AIA Ascend Product Primer PDF

[AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) VERSION HISTORY Date Version Description 09/10/2024 1.0 Initial release 2 [AIA...

[AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) VERSION HISTORY Date Version Description 09/10/2024 1.0 Initial release 2 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Table of Contents I. Product Description…………………………………………………………………………………...4 II. Product Features………………………………………………………………………………………4 a. Life Insurance Benefit………….……………………………………………..…………….......…4 Sample Computation of Death Benefit…..…………………………………….…………..4 Payment Term, Issue age, & Benefit Term…………………………………….…………..4 Juvenile Lien Schedule……………………………………………………………………4 b. Living Benefits…………………………………………………………………………………….5 A. Guaranteed Cash Payouts…………………………………………………….………...5 B. Maturity Benefit………………………….……………………………………..….........5 C. Optional Riders..………………………………………………………………..….........6 Total and Permanent Disability……………………………………………………6 Personal Accident………………………………………………………………...7 Enhanced Waiver of Premium…………………………………………………….8 Payor’s Benefit on Death and Disability…………………………………………...8 Payor’s Term Benefit……………………………………………………………...9 III. Sample Product Pricing…………...……………… …………………………………………………..9 IV. Other Product Details………………………………………………………………………………...10 Plan Design…………………………………………………………………………………………...10 Participating.…………………………………………...………………………………………...10 Issue Age……………………………………………………………………………………………..10 Benefit Term…………………………………………...………………………………………...10 Minimum and Maximum Face Amount……………………..……………………………….……10 Face Amount Band……………………………………...………………………………………..10 Vitality Integration..……………………………………………...………………………….........10 V. Premium and Payments……...…………………………………………...…………………….........10 Currency and Pay Period……………………………………………………………………………...10 Minimum Premium…………………………………………………………….…………..….…11 Mode of Payment…………………………………………………...………..……………..........11 Method of Payment…………………………………………………...……………….................11 Policy Fee………...…………………………………………………...……………….................11 Grace Period…………………………………………………………………………………......11 VI. New Business, Underwriting, and Processing Guidelines…………………………………………….11 Application form……………………………………………………………………….................11 Sales Illustration……………………………………………….…………………………………11 Underwriting Approach and Guidelines………………………………………….………….........11 Underwriting Net Amount at Risk…….……………………………………………………..........11 Medical and Occupational Ratings…………………………………………………………..........12 Free-Look Period……………………………………………………………………………...…13 VII. Policy Owner Services………………………………………………………………….………….....13 Non-Forfeiture Options………………………………………………………………………......13 Dividend Options.………… …..………………………………….……………..……………….13 Policy Loans………..………………………………………..……...……………………………13 Renewability………..…………………………………………….……………………...…….....14 Convertibility…………..…………………………………………..……………………..............14 Lapsation…...………………………...………………………………………………………….14 Reinstatement………………………………………………………………………………........14 Termination………..……………..…………...……………………………………………….....14 Contractual Policy Changes…..……………………………..………………………………........15 Non-Contractual Policy Changes…………………...……………...………………………..........15 VIII. AIA PH Life Planner Corner......………………………………………………………………………16 Authorization and Licensing Requirements………………………………………………………16 Regular Commission…………………...…………………....…………………………………...16 Commission Clawback………….………..…………………………………………………........17 Production Credit……………………………………………………………………………...…17 Persistency……………………………………………………………………………................17 IX. Appendix…………………………………………………………………………………………......18 3 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) I. Product Description AIA Ascend is a peso-denominated participating endowment plan that provides guaranteed death benefit, maturity benefit, and cash payouts. It’s available in 2 payment term options: 5 years to pay, and 10 years to pay, and the policy benefit term is up to age 65 of the Insured. II. Product Features A. Death Benefit The guaranteed death benefit amounts to whichever is higher of: Equal to 200% of the Face Amount or Total Premiums Paid less Cash Payouts received Less any debt (policy loan) to the company will be provided upon the death of the Insured. Sample Computation of Death Benefit Policy 200% of Face Guaranteed Annual Premium Face Amount Amount Death Benefit Year Payout 1 238,275 500,000 1,000,000 0 1,000,000 2 238,275 500,000 1,000,000 0 1,000,000 3 238,275 500,000 1,000,000 0 1,000,000 4 238,275 500,000 1,000,000 0 1,000,000 5 238,275 500,000 1,000,000 25,000 1,166,375 6 500,000 1,000,000 25,000 1,141,375 7 500,000 1,000,000 25,000 1,116,375 8 500,000 1,000,000 25,000 1,091,375 9 500,000 1,000,000 25,000 1,066,375 10 500,000 1,000,000 25,000 1,041,375 Payment Term, Issue age, and Benefit Term COVERAGE PERIOD PAYMENT TERM OWNER ISSUE AGE INSURED ISSUE AGE 5 years to pay 18 years old and up 0-45 years old Up to age 65 10 years to pay 18 years old and up 0-45 years old Juvenile Lien Schedule In the event of the Insured’s death prior to his/her attaining the age of four (4) years and six (6) months, the amount payable under this Policy shall be in accordance with the following schedule: Age at death (nearest Amount Payable birthday) Less than 6 months 20% of Death Benefit 1 year 20% of Death Benefit 2 years 40% of Death Benefit 3 years 60% of Death Benefit 4 years 80% of Death Benefit 5 years 100% of Death Benefit Sample Computation of Juvenile Lien: If Insured dies at age 2, with applied Face Amount of Php1,000,000. Death Benefit computed = Php2,000,000 (200% of Face Amount). For death at age 2, Juvenile Lien applies, hence Death Benefit payable will only be 40%* of the Death Benefit computed equal to Php800,000 (Php2,000,000 x 40%). 4 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) This amount is payable if it is higher than the Total Premiums Paid less Payout received. The Amount Payable can never go below Total Premiums paid less Total Guaranteed Cash Payouts received. If the amount computed with the Death Benefit will be less than the Total Premiums paid less Total Guaranteed Cash Payouts received, the Amount Payable will be Total Premiums paid less Total Guaranteed Cash Payouts received. B. Living Benefits Living Benefits are composed of the following: Guaranteed Cash Payouts The Policy Owner will receive cash payouts equal to 5% of the Face Amount every policy anniversary starting at the end of the 5th or 6th policy year, depending on your chosen pay variant, and every year thereafter until policy maturity, if the Insured is alive at time of the payouts. Scheduled of Release for Guaranteed Cash Payouts PAY-PERIOD GUARANTEED CASH PAYOUT Every policy anniversary starting at the end of the 5th policy 5 years to pay year and every year thereafter until policy maturity, if the Insured is alive at time of the payouts. Every policy anniversary starting at the end of the 6th policy 10 years to pay year and every year thereafter until policy maturity, if the Insured is alive at time of the payouts. Mode of Release for Guaranteed Cash Payouts The Policy Owner has an option to assign their preferred settlement option for the guaranteed cash payout. Below are the following available settlement options: Credit-to-Account (CTA) [Default Option] – will require CTA form Pick-Up-Anywhere (PUA)* *Important note: PUA option is allowed for cash payouts amounting up to P500,000 only. Leave to accumulate interest– will require Guaranteed Cash Payout Fund Application Form Maturity Benefit COVERAGE PERIOD MATURITY BENEFIT 200% of the Face Amount less any Policy loans and Interests will be payable upon maturity (age 65 of Up to age 65 of the Insured the Insured) if the Insured is still alive. Thereafter, the policy shall terminate. 5 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) C. Optional Riders Additional benefits that can be added to make the plan more comprehensive. Payment Term and Optional Riders Available 5 years-to-pay 10 years-to-pay Total and Permanent Disability (TPD) Personal Accident (PA) Enhanced Waiver of Premium (EWP) Payor’s Benefit on Death and Disability (PBDD) Payor’s Term Benefit (PTB) Total and Permanent Disability (TPD) Total and Permanent Disability (TPD) is an additional benefit that provides coverage on Total and Permanent Disability due to bodily injury or disease. Issue Age BASE PLAN PAYMENT TERM INSURED ISSUE RIDER COVERAGE PERIOD AGE BENEFIT TERM 5 years to pay Up to Policy Maturity or Up to age 65 18-45 age 65 of the Insured, 10 years to pay whichever comes first Face Amount MINIMUM MAXIMUM ₱ 100,000 ₱ 75,000,000 Exempted Occupations for Total and Permanent Disability (TPD) rider DESCRIPTION OCCUPATION REMARKS ALLOTEE, HOMEMAKER ALLOTEE (HOUSEWIFE/HOUSEHUSBAND) HOMEMAKER MINOR MINOR PENSIONER PENSIONER, RETIREE RETIREE STUDENT Not Aviation, Marine or (NOT AVIATION, MARINE OR STUDENT Military MILITARY) NEW GRADUATE NEW GRADUATE Insureds with these occupations are not allowed to get TPD rider. Premium Structure Level Premium (will follow Pay-period of the Basic Plan) Rider Cash Surrender Value None Vitality Integrated Applicable if Base Plan is vitality integrated. 6 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Personal Accident (PA) An additional benefit that provides coverage on Accident-related conditions prior to age seventy-five (75) of the Insured. Additional 100% of the PA benefit will be given if the accident is due to Acts of Nature or while riding a ticketed Public Transportation. This rider has no cash surrender value. Personal Accident – Accidental Loss of Life Benefit – provides the Principal Sum when Injury results in the loss of life of the Proposed Insured within one-hundred eighty (180) days after the accident. Personal Accident – Accidental Dismemberment and Loss of Use Benefit – provides a percentage of the Principal Sum corresponding to a schedule when Injury results in an Accidental Dismemberment or Loss of Use of various parts of the Proposed Insured’s body within one-hundred eighty (180) days after the accident. If Personal Accident is due to the below conditions, additional coverage will be given: CONDITION ADDITIONAL COVERAGE Personal Accident due to Public Transportation or Additional 100% of the Personal Acts of Nature, whichever comes first Accident benefit PUBLIC TRANSPORTATION: If Accident results to loss of life or Dismemberment/Loss of Use of various parts of the Proposed Insured’s body while traveling as a ticketed or officially listed passenger in a commercial bus, automobile, train, monorail, boat, airplane, or ride sharing app over an established land, sea or air route ACTS OF NATURE: If Accident results to loss of life or Dismemberment/Loss of Use of various parts of the Proposed Insured’s body due to Natural Disaster, such as a storm (wind, rain, snow, sleet, hail, lightning, dust or sand), earthquake, flood, land slide, volcanic eruption, or wildfire (Please see appendix v. and vi. for the for the complete list of Dismemberment or Loss of Use of various body parts, and list of Covered Events for Public Transportation, and Acts of Nature) Issue Age BASE PLAN PAYMENT TERM INSURED ISSUE RIDER BENEFIT TERM COVERAGE AGE PERIOD 5 years to pay Up to Policy Maturity or Up to age 65 18-45 age 75 of the Insured, 10 years to pay whichever comes first Face Amount MINIMUM MAXIMUM Subject to Coordination of Benefits (COB) age 5-9: ₱ 2,000,000 ₱ 100,000 age 10-17: ₱ 4,000,000 age 18-65: ₱ 50,000,000 Coordination of Benefits for All Accident and Health Riders RIDER COORDINATION OF BENEFITS ALL ACCIDENT AND HEALTH BENEFITS PER Age 18-65: ₱ 75,000,000 LIFE (A&H riders and PA riders) 7 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) ALL PERSONAL ACCIDENT (PA) BENEFITS Age 18-65: ₱ 50,000,000 PER LIFE Premium Structure Level Premium (will follow Pay-period of the Basic Plan) Rider Cash Surrender Value None Vitality Integration Applicable if Base Plan is vitality integrated. Enhanced Waiver of Premium (EWP) Enhanced Waiver of Premium (EWP) waives the Base and Rider premiums in case of Total and Permanent Disability (TPD) or upon diagnosis of any of the covered Critical Illness (CI) of the Insured. Issue Age BASE PLAN PAYMENT TERM INSURED ISSUE RIDER BENEFIT COVERAGE AGE TERM PERIOD 5 years to pay 18-45 5 years Up to age 65 10 years to pay 18-45 10 years Premium Structure Level Premium (will follow Pay-period of the Basic Plan) Rider Cash Surrender Value None Vitality Integration Not applicable. Waiting Period The waiting period/amount of time the Insured must wait before their Enhanced Waiver of Premium (EWP) rider benefit will take effect is 90 days from policy effective date. Payor’s Benefit on Death and Disability (PBDD) Payor’s Benefit on Death and Disability (PBDD) is a waiver of premium rider which waives the total premium (Base and rider) in case of untimely Death or Total & Permanent Disability of the Payor/Policy Owner. Issue Age BASE PLAN PAYMENT OWNER INSURED RIDER BENEFIT COVERAGE TERM ISSUE AGE ISSUE AGE TERM* PERIOD 5 years to pay 18-55 0-17 years old 5 years Up to age 65 10 years to pay 18-50 0-17 years old 10 years Payment period of the rider will be based on the earliest benefit term: 1. Policy Insured reaches the age of 25. 2. Policy Owner reaches the age of 60. 3. End of premium-paying years. Premium Structure Level Premium (will follow Pay-period of the Basic Plan) Rider Cash Surrender Value None 8 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Vitality Integration Not applicable. Payor’s Term Benefit (PTB) Payor’s Term Benefit (PTB) is an additional benefit that provides coverage in case of untimely death of the Payor/Policy Owner. Issue Age COVERAGE PAYMENT OWNER INSURED RIDER BENEFIT TERM PERIOD TERM ISSUE AGE ISSUE AGE 5 years to pay 18-75 0-45 Up to age 65 10 years to pay 18-70 0-45 Face Amount MINIMUM MAXIMUM ₱ 100,000 Subject to Underwriting Premium Structure Level Premium (will follow Pay-period of the Basic Plan) Rider Cash Surrender Value With Cash Surrender Value. Vitality Integration Not applicable. III. Sample Product Pricing A. Customer: Age 35, Male Payment Term: 10-Pay Benefit Term: Up to age 65 Medical Rating: Standard Coverage Annual Premium* Life Insurance Coverage Php 1,000,000 (200% of the Face Amount) Php 257,510 Face Amount Php 500,000 Total Annual Premium Amount Php 257,510 *Premiums are based on initial pricing and are subject to change. Actual pricing may vary from the sample. B. Customer: Age 45, Male Payment Term: 5-Pay Benefit Term: 20-Year Term Medical Rating: Standard Coverage Annual Premium* Life Insurance Coverage Php 1,000,000 (200% of the Face Amount) Php 477,580 Face Amount Php 500,000 Total Annual Premium Amount Php 477,580 *Premiums are based on initial pricing and are subject to change. Actual pricing may vary from the sample. 9 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) IV. Other Product Details 10 Plan Design 11 Limited-pay endowment with regular payouts 12 Participating The plan is participating, earning non-guaranteed dividends. 13 Issue Age COVERAGE PERIOD PAYMENT TERM OWNER ISSUE AGE INSURED ISSUE AGE 5 years to pay 18 years old and up 0-45 years old Up to age 65 10 years to pay 18 years old and up 0-45 years old 14 Benefit Term PAYMENT TERM BENEFIT TERM 5 years to pay Up to age 65 of the Insured 10 years to pay Minimum and Maximum Face Amount PAY-PERIOD MINIMUM MAXIMUM 5 years to pay ₱ 500,000 Subject to underwriting 10 years to pay ₱ 500,000 limits Face Amount Band Below are the face amount bands for this product: BENEFIT BAND MINIMUM MAXIMUM NOTES TERM Term to Band 1 ₱ 500,000 ₱ 999,999 Regular Offer Age 65 Band 2 ₱ 1,000,000 ₱ 9,999,999 Band 3 ₱ 10,000,000 And up Vitality Integration Not yet applicable upon launch. V. Premium and Payments Currency and Pay-Period Peso-denominated plan available in the following pay variants: APPLICATION TYPE PAY-VARIANT 5 years to pay Regular Underwriting 10 years to pay Minimum Premium PAYMENT TERM MINIMUM PREMIUM (PHP) 5 years to pay Subject to Face amount and Attained Age 10 years to pay Subject to Face amount and Attained Age Mode of Payment Regular Premiums for the Basic Plan and Riders can be paid in annual, semi-annual, quarterly and monthly. Modal mode = Annual premium multiplied by modal factor Mode of Payment Modal Loadings Annual 1.0000 10 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Semi-Annual 0.5300 Quarterly 0.2800 Monthly 0.0950 Method of Payment Payment Method Mode of Payment Remarks Over-The-Counter (OTC) Annual, Semi-Annual, Payment through Cash Quarterly only Payment through Check Payment through Credit Card Auto-Charge Arrangement Annual, Semi-Annual, Initial premium payment (ACA) Quarterly and Monthly should be done via OTC or ePayment under Coffee Closing. Only subsequent payments may be enrolled in ACA. Auto Debit Arrangement Annual, Semi-Annual, Initial premium payment (ADA) Quarterly and Monthly should be done via OTC or ePayment under Coffee Closing. Only subsequent payments may be enrolled in ADA. Policy Fee There is a policy fee amounting to Php 750 per year (this will be part of the premium). Grace Period Regular premiums are payable 31 days from due date. VI. New Business, Underwriting and Processing Guidelines Application Form IC approved Regular Application Form Sales Illustration IC approved Sales Illustration Underwriting Approach and Guidelines Regular Underwriting (Full Underwriting) Underwriting Net Amount at Risk BENEFIT NET AMOUNT AT RISK (NAR) Base Plan For Bands 0-3: 200% of the Basic Face Amount Total and Permanent Disability (TPD) 100% of the Rider Face Amount Enhanced Waiver of Premium (EWP) Total modal premium x frequency of payment per year x paying period Payor’s Term Benefit (PTB) 100% of the Rider Face Amount Payor’s Benefit on Death and Total modal premium x frequency of payment Disability (PBDD) per year x paying period. Total UWNAR for Insured: NAR of Base Plan + NAR of TPD + NAR of EWP Total UWNAR for Owner: NAR of PTB + NAR of PBDD Important note: Personal Accident (PA) is underwritten separately. 11 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Medical and Occupational Rating The following are the acceptable Medical and Occupational Ratings: BASE PLAN: MEDICAL OCCUPATIONAL RATING RATING STD 2.50/M 5.00/M 7.50/M 10.00/M 15.00/M Std STD A B C D E A A B C D E F B B C D E F H C C D E F H J D D E F H J L E E F H J L P F F H J L P N/A H H J L P N/A N/A J J L P N/A N/A N/A L L P N/A N/A N/A N/A P P N/A N/A N/A N/A N/A TOTAL AND PERMANENT DISABILITY (TPD): Following existing underwriting practice, acceptable disability rating for male and female shall vary. For female, maximum acceptable occupational and medical rating is 1.33 and maximum combined rating is B. While for male, maximum acceptable occupational and medical rating is 2.0 and maximum combined rating is D. OCCUPATIONAL RATING OCCUPATIONAL RATING MEDICAL (MALE) (FEMALE) RATING 1.00 1.50 2.00 1.00 1.50 2.00 1.00 1.00 1.50 2.00 1.00 1.33 N/A 1.50 1.50 2.00 N/A 1.33 N/A N/A 2.00 2.00 N/A N/A N/A N/A N/A PERSONAL ACCIDENT (PA): Maximum acceptable occupational rating is class 4 OCCUPATIONAL RATING CLASS 1 2 3 4 ENHANCED WAIVER OF PREMIUM (EWP) Maximum acceptable medical rating is D. MEDICAL RATING STD A B C D PAYOR’S TERM BENEFIT (PTB) and PAYOR’S BENEFIT ON DEATH AND DISABILITY (PBDD) Granting of this benefit shall depend on the medical and non-medical risk classification presented by the covered Payor/ policyowner. Maximum acceptable medical rating is D; maximum acceptable occupational rating is 7.50; and maximum acceptable combined rating is H. MEDICAL OCCUPATIONAL RATING RATING STD 2.50/M 5.00/M 7.50/M STD STD B D F A A C E G B B D F H 12 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) C C E G N/A D D F H N/A Free-Look Period 15 days upon receipt of the policy documents, provided there has been no claim. The amount to be refunded is the Total Premiums paid. VII. Policy Owner Services Non-Forfeiture Options Reduced Paid-Up Insurance (RPU) [DEFAULT] The policy may be continued without further premiums as a Reduced Paid-Up Insurance with a reduced Face Amount equal to the level amount corresponding to cash value less any indebtedness, at the then attained age of Life Insured for the remaining duration of the policy, but not to exceed the original Face Amount. Cash Surrender Value (CSV) The policy may be surrendered any time for its Cash Value (CV) less any indebtedness. Once surrendered, all benefits will end. Automatic Premium Loan (APL) Any unpaid Any unpaid premium after the grace period shall be paid using the Cash Value. If the Cash Value is not enough to pay the Premium due, it will pay the next smaller Modal Premium provided that it is not less than the quarterly premium. If the Cash Surrender Value is not enough to cover at least a quarterly premium, this Policy will remain in force only for that proportion of a quarter of a year which the Cash Surrender Value bears to the quarterly premium. Extended Term Insurance (ETI) is not available. Dividend Options Pay in Cash Declared or generated dividends are paid out in cash to the Policyholder. Leave to accumulate interest [DEFAULT] Declared or generated dividends are left with the Company to earn interest at the prevailing interest rates. It may increase or decrease depending on market conditions. You cannot use the dividends: As net single premium to buy additional non-participating insurance (i.e. Buy Paid-up additions) or; To pay the premium due on the succeeding mode, or premium due date (i.e. Decrease Premium Payments). Policy Loans Loans are allowed on the condition that the applied for loan is less than the cash value of the policy. All loans, including premium loans and interest will be deducted from any benefits payable by the Company. The policy will automatically terminate if total debt becomes higher than the Cash Surrender Value. Renewability Not applicable Convertibility Not applicable Lapsation Non-payment of premiums: If premiums are not paid by the end of the grace period (31 days), the Policy will lapse and all its benefits, except those mentioned under the Non-Forfeiture Option, will end. 13 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Cash Loans: If at any time the total debt exceeds the Cash Value, then the Policy will lapse, and all its benefits will end. Reinstatement Basic plan: The policy can be reinstated within 3 years from the date of lapse subject to 3 conditions: 1. The Policy has not been surrendered for Cash Surrender Value. 2. The Insured is still insurable according to the Company rules. 3. All back premiums are paid with interest, or any debt are paid or resumed. Any reinstated policy will only cover events that occur after the date of approval of the reinstatement, subject to the contestability of the policy. Termination The Policy will terminate in the event of any of the following: Upon death of the Insured (Death) Upon reaching the age of 65 of the Insured (Maturity) Upon non-payment of premiums (Lapse) Upon written notice to terminate the Policy (Surrender) Total and Permanent Disability (TPD) The Total and Permanent Disability Rider will be terminated on the earliest of the following conditions: Claim of the Full Benefit (Claim) Death of the Insured (Death) Upon reaching end of benefit term (Benefit Expiry) Upon policy maturity (Maturity) Non-payment of premiums (Lapse) Rider cancellation as elected by the Owner Conversion of the base plan to RPU Personal Accident (PA) The Personal Accident Rider will be terminated on the earliest of the following conditions: ▪ Claim of the Full Benefit (Claim) ▪ Death of the Insured (Death) ▪ Upon reaching end of benefit term (Benefit Expiry) ▪ Upon policy maturity (Maturity) ▪ Non-payment of premiums (Lapse) ▪ Rider cancellation as elected by the Owner ▪ Conversion of the base plan to RPU ▪ Insured is adjudged insane Enhanced Waiver of Premium (EWP) The Enhanced Waiver of Premium Rider will be terminated on the earliest of the following conditions: Death of the Insured (Death) End of payment period of the policy Non-payment of premiums (Lapse) Rider cancellation as elected by the Owner Conversion of the base plan to RPU Insured is adjudged insane Payor’s Benefit on Death and Disability (PBDD) The Payor’s Benefit on Death and Disability Rider will be terminated on the earliest of the following conditions: Age 25 of the Insured Age 60 of the Owner End of paying period Payor’s Term Benefit (PTB) The Payor’s Term Benefit Rider will be terminated on the earliest of the following conditions: Claim of the Full Benefit (Claim) or upon death of the payor-insured 14 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Death of the Insured (Death) Upon reaching age 80 of the Owner (Expiry) Upon policy maturity (Maturity) Non-payment of premiums (Lapse) Rider Cancellation as elected by the Owner Conversion of the base plan to RPU Contractual Policy Changes The following contractual changes shall be allowed subject to submission of existing routine requirements: Change/correction in: a. Correction of Date of Birth that will result to change in age b. Change or correction in name of Insured / Owner / Payor / Honorifics c. Change in Payor/Owner. Not allowed if Payor’s Term Benefit (PTB) or Payor’s Benefit on Death and Disability (PBDD) is attached. d. Deletion of Rider e. Addition of Rider [valid for Optional riders only] - 5 years to pay and 10 years to pay variant: Applicable within the 1st policy year only The following contractual changes shall not be allowed: f. Change of plan to any other plans offered by the Company g. Change of payment term h. Change in Face Amount (subject to guidelines of Project Tenacity) Non-contractual Policy Changes The following policy changes are allowed but subject to submission of existing routine requirements per type of request. Change/Correction in: a. Contact information b. Policy restriction (assignment, duplicate, beneficiary, etc.) c. Birth date (without change in age) d. Request for duplicate policy e. Addition/deletion/change in beneficiary f. Designation/change/cancellation of trustee for minor beneficiaries g. Designation/cancellation of policy assignment h. Change in dividend payout option i. Change in mode of release for the guaranteed cash payout j. Change in mode of payment k. Change in NFO VIII. AIA Life Planner Corner 15 Authorization and Licensing Requirements Only duly authorized, trained, and licensed (OL license for Base Plan and Optional Riders) Life Planners can solicit business for this product. Regular Commission BASIC COMMISSION ONLY Face Amount Policy Years Benefit Term Payment Term Band 1 2 3 4 5+ Term to Age 65 5 years to pay Band 1 15% 10% 5% 5% 0% Term to Age 65 5 years to pay Band 2 17.5% 10% 5% 5% 0% Term to Age 65 5 years to pay Band 3 20% 10% 5% 5% 0% Term to Age 65 10 years to pay Band 1 15% 10% 5% 5% 0% Term to Age 65 10 years to pay Band 2 25% 10% 5% 5% 0% Term to Age 65 10 years to pay Band 3 25% 10% 5% 5% 0% 15 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) Rider Commission RIDERS COMMISSION ONLY PAYMENT POLICY YEARS RIDER NAME TERM 1 2 3 4 5 6 7 8 9 10 11+ TOTAL AND 5 years to pay PERMANENT 35% 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% DISABILITY 10 years to pay 45% 10% 5% 5% 0% 0% 0% 0% 0% 0% 0% (TPD) PERSONAL 5 years to pay 35% 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% ACCIDENT 10 years to pay (PA) 45% 10% 5% 5% 0% 0% 0% 0% 0% 0% 0% ENHANCED 5 years to pay 35% 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% WAIVER OF PREMIUM 10 years to pay 45% 10% 5% 5% 0% 0% 0% 0% 0% 0% 0% (EWP) PAYOR’S BENEFIT ON 5 years to pay 35% 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% DEATH AND 10 years to pay DISABILITY 45% 10% 5% 5% 0% 0% 0% 0% 0% 0% 0% (PBDD) PAYOR’S 5 years to pay 10% 5% 0% 0% 0% 0% 0% 0% 0% 0% TERM 35% BENEFIT 10 years to pay 45% 10% 5% 5% 0% 0% 0% 0% 0% 0% 0% (PTB) Commission Clawback Policy Reversal: 100% of the First Year Commission (FYC) will be clawed-back for Policy that are cancelled within Free-look Period. Production Credit 100% of the Basic and Rider premium will be counted as BSE’s First Year Premium (FYP). Persistency This product will be included in persistency calculations. 16 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) IX. Appendix i. Death Claims DEATH OF THE INSURED EVENT BENEFIT PAYABLE REMARKS ANY EVENT EXCEPT SUICIDE Death Benefit = the higher of: After claims – Terminate WHILST SANE a) a percentage of the Death policy Benefit computed*; or b) Total Premiums received by Us less any Payouts received Less any debt (Policy Loan) to the Company *For Bands 0-3 = 200% of Face Amount SUICIDE WHILST SANE Return of Premium = Total After claims – Terminate WITHIN 2 YEARS FROM THE Premiums received by Us Policy EFFECTIVE DATE less any debt (Policy Loan) to the Company DEATH PRIOR TO ATTAINING Death Benefit subject to Juvenile After claims – Terminate AGE 4 YEARS AND 6 MONTHS Lien = the higher of: Policy a) a percentage of the Death Benefit computed; or b) Total Premiums received by Us less any Payouts received Less any debt (Policy Loan) to the Company Illustration: Face Amount = Php500,000 Death Benefit = FA x 200% = Php 1,000,000 If insured dies at age 2, Death Benefit with Juvenile Lien would be = Death Benefit x 40% = Php 1,000,000 x 40% = Php 400,000. Refer to Juvenile Lien section under Plan Limits (section 4) in this document for detailed schedule of Juvenile Lien. DEATH OF THE PAYOR/POLICYOWNER EVENT BENEFIT PAYABLE REMARKS ANY EVENT EXCEPT SUICIDE Death Benefit = Payor’s Term Benefit After claims WHILST SANE (PTB) Face Amount less any debt to 1. Policy is still in-force the Company. 2. Terminate Payor’s Term Benefit (PTB) rider SUICIDE WHILST SANE WITHIN Death Benefit = Payor’s Term Benefit After claims 2 YEARS FROM THE EFFECTIVE (PTB) Premium less any debt to the 1. Policy is still in-force DATE Company. 2. Terminate Payor’s Term Benefit (PTB) rider 17 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) ii. Total and Permanent Disability (TPD) Claims EVENT BENEFIT PAYABLE REMARKS INSURED GETS TOTAL AND TPD Benefit = 100% of the TPD After claims PERMANENT DISABILITY due to Face Amount. 1. Policy is still in-force bodily injury or disease and 2. Terminate TPD rider cannot perform 3 or more benefit activities from the 6 Activities of Daily Living iii. Personal Accident (PA) Claims EVENT BENEFIT PAYABLE REMARKS PERSONAL ACCIDENT PA – Accidental Death Benefit = After claims – Terminate RESULTING TO DEATH OF THE 100% of the PA Face Amount less Policy INSURED any debt to the Company. (Please see appendix 14.2 for If the event of Personal Accident is the for the complete list of due to Public Transportation or Dismemberment or Loss of Use Acts of Nature, an additional 100% of various body parts, Public of the PA Benefit. Transportation, and Acts of Nature) PERSONAL ACCIDENT PA – Accidental Dismemberment After claims – Policy is still RESULTING TO Benefit = % of PA benefit based on in-force DISMEMBERMENT/LOSS OF USE the Accidental Dismemberment % OF VARIOUS PARTS OF THE of Principal Sum PROPOSED INSURED’S BODY If the event of Personal Accident is (Please see appendix 14.1 and due to Public Transportation or 14.2 for the for the complete list Acts of Nature, an additional 100% of Dismemberment or Loss of of the PA Benefit. Use of various body parts, Public Transportation, and Acts of Nature) iv. Payor’s Benefit on Death and Disability (PBDD) Claims EVENT BENEFIT PAYABLE REMARKS ANY EVENT, EXCEPT SUICIDE Payor’s Benefit on Death and After claims WHILST SANE, RESULTING TO Disability (PBDD) = Waives all future 1. Policy is still in-force DEATH OF THE PAYOR premium (Basic and Rider) SUICIDE WHILST SANE WITHIN 2 Death Benefit = Payor’s Benefit on After claims YEARS FROM THE EFFECTIVE Death and Disability (PBDD) 1. Policy is still in-force DATE Premium less any debt to the 2. Terminate Payor’s Company. Benefit on Death and Disability (PBDD) rider EVENT RESULTING TO Payor’s Benefit on Death and After claims DISABILITY OF THE PAYOR Disability (PBDD) = Waives all future 1. Policy is still in-force premium (Basic and Rider) v. Personal Accident (PA) – Accidental Dismemberment % of Principal Sum % of Principal Sum Accidental Dismemberment or Loss of Use of Limbs (a) Both Hands 100% (b) Both Feet 100% (c) One Hand and One Foot 100% 18 [AIA – INTERNAL]  (For Life Planner’s use only. Not for distribution.) (d) One Hand 50% (e) Arm between elbow and wrist 60% (f) Arm at or above elbow 70% (g) One Foot 50% (h) Leg below knee 60% (i) Leg at or above knee 70% Loss of Sight (a) Both Eyes 100% (b) One Eye 50% Loss of Speech 100% Loss of Hearing (a) Both Ears 100% (b) One Ear 50% Accidental Dismemberment or Loss of Use of Fingers (a) All of One Hand 50% (b) Thumb 15% (c) Index Finger 10% (d) Middle Finger 6% (e) Ring Finger 5% (f) Little Finger 4% Loss of Use of Metacarpals – first or second 3% Loss of Use of Metacarpals – third, fourth or fifth 2% Accidental Dismemberment or Loss of Use of Toes (a) All of One Foot 25% (b) Great Toe 5% (c) Other than Great, each toe 1% Fractured leg or patella with established non-union 10% Shortening of leg by at least 5 cm 7.5% vi. Personal Accident (PA) – Covered Events LIST OF COVERED EVENTS ON PERSONAL ACCIDENT FOR PUBLIC TRANSPORTATION AND/OR ACTS OF NATURE Additional 100% of the Personal Accident Benefit will be provided if Accident results to Loss of Life or Dismemberment/Loss of Use of various parts of the Proposed Insured’s body due to the following: PUBLIC TRANSPORTATION ACTS OF NATURE while traveling as a ticketed or officially listed such as passenger in a 1. Storm (wind, rain, snow, sleet, hail, 1. Commercial Bus, lightning, dust or sand), 2. Automobile, 2. Earthquake, 3. Train, 3. Flood, 4. Monorail, 4. Land Slide, 5. Boat, 5. Volcanic Eruption, or 6. Airplane, or 6. Wildfire 7. Ride Sharing App over an established Land, Sea or Air route vii. Enhanced Waiver of Premium (EWP) – Covered Illnesses LIST OF COVERED CRITICAL ILLNESSES – 10 CRITICAL ILLNESS (10CI) 1. Cancer 6. Kidney Failure 2. Coma 7. Liver Cirrhosis 3. End Stage Lung Disease 8. Stroke 4. Heart Attack 9. Terminal Illness 5. HIV due to Blood Transfusion and 10. Vital Organ Transplant Occupationally Acquired HIV 19 [AIA – INTERNAL]