The policy illustration enclosed with this policy document gives details of the indicative changes.
(subject to any further underlying premium rates changes). At the end of the selected period, the premium type will convert to Rate for Age. Notwithstanding the above, for Life Cover, Family Protection and Accidental Death benefits, AIA guarantees the underlying premium rates (subject to relevant changes in taxation or legislation). Where a premium type of 10 years, to age 65 or to age 80 has been selected and the benefits are CPI linked, your premium has been calculated over the selected period and in addition to any underlying premium rate changes (see above) your premium will increase annually in line with any increase in your benefit. The increase in premium will be based on the increase in the sum assured and the age of the life/lives assured .
Method of paying premiums
You must pay all premiums to AIA . Premiums can be paid by direct debit, credit card or debit card. Premium payments are not effective until after they have been credited and cleared to AIA ’s bank account.
What happens if you do not pay the premium on time?
You have 30 days ’ grace in respect of any premium due. AIA will be entitled to cancel your policy by written notice to you
at your last known address if a premium remains outstanding 31 days after a premium due date .
If you want to have the policy reinstated, you must write to AIA . AIA does not have to reinstate the policy but may do so on any conditions it considers appropriate. If AIA has to pay a benefit under the policy when a premium is overdue, the overdue premium may be deducted from the claim payment.
Irrespective of the type of premium you have selected:
All changes to your premium as described above will take effect from the anniversary date . Whenever the premium is recalculated, the premium will not be affected by any change in health of a life assured which has occurred since the benefits were first added to the policy. Premiums will always be based on premium rates adopted by AIA for each benefit so that no single life assured can have his or her premium recalculated in isolation. Premiums may be re-calculated at each anniversary date to take account of changes to premium discounts. Any policy fee will normally increase annually in line with the consumers price index . However, if all benefits for all lives assured are Level and the premium type selected is 10 years, to age 65 or to age 80 then the policy fee will also remain unchanged until the end of the selected period. Premium increases will always be applied across a class of business. No increase in premium will apply to your own policy based on your own claim experience.
When can the premium change?
There are a number of circumstances that can change the premium you pay.
a.
Premium type
AIA calculates the premium for each of your benefits based on the premium type chosen and whether the benefits are Level or CPI linked. Premiums can be structured in the following ways:
Rate for Age;
10 years;
To age 65;
To age 80.
The premium type(s) you have selected are shown in the schedule . How this affects the premium you pay is explained below: Where Rate for Age has been selected, your premium will be recalculated at each anniversary date based on:
b.
Premium discounts
- the age of the life/lives assured ;
In addition to the premium type chosen, there are two premium discounts that may reduce the premium (excluding any applicable policy fee) you pay.
- the amount of cover for each benefit;
- AIA ’s underlying premium rates at that time; and
- any eligible premium discounts calculated for the life/lives assured (see premium discounts below). Where a premium type of 10 years, to age 65 or to age 80 has been selected and all benefits are Level, your premium has been calculated over the selected period and AIA will only change your premiums over the selected period to apply any eligible premium discounts calculated for the life/lives assured (see premium discounts below), or if the underlying premium rates change. If the underlying premium rates change, then at the next anniversary date AIA will recalculate the premium to apply for the remainder of the selected period
Multi-benefit discount
(if applicable) The amount of multi-benefit premium discount you are eligible to receive for each life assured will be recalculated: - on each anniversary date based on the type and number of qualifying benefits held for each life assured ; and - at any time when you add other benefits to the policy or increase or reduce the amount of benefits under the policy for each life assured. subject to the AIA Multi-Benefit Premium Discount Eligibility Rules or any subsequent version thereof.
1100 AL-UMB version 5 Effective 4 August 2023
Page 4 of 9
Powered by FlippingBook