AIA Hong Kong has launched a new life insurance solution called "Wealth Generation," specifically developed for high-net-worth (HNW) clients.
The policy is structured to support both capital accumulation and succession planning, offering features designed to address the financial goals and estate management needs of affluent families.
The plan introduces legacy transfer mechanisms alongside a relatively short projected breakeven period of four years and a projected internal rate of return (IRR) of up to 5.05% over a decade. It includes elements such as guaranteed cash value and a non-guaranteed terminal dividend, with an option to lock in returns.
Wealth Generation incorporates a flexible withdrawal feature that activates from the sixth policy year.
Policyholders may pre-set recurring withdrawals for a defined time period, providing liquidity while retaining the long-term structure of the policy. This option is intended to align with the changing financial needs of policyholders across different life stages.
Ms Alice Liang, chief proposition and healthcare officer at AIA Hong Kong & Macau, said that the demand for more sophisticated financial tools among HNW clients continues to grow.
“As a global hub for asset and wealth management, Hong Kong has long been a magnet for high-net-worth individuals and families from around the world. Their needs for life insurance products are constantly evolving. They not only seek to navigate complex investment landscape but also place great emphasis on managing their wealth with control, precision, flexibility, and resilience, ensuring seamless wealth transfer,” she said.
The product includes a Future Guard Option that allows a policyholder to assign two roles – transitional owner and contingent owner – within the same family.
The transitional owner, typically an older family member, oversees the policy with restricted rights until the designated contingent owner becomes eligible to assume full ownership, based on terms specified at inception.
AIA’s plan also supports the division of a single policy into two, enabling each to have separate insured individuals and beneficiaries. This flexibility aims to facilitate generational wealth allocation based on individual family dynamics.
Additional features include a Beneficiary Flexi Option, which gives beneficiaries the choice of how to receive their portion of death or accidental death benefits, and a Health Impairment Option.
In cases where the policyholder becomes incapacitated due to illness, the designated recipient may receive policy ownership or payments as directed by the policyholder.