6.
Repatriation Benefit
assured without the need to provide medical evidence, subject to the following conditions: The Life Cover Benefit for a life assured under this policy after the use of this Facility cannot exceed the lesser of five times the original Life Cover Benefit or $10,000,000.
If the life assured dies, AIA will reimburse the policy owner(s) for the costs of returning the life assured’s body to New Zealand or their home country upon receipt of evidence acceptable to AIA . If the life assured is the sole policy owner , AIA will reimburse the person that has paid for the costs of repatriation upon receipt of evidence acceptable to AIA . The maximum amount of the Repatriation Benefit across all AIA policies for that life assured is the lower of:
EXAMPLE 1:
Original benefit = $100,000 Original benefit x 5 = $500,000 Cover available after the use of this Facility cannot exceed $500,000 Total increase under this Facility cannot exceed $400,000
The Life Cover Benefit;
$15,000 if the life assured is the sole policy owner ; or
EXAMPLE 2:
$20,000 if there is a surviving policy owner .
Original benefit = $2,500,000 Original benefit x 5 = $12,500,000 Cover available after the use of this Facility cannot exceed $10,000,000 Total increase under this Facility cannot exceed $7,500,000 The Optional Business Safeguard Facility cannot be exercised within six months of the risk commencement date .
The Repatriation Benefit will be treated as an early payment of the Life Cover Benefit. The Life Cover Benefit will then be reduced by the amount paid.
7.
Premium Conversion Facility
You may at any time:
Convert all or part of your Life Cover Benefit from the premium type shown in the schedule to a Level premium structure; or Convert a Level premium structure to an alternate Level premium structure, of which term duration may be the same or less than the current Level premium structure. AIA will not require you or the life assured to produce further medical evidence at the time of conversion. You will be issued a new policy for the sum assured amount of Life Cover Benefit being converted, in which case: The Life Cover Benefit under this policy will be reduced by the sum assured amount converted. The new policy will be issued based on the information provided at the time of conversion, together with the information provided in the original proposal.
In any 12 month period you can make only two increases under this Facility.
You must make the request within three months of the relevant business event. To apply for the increase in cover, you need to write to AIA to satisfy us that the value of the life assured’s financial interest is at least equal to the requested increase to the amount of cover. You must include: − A valuation of the business or valuation of the life assured to the business (as provided by an independent qualified accountant or business valuer); and/or − Evidence of the loan guarantee, and any other contractual or financial evidence we may request.
The terms and conditions of the new policy will be those which are then offered by us to the general public. Premiums will be calculated on the current age of the life assured .
Any increase is subject to approval by AIA .
The method chosen to value the business or life assured must be in accordance with established business valuation practice for the industry. The independent qualified accountant or business valuer cannot be a family member, business partner, employee or employer of you or the life assured . The method of valuation and valuer must be satisfactory to AIA . In the first six months following an increase, the life assured will only be covered for the amount of the increase if the life assured’s death occurs as a direct and sole result of an accident . You cannot apply for an increase under this Facility if at any time the life assured has made, or was entitled to make, a claim under the Life Cover Benefit. Each Optional Business Safeguard Facility increase will require an increase in premium . This increase will be
Any special terms, exclusions or premium loadings that applied to your existing Life Cover Benefit under this policy will apply to your new Life Cover Benefit under the new policy.
8.
Optional Business Safeguard Facility
The Optional Business Safeguard Facility applies only if shown in the schedule . On each occasion that the financial interests of a life assured in the business increases, or their loan guarantee increases, or their value to the business increases, you may write to AIA asking us to increase the Life Cover Benefit for that life
1151 ALB-LIFE version 3 Effective 10 October 2023
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