AIA Smart Goal 10 is a participating policy with reversionary bonuses and terminal bonuses upon maturity. I think a bit of research has been put into conceiving this product – 47% of parents in Singapore wish they had started saving for their child’s education earlier. And let us face it, keeping up regular savings over a long period of time can be difficult.
The solution is a limited pay (3 years premium term) and endow 10 years. Returns might not be sexy as equities and other investment plans, but this plan provides capital guarantee at the end of the maturity period.
The death benefit will be the higher of
(i) 101% of the total premiums paid on your basic policy without interest, or
(ii) guaranteed cash value,
plus bonuses (if any), less any amounts owing to AIA. The policy will terminate thereafter.
Large case size discount is applicable for insured amount of S$15,000 and above.
The total yield at maturity (potentially 2.87%) is non-guaranteed and is based on the illustrated investment rate of return of 4.25% p.a. with a minimum insured amount of S$15,000 (equivalent to annual premium of S$14,812.50) and above. Based on the illustrated investment rate of return of 3.00% p.a., the total yield at maturity (guaranteed and non-guaranteed) is 1.76% p.a. This is based on the condition that all premiums are fully paid and received in annual mode with no indebtedness or partial surrender.
Some things to note. This post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.
AIA Smart Goal 10 may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.
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