All premiums due up to the date the policy is made paid- up must be paid. You contact AIA with a request to make your policy paid-up . Once this request has been processed by AIA , this cannot be reversed. If a premium remains outstanding 31 days after a premium due date , AIA will be entitled to make the policy paid-up by written notice to you using your last known contact details. If you want to reverse the paid- up status, you must write to AIA to request this. AIA does not have to accept your request but may do so on any conditions it considers appropriate, including payment of all premium arrears. If you request to cancel your policy (see section 8: When can you cancel your policy?) AIA will instead make your policy paid-up . How will the reduced sum assured be calculated if the policy is made paid-up ? If your policy becomes paid-up , we calculate the reduced sum assured by taking the proportion of the premium payment term you have already paid, multiplying it by your sum assured , and applying a 5% adjustment. The formula is: The proportion of the premium payment term you have already paid × sum assured × 0.95
Example 2: There are 10 years between your risk commencement date and your premium end date , and your policy is made paid-up after 5 and a half years
Premium payment term
10 years
Premiums already paid
5 years and 6 months
Sum assured
$200,000
Calculation:
1. Proportion of premium payment term already paid
5.5 ÷ 10 = 0.55
2. Apply to the sum assured
0.55 × $200,000 = $110,000
3. Apply 5% adjustment
$110,000 × 0.95 = $104,500
Your reduced paid-up sum assured would be $104,500
7. Changes to your policy
Decreasing your sum assured
You may apply to AIA in writing to reduce the sum assured . Any reduction in sum assured will start from the next premium due date after your request is accepted by AIA .
Example 1: There are 40 years between your risk commencement date and your premium end date , and your policy is made paid-up after 20 years
Increasing your sum assured
See section 3 for any increases that can be made under the Special Events Increase Facility. You cannot otherwise increase the sum assured on this policy. If you wish to increase your cover, you will need to apply for a new policy. AIA does not have to accept an application for any new cover. Any acceptance will depend on a number of factors including the health of the life assured .
Premium payment term
40 years
Premiums already paid
20 years
Sum assured
$200,000
Calculation:
Making your policy paid-up
1. Proportion of premium payment term already paid
See section 6: Paid-up option with reduced cover for details.
20 ÷ 40 = 0.5
Change of smoker status
2. Apply to the sum assured
If the life assured was classified as a smoker at application and has not smoked for a period of 12 months or more, you can apply to have the premium reduced to that for a non- smoker. The life assured will have to complete a non-smoker declaration. The premium reduction will be effective from the next premium due date after your request is approved.
0.5 × $200,000 = $100,000
3. Apply 5% adjustment
$100,000 × 0.95 = $95,000
Your reduced paid-up sum assured would be $95,000
Change of ownership
You may transfer the ownership of your policy at any time.
To be valid, the transfer must be on a transfer of ownership form and registered with us. If ownership of your policy has been transferred, references in this policy document to you, your and the policy owner(s) are references to the most recent transferee(s).
A trust cannot be the owner of this policy. No charge is payable for a transfer of ownership of the policy.
1400 A-CFL version 1 Effective 20 March 2026
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