Legend Rich Insurance Plan

Legend Rich Insurance Plan

A flexible wealth management plan can help accumulate wealth for a prosperous future for you and your family.
Underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)”), Legend Rich Insurance Plan (the “Plan”) provides potential long-term capital growth with guaranteed cash value, non-guaranteed terminal dividend (if any)1 and the total amount of terminal dividend management account (if any)2. You can access your wealth flexibly to achieve an ideal life for yourself and your family. You can also pass on your wealth to the next generations, building a solid financial foundation for your loved ones.

 

Plan Features

Plan Features

Multiple potential returns to accelerate wealth building
The Plan is a participating insurance plan that offers you potential capital growth. Its account value consists of 3 components: guaranteed cash value, non-guaranteed terminal dividend (if any)1 and total amount of terminal dividend management account (if any)2.

Guaranteed cash value grows over the policy years helping you accumulate wealth.

Terminal dividend is a one-off non-guaranteed dividend, which is payable from the 5th policy anniversary.

Total amount of terminal dividend management account is equivalent to locked-in terminal dividend and interest (if any) less withdrawal amount (if any).

 

Flexible access to your wealth for matching your needs
To realize your financial goals, you can partially withdraw the guaranteed cash value and non-guaranteed terminal dividend (if any) through reducing the basic amount3, while the account value will be reduced accordingly.

Alternatively, you can apply for policy loan to withdraw part of the guaranteed cash value when needed, while keeping the policy in force. Interest on policy loan will be charged at a rate determined by China Life (Overseas) from time to time.

 

Terminal dividend management option to help you lock in gains
To facilitate your financial need, you can choose to exercise terminal dividend management option2 within 30 days starting from every policy anniversary (including the date of policy anniversary) to lock in gains from part of your terminal dividend (if any) starting from the 15th policy anniversary and every policy anniversary thereafter so as to respond to market fluctuation. The terminal dividend which is applied to lock in will be transferred to the terminal dividend management account and will become locked-in terminal dividend. The locked-in terminal dividend will then be guaranteed and will accumulate with interest at a non-guaranteed rate. China Life (Overseas) reserves the right to revise the rate from time to time.

 

Unlimited change of insured to pass on wealth across generations
China Life (Overseas) understand you wish to provide your loved ones with a secure financial future. This is why the Plan features the “change of insured option”4, allowing you to change the insured on or after the 1st policy anniversary for unlimited times while the insured is alive. The benefit term of the policy will be extended to age 138 of the new insured upon each change, giving your wealth more time to grow and pass on through generations.

The new insured must have insurable interest with the policyholder. The new insured must be aged between 15 days and 80 years old and must not be older than the attained age of the current insured, whichever is lower. The new insured is also subject to the applicable terms and conditions determined by China Life (Overseas) from time to time.

 

Contingent insured to sustain insurance coverage
You can appoint and prioritize a maximum of 2 contingent insureds5 at a time while the insured is alive and the policy is in force. In case the insured unfortunately passes away, China Life (Overseas) will arrange the contingent insured who is first in line to be the new insured according to relevant administrative procedures and orders for allowing the policy to continuously provide protection to you and your family.

The contingent insured must have insurable interest with the policyholder. The contingent insured at the time of application must be aged between 15 days and 80 years old and must not be older than the attained age of the current insured, whichever is lower. The contingent insured is also subject to the applicable terms and conditions determined by China Life (Overseas) from time to time.

 

Life protection provides peace of mind to your loved ones
Death benefit
In case the insured passes away when the policy is in force and no contingent insured is assigned, China Life (Overseas) will pay the beneficiary a death benefit which is equal to the higher of:

1) 105% of the accumulated premium due and paid; or
2) sum of guaranteed cash value and non-guaranteed terminal dividend (if any) at the date of death of the insured;
plus the total amount of terminal dividend management account (if any), less all indebtedness (if any). The prepaid premium balance will also be fully refunded.

The policy will be terminated after the death benefit has been paid by China Life (Overseas).

 

Death benefit settlement option
While the insured is alive, you can choose how the death benefit is to be paid to safeguard your family’s financial future. You can choose to settle the benefits in a lump sum or by instalments with a fixed amount annually over a fixed payment term of 10, 20 or 30 years.

For the instalment option, the remaining balance of death benefit will be deposited in the policy to accumulate interest until the end of the payment term. The interest will be calculated on an annual basis and it is non-guaranteed which will be determined by China Life (Overseas) from time to time. The accumulated interest (if any) will be paid together with the last instalment of death benefit. If the beneficiary dies during the settlement period of the death benefit, China Life (Overseas) will pay the remaining balance of the death benefit with interest (if any) in a lump sum payment to the estate of the deceased beneficiary.

If the death benefit at the date of the insured’s death is less than USD50,000 (for USD policy) or HKD400,000 (for HKD policy), or the policyholder does not specify any settlement option, China Life (Overseas) will pay out the benefit amount to the beneficiary in a lump sum.

 

Simplified underwriting
To enable you to achieve your goals with ease, application of the Plan is easy. Simplified underwriting procedures are available and no medical examination is required.

 

Enrollment Terms

Enrollment Terms
Issue age
15 days to 80 years old
Benefit term
Up to age 138 of the latest insured
Premium payment term6
5 years
Premium payment mode
1. Annual
2. Annual and premium prepayment7
Policy currency
USD or HKD
Minimum basic amount3
USD10,000 / HKD80,000
Maximum basic amount3
USD5,000,000 / HKD40,000,000

Illustrative example: Passing wealth down the generations
Karina, a successful musician, would like to plan for a financially secured future for her future generations. Therefore, she takes out Legend Rich Insurance Plan.

Insured’s gender: Female
Issue age: Age 40
Basic amount3: USD500,000
Actual premium paid7: USD480,773
Premium payment mode: Annual and premium prepayment
Premium payment term: 5 years
Annual premium: USD100,000

(Policy currency: USD)

 

1st generation

1st generation

2nd generation

3rd generation

3rd generation

4th generation

4th generation

End of policy year

0
(policy effective date)

20

55

65

95 110 120
Insured Karina Karina Barry Celine Celine Derek Derek

Event

At age 40, Karina takes out the Plan.

At age 60, Karina changes the insured and policyholder to her 30- year-old son, Barry, and the benefit term is extended to age 138 of the new insured.

At age 65, Barry changes the insured and policyholder to his 35-year-old daughter, Celine, and the benefit term of the policy is extended to age 138 of the new insured.

At age 45, Celine appoints her 10-year-old son, Derek, as contingent insured, and the benefit term of the policy remains as age 138 of the original insured (Celine).

At age 75, Celine passes away due to traffic accident. Then, her 40-year-old son, Derek, becomes the new insured. At age 55, Derek locks in 50% of the terminal dividend. At age 65, Derek can either withdraw the account value for retirement or pass the account value to his family through change of insured option.

Guaranteed cash value

5,655

655,235

1,097,780

1,255,330

1,874,290 2,147,735 2,265,035

Projected terminal divided (non-guaranteed)

-

644,925

8,426,790

15,344,230

97,886,820 123,925,190 226,070,338

Total amount of terminal dividend management account (non-guaranteed)

Not applicable

Not applicable

Not applicable

Not applicable

Not applicable 123,925,190 192,452,031
Prepaid Premium Balance7 380,773 - - - - - -

Projected surrender value

375,005

1,300,160

9,524,570

16,599,560

99,761,110 249,998,115 420,787,404

Projected surrender value

equivalent to 78% of actual premium paid

equivalent to 270% of actual premium paid

equivalent to 1981% of actual premium paid

equivalent to 3453% of actual premium paid

equivalent to 20750% of actual premium paid equivalent to 51999% of actual premium paid equivalent to 87523% of actual premium paid

The figures in the above example are rounded to the nearest whole number and for illustrative purpose only. The above case is based on the following assumptions:
  • all premiums exclude premium levy; and
  • the surrender value is equal to the sum of the guaranteed cash value, terminal dividend (if any) and total amount of terminal dividend management account (if any); and
  • the terminal dividend is a one-off non-guaranteed dividend. It is not perpetually attached to the policy and the amount of terminal dividend will be subject to adjustment when it is declared; and
  • there is no withdrawal and no indebtedness throughout the benefit term and all premiums are paid in full when due.

 

Remarks:

1  Terminal dividend is a one-off non-guaranteed dividend. It is not perpetually attached to the policy. The amount of terminal dividend as affected by different factors will be subject to adjustment when it is declared. Terminal dividend may become zero in some circumstances. For more information, please refer to clause 1 and clause 2 under “Policy Information” and “Non-guaranteed benefit” risk. Starting from the 5th policy anniversary, the terminal dividend shall be paid upon the occurrence of the earliest of the following conditions:
(i) when the death benefit is paid (only applicable if the sum of guaranteed cash value and the terminal dividend of the Plan on the date of death of the insured is higher than 105% of the accumulated premium due and paid of the Plan); or
(ii) when the policy is surrendered; or
(iii)  when the policy reaches the policy maturity date.
2  The minimum percentage for each locked-in terminal dividend under the terminal dividend management option is 10% and the aggregate percentage limit for locked-in terminal dividend is 50%. The option will only be exercised provided that the application completely fulfills the application requirement and is confirmed by China Life (Overseas). There is no limitation on the number of exercising this option by policyholder but this option can only be exercised once every policy anniversary. The amount of locked-in terminal dividend is guaranteed after exercising this option successfully. Once the application is approved by China Life (Overseas), the terminal dividend which is applied to lock in will be transferred to the terminal dividend management account and will become locked-in terminal dividend as soon as practicable, which will accumulate with interest at a non-guaranteed rate. China Life (Overseas) reserves the right to revise the rate from time to time. There may be a delay when exercising terminal dividend management option at the time of market volatility. The actual amount of the locked-in terminal dividend will only be determined after the application has been successfully processed by China Life (Overseas). Upon the completion of transferring the terminal dividend to the terminal dividend management account by China Life (Overseas) as per application, the terminal dividend (if any) of the relevant policy year will be adjusted accordingly. The terminal dividend (if any) of subsequent policy years will be adjusted accordingly after exercising terminal dividend management option with adjustment percentage at the sole discretion of China Life (Overseas). Locked-in terminal dividend will not be allowed to be reset or reversed to terminal dividend. For details, please refer to the policy provision.
3  “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 and relevant values of the policy will be adjusted accordingly.
4  Both current insured and new insured should be alive during the application for change of insured, which is subject to the relevant administrative procedures of China Life (Overseas). The policy’s basic amount, cash value, policy date, policy year, premium expiry date, accumulated premium due and paid, death benefit, terminal dividend management option, total amount of terminal dividend management account (if any) and indebtedness (if any) will remain unchanged after the change of insured.
5  Application for contingent insured is subject to the relevant administrative procedures of China Life (Overseas). The policy's basic amount, cash value, policy date, policy year, premium expiry date, accumulated premium due and paid, death benefit, terminal dividend management option, total amount of terminal dividend management account (if any) and indebtedness (if any) will remain unchanged after the primary contingent insured became the new insured.
6  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 is lapsed or surrendered early, the cash value of the policy received by the policyholder may be considerably less than the total amount of the premium paid.
7  You can withdraw the unused prepaid premium (including interest, if any) at one time and China Life (Overseas) will charge 3% of the withdrawal amount, at a minimum amount of USD25 or HKD200. You can withdraw the unused prepaid premium once only. The interest rate of prepaid premium is guaranteed.

 

You can visit any Fubon Bank branch or simply call Fubon Bank Integrated Customer Service Hotline 2566 8181 (Press 3 after language selection) during office hours* for more details.

 

*Office hours: Monday to Friday: 9am to 7pm; Saturday: 9am to 1pm (Except public holidays).

 

Warning Statement:

Legend Rich Insurance Plan is a life insurance plan (including guaranteed cash value, and non-guaranteed terminal dividend). Part of the premiums are paid for the insurance and related costs. The policy is underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)”) and is subject to China Life (Overseas)’s credit risk. In the worst scenario, you may lose all premiums paid and benefits provided under the policy. The savings parts of the Plan is also subject to risk and loss. You must be aware of the long-term nature of life insurance plan. If you surrender your policy before maturity, the amount you get back may be less than the total amount of premiums paid and thus resulting in a pecuniary loss. 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. You have the right to cancel the policy within the cooling-off period and obtain a refund of any premium and premium levy (if any) paid provided that no claim has been made under the policy. 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.

 

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 guaranteed cash value and non-guaranteed terminal 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 premium 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. 
You can make partial withdrawal of the guaranteed cash value which would be regarded as the reduction on the basic amount. In such circumstances, the death benefit and the total cash value would be reduced accordingly. Or you can apply the policy loan where the maximum loanable value of the policy loan will be equal to a certain percentage, as determined and revised by China Life (Overseas) from time to time, of the policy’s cash value. Compounded interest at the rate per annum is determined and revised by China Life (Overseas) from time to time, will be charged on the policy loan. The interest rate of the policy loan is generally higher than loans offered by banks. For inquiry about current policy loan ratio and applicable interest and charges, please contact China Life (Overseas). If the policy loan with its accumulated interest equals to or exceeds the accumulated cash value in the policy, the policy will be automatically terminated and will lapse.
7. 
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.
8. 
The policy is underwritten by China Life (Overseas). China Life (Overseas) is responsible for the features, underwriting and benefit payments under the policy.
9. 
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.
10. 
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(s)” 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.
11. 
China Life (Overseas) accepts the full responsibility for 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.
12. 
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.
13. 
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 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 relevant participating policies and the factors 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 return – 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 (Overseas)’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 30% to 90%
Equity-type investment and other investments 10% to 70%

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 and 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)’s customer service hotline at (852) 3999 5519.

 

5. 
Exclusions and limitations
The above information is for reference only. Please refer to the “general provisions” 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 policy currency of the Plan offers HKD and USD. Currency exchange rate can go up and down. If the policy currency is USD but calculated in HKD, the calculation is subject to the exchange rate. There is a risk that you could lose a substantial portion of total value of the policy or benefit if the policy currency depreciates substantially against your local currency. China Life (Overseas) will base on the prevailing market-based exchange rate of that respective currency to the policy currency and/or from the relevant sources at the time of processing such conversion, which will be subject to change from time to time. Such exchange rate may be different from the exchange rate offered by the banks.

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 account 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.
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