AIA launches new wealth plan as 23% lack succession prep

Coverage can exceed six times the premium under specified conditions.

AIA Hong Kong & Macau has launched a participating whole-life insurance plan for high-net-worth (HNW) customers, with features aimed at protection, retirement planning and wealth succession.

The Wealth Elite Life Insurance Plan 3 provides coverage of more than six times the premium under specified conditions and allows policy owners to split a policy into separate policies as their financial and legacy planning needs change.

AIA said the plan was developed as longer life expectancy creates additional planning needs for HNW families. 

Its AIA Alta High-Net-Worth Optimal Longevity Index found that 23% of HNW individuals have no succession or inheritance preparations in place.

The plan includes several features for wealth succession. Future Wishes Arrangement allows policy owners to set instructions that can take effect following specified events, including death or certain health impairment conditions. 

A Transitional Owner Arrangement allows a designated person to oversee the policy with limited administrative rights until a contingent owner takes over.

Policy owners can also designate a contingent owner to facilitate the transfer of policy ownership after their death, subject to approval. 

The Health Impairment Option allows designated recipients to receive benefit payments or take ownership if the policy owner suffers a specified mental condition or remains unconscious for a certain period because of an illness, including apallic syndrome and coma.

The plan also allows policy owners to choose how death benefits are paid to beneficiaries, including through instalments. 

Its Beneficiary Flexi Option allows beneficiaries to select a settlement option when they reach a designated age or meet specified conditions, such as being diagnosed with a specified illness.

Wealth Elite 3 is also eligible under The Hong Kong Mortgage Corporation’s Policy Reverse Mortgage Programme, allowing eligible policyholders to convert their policy into lifetime retirement income through the programme.

A coverage booster will provide an additional death benefit from 31 August to 31 December 2026.

The additional benefit is 10% of the latest sum assured for individual policies and 20% for eligible family enrolments. It applies during the first 10 policy years or until the insured reaches age 60, whichever comes first.