AIA Life Launches New "Dollar Annuity Insurance" Product Gaining Attention for High Exchange Rates

AIA Life Launches (Non-Participating) AIA Global Power US Dollar Annuity Insurance
Maximizing Annuity Payments with US Interest Rate-Linked Bonuses

On January 5, AIA Life announced the launch of its newly developed “(Non-Participating) AIA Global Power US Dollar Annuity Insurance,” designed in consideration of the super-aging society and the trend toward earlier retirement.

This product is a monthly payment, interest rate-linked annuity insurance that uses the US dollar-a global safe asset-for currency diversification, thereby enhancing the value of retirement assets and supporting customers in enjoying a more comfortable retirement. Even in a low interest rate environment and amid market uncertainty, it applies a high medium- to long-term surrender value rate, enabling customers to accumulate larger annuity funds over time.

Customers can secure stable annuity funds through the “Annuity Enhancement Bonus” provided at certain points in time. The “US Interest Rate-Linked Bonus” offered by AIA Life also helps maximize the annuity amount. For contracts above a certain amount, customers receive a “Large Contract Bonus” of up to 15% of the basic premium at the annuity commencement date if the contract is maintained long-term, allowing for more generous retirement assets. Since annuity assets are intended to prepare for a long retirement period, customers can maximize their value by utilizing the dollar as a global safe asset and secure stable annuity payments over the medium to long term.

The actual surrender value and annuity amount may vary depending on several factors, including the age and gender at enrollment, premium, payment period, and declared interest rate. If certain requirements specified by relevant tax laws are met, tax exemption on insurance gains may be available. However, tax-related matters may change in accordance with the enactment, revision, or repeal of the applicable tax laws.

Various services and options are available to enable more flexible retirement planning and management of retirement funds. After a certain period following enrollment, customers can use the “Lump-Sum Dollar Annuity Conversion System” to adjust the annuity structure according to their retirement timing and cash flow plans. By changing the insured person, it is also possible to design retirement, inheritance, and gift planning for the entire family.

Through the “KRW Conversion Service (CES),” customers can conveniently pay premiums and receive annuity or insurance benefits in either Korean won or US dollars without a separate currency exchange process. According to AIA Life’s standards, customers can use the “Overseas Remittance Service” to transfer insurance benefits exceeding a certain amount to overseas accounts in countries such as the United States, Canada, Australia, Hong Kong, and Singapore. This allows customers to use their insurance benefits for purposes such as their children’s study abroad expenses or living costs for family members residing overseas.

Healthcare services for a healthy retirement are also provided. Customers who enroll above a certain amount can receive a variety of benefits at no additional cost until the annuity commencement date, including 24-hour health consultations, specialist referrals, and health management for major illnesses. Policyholders can enjoy both retirement asset management and a healthy lifestyle by utilizing healthcare services alongside the dollar-denominated annuity product.

Yoo Shinok, Chief Customer Officer at AIA Life, stated, “While the retirement age for Koreans is getting earlier and the retirement period is becoming longer, concerns about retirement funds are deepening due to rising living costs and medical expenses. This dollar annuity insurance combines three types of bonuses, a range of service options, and healthcare services, so that customers can prepare for a more stable retirement cash flow and plan for their family’s future as well.”