Cautions for purchasing Unit Linked life insurance

For Unit Linked life insurance customers.
Suggestion

• To contact a seller who has a life insurance broker license and who is an Investment Consultant (IC).

• To receive a prospectus containing details of important information (Fact Sheet) which follows to the funds allocation when purchasing Unit Linked life insurance.

• To study details of product information before making decisions on purchasing Unit Linked life insurance as follows.

  • Coverage and benefits that will be received, including general conditions and exclusions.
  • Premium amount, coverage period, premium paying period. Paid premium will be deducted for premium charge, administration fee and COI. Remaining amount will be invested in the mutual funds as specified.
  • If the fund selected by the 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.
  • To study 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.

• To select an insurance plan that suits your needs and risk appetite.

• To make a decision on an investment on your own.

• To self-fill in the forms and check details on the forms before signing your name every time.

• To receive “a copy” of Benefit Illustration (BI) / Sales Sheet / prospectus containing details of important information of funds (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 ineligible for tax deduction.

Coverage and Benefits

Notes

An exclusion, the Company shall not pay money as stipulated in the policy if the insured commits suicide within 1 year from the policy effective date or the insured is killed by the beneficiary on purpose.

Requirements

• Insurable  age : 15 days – 60 years
• Coverage period : Whole of life (until the age of 99) or as long as the redemption value of the investment units is sufficient for the deduction of expenses as stipulated in the policy fee schedule
• Premium payment period :  8 years
• Payment mode :  Annually / Semi-annually / Quarterly / Monthly
• Sum assured : Self-determined and adjustable according to the criteria stipulated by AIA Co. Ltd.

Premium Rates

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

Fund Information and Fee Structure

Mutual funds under this product - Customers can opt for investment through any of the following funds:

Note: The insurance company may consider adding or cancelling any funds to/from the above list for customers to select in the future at the Company’s discretion.

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

Purchase of Investment Units

1. The initial annualized regular premium (RP) 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.
2. The next installment of RP 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.
3. 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.
4. Saving Booster Bonus will be invested per the latest allocation on the date of initial purchase after the month of the anniversary date of the policy.
5. 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

1. 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.
2. Automatic Fund Re-balancing: When the redemption request form is submitted within the 20th of March, June, September or December, the Company will carry out the first redemption of investment units on the 21st of March, June, September or December, respectively.

Rights of the Insured

1. 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.
2. 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.
3. The Insured has the right to receive information about the allocation of premiums invested in the funds.
4. 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 .
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. The Insured has the right to express the intention to refuse any further contact for a period of two years.
11. 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 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.

Channels of Complaints for the Insured
The Insured can lodge a complaint to the following units:

1. AIA Call Center Tel. (66) 0 2353 8855
2. Branches of Bangkok Bank offering this service or Tel. 1333
3. Office of the Securities and Exchange Commission (SEC) Tel. 1207
4. Office of Insurance Commission (OIC) Tel. 1186
5. Bank of Thailand (BOT) Tel. 1213

Riders

Gain an 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. (66) 0 2353 8855, Website www.aia.co.th