The AIA Platinum Legacy (IX) is a single-premium traditional universal life insurance plan that combines insurance protection with investment opportunities. It offers both guaranteed and non-guaranteed returns, making it similar to a whole life plan. This review will explore the features and benefits of the AIA Platinum Legacy (IX) to help you decide if it is the right policy for your needs.

One of the key benefits of the AIA Platinum Legacy (IX) is its premium payment terms. As a single premium policy, you only need to make a one-time payment at the start of the policy. This can be a convenient option for those who prefer not to make regular premium payments.

The policy terms of the AIA Platinum Legacy (IX) cover you for your entire life, with a minimum premium requirement period of 8 years. This means that you will have lifelong coverage and protection.

The death benefit of the AIA Platinum Legacy (IX) will be paid out if death occurs before the insured’s 122nd birthday. The death benefit will be the higher of the insured value or the accumulation value. Any debts owed to the policy will be deducted from the death benefit. If death occurs on or after the insured’s 122nd birthday, the death benefit will consist of the accumulation value minus any debts owed to the policy. The insured amount takes into account factors such as partial withdrawals, terminal illness benefit payments, and changes in the insured amount.

The AIA Platinum Legacy (IX) also offers a Terminal Illness (TI) Benefit. If the insured is diagnosed with a terminal illness, a TI benefit will be paid out. A terminal illness is defined as an ailment that can lead to death within 12 months. The TI benefit is equal to the death benefit minus any debts owed to the policy. It is important to note that once the TI benefit is disbursed, the policy will be automatically terminated, and no additional benefits or riders will be applicable.

One of the key features of the AIA Platinum Legacy (IX) is the guaranteed crediting rate. As of April 17, 2023, the current crediting rate is 3.70%. AIA guarantees a crediting rate of 3.70% for the first 3 years, which will then be 1.50% for subsequent years. This can provide stability and growth to your policy’s cash value.

The policy also offers a guaranteed special bonus, which provides additional returns while the policy is active. The rates for the special bonus vary and can be found in the policy’s details.

Premium top-ups are allowed after paying the initial single premium, subject to meeting minimum premium limits. The limits may depend on factors such as your smoker status, risk level, gender, country of residence, and entry age. However, you must consistently pay premiums for the first 8 years.

The AIA Platinum Legacy (IX) allows you to make partial withdrawals from the policy after the first year. However, there may be charges associated with these withdrawals. From the 11th policy year onwards, you can make a free partial withdrawal of up to 4.5% of your accumulation value each year, as long as you don’t carry over any unused limit to the following year. It’s important to note that making a partial withdrawal will reduce your cash and accumulation value, as well as your insured amount. The policy reserves the right to terminate or suspend this feature at any time.

You also have the flexibility to adjust your insured amount up or down at any time after the first year, pending approval. If you want to increase your coverage, you’ll need to provide evidence of insurability, and the increased amount must be at least $100,000. Every increase in the insured amount will generate a new layer with fees calculated according to the effective date. If you want to reduce your coverage, the policy will first decrease the first layer by the specified amount and then follow the same process for any additional layers. It’s worth noting that your insured amount cannot drop below $500,000, and partial withdrawal charges may apply to each layer, reducing your accumulation value.

If you are considering changing the insured on your policy, you can submit a written request after the policy has been active for one year. The policy will assess the new insured’s insurability and acceptance requirements before approving the change. An administration fee will be applied based on the new insured’s age and smoking status. While partial withdrawal and surrender charges will be based on the first insured, they are subject to change. Once the change of insured is made, the periods indicated under suicide and incontestability provisions will begin.

The AIA Platinum Legacy (IX) allows for policy loans after the first year. The loan amount will be approved based on the policy’s cash value, with a maximum loan amount of 80% of the cash value. However, there is a minimum borrowing amount of $1,000. The interest rate for the loan will be determined by AIA.

The policy also includes a 31-day grace period, which means that your policy will remain active even if you are unable to pay the premiums on time. If any of the following events occur, your policy will still remain active: insufficient accumulation value to cover monthly charges after 5 policy years, not enough cash surrender value to pay monthly charges after 5 policy years, outstanding loan and interest exceed the accumulation value during the initial 5 policy years, outstanding loan and interest exceed cash value after the first 5 policy years, and the minimum premium requirement is not met at the end of each policy year within the first 8 policy years.

You will receive a notification at least 14 days before the grace period expires, informing you of the amount of premium necessary to maintain your coverage. This can help you stay on top of your policy and ensure that it remains active.

As part of your insurance policy, you will receive quarterly statements every 3 months. These statements provide a detailed report on the performance of your policy, including premiums received, charges deducted, and interest credited since the previous statement. This can help you stay informed about the financial health of your policy and ensure that it is meeting your needs.

The AIA Platinum Legacy (IX) comes with various fees and charges. There is a 6% premium charge that is added to all premiums received before they are allocated to the accumulation value. This charge applies to both your initial premium and any additional premiums. There is also an administration charge that is deducted from your accumulation value each month for 10 years. The administration charge rates for the first and subsequent layers are based on your age and smoking status. The policy also incurs an insurance risk charge (IRC), which is a monthly deduction from the accumulation value. The IRC rate depends on factors such as your gender, age, location, smoking habits, and policy date. It is applied to the sum at risk and is deducted from the accumulation value. There are also charges associated with partial withdrawals and surrendering the policy. The exact charge will vary based on factors such as your gender, country of residence, smoker status, risk class, and age. These charges will be applicable during the first 15 years from the effective date of each layer.

Now, let’s take a look at an illustration of how the AIA Platinum Legacy (IX) works. Meet James, a 50-year-old with a net worth of $23 million. He has multiple assets, including cash, investments, properties, and a family business. James decides to invest $3 million in the AIA Platinum Legacy (IX) plan. This increases his total wealth to $30 million. The plan provides coverage of up to $10 million for James’ entire lifetime, leaving a legacy for his three children.

In summary, the AIA Platinum Legacy (IX) is a universal life insurance plan that offers a range of benefits and features. It provides lifelong coverage and protection, with the flexibility to adjust your insured amount and make partial withdrawals. The policy also offers a guaranteed crediting rate and special bonus, providing stability and growth to your cash value. However, there are fees and charges associated with the policy, and it does not offer certain coverages such as TPD or add-on riders. Whether the AIA Platinum Legacy (IX) is the right policy for you will depend on your individual financial goals, risk tolerance, and budget. It is recommended to seek a second opinion from a financial advisor to help you make an informed decision.

Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

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