AIA Platinum Legacy is a universal life policy offered by AIA (Singapore) agents, CitiBank relationship managers and independent financial advisors. It is a legacy planning tool that creates an immediate estate for the policyholder by paying a single premium and free up assets for retirement needs.
There are four underwriting risk classes. The risk class Standard and Preferred are available for both smoker and non-smokers. The risk class Standard Plus and Preferred Plus only offers to non-smokers. The underwriting class will be confirmed after the medical underwriting assessment is completed. The current version is version VIII
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The current crediting rate is 4.3% per annum (promotional campaign rate subject to changes. The usual rate is 4.0%) with guaranteed minimum crediting rate of 1.5% per annum. The minimum sum assured is USD 500,000 and this is a closed tranched plan. The first-day cash value is approximately 81% of the initial premium. Premium financing is available for leverage.
Pros of AIA Platinum Legacy
- The premium is competitive (but NOT the lowest) compared to other insurers’ universal life policy with the same underwriting class risk
Cons of AIA Platinum Legacy
- The minimum crediting rate is 1.5% and it is lower than most competitor’s minimum rate of 2%
- Insurance risk charge is until age 122 while some insurer’s charges are until age 100 only
As the current crediting rate of 4.3% is a promotional rate for the first 3 policy years, it is prudent to find out the projected outcome of AIA Platinum Legacy (especially at which age the plan will terminate) based on a lower crediting rate such as 3.75% or 3.25% per annum.
To view a projection of Platinum Legacy projected based on crediting rate between 3% to 4%
To know how Platinum Legacy fares with other insurers’ plan.
To evaluate if Platinum Legacy is suitable to you
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Besides AIA Platinum Legacy, you may want to read up more about universal life policy here.