Wealth Insurance Plan (5)

Wealth Insurance Plan (5)

Underwritten by China Life Insurance (Overseas) Company Limited ("China Life (Overseas)"), Wealth Insurance Plan (5) (the “Plan”) provides you with guaranteed cash coupons every year, helping you to achieve your goals in life.

Features of the Plan

Features of the Plan
Short premium payment term with protection till age 100
By paying 5 years’ premium, you can enjoy life protection up to age 100. You can choose the method of annual and prepayment of premium to prepay the premiums1 at the outset to boost your return, with a guaranteed interest rate of 2% per annum.

Guaranteed cash coupons to accumulate your wealth
You will receive guaranteed cash coupons every year, the amount is equal to 2% of the basic amount2. You may withdraw the guaranteed cash coupons or leave that in your policy account to earn interest (if any)3,4.

Annual dividends allow flexibility
You will also receive non-guaranteed dividend4 distributed by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)”) on each policy anniversary while the policy is in force. The Plan provides you flexibility to choose to receive the dividends (if any) in cash3 or accumulate that in your policy account to earn interest3,4 until policy maturity.

Terminal dividend
The Plan also provides non-guaranteed terminal dividend5 which is a one-off dividend payable on or after the 18th policy anniversary upon policy surrender, policy maturity or when China Life (Overseas) pays the death benefit (whichever is the earliest).

Policy maturity benefit
The Plan provides maturity benefit equivalent to the sum of basic amount2, accumulated cash coupons and interest4 (if any), accumulated dividends4 and interest4 (if any) and terminal dividend5 (if any), less any indebtedness (if any), at the end of the benefit term. This will help you to realise your financial plans by means of the stable returns.

Life protection for your peace of mind
The Plan provides you with simplified underwriting to suit your protection and financial needs. Application is easy without the requirement of medical check-up.

In the unfortunate event of the death of the insured while the policy is in force, a death benefit will be payable to the beneficiary. The amount is equivalent to:
1) 
The higher of
  • 101% of the total premium paid (after deduction of the cash coupons paid); or
  • the guaranteed cash value on the date of death of the insured; plus
2) 
accumulated cash coupons with interest4 (if any); plus
3) 
accumulated dividends4 (if any) with interest4 (if any); plus
4) 
terminal dividend5 (if any); less
5) 
any indebtedness (if any).

Features at a glance

Features at a glance
Issue age
From 15 days after birth to 75 years old
Benefit term
Up to age 100 of the insured
Premium payment term
5 years
Premium payment method
  1. Annual; or
  2. Monthly; or
  3. Annual and prepayment of premium1
Policy currency
HKD or USD
Minimum basic amount2
HKD250,000 or USD31,250

Illustrative Example

Illustrative Example

Insured’s gender: Male (non-smoker)
Premium payment method: Annual
Issue age: 40
Premium payment term: 5 years
Basic amount2: HKD1,000,000
Annual premium: HKD207,990

(HKD)

End of policy year

Total premium paid6

Dividends in respective year3,4

Accumulated dividends and interest3,4

Terminal dividend5

Cash coupons in respective year3,4

Accumulated cash coupons with interest3,4

Guaranteed cash value

Surrender value7

Death benefit

1

207,990

10,000

10,000

0

20,000

20,000

12,420

42,420

219,870

2

415,980

10,000

20,450

0

20,000

40,900

194,180

255,530

441,090

3

623,970

10,000

31,370

0

20,000

62,741

375,940

470,051

663,720

4

831,960

10,000

42,782

0

20,000

85,564

557,700

686,046

887,825

5

1,039,950

10,000

54,707

0

20,000

109,414

739,460

903,581

1,113,471

10

1,039,950

10,000

122,882

0

20,000

245,764

840,000

1,208,646

1,216,996

15

1,039,950

10,000

207,841

0

20,000

415,681

1,000,000

1,623,522

1,623,522

20

1,039,950

10,000

313,714

38,980

20,000

627,428

1,000,000

1,980,123

1,980,123

To age 65

1,039,950

10,000

445,652

155,580

20,000

891,304

1,000,000

2,492,536

2,492,536

To age 85

1,039,950

10,000

1,388,500

945,570

20,000

2,776,999

1,000,000

6,111,069

6,111,069

To age 100

1,039,950

10,000

2,894,980

1,661,080

20,000

5,789,959

1,000,000

11,346,019

11,346,019

 

The above example is based on the following assumptions that:
  1. the cash coupons and dividends (if any) are deposited and accumulated in the policy account; and
  2. the current accumulated interest rate of the cash coupons and dividends is 4.5% p.a. at China Life (Overseas). The interest rate is not guaranteed and must accumulate for a full year to get the accumulated interest for the whole year; and
  3. there is no indebtedness and no withdrawal of cash coupons and/or dividends throughout the benefit term and that all premiums are paid in full when due; and
  4. terminal dividend is a one-off entitlement and is not permanently attached to the policy. It is non-guaranteed. The amount may be lower or higher when declared.


Remarks:

1  If a customer opts for the annual and prepayment of premium option to pay premiums, he/she can withdraw the unused prepaid premium (including interest, if any) at one time. China Life (Overseas) will charge a withdrawal fee of 3% of the withdrawal amount. The minimum charge will be HKD200 (applicable to the HKD policy) or USD25 (applicable to the USD policy). Customer can withdraw the unused prepaid premium once only.
2  The basic amount of the Plan is used for the calculation of premium, guaranteed cash value, cash coupons, dividends (if any) and terminal dividend (if any) but is not applicable to the calculation of the death benefit.
3  If the policyholder chooses to withdraw any cash coupons or dividends (if any), the cash coupons and dividends (if any) withdrawn will no longer be accumulated as part of the policy cash value nor death benefit. Therefore, the policy cash value and death benefit will be reduced accordingly.
4  Dividends and interest are 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 dividends and interest rate from time to time. The actual amount of dividends is subject to the overall performance of China Life (Overseas)’ participating business, including investment returns, persistency and claims, etc.
5  Terminal dividend is a one-off entitlement and is not permanently attached to the policy. It is non-guaranteed. Subject to change depending on various factors, the amount of the terminal dividend may be lower or higher when declared.
6  If the required renewal premium is paid by the policyholder within the grace period, the policy shall continue to be in force. For details of the provisions, please refer to the policy provisions issued by China Life (Overseas). If the policy has lapsed or is early surrendered, the policy cash value received by the policyholder may be considerably less than the total amount of premiums paid.
7  Surrender value consists of guaranteed cash value, accumulated cash coupons with interest (if any), accumulated dividends with interest (if any) and terminal dividend (if any), less any indebtedness (if any).

 

The figures in the above example are rounded to the nearest whole number and are for illustrative purposes only. Please refer to the proposal document for further details.

 

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:

Wealth Insurance Plan (5) is a life insurance plan (including guaranteed cash coupons, non-guaranteed dividends and accumulated interest, 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 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 the total amount of premiums paid and thus resulting in a pecuniary loss. 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 and levy (if any) paid by giving written notice to China Life (Overseas) provided that you have not made any claims under the policy. Such notice must be signed by you and submitted to China Life (Overseas) at 22/F, CLI Building, 313 Hennessy Road, Wan Chai, Hong Kong within 21 days after the delivery of the policy or the delivery of the notice of policy issuance to you or your representative, whichever is earlier. The notice of policy issuance is a notice that will be sent to you or your representative to notify you or your representative of the cooling-off period around the time the policy is delivered.

 

Terms and Conditions

Important Information:
The above information is for reference only. Please refer to the policy documents for the complete definitions of the terms, as well as all the terms and conditions of this product. You are reminded to review all of the relevant product materials provided to you and to seek independent professional advice if necessary.
 
1.  The Plan is a life insurance plan (including guaranteed cash coupons and non-guaranteed dividends and accumulated interest, 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 this product and consider whether this product is affordable and suitable to you before making your application.
2. 
You have the right to cancel the policy within the cooling-off period and obtain a refund of any premium and levy (if any) paid by giving written notice to China Life (Overseas) provided that you have not made any claims under the policy. Such notice must be signed by you and submitted 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 the delivery of the notice of policy issuance to you or your representative, whichever is earlier. The notice of policy issuance is a notice that will be sent to you or your representative to notify you or your representative of the cooling-off period around the time the policy is delivered.
3. 
The Plan is an 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 his/her 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. 
If the policy has a cash value, you can make partial withdrawal which would been 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 the information submitted by you to assess whether to accept or decline your application, and shall refund any premium and 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 all of the above information. The above information is for reference only. Please refer to the Plan’s policy for the exact terms and conditions and the full list of policy exclusions. For more information or a copy of the terms and conditions, please contact the staff of Fubon Bank.
12. 
The above information shall not be construed as an offer to sell or solicitation to buy or provision of any insurance 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.
14. 
In the event of discrepancies between the English and the Chinese versions of this webpage, the Chinese version shall prevail.
 
Policy Information:
1. 

Dividend and crediting interest philosophy
This is a participating insurance plan, premiums received from the policies will be invested in a variety of assets according to the investment strategy of China Life (Overseas). The surplus from the invested assets will be shared with policyholder through declared dividends in accordance with the relevant dividend clause in the benefit provision. China Life (Overseas) will ensure a fair sharing of profits among different groups of policyholders and also between policyholders and China Life (Overseas). China Life (Overseas) will review and determine the dividend at least once a year, the current projection on dividend and interest are not guaranteed and subject to change with the entire performance of the participating policies and the factor including but not limited to the investment returns, claims, persistency, past experience and future prospect. In addition, China Life (Overseas) will consider both past and future outlooks of all factors including but not limited to:
Claims – include 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 performance 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, etc.

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 the relevant changes in dividend and the impact to the policies in the annual statement when there is change in the investment strategy.

China Life (Overseas)’ current investment strategy on participating plans are as follows:
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 schedule. 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 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 collection method to be selected by the customer. 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. 
Key exclusions & limitations
The above information is for reference only. Please refer to the policy provision for the exact terms and conditions, limitations such as incontestability clause and suicide clause and the full list of policy exclusions and contact the staff of Fubon Bank.
 
What are the key product risks?

Credit risk
This product is a life insurance policy 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)’ contractual obligations to you under the policy. Therefore this product is subject to China Life (Overseas)’ 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 consider the potential currency and exchange rate risks before deciding which 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 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 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 values will be reduced, 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; (b) China Life (Overseas) has paid the policy maturity benefit; (c) China Life (Overseas) has paid the death benefit in full; (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 equals or exceeds the guaranteed cash value of the policy.
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