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Pros and Cons of AIA Smart Growth

AIA Smart Growth is an endowment plan offered by AIA agents, financial advisers and some bankers. It is marketed as a savings plan that only requires you to save for 12 years to enjoy the benefits when the policy matures. There are three payment terms: 18, 21 or 24 years. AIA Smart Growth can be used to save towards different goals and given the plan terms available. A common objective is for children’s education.

In addition to the savings element, the plan also offers life insurance coverage. If death or TPD (before age 70) occurs, this plan will pay out the sum insured plus bonuses (if any). There is also an option to purchase additional life insurance without further underwriting upon the occurrence of specific life stage events, and you can also add various riders to enhance your coverage.

AIA Smart Growth

The image is taken from aia.com.sg

Pros of AIA Smart Growth

  • An attractive overall rate of return (guaranteed plus projected) if the plan is held to maturity
  • This plan is capital guaranteed at maturity
  • Complimentary life insurance coverage of sum insured plus any bonuses

Cons of AIA Smart Growth

  • There are limited options for policy and premium term compared to similar plans in the market
  • Little flexibility to access policy cash value without penalty before the end of the policy term
  • A large portion of the cash value is accrued in the final year which makes early surrender more disadvantageous

To understand if AIA Smart Growth is suitable for your needs and how it compares with other plans in the market

To find out the internal rate of return of AIA Smart Growth for both guaranteed and projected returns and see how the yields vary with time

To learn more about the cons of AIA Smart Growth and how you can mitigate them

Fill up the form below and contact us here for a discussion on AIA Smart Growth.





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There are many other options for endowment/retirement plans available. Contact our advisor here to find out the range of options available besides AIA Smart Growth.

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