AIA Smart Lifetime Rewards is a regular premium endowment plan offered by AIA agents, financial advisers and some bankers. It is one of a few policy that 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 5 and 10 years.
The plan works in the following manner. You commit to saving a certain amount regularly for either 5 or 10 years. After that, you do not need to make any further contributions, but the money continues to grow in the plan. At the end of the 5th year, monthly cashback will be payable, and they comprise of a guaranteed and non-guaranteed portion. You can choose to receive the monthly income or to reinvest in the plan at the prevailing rate and withdraw only when needed. The cashback continues until age 100.
Image is taken from aia.com.sg
Pros of AIA Smart Lifetime Rewards
- Provides good mix of long-term savings with shorter-term liquidity through monthly cashback which can be reinvested
- Monthly cashback is not static and rise over time
- Accidental death benefit where you receive up to an additional 100% of total premiums paid
- No medical underwriting needed and able to accumulate money until age 100
Cons of AIA Smart Lifetime Rewards
- Monthly cash payouts which are a little lower than some of the other comparable plans
- Reinvestment rate is not guaranteed and is lesser than some of the other similar product in the market
- One of the least surrender values in the first 15 years.
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Before you commit to AIA Smart Lifetime Rewards, be sure to read one of our most read article on “8 Things to consider when you buy an endowment (savings) plan”