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 a guaranteed cash coupon every year, helping you to achieve your goals in life.

Plan Features

Plan Features
Short premium payment term with protection till age 100
By paying 5 years’ premium, you can enjoy life protection up to age 100 of the insured. You can choose annual and premium prepayment1 mode to prepay the premiums1 to enhance your return, with a guaranteed interest rate of 2% per annum.

Guaranteed cash coupons to accumulate your wealth
You will receive a guaranteed cash coupon on each policy anniversary, the amount is equivalent to 2% of the basic amount2. You may choose to withdraw the guaranteed cash coupons3 or accumulate that in your policy to earn interest4 (if any) to further boost your return.

Flexible use of non-guaranteed dividends
You will also receive non-guaranteed dividends4 on each policy anniversary while the policy is in force. The Plan provides you flexibility to choose to withdraw the non-guaranteed dividends3 (if any) in cash or accumulate that in your policy to earn interest4 (if any).

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).

Maturity benefit
The Plan provides maturity benefit which is equivalent to the sum of basic amount2, accumulated guaranteed cash coupons and interest4 (if any), accumulated non-guaranteed dividends4 and interest4 (if any) and non-guaranteed terminal dividend5 (if any), less all indebtedness (if any) upon policy maturity. This provides you with stable returns so you can realize your financial goals.

Life protection for your peace of mind
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 accumulated premium due and paid (after deduction of the cash coupons paid); or
  • the guaranteed cash value on the date of death of the insured;
2) 
plus accumulated guaranteed cash coupons and interest4 (if any);
3) 
plus accumulated non-guaranteed dividends4 (if any) and interest4 (if any);
4) 
plus non-guaranteed terminal dividend5 (if any);
5) 
less all indebtedness (if any).

Simplified underwriting for easy application
The Plan provides you with simplified underwriting of which medical check-up is not required, accommodating your protection and financial needs with ease.

Enrollment terms

Enrollment terms
Issue age
15 days to 75 years old
Benefit term
Up to age 100 of the insured
Premium payment term
5 years
Premium payment mode
  1. Annual
  2. Monthly
  3. Annual and premium prepayment1
Policy currency
HKD or USD
Minimum basic amount2
HKD250,000 or USD31,250

Illustrative Example

Illustrative Example

Insured’s gender: Male
Issue age: Age 40
Premium payment mode: Annual
Premium payment term: 5 years
Smoking status: Non-smoking
Basic amount2: HKD1,000,000
Annual premium: HKD207,990
Total premiums paid: HKD1,039,950

(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

Accumulated cash coupons and interest3,4

Guaranteed cash value

Total surrender value7

Total 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

2,894,979

1,661,080

20,000

5,789,959

1,000,000

11,346,018

11,346,018


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
  • the guaranteed cash coupons and non-guaranteed dividends (if any) are accumulated in the policy; and
  • the current accumulated interest rate of the guaranteed cash coupons and non-guaranteed 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
  • terminal dividend is a one-off dividend and is not permanently attached to the policy. It is non-guaranteed. The amount may be lower or higher when declared; and
  • there is no withdrawal and no indebtedness throughout the benefit term and all premiums are paid in full when due.


Remarks:

1  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 HKD200 or USD25. You can withdraw the unused prepaid premium once only. The interest rate of prepaid premium is 2% p.a. and this interest rate is guaranteed.
2  “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, guaranteed cash coupons, non-guaranteed dividend (if any) and non-guaranteed terminal dividend (if any) will be adjusted accordingly.
3  You may withdraw the cash coupons and/or dividends at any time without any charge, however, the policy's cash value and death benefit will be affected in case of withdrawal of cash coupons and/or dividends.
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 interests from time to time. The actual amount of dividends is subject to the overall performance of China Life (Overseas)’s participating business, including investment returns, persistency and claims, etc.
5  Terminal dividend is a one-off dividend 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 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 issurrendered early, the cash value of the policy received by the policyholder may be considerably less than the total amount of premiums paid.
7  The total surrender value consists of guaranteed cash value, accumulated guaranteed cash coupons and interest (if any), accumulated non-guaranteed dividends (if any) and interest (if any), non-guaranteed terminal dividend (if any), less any indebtedness (if any).

 

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 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 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 premiums 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 coupons, 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 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 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). Policyholder does not have any direct rights nor ownership over any of these assets. 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” 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 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 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.
 
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 in 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 participating policies and the factor including but not limited to the past experience and future prospect of investment returns, claims and persistency:

Claims – include 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 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 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 select. 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 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, you are 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 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 Bank.

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 policy 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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