The Recommended Additional Regular Premium apportioned to the Insurance component will commence from the first (1st) Policy Year onwards and will continue from then on. This allocated additional premium shall be allocated towards the purchase of units in the same manner as stated in the ‘Allocation Rates’ provision of the Policy Information Statement of this Policy upon upgrade of medical rider(s). The unallocated premium is an upfront charge on the premium paid and is used to meet AIA Bhd.'s expenses and total distribution cost, including the commissions payable to AIA’s Life Planner.
If there is an increase in premium due to an addition of the Basic Plan’s Sum Insured, the allocation of the additional premium apportioned to the Insurance Component shall be calculated based on the Sum Insured (SI) Factor applicable at the time of the increase in premium. The SI Factor for the additional premium shall be based on the Insured’s attained age. In the event the addition of the Sum Insured does not require an increase in premium, the existing SI Factor shall be applicable.
If the Policy goes under Premium Holiday (stop paying premium) after the new rider or sum insured / annual limit has been effected, We will also stop the allocation of premium into the Investment and Insurance Component. However, We will continue to deduct the Insurance Charges and Policy Fee and as result of this deduction, the Total Investment Value of Your Policy will be reduced accordingly. When You continue paying premium again, the Premium Holiday stops. In this event, the allocation of premium into the Investment and Insurance Component shall not be based on the Policy Year in which the premium was paid by You but shall continue from where it stopped (i.e. when the Premium Holiday began).