Annually / Semi-annually / Quarterly / Monthly

Premium rates

Regular Premium: RP

Regular premium depends on age, gender, target age, sum assured, years of premium payment, selected fund, substandard COI, etc.

Top Up Premium

You are able to choose a Top Up premium payment period as follows

Regular Top-Up Premium: RTU: Minimum 1,000 baht per installment and not exceeding 5 times the regular premium (RP)
Ad-hoc Top-Up Premium: ATU: Minimum 1,000 baht per payment and not exceeding 120 million baht per policy year

 
 
Notes

The premium charge, administration fee, and cost of insurance (COI) for life coverage are eligible for personal income tax deductions according to the criteria of the Revenue Department.
The regular premium for new business case is subject to change depending on the Company's estimated fund growth rate assumption for each year.

Benefits from the Financial Plan

Non-Lapse Guaranteed	The life coverage follows sum assured amount, for the regular premium will be effective throughout the premium payment period, maximum 20 years from the policy date (a coverage date) although the redemption value of investment units is not sufficient for paying COI and administration fee, under conditions that the Insured; 1. Fully pays the regular premium for all installments, and 2. No withdrawal from the redemption value of regular Premium, and 3. No reduction in regular premium The outstanding COI and Admin Fee (if any) shall be considered as policy liabilities.
Special Retirement Bonus	Retirement Bonus is a bonus for regular premium. The Company will pay a special retirement bonus when the Insured meets all required conditions 1. When the Insured reaches the age of 55 years on the policy anniversary date, and 2. The policy has been effective for at least 10 years, and 3. Meets regular premium payment conditions whichever as follows Fully pays all installments, or Pays regular premium at least 10 years (10 installments Annually, 20 installments semi-annually, 40 installments quarterly or 120 installments monthly) The Company will pay a Retirement Bonus at the rate of 0.25% per annum, calculated based on the Redemption Value of the Regular Premium. Retirement bonuses will be paid monthly. The first Retirement Bonus will be paid on the date the monthly Policy Charges are calculated, which follows the day on which all the above conditions are met. After that, a retirement bonus will be paid every month. In the case of a month that does not have the date indicated in the Policy, the last day of that month will be the day on which the Company calculates a retirement bonus. The Company will use a retirement bonus to purchase investment units according to the latest investment allocation, at the Offer Price as of the valuation date following the end of a monthly period of the Policy. The rate of a monthly Retirement Bonus is the annual Retirement Bonus divided by twelve. On the date the special retirement bonus is paid, if the policy is during a Premium Holiday, the Company will not pay the Retirement Bonus.
Premium Holiday	The Insured is able to stop paying Regular Premium (RP) as follows; If the policy has been in force for 3 policy years and3 annual installments of the Regular Premiums have been fully paid, and the policy will continue to be in force as long as the Redemption Value is sufficient for payment of the administration fee and Cost of Insurance. The Company will deduct the administration fee and Cost of Insurance every month as specified in the policy until the Redemption Value is not sufficient for the payment. In this case, this policy will remain in force until the end of the month following the due date, after which the Policy will terminate and become invalid. If any rider is attached to the policy, such rider will be terminated when the Insured does not pay the premium of that rider within a grace period. The Insured cannot pay a Top-up Premium during a Premium Holiday for the Regular Premium. Note: If the policy has been in force for less than 3 policy years and the Insured does not pay the regular premium for 3 annual installments, and does not pay the regular premium within a grace period, the policy will be terminated. If the policy has a Redemption Value, the policy will be automatically surrendered and the Company will return the surrender value (if any) together with the monthly amounts of the Cost of Insurance and the administration fee which have been deducted, in the month following the end of the month of the due date, after deduction of a withdrawal fee from the policy.
Increment/ reduction of premium	Regular Premium: RP It is possible to reduce the regular premium after the regular premium has been paid for 3 policy years, but it is impossible to increase the regular premium in renewal year. Regular Top-Up Premium: RTU and Ad-hoc Top-Up Premium: ATU is possible to change at any time, except for during a premium holiday.

Fund Information and Fee Structure

Mutual funds under this product are mutual funds from BBL Asset Management Co., Ltd. and Bangkok Capital Asset Management Co., Ltd. which has 3 following funds:

Fund name	fund abbreviation	Risk Level	Asset Class	Investment approach
1. (Bualuang Treasury Fund)*	B-TREASURY	1	Money Market Fund	Focuses on investing in Thai government debt securities such as treasury bills, government bonds, and Bank of Thailand bonds (with an average maturity of no more than 92 days). Suitable for investors who want to temporarily park their money or wait for the right moment to invest in other assets.
2. (BCAP Global Multi Asset Fund)	BCAP-GMA	5	Fixed income and Equities (Global)	Focuses on investment of foreign mutual funds, equity funds, fixed-income funds, mixed funds, alternative asset funds, and/or other types of mutual funds (with investment allocation in equity funds less than 80% of NAV), which are established or issued by securities issuers in various countries worldwide. The fund will be invested based on the recommendations of Banque Pictet & Cie SA, Singapore Branch, which serves as the fund’s investment advisor. Suitable for investors seeking high returns, portfolio diversification, and who can accept foreign exchange risk.
3. (BCAP Global Multi Asset Plus)	BCAP-GMA Plus	6	Fixed income and Equities (Global)	Focuses on investment of foreign mutual funds, equity funds, fixed-income funds, mixed funds, alternative asset funds, and/or other types of mutual funds (with investment allocation in equity funds not less than 80% of NAV), which are established or issued by securities issuers in various countries worldwide (with a higher allocation to equity funds than BCAP‑GMA). The fund will be invested based on the recommendations of Banque Pictet & Cie SA, Singapore Branch, which serves as the fund’s investment advisor. Suitable for investors seeking high returns, portfolio diversification, and who can accept foreign exchange risk.

 
 
Notes

Bualuang Treasury Fund or B-TREASURY is a fund for Automatic Fund Switching only.
Regarding the mutual funds in the list above, the insurance company may consider adding or cancelling any funds in the above list for customers to select in the future at the Company’s discretion.

Schedule of fees and charges

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Purchase/Redemption of Investment Units and the Timeframe for Processing the Transactions

Purchase of Investment Units

The initial annualized regular premium and the top-up premium (if any), after the deduction of premium charges, cost of insurance and administration fees, and the remaining premium amount will be invested and allocated to the Insured’s selection as specified on the application form or the premium request form of investment units.
The next installment of regular premium after deduction of premium charges and all liabilities under this policy (if any) will be invested per the latest allocation or a specified proportion by the Insured on the date of initial purchase and subsequently on the valuation date which is the next business day after the date on which the Company is notified of the full amount of the premium.
Top-up premiums after deduction of premium charges and all liabilities under this policy (if any) will be invested per specified proportion by the Insured on the date of initial purchase and subsequently on the valuation date which is the next business day after the date on which the Company is notified of the full amount of the premium.
If the purchase date of investment units falls on a holiday, the Company shall purchase the investment units on the next business day that the transaction can be processed.

 
Redemption of Investment Units with a Specific Timeframe for Trading of Investment Units
In case of a policy surrender, partial withdrawal, or fund switching, the Company will carry out the redemption of investment units before 10.00 a.m. of the business day on which the Company receives the request form. If they receive the request form after 10.00 a.m., the Company shall handle the request on the next business day. If the purchase date of investment units falls on a holiday, the Company shall purchase the investment units on the next business day that the transaction can be processed.

Redemption of Investment Units without a Specific Timeframe for Trading of Investment Units
In the case where the Insured exercises their right to cancel the policy within the free look period or to make a death claim, the Company will carry out the redemption of investment units on the next business day from the date the Company receives the request form.

Redemption of Investment Units with a Specific Interval of Time
Automatic Fund Switching: When the redemption request form is submitted within the 1st through 31st of a specific month, the Company will carry out the redemption of investment units on the 21st of the following month and every subsequent month.

Rights of the Insured

The Insured has the right to cancel the policy within 15 days from the policy receipt date. In this respect, the Company will return the policy fees and investment portion according to the redemption price of investment units, after deducting a fee of 500 baht as well as the expenses of a health check-up (if any). If the Insured has made a claim, paid the regular premium (RP), paid the top-up premium (RTU/ATU) after the policy date, withdrawn cash from the policy, or submitted a request for fund switching, automatic fund switching or automatic fund re-balancing, the Insured will not be eligible for the right to cancel the policy.
The Insured has the right to surrender the policy according to conditions stipulated in the policy while the policy is in force and has a cash surrender value.
The Insured has the right to receive information about the allocation of premiums invested in the funds.
The Insured has the right to obtain a full prospectus containing details of the mutual fund project from a life insurance broker authorized by AIA Co., Ltd.
The Insured has the right to receive a full list of asset management companies offering management services for the unit linked plans proposed by AIA Co., Ltd.
The Insured has the right to receive information about the name and address of the management company and AIA as well as the name and license number of the life insurance broker authorized by AIA Co., Ltd.
The Insured has the right to be informed of risks associated with the investment units that the Insured is advised to purchase including the warnings and explanations regarding risks of investment in mutual fund units.
The Insured has the right to be informed of facts that may impact the Insured’s benefits or decision-making in investment such as offering of investment units of mutual funds under the process of merger or amalgamation, etc.
The Insured has the right to receive information about conflicts of interest such as fees or remunerations that the authorized broker of AIA may receive from the purchase of an insurance plan as well as from the subscription or redemption of investment units, etc.
The Insured has the right to express the intention to refuse any further contact for a period of 2 years.
The rights of the unitholders of a unit linked insurance plan under an omnibus account may differ from those subscribing to investment units directly from the management company, for instance:

In purchasing a unit linked insurance plan, the subscription price of investment units is not quoted on the purchase date as the life insurance application needs to go through the underwriting process after all relevant documents have been submitted. In this respect, AIA will proceed to subscribe to the investment units for the client after the policy is approved.
Receipt of any fund-related documents may require a longer time than when directly purchasing with the management company as AIA will deliver such documents to the clients after receiving them from the management company.
AIA Co., Ltd. will deduct the cost of insurance and policy administration fee (please refer to the Schedule of Fees and Charges) from the auto-redemption of investment units on a monthly basis.

Riders

Gain additional peace of mind with Riders attached

Medical coverage and daily compensation
Critical illnesses coverage
Accident coverage
Waiver of premiums coverage

How to apply

Seek consultation and advice for life insurance planning by contacting Bangkok Bank branches that offer this service, or call 1333.
AIA Company Limited Tel. 0 2353 8855, Website www.aia.co.th
Assured by AIA Company Limited