AIA Gen 3 is a regular premium whole life insurance policy which provides protection until the age of 100 and offers cash payouts from the end of the third policy year through the lifetime of the plan. It is commonly used as a tool in inter-generational wealth planning to benefit up to 3 or 4 generations in the family. AIA Gen 3 allows you to save and grow your money up to 100 years old while contributing for only a limited number of years. There are two options for limited premium terms at 10 and 25 years.
Here is how this plan works. You commit to saving a certain amount regularly for either 10 or 25 years. After that, you do not need to make any further contributions, but the money continues to grow in the plan. From the end of the 10th year, guaranteed coupons are payable till age 100. Non-guaranteed dividends are also payable from the end of the third year onwards. You can choose to receive the payouts or to reinvest in the plan at the prevailing rate and withdraw only when needed.
Image is taken from aia.com.sg
Pros of AIA Gen 3
- Receive lifetime payouts at an attractive rate of return to benefit multiple generations
- Complementary insurance coverage that is substantially more than comparable plans
- Limited premium payment to enjoy lifetime benefits
Cons of AIA Gen 3
- Payouts are largely level and do not increase with time
- Reinvestment rate is not guaranteed and is lower than some of the other plans in the market
- Payouts start after year 10 which is later than some of the other plans in the market
To find out how you can best utilise AIA Gen 3
To understand if AIA Gen 3 is suitable for your needs
To learn how AIA Gen 3 compares to other plans in the market
Fill up the form below for a discussion on AIA Gen 3.
Before you commit to an AIA Gen 3 plan, you may want to read a similar plan from NTUC here.