AIA Platinum Heritage Wealth (II) is a whole life insurance policy that offers financial protection until the age of 100. It is designed for wealth accumulation and has a minimum sum assured of S$500,000. The policy has two parts: AIA Platinum Heritage Wealth (II) Accumulator, which focuses on wealth accumulation and provides insurance protection up to age 100, and AIA Platinum Heritage Wealth (II) Assurance, which provides maximum insurance protection at the beginning of the policy with a decreasing insured amount until age 85.

Premiums for the AIA Platinum Heritage Wealth (II) can be paid in two ways: a single premium or a 5-year premium payment term. The death benefit of the policy is determined by the higher of two amounts: the minimum death benefit minus the insured amount of the AIA Platinum Heritage Wealth (II) Assurance, or the insured amount of the AIA Platinum Heritage Wealth (II) Accumulator, including any bonuses. After any outstanding debts are settled, the beneficiaries will receive the actual death benefit, which is the higher amount between the total death benefit and the total surrender value. The policy will terminate upon the policyholder’s death, and the minimum death benefit will decrease after the policyholder’s 85th birthday.

In the event of a terminal illness diagnosis, the policy will pay out a percentage of the death benefit, minus any amounts owed. The acceleration percentage paid out will either be 100% or the maximum terminal illness claim limit divided by the actual death benefit, whichever is lower. This benefit can be combined with payouts from other policies issued by the same insurer, up to a maximum claim limit of $2,000,000.

The AIA Platinum Heritage Wealth (II) policy also includes an accidental death benefit, which pays out an extra 25% of the minimum death benefit if an accidental death occurs before the 85th policy anniversary.

One notable feature of the policy is the Quit Smoking Benefit, which pays 5% of the premiums if the policyholder successfully transitions from a smoker to a non-smoker. To qualify for this benefit, the policyholder must have held smoker status from the policy’s issue date, have had the policy in force for at least 1 year, provide satisfactory evidence of non-smoking status for at least 12 months, and submit the necessary documents.

The policy offers bonuses in the form of reversionary bonuses and terminal bonuses. Reversionary bonuses are non-guaranteed bonuses that may be credited to the policy on an annual basis, while terminal bonuses are non-guaranteed bonuses that can be received when making a claim, surrendering the policy, or when it matures. The rates of these bonuses depend on the performance of the participating fund.

The AIA Platinum Heritage Wealth (II) has an investment mix of 78% in bonds and 22% in risky assets. The past investment rates of return for the participating fund are not available before 2020. The total expense ratio of the participating fund ranks second out of the eight companies measured.

In summary, the AIA Platinum Heritage Wealth (II) is a whole life insurance policy that offers lifetime coverage and the potential for wealth accumulation. It provides protection until age 100 and includes benefits such as the Quit Smoking Benefit. However, historical fund performance figures are not available, which makes it difficult to evaluate the fund’s performance over the years. It is important to consider not only returns and expenses but also the features offered when choosing a policy. Exploring different options and consulting with a financial advisor can help ensure that you find the best fit for your specific requirements.

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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