Underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)”), 5-Year RMB Insurance Plan (“the Plan”) is a life insurance plan with savings elements and denominated in Renminbi. With just a 2-year premium payment term, the Plan provides you with a maturity benefit and non-guaranteed maturity dividend to help you achieve your financial goal.

Plan Features

Plan Features
Renminbi policy
The Plan is denominated in Renminbi and its premiums and policy benefits are settled in Renminbi. You may choose to pay premiums and receive the policy benefits in Renminbi or Hong Kong dollar which offers flexibility on your financial arrangement^*.

^*You may choose to pay premiums and receive policy benefits in Hong Kong dollar, which must be settled at the prevailing exchange rate of Renminbi to Hong Kong dollar (vice versa) determined by China Life (Overseas).

Maturity benefit
The Plan matures in 5 years. The maturity benefit which is equivalent to 100% of the basic amount¹ and non-guaranteed maturity dividend (if any)² less all indebtedness (if any) upon policy maturity, enable you to realize your financial goals.

Life protection
In the unfortunate event of the death of the insured whilst the policy is in force, a death benefit³ will be payable to the beneficiary. The amount is equivalent to:

1)	The higher of 101% of the accumulated premium due and paid at the date of death of the insured; or the guaranteed cash value at the date of death of the insured;
2)	less all indebtedness (if any).
The prepaid premium balance and its interest (if any) will also be returned to the beneficiary without charge.

2-year premium payment term
The premium payment term⁴ of the Plan is only 2 years. In addition to the annual mode, you can choose annual and premium prepayment⁵ mode to prepay the premiums⁵ to enhance your return, with a guaranteed interest rate of 3% per annum.

Simplified underwriting
Application for the Plan is easy with simplified underwriting procedures and no medical examination is required.

Enrollment Terms

Enrollment Terms

Issue age	15 days to 75 years old
Benefit term	5 years
Premium payment term4	2 years
Premium payment mode	Annual4 Annual and premium prepayment5
Policy currency	CNY
Minimum basic amount1	CNY 100,000
Annual minimum premium	CNY 45,728

Illustrative Example

Illustrative Example

Insured’s gender: Male
Premium payment mode: Annual⁴
Basic amount¹: CNY 1,000,000
Premium payment term: 2 years
Initial annual premium: CNY 457,280

(Policy currency: CNY)

End of policy year	Total premiums paid	Surrender value			Death benefit
		Guaranteed	Non-guaranteed maturity dividend	Total	Guaranteed	Non-guaranteed maturity dividend	Total
1	457,280	392,150	0	392,150	461,850	0	461,850
2	914,560	897,690	0	867,690	923,710	0	923,710
3	914,560	902,760	0	902,760	923,710	0	923,710
4	914,560	939,220	0	939,220	939,220	0	939,220
5	914,560	1,000,000	44,730	1,044,730	1,000,000	0	1,000,000

The figures in the above example are rounded to the nearest whole number and for illustrative purposes only. The above example is based on the following assumptions:

• all premiums exclude premium levy; and
• there is no withdrawal and no indebtedness throughout the benefit term and all premiums are paid in full when due.

Remarks:

1	“Basic amount” means the amount shown on the policy information page or endorsement as the “basic amount”. The “basic amount” is used to calculate the premium and relevant values of the policy, but is not applicable to the calculation of the death benefit. If the basic amount has been amended while the policy is in force, premium, guaranteed cash value and non-guaranteed maturity dividend (if any) will be adjusted accordingly.
2	While the policy is in force, China Life (Overseas) will pay non-guaranteed maturity dividend (if any) upon policy maturity. The non-guaranteed maturity dividend is not guaranteed. The actual benefits and/or returns may be lower or higher than the estimates. China Life (Overseas) reserves the right to revise the non-guaranteed maturity dividend from time to time. The actual amount of non-guaranteed maturity dividend is subject to the overall performance of China Life (Overseas)’s participating business, including investment returns, persistency and claims, etc.
3	In the unfortunate event of the death of the insured, the prepaid premium balance will be refunded with interest (if any) without charge.
4	If the required renewal premium is paid by you within the grace period, the policy shall continue to be in force. For details, please refer to the policy provisions issued by China Life (Overseas). If the policy has lapsed or is surrendered early, the cash value of the policy received by the policyholder may be considerably less than the total amount of the premiums paid.
5	If you choose the annual and premium prepayment mode, you can withdraw the unused prepaid premium (including interest, if any) at one time. China Life (Overseas) will charge 3% of the withdrawal amount, at a minimum amount of CNY200. You can withdraw the unused prepaid premium once only. The interest rate of prepaid premium is 3% p. a. and this interest rate is guaranteed. The interest will be calculated on compounding basis at each policy anniversary.

 

 

 

Terms and Conditions

Important Information:

The above information is for reference only. It does not form a contract between China Life (Overseas) and anyone or any entity else. The detailed terms, conditions and exclusions of the Plan are subject to the relevant policy contract. You are reminded to review the relevant policy contract and all relevant product materials and to seek independent professional advice if necessary. For a copy of the policy contract, please contact China Life (Overseas) for enquiry.

1.  The Plan is a life insurance plan (including non-guaranteed maturity dividend). Part of the premiums are paid for the insurance and related costs. You should fully understand all of the risks involved in the Plan and consider whether the Plan is affordable and suitable to you before making your application. 2.  Cooling-off right - You have the right to cancel the policy within the cooling-off period and obtain a refund of any premiums and premium levy (if any) paid provided that no claim has been made under it. You must submit a written notice signed by you to China Life (Overseas) at 22/F, CLI Building, 313 Hennessy Road, Wan Chai, Hong Kong within 21 calendar days after the delivery of the policy or Notice of Policy Issuance (telling you about the availability of the policy and the expiry date of the cooling-off period) to you or your representative, whichever is earlier. 3.  The Plan is a life insurance product, but not a bank savings plan embedded with a free life insurance. The premium is not a placement of a savings deposit with the bank and hence is not protected by the Deposit Protection Scheme in Hong Kong. 4.  The premium will be paid to China Life (Overseas) and part of the premiums will become part of the assets of China Life (Overseas). The Policyholder does not have any direct rights nor ownership over any of these assets. The Policyholder’s rights are in accordance with the terms and conditions of the policy contract and policyholder’s recourse is against China Life (Overseas) only. Your policy is subject to the credit risk of China Life (Overseas). In the worst scenario, you could lose all of the premiums paid and benefits. 5.  The Plan is of a long-term nature. You are advised to carefully consider your financially capability, cash flow and liquidity needs before making any purchase decision. The Plan may not be suitable for you and you should not buy the Plan if you are in need of short-term liquidity. 6.  Fubon Bank (Hong Kong) Limited (“Fubon Bank") is an appointed licensed insurance agency for China Life (Overseas), and is responsible for the distribution of relevant insurance products. Fubon Bank shall not be responsible for any matters in relation to the terms and conditions of the policy contract of the Plan. The Plan is a product of China Life (Overseas) but not the product of Fubon Bank. 7.  The Plan is underwritten by China Life (Overseas). China Life (Overseas) is responsible for the features, underwriting and benefit payments under the policy. 8.  China Life (Overseas) shall make the final decisions on the underwriting and claims. China Life (Overseas) shall rely on your submitted information to assess whether to accept or decline your application, and shall refund any premium and premium levy (if any) paid without interest for declined cases. 9.  In case you file a written complaint regarding the selling process or processing of the related transaction to Fubon Bank and the complaint is an “Eligible Dispute” as defined in the Terms of Reference for the Financial Dispute Resolution Centre, Fubon Bank is required to enter into a Financial Dispute Resolution Scheme process with you if the Eligible Dispute cannot be resolved after Fubon Bank has issued the final written reply. If the complaint or dispute is related to the contractual terms of the product, it should be resolved directly between China Life (Overseas) and you. 10.  China Life (Overseas) accepts the full responsibility for all of the above information. The above information is for reference only. Please refer to the policy contract of the Plan for the exact terms and conditions and the full list of policy exclusions. For more information or a copy of the terms and conditions of the policy contract, please contact the staff of Fubon Bank. 11.  The above information shall not be construed as any provision of or offer to sell or solicitation to buy any products of China Life (Overseas) outside Hong Kong. 12.  The Insurance Authority will collect a levy on insurance premiums (if any) from policyholders through China Life (Overseas) in accordance with the law. For further information about the levy imposed by the Insurance Authority, please refer to China Life (Overseas) Premium Levy introduction website or Fubon Bank Premium Levy introduction website.

Policy Information:

1.  Dividend and/or crediting interest philosophy This is a participating and/or providing interest on accumulation insurance plan. Premiums received from the policies will be invested to a variety of assets according to the China Life (Overseas)’s investment strategy. The surplus from the invested assets will be shared with policyholder through declared dividends and/or interest rate on accumulation in accordance with the relevant clause in the “benefit provisions”. China Life (Overseas) will ensure a fair sharing of surplus among different groups of policyholders and also between policyholders and China Life (Overseas). China Life (Overseas) will review and determine the dividend and/or interest rate on accumulation at least once a year, the current projection on dividend and/or interest rate on accumulation are not guaranteed and subject to change with the entire performance of the participating policies and the factor including but not limited to the past experience and future prospect of investment returns, claims and persistency: Claims – including the costs of providing death benefit as well as other benefits under the product(s). Investment returns – including the interest income, dividend income, outlook of interest rates and any changes in the market value of the product’s backing asset. Persistency – including policy lapse and partial surrender experience. Note: The dividend or interest rate history is not an indicator of the future dividend or interest rate of the Plan. 2.  Investment philosophy, policy and strategy China Life (Overseas) aims to strive for minimizing volatility of the investment return and provides stable return as China Life’s investment philosophy. Assets are mainly invested in bonds and other fixed income instruments, such as government and corporate bonds and other fixed income instruments to support the guaranteed financial obligation. To enhance the performance of the investment portfolio, China Life (Overseas) invests in equity-type investments and other investment instruments such as mutual funds and direct/indirect investment in properties or commercial institutions. The investment portfolio will be diversified across different geographic regions and/or industries. Investment strategy will be subject to change depending on the market conditions and the economic outlook. China Life (Overseas) will inform policyholder through the annual statement the relevant changes in dividend and/or interest rate on accumulation and the impact to the policies when there is change in the investment strategy. China Life (Overseas)’s current investment strategy on participating and/or providing interest on accumulation plans are as follow: Asset type Target asset mix (%) Bonds and other fixed income instruments 50% to 90% Equity-type investment and other investments 10% to 50% Please refer to China Life (Overseas)’s website for dividend history, dividend and/or crediting interest philosophy, investment philosophy, policy and strategy, as well as the fulfillment ratio of China Life (Overseas). 3.  Non-payment of premium / automatic premium loan You should pay premium(s) on time according to the selected premium payment term. If the due premium remains unpaid upon the expiry of the grace period, an automatic premium loan will be taken out against the policy to settle the unpaid premium automatically. All policy loans are interest-bearing and calculated at a rate (as stated on China Life (Overseas)’s website) to be declared by China Life (Overseas) from time to time. Interest accrued shall become a part of the indebtedness. When the loan balance is equal to or exceeds the guaranteed cash value of the basic plan of the policy, the policy will lapse and you will lose the related insurance coverage and suffer a financial loss. Under these circumstances, the surrender value of the policy will be deducted to repay the outstanding loan balance (including interest), and the remaining value will be refunded to you.   4.  Payout of maturity benefit The maturity benefit will be payable after the policy maturity date upon receipt of all necessary documents by China Life (Overseas). The actual processing time required will depend on the payment collection method you selected. For details about the collection of maturity benefit, please refer to China Life (Overseas)’s website or call China Life (Overseas) customer service hotline at (852) 3999 5519.   5.  Exclusions and limitations The above information is for reference only. Please refer to the “general provision” and “benefit provisions” or contact the staff of Fubon Bank for the exact terms and conditions, all exclusions and limitations such as incontestability, suicide and fraud, etc.

What are the key product risks? Credit risk The Plan is a life insurance product issued by China Life (Overseas). Any premium paid will become part of the assets of China Life (Overseas) and the financial strength will affect the ability to meet China Life (Overseas)'s contractual obligations to you under the policy. Therefore, you are subject to China Life (Overseas)’s credit risk. Early surrender risk The savings component of the Plan is subject to risks and possible losses. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid. Exchange rate and currency risks Any policy with foreign currencies involves risks, such as potential changes in political or economic conditions that may substantially affect the price or liquidity of a currency. The fluctuations in exchange rates may also cause financial losses to you during currency conversions. You should take exchange rate risk into consideration when deciding the policy currency you should take. The Plan is denominated in Renminbi. All premiums and policy benefits under the Plan (including but not limited to the non-guaranteed maturity dividends, maturity benefit and death benefit) will be settled and payable in Renminbi. Application for the Plan is subject to exchange rate risk. In the event of exchange rate fluctuation that Renminbi depreciates against Hong Kong dollar, your policy value may be lowered or you may suffer a loss. Renminbi is currently not freely convertible and conversion of Renminbi in Hong Kong is subject to certain restrictions. The actual conversion arrangement will depend on the restrictions prevailing at the relevant time. You should allow sufficient time for the conversion. Inflation risk The cost of living in the future may be higher than expected due to the effects of inflation. Therefore, your current planned benefits and/or returns may be insufficient to meet your future needs even if China Life (Overseas) fulfills all of the contractual terms and obligations. Liquidity and withdrawal risk You are obliged to hold the policy and pay the premium(s) for the designated period of time. If you surrender the policy prior to the policy maturity date, you will suffer a financial loss. In case you make partial withdrawals from the policy, your policy value, death benefit and other policy benefits will be affected, and you may need to pay the relevant handling fee or charges (if any). Non-guaranteed benefit The Plan consists of non-guaranteed benefits and/or returns. The actual amounts of benefits and/or returns in the future may be different from the benefits and/or returns which project on the product materials. The product materials are for illustrative purposes only. Policy termination The policy will be terminated if (a) the policy has lapsed or is surrendered; or (b) China Life (Overseas) has paid the maturity benefit; or (c) China Life (Overseas) has paid the death benefit in full; or (d) the due premium has not been paid within 31 days after the premium due date, and the policy has no remaining guaranteed cash value; or (e) the indebtedness of the policy is equal to or exceeds the guaranteed cash value of the policy.