Power 5 Endowment Plan

Power 5 Endowment Plan

Boost Your Returns Make Your Wealth Growth Stable

Boost Your Returns Make Your Wealth Growth Stable

In this ever-changing world, we can hardly predict our future. A strong support and a reliable plan are crucial for you to reach your life goals. Fubon Life always pays attention to your needs. We present Power 5 Endowment Plan (the “Plan”) to bring you guarantees, sense of security and foreseen returns, regardless of any changes. Take the chance to make wealth growth simple and direct today – no more hassles, no more worries.

 

Plan Features

Plan Features

 

Double Guarantees with Flexibility
The Plan provides you with guaranteed Cash Coupon which is available from the 1st policy anniversary and distributed every year till the 15th policy anniversary. You can opt for withdrawal1 every year, or retaining the value in the policy for accumulation of interest (the interest rate is non-guaranteed)2. Either way, you can simply enjoy the return.

You can never have too much “guarantees”. To offer you more confidence, Guaranteed Cash Value is available from the moment the policy is issued.

With our double guarantees in a single plan, you can stay worry-free and fearless of changes and enjoy every moment of your life.

 

Stepping Up of Guaranteed Cash Coupon
You do not only want guaranteed return, but also growing returns. The Plan is tailor-made for you who seek advancement all the time. The guaranteed Cash Coupon keeps stepping up. Its value, which is a percentage of the Nominated Amount, increases every 5 years. You will get 3.5% of the Nominated Amount at each policy anniversary in the first 5 years. In the next 5 years, the amount is doubled to 7% of the Nominated Amount at each policy anniversary. From the 11th to 15th year, you will get 10% of the Nominated Amount at each policy anniversary.

 

Boost Your Savings at Maturity
Wealth accumulation is the key to prepare for the worst. In addition to Accumulated Cash Coupon with interest2 (if any), Guaranteed Cash Value which is equivalent to 37.5% of Nominated Amount will be available at the 16th policy anniversary, i.e. Maturity Date, as maturity value.

 

Discount for Premium Prepayment
You can either pay the premium annually in 2 years, or do it in one go by prepayment3,4,5. A discount of 3% p.a. is available for prepayment. The details are planned just for you so that you can earn a great potential return with less capital.


Plan Summary

Plan Summary
Issue Age
15 days to age 75 (Age Last Birthday)
Policy Currency
HKD or USD
Premium Payment Term
2 years
Policy Term
16 years
Premium Mode
Annual or annual with prepayment 3,4,5
Minimum Nominated Amount 6
HK$150,000 / US$18,750
Cash Coupon (Guaranteed)*
Cash Coupon distributed each year equals a percentage of the Nominated Amount as in the table below. The rate increases according to the Policy Year:
*No Cash Coupon is available on the 16th policy anniversary.
Maturity Benefit
At Policy Maturity, Accumulated Cash Coupon with interest 2 (if any) plus Guaranteed Cash Value equals to 37.5% of Nominated Amount will be distributed, less indebtedness and withdrawal (if any).
Death Benefit In the event of death of the Insured Person during the benefit period, a Death Benefit amount will become payable, which is equivalent to:
(1) 
(a)  101% of the difference between the total premium paid and due less the Cash Coupon paid to policy; or
(b) Guaranteed Cash Value; whichever is higher, plus
(2) Accumulated Cash Coupon with interest2 (if any); and less
(3) Indebtedness and withdrawal (if any).
Premium Prepayment Balance (if any) will be paid to Beneficiary as well.
Application Procedure
No medical examination 7

Remarks:

1  No Accumulated Cash Coupon shall be withdrawn if the withdrawal shall cause the total indebtedness under the policy exceeds 80% of the aggregate of Guaranteed Cash Value and Accumulated Cash Coupon available.
2  The accumulation interest rate is not guaranteed and is subject to Fubon Life Insurance (Hong Kong) Company Limited’s (“Fubon Life”) revision from time to time.
3  An amount equivalent to an annual premium shall be deducted from the Premium Prepayment Balance annually on each and every Premium Due Date.
4  Should you surrender the policy during the first policy year, a surrender charge at 5% of the Premium Prepayment Balance will be charged by Fubon Life.
5  Prepayment cannot be refunded or withdrawn except in the event of Death Benefit payment, policy surrender or reduction in Nominated Amount.
6  The Nominated Amount serves as an amount for the calculation of premium, Cash Coupon and other policy values for the Plan. It is not equivalent to the amount of the Death Benefit payable in case of the death of the Insured Person.
7  Fubon Life has set a limit as to the total annualized premium of insurance policies in respect of the same type of insurance products (as determined and revised by Fubon Life from time to time). No medical examination is required if the purchase of this policy does not exceed such limit.

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:
Power 5 Endowment Plan is a life insurance plan (including guaranteed Cash Coupon and non-guaranteed accumulated interest). Part of the premiums pays for the insurance and related costs. The policy is underwritten by Fubon Life Insurance (Hong Kong) Company Limited (“Fubon Life”) and is subject to the company’s credit risk. In the worst scenario, you may lose all premium paid and benefits provided under the policy. The savings part 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 that you have paid and thus resulting in a pecuniary loss. The insurance plan includes guaranteed and non-guaranteed parts. The non-guaranteed part is projected figures and for illustrative purposes only and is not guaranteed. The actual benefits and/or returns may be lower or higher than the projected figures. You should fully understand all of the risks involved in this product and consider whether this product is affordable and suitable to you before making your application. If you are not satisfied with the policy, you have the right to cancel the policy within the cooling-off period and obtain a refund of any premiums paid by giving written notice to Fubon Life provided that you have not made any claims under the policy. Such notice must be signed by you and submitted to Fubon Life at Suites 1206 - 1209, 12/F, Dorset House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong within 21 days after the delivery of the policy or issue of a notice to you or your representative informing you that the policy is available, whichever is earlier.

 

Terms and Conditions

Key Product Risks:
1.  You should pay the initial premium on or before the Policy Date and subsequent premium(s) on time according to the selected premium mode. If you fail to make subsequent premium payment before the expiry of the Grace Period (within 31 days after the Premium Due Date), the policy will be terminated on the Premium Due Date that triggers the Grace Period and you will lose the coverage afterward. The Surrender Value will be refunded to you. You may refer to the related standard illustration for details.
2. 
The Plan has savings component and is subject to risks and possible loss. Should you surrender the policy before maturity, you may receive an amount considerably less than the amount of total premium paid.
3. 
Any transactions involving foreign currencies are subject to risks, the ever changing political and economic conditions may substantially affect the premium rate in terms of Hong Kong dollars or liquidity of currencies. The premiums received by Fubon Life in a currency different from your policy currency will be converted to the policy currency at the prevailing exchange rate determined by Fubon Life from time to time with reference to market rates. All monies payable will be paid in Hong Kong dollars, or in the policy currency upon your request. The amount payable by Fubon Life in a currency different from your policy will be converted at the prevailing exchange rate determined by Fubon Life from time to time with reference to market rates. Therefore it may be subject to foreign exchange risks in the process of currency conversion.
4. 
The benefit provided under your policy may not be sufficient to meet your future needs as the future costs of living may be higher than that of today due to inflation.
5. 
Fubon Life is the underwriter of the Plan. The policy is subject to Fubon Life’s credit risk. If Fubon Life is unable to satisfy the financial obligations of the policy, in the worst scenario, you may lose substantial part of, and even all, premium paid and benefits provided under the policy.
 
Policy Notes:
a.  Your policy will be terminated on the earliest of the following events:
 
•  Death of the Insured Person;
• 
Maturity Date;
• 
Indebtedness under the policy is greater than or equal to the aggregate of the Guaranteed Cash Value and Accumulated Cash Coupon payable under the policy before the Maturity Date;
• 
If Fubon Life is unable to collect any subsequent premiums by the expiry of Grace Period; or
• 
Surrender or cancellation of policy.
b.  If the insured person commits suicide whilst sane or insane within the first 13 months of the Issue Date, Fubon Life shall only refund to the policyowner the Paid Premium and the Prepaid Premium (applicable to policyowner of the Prepaid Premium Mode) without interest.
 
Accumulation Interest Rate Philosophy:
Your policy can earn accumulated interest if you choose to retain the annual dividend or cash coupon at your policy. This accumulated interest is non-guaranteed benefit. Fubon Life aims to ensure fair treatment between different groups of policyowners.

The accumulation interest rate will be reviewed at least once a year, based on actual experience and investment outlook. Fubon Life will smooth out the volatility of the actual investment return to ensure a stable accumulation interest rate. If there is any change to the accumulation interest rate, you will be informed in writing or by the policy annual statement with explicit reasons for the change.

To determine the accumulation interest rate, Fubon Life will consider the actual experience and the outlook of the following factors:
•  Interest rate risk factors: The interest earning of the asset portfolio and its capital gain / loss due to fluctuation of market interest rate.
• 
Market risk factors: The market value changes of the asset portfolio, reflecting different market factors such as equity price, asset liquidity and exchange rate.
• 
Persistency factors: This includes full surrender and partial surrender and the corresponding impact on investments, etc.
 
Investment Policy, Investment Objectives and Investment Strategy:
The Investment Policy aims to actively monitor and manage investment risk and policy liability and to identify asset with suitable characteristics, tenor and liquidity to meet the cash flow need of the insurance business.

The Investment Objectives are to support the guaranteed benefit of the policies and also to meet the non-guaranteed benefit as illustrated to the policyowners.

The Investment Strategy is to diversify investment risks, to improve capital utilization efficiency, to enhance overall investment returns, and to safeguard the long-term interests of shareholders and policyowners. Should there be any significant changes in the investment strategy, Fubon Life would inform policyowners on the changes, with underlying reasons and impact to the policies.

The long term target asset mix of this product is:
Asset Type Target Asset Mix (%)
Bonds and other fixed income assets 80-90%
Non-fixed income assets 10-20%
 
To diversify the risk, Fubon Life may invest in securities of different regions, industries, credit ratings, and liquidities. This includes government bonds, corporate bonds and other fixed income assets in US, European, emerging markets, and so on. Fubon Life may also invest in non-fixed income assets including equities, private fund, public fund, mutual fund, index fund, etc. Depending on economy outlook, investment environment, as well as changes in the credit risk, Fubon Life will regularly review and adjust the asset allocation.

The historical accumulation interest rate is not an indicator of future accumulation interest rate of our products.
 
For the details of “Measure to Manage Potential Conflict”, “Accumulation Interest Rate Philosophy” and the “Fulfillment Ratios of Dividend and Interests”, please refer to Fubon Life’s company website.
 
Important Notes:
•  The Plan is a life insurance plan (including guaranteed Cash Coupon and non-guaranteed accumulated interest). Part of the premiums are paid for the insurance and related costs. If you are not satisfied with the policy, you have the right to cancel it within the cooling-off period and obtain a refund of any premiums paid. You must send us the written notice with your signature and the policy (if received) to the business address of Fubon Life and ensure such notice must be received by Fubon Life within the cooling-off period (that is, 21 days after the delivery of the policy or the issue of a Notice informing you or your representative about the availability of the policy and the expiry date of the cooling-off period, whichever is earlier). The business address of Fubon Life Customer Service Centre is Suites 1206 – 1209, 12/F, Dorset House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong. If any claim has been accepted, no premium refund can be made. After the expiration of the cooling-off period, if you cancel the policy before maturity, the projected total cash value may be less than the amount of the total premiums you have paid.
• 
The Plan is an insurance product, but not a bank savings plan embedded with a 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.
• 
The premium will be paid to Fubon Life and part of the premiums will become part of the assets of Fubon Life. The policyowner does not have any direct rights nor ownership over any of these assets. The policyowner’s rights are subject to terms and conditions of the policy provisions and his/her recourse is against Fubon Life only.
• 
The Plan is of long-term nature and is not of any bank savings nature. You are advised to carefully consider your financial 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.
• 
The Plan offers policy loan which shall bear interest computed at such rate as may be adopted by Fubon Life which is subject to change from time to time. However, Automatic Policy Loan is not applicable. Please refer to the policy provisions for details.
• 
The accumulated interest rate of Cash Coupon is not guaranteed. It is determined by Fubon Life and subject to revision from time to time. No Accumulated Cash Coupon shall be withdrawn if the withdrawal shall cause the total indebtedness under the policy exceeds 80% of the aggregate of Guaranteed Cash Value and Accumulated Cash Coupon available.
• 
You may apply for reduction in the Nominated Amount on policy anniversary which shall not be less than the minimum Nominated Amount without paying any handling charge. In such case, the Death Benefit, Guaranteed Cash Value, Cash Coupon and the premium (if any) will be reduced accordingly.
• 
Fubon Life is solely responsible for all content, approvals, coverage and benefit payment of the Plan. Fubon Life reserves the right to accept or reject any insurance application.
• 
Fubon Bank (Hong Kong) Limited (“Fubon Bank”) is the authorized insurance agency for Fubon Life, and is responsible for introduction of the insurance plans. The Plan is not the product of Fubon Bank. Fubon Bank is not responsible for any terms or obligations of the Plan.
• 
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 / dispute is related to the policy term, it should be resolved directly between Fubon Life and you.
• 
Fubon Life is fully responsible for all the above information.
• 
The above information is intended for reference only. All the policy terms and conditions are set out in the policy provisions of the Plan which shall be final and conclusive. For more information of the policy terms and conditions, please contact the staff of Fubon Bank.
• 
The above information shall not be construed as an offer to sell or solicitation to buy or provision of any insurance of Fubon Life outside Hong Kong.
• 
Levy collected by the Insurance Authority will be imposed on the policy at the applicable rate, which would be borne by Fubon Life Insurance (Hong Kong) Company Limited (“Fubon Life”) on behalf of policyowners and remitted in accordance with the prescribed arrangements. Fubon Life will review the payment arrangement of levy on insurance premium regularly and reserves the right to revise the arrangement. For further information, please visit Fubon Life’s company website or contact Fubon Life Customer Service Hotline at (852) 2516 0133.
• 
Fubon Life is the private company limited by shares incorporated in Hong Kong and the registered office is situated at Suites 301-303, 3/F, Cityplaza 4, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong.
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