AIA Platinum Wealth Elite

AIA Platinum Wealth Elite 2.0 includes access to world-class asset managers, flexible premium options, and legacy planning features, review the plan below. This is an investment-linked plan (ILP) offered by AIA Singapore. This plan is geared towards suitability for high-net-worth individuals seeking wealth accumulation and legacy planning.

Table of Contents

AIA Platinum Wealth Elite 2.0 has the following benefit features elaborated:

Wealth Accumulation: The plan aims to help customers grow their wealth through investment-linked options, offering access to AIA Elite Funds and the AIA Adventurous Index Fund, managed by AIA Investments. These funds include a strategic mix of equities and bonds, and are targeted at providing optimal returns and financial stability.
Access to Global Expertise: AIA Investments partners with leading global asset managers, giving customers access to expertise and strategies not readily available to retail investors. These partners include Amundi, Baillie Gifford, BlackRock, Capital Group, Invesco and Wellington Management.
Flexibility and Liquidity: The plan provides flexibility with premium options (single or regular), currency choices (SGD or USD), and personalized accumulation horizons. Starting from policy year 6, policyholders can access up to 5% of their policy value annually.
Legacy Planning: The plan offers a death benefit, with an option to receive the payout in installments over 2 to 10 years. The plan also provides complimentary legacy protection during the first 3 policy years by waiving insurance charges, allowing a focus on wealth accumulation. The death benefit can be paid out in a lump sum or in installments over 2 to 10 years.
AIA Vitality Integration: Integrating the plan with AIA Vitality can boost capital with additional units in the first policy year and beyond. Members can receive additional units of 0.1% of single premium or 1% of regular premium in the first policy year, and up to 0.2% or 2% respectively for the subsequent 4 years depending on their Vitality status.
No Lapse Privilege: The plan includes a no-lapse guarantee for the first 15 policy years, ensuring protection remains intact regardless of market fluctuations, as long as all premiums are paid and no withdrawals are made beyond the income withdrawal limit.

Pointers to note for AIA Platinum Wealth Elite 2.0:

Investment Risks: As an investment-linked plan (ILP), the value of the units and the income may fall or rise, and there is a possibility of losing the principal amount invested. The performance of the ILP sub-funds is not guaranteed.
Charges: There are various charges associated with the plan, including premium charges, administration charges, partial withdrawal charges, and surrender charges. These charges can reduce the overall returns on the investment. For example, the surrender charge in the first year of the regular premium plan is 50%.
Withdrawal Limitations: While the plan offers liquidity, withdrawals beyond the 5% annual limit from policy year 6 will be subject to charges and a reduction in the current insured amount. Also, withdrawals from the basic policy will affect the no lapse privilege for the first 15 years.
Early Termination Costs: Terminating the policy early typically involves high costs, and the surrender value may be zero or less than the total premiums paid.
Complexity: The plan has various features, conditions, and options that may be complex to understand, requiring careful review of the policy contract and potentially seeking advice from a qualified advisor.
Premium Holiday Charges: If a premium holiday is taken before the first 5 years of regular premiums are paid, a charge will be imposed.
No Lapse Privilege Conditions: The no lapse privilege is conditional and can be forfeited if regular premiums are not paid, withdrawals are made exceeding the income withdrawal limit, or the risk class of the insured changes in a way that increases the insurance risk charge.

AIA Platinum Wealth Elite 2.0 Use Case Scenario:

Sean, a 40-year-old non-smoker at the peak of his career, wants to accelerate his wealth accumulation so that he can retire comfortably at age 65. His goal is to travel the world and enjoy the finer things in life during his retirement while ensuring his family’s financial well-being.
Recommended Plan: Based on his goals and risk assessment, the AIA Adventurous Index Fund was recommended.
Plan Details: Sean opts for a yearly premium of S$44,209 for 10 years.
Illustrative Outcomes (based on an 8.0% p.a. investment rate of return):
- At age 70, assuming a yearly withdrawal of S$100,000, he would be able to enjoy a total withdrawal of S$800,000 between the ages of 70 and 77.
- His policy would have a remaining cash value of S$8,300 at age 77, after which the policy would lapse or he could add more premiums to keep the policy from lapsing.
- If Sean did not take the withdrawals, his policy would have a cash value of S$7.78 million at age 85, which would leave a sizable legacy for his loved ones.
- The total policy returns would be S$9,382,216.
- His family would have coverage of S$1M from day 1.

Take Note:

The illustrations are for Singapore residents in the standard risk class.
The figures presented are for illustrative purposes only, and past performance is not indicative of future results.

Some things to note. This review 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.

There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a higher interest rates environment, things have changed.

AIA Platinum Wealth Elite 2.0 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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