AIA Philippines and BPI AIA Launch Whole-Life Plans With Guaranteed Payouts
Key Takeaways
- •AIA Philippines and its bancassurance arm BPI AIA have launched two participating whole-life plans, AIA Platinum Secure and BPI AIA ADDvantage, combining lifetime coverage with guaranteed income benefits.
- •Policyholders receive guaranteed cash payouts of 10% of the policy's face amount every other year, milestone bonuses of 25% at ages 80 and 90, and a guaranteed maturity benefit upon turning 100.
- •Both products offer five payment options, with cash payouts beginning at the end of the fifth policy year for single-pay and two-pay plans and at the end of the eighth policy year for five-pay, 10-pay, and 20-pay plans.
- •Policyholders can attach riders covering hospitalization, critical illness, accidents, and disability, and may receive dividends based on company performance, though such dividends are not guaranteed.
- •The launch comes as the Philippines nears "aging society" status with falling birth rates and rising healthcare costs, and bancassurance partnerships like BPI AIA's distribution through BPI have become a leading channel for life insurance in the country.
AIA Philippines Life and General Insurance Co., Inc. (AIA Philippines) and its bancassurance arm, BPI AIA Life Assurance Corp. (BPI AIA), have launched participating whole-life insurance plans that provide lifetime protection together with guaranteed income benefits.
The two products, AIA Platinum Secure and BPI AIA ADDvantage, combine lifetime coverage with guaranteed cash payouts, milestone bonuses, and potential dividends. The companies said the plans are designed to give customers flexibility in their retirement planning.
The launch comes as the Philippines nears "aging society" status, a designation generally applied to countries where at least 7% of the population is aged 65 or older, while birth rates decline and healthcare costs continue to rise. The shift is playing out in a market where insurance penetration has historically lagged behind regional peers, a gap insurers and regulators have sought to narrow by expanding access to protection and savings products. AIA Philippines forms part of AIA Group Limited, the Hong Kong-headquartered pan-Asian life insurance group, while BPI AIA distributes insurance products through Bank of the Philippine Islands (BPI), one of the oldest banks in the country. Bancassurance partnerships of this kind have become one of the main distribution channels for life insurance in the Philippines.
Beyond retirement income, the two plans also aim to prepare individuals for unexpected expenses and help them establish long-term financial security.
Both insurance products can be availed of through five payment options. Policyholders are entitled to a milestone bonus equivalent to 25% of the policy's face amount upon reaching ages 80 and 90, along with a guaranteed maturity benefit once they turn 100.
The guaranteed cash payouts, equal to 10% of the policy's face amount, will be provided every other year starting at the end of the fifth policy year for single-pay and two-pay plans, and beginning at the end of the eighth policy year for five-pay, 10-pay, and 20-pay plans.
Policyholders may also attach additional insurance riders to their plans covering hospitalization, critical illness, accidents, disability, and other health-related risks. In addition, they can receive dividends under their plans based on the companies' performance; as with participating policies generally, those dividends are not guaranteed and may vary from year to year, unlike the cash payouts and milestone bonuses written into the policy.
— Katherine K. Chan
Source: BusinessWorld
