TAIPING WEALTH POWER SAVINGS PROTECTION PLAN (The Plan) allows customers to accumulate wealth and enjoy long-term capital appreciation through a 5-year or 10-year premium payment term (or by way of prepaid premium). The Plan is particularly suitable for customers who want to achieve capital appreciation in the long term with no short-term cash withdrawal needs, so as to help customers accumulate capital and pave the way for bigger plans in the future.
1. Guaranteed cash value, dividends are set up to increase returns
This Policy is a participating policy which includes: Guaranteed Cash Value and non-guaranteed Reversionary Bonus*:
(i) The Guaranteed Cash Value of the policy builds over time during your policy years, and it will only be paid upon policy surrender or termination of the policy (Except for the death of the insured).
(ii) Reversionary Bonus will accumulate throughout the duration of the policy, allowing your policy value to grow with time. Once declared, the face value of Reversionary Bonus is guaranteed. The declared face value is payable upon the death of the Insured while its cash value will be payable upon surrender or termination (other than death) of the policy.
2. Peace of Mind with Life Protection
The Plan offers comprehensive life protection to help you and your family to cope with unexpected expenses. If the Insured dies before Maturity while this Basic Plan is in force, the Beneficiary can receive the compensation.
The death compensation is equivalent to:
(i) the higher of the following:
(a) 105% of total premium paid of the Basic Plan;
(b) The sum of Guaranteed Cash Value and Face Value of Reversionary Bonus (Non-guaranteed) (if any)
(ii) Plus Prepaid Premium (excluding any Prepayment Interest not yet paid; if any);
(iii) Plus Prepayment Interest (non-guarantee; if not yet withdrawn);
(iv) Less any indebtedness under this Policy.
3. The Surrender value
If you choose to surrender, you will be paid a surrender value equal to the sum of the following:
(i) the Guaranteed Cash Value at the date of surrender;
(ii) the cash value of the Reversionary Bonus (if any);
(iii) Prepaid Premiums (excluding Prepayment Interest not yet paid; if any)
(iv) Prepayment Interest (non-guaranteed; if not yet withdrawn);
And deduct any liabilities (including prepaid premium clawback charge, if any) under this policy.
4. Enjoy financial flexibility by cash withdrawal of bonuses, reduction of notional amount and by applying policy loan
You may withdraw the cash value of bonuses (if any) from the plan, and apply for a cash value withdrawal (if any) by reducing the notional amount of the Plan. You can also apply for a policy loan, borrowing up to 90% of the Guaranteed Cash Value and cash value of Reversionary Bonus while still keeping the policy in force.
5. Simple and Easy Application
Subject to our prevailing rules and regulations, only simplified underwriting is required for the Wealth Power Plan if the accumulated amount applied (including Sum Assured/Face Amount/ Notional Amount/ Benefit/ Maturity Benefit) of the Premier Saving Plus Series/ Wealth Growth Series/ Wealth Power Series/ Elite Joy Series is for less than or equal to US$5,000,000, and the Insured is under the age of 65, no medical examination is required.
If the accumulated amount applied exceeds US$10,000,000, full health declaration is required for full underwriting, for the purpose of individual consideration.
6. Enrolment Terms
The Policy Currency of the Plan is USD, and the minimum total premium is US$20,000. There are five payment options (Annual / Semi-annual / Quarterly / Monthly / Yearly and prepaid premiums), and two premium terms (5 years / 10 years), allowing you to achieve life-long protection with flexibility and convenience.
|Premium Payment Term||Issue Age||Benefit Term|
|5 Years||From 15 days after birth to 70 years||Whole Life|
|10 Years||From 15 days after birth to 65 years|
*The company's dividend/bonus scales are determined under current assumed investment return and are not guaranteed. The actual amount payable may change from time to time with the values being higher or lower than those illustrated. The possible potential impact of a change in the company’s current assumed investment return on the Total Surrender Value and the Total Death Benefit are illustrated in the "Illustration of Benefits on the Variation of Investment Returns". Under some circumstances, the non-guaranteed Reversionary Bonus may be zero.
This brochure is for reference only. Please refer to the policy contract for the definitions of capitalized terms, and the exact and complete terms and conditions of the cover. We would like to remind you to review the relevant product materials provided to you and seek independent professional advice if necessary.
Investment Philosophy and Strategy
Our investment philosophy is to achieve sustainable and stable returns on investments whilst maintaining moderate investment risk levels in the long term. We strive to reward our policyholders with investment returns and protect their interests and reasonable expectations.
Through active portfolio management, we will invest in multiple asset classes to diversify investment risks and secure potential and stable returns under different economic conditions. In general, it is expected that we will, through this product, invest in a variety of asset classes, including but not limited to stocks, real estates, government bonds, corporate bonds, funds, alternative investments and cash. If needed, we may also utilize derivatives to manage our risk exposures, such as currency risk exposures.
In terms of our geographic allocation of investments, we are inclined towards allocating our assets in various geographic regions and our major investment areas are Asia, North America and Pan-European regions currently. Our present currency exposures are mainly in USD and HKD and if we invest in assets in other currencies, we will hedge the foreign exchange risk with the use of FX derivatives.
The asset allocation under our long-term investment strategy for this product is as follows:
|Asset Category||Target Portfolio(%)|
|Fixed Income and Alternative Investment||0% to 100%|
|Equity and Fund||0% to 30%|
Our investment strategy will be constantly adjusted according to changes in the investment market and economic conditions. We will review our long-term investment targets on a regular basis to ensure that they are in line with our business and financial goals. If there is material change in our investment strategy, we will inform the policyholder of the details of the change, the reasons for the change as well as the impact it may have on the relevant policy.
Our participating policies share the bonus from the Company's profits from the relevant group of products (as determined by the Company) by distributing different forms of bonuses, as follows:
Bonus come from the share of divisible surplus (if any) determined by the Company every year. There is a fixed shareholder ratio between the Insured and the shareholders. Once declared by the Company, the amount of bonus declared for the year in question is not subject to change. Bonus left with the Company will accumulate interest at a non-guaranteed rate as may be determined by the Company from time to time.
Since the stated policy bonus is distributed based on the divisible surplus of the Company and the divisible surplus is unpredictable, the corresponding bonus is not guaranteed.
The premiums paid by policyholders will be used to pay all guaranteed benefits for the product and expenses of the Company. Part of it will be invested in assets selected by the Company which suit the features of the product. Based on various long-term assumptions pertaining to that product group (including but not limited to investment yields, expenses, claims and surrender experience), the Company will project a set of bonuses in the proposal which is provided to each prospective policyholder before they apply for a life insurance policy. These bonuses are calculated with the prevailing bonus scale of the Company. When setting the long-term assumptions, the Company will take into account the past experience of similar policies and consider the likely future development. Thus the bonuses projected in the proposal reflect the Company's reasonable estimate at the time of application and are
At least one time each year (or more frequently upon change in economic and other related factors, if applicable), the Company will review the actual experience of the products of the relevant product group (including but not limited to investment yields, expenses, claims and surrender) against the long-term assumptions it made when projecting the bonus scale. If the recent actual experience turns out to be different from the long-term assumptions, the Company will decide whether any bonuses payable need to be adjusted. The adjustment will also depend on the accumulated divisible surplus from previous years on the policies of the relevant product group.
Due to the different benefit and premium structure of different products, the change in bonus scale will vary for different products. Even where the product is the same, the change in bonus scale will vary among policies denominated in different currencies and policies of different policy classes (e.g. based on age, gender, underwriting class, in-force duration etc.).
The final determination of the bonus scale of the participating policy account will first be recommended by the appointed actuary and subsequently approved and implemented by the professional committee of the board of directors of the Company.
You may browse our website (http://tplhk.cntaiping.com/) to understand the company’s bonus history, profit sharing ratio and bonus fulfillment ratio for reference purposes. Bonus history is not an indicator of future performance of the participating products.
Taiping Wealth Power Savings Protection Plan is issued and underwritten by China Taiping Life Insurance (Hong Kong) Company Limited (“TPLHK”). Please note the following Key Product Risks.
1. Exchange Rate Risk
The application of this insurance product with the policy currency denominated in a foreign currency is subject to that foreign currency’s exchange rate and currency risk. The foreign currency may be subject to the relevant regulatory bodies’ control (for example, exchange restrictions). If your home currency is different from the policy currency, please note that any exchange rate fluctuation between your home currency and the policy currency of this insurance product will have a direct impact on the amount of premium required and the value of the benefit(s) to be received. For instance, if the policy currency of the insurance product depreciates substantially against your home currency, the potential loss arising from such exchange rate movement may have a negative impact on your benefits to be received from the product and your burden of the premium payment. You may browse our official website (http://tplhk.cntaiping.com/) to find out the latest prevailing exchange rate for reference.
2. Early Surrender Risk
The Iiquidity of an insurance policy is limited. You are strongly advised to hold the policy until the end of benefit term and reserve adequate liquid assets for emergency use. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid. For details of early surrender value, please refer to the section “Standard Illustration of Benefits and Returns”.
3. Premium Term Risk
The minimum premium term of this policy is the Premium Term shown on the first page of this proposal. Non-payment of premium within the premium term may result in loss of coverage and financial loss.
4. Termination Conditions
This Basic Plan will terminate automatically upon the following whichever the earliest:
(i) If it lapses as a result of any Premium due remaining unpaid at the end of the Grace Period (subject to the "AUTOMATIC PREMIUM LOAN" provision); or
(ii) upon the death of the Insured; or
(iii) upon the surrender of the Policy; or
(iv) if the amount of the outstanding indebtedness under this Policy is more than the sum of the Guaranteed Cash Value and cash value of Reversionary Bonus (if any).
On termination of your Basic Plan, all benefits under all Supplementary Contract (if any) will also terminate.
Termination of your Policy under the circumstances stated above will not affect any claim or benefit arising prior to such termination unless otherwise stated.
5. Automatic Premium Loan Risk
The premium of the Plan should be paid in full for the whole payment term. If you fail to pay the premium due at the end of the Grace Period, the Automatic Premium Loan provision will be applied. Any Premium remaining unpaid at the end of the Grace Period will be paid by way of an automatic premium loan ("Automatic Premium Loan") provided that the total sum of Guaranteed Cash Value and cash value of Reversionary Bonus is then equal to or greater than the amount of that unpaid Premium. If the total sum of Guaranteed Cash Value and the cash value of Reversionary Bonus is insufficient to the cover the full amount of the premium in default plus any money due by you to us, no Automatic Premium Loan will be extended and the Policy will lapse, and we will refund to you the balance of any remaining sum of Guaranteed Cash Value and cash value of Reversionary Bonus. You may browse our official website (http://tplhk.cntaiping.com/) to find out the applicable interest rate for Automatic Premium Loan for reference.
6. Credit Risk of Issuer
The Basic Plan is issued and underwritten by TPLHK. Your Policy is subject to the credit risk of TPLHK. In the worst case, you may lose all the premium paid and benefit amount.
7. Inflation Risk
When reviewing the values shown in the illustrations, please note that the cost of living in the future is likely to be higher than it is today due to inflation.
8. Key Exclusion
No Death Benefit shall be paid if the Insured commits suicide, whether sane or insane, within one (1) year after whichever is the later of (i) the Issue Date; (ii) the Effective Date as indicated in the relevant Endorsement or Supplementary Contract and (iii) the Reinstatement Date, TPLHK’s liability under the Plan will be limited to a refund of the Basic Plan Premiums paid, without interest and after deducting any indebtedness to TPLHK under the Plan. In the case of reinstatement, the refund of the Basic Plan Premiums will be calculated from the Policy Issue Date.
9. Further Assessment
If the accumulated Amount Applied (including Sum Assured / Face Amount / Notional Amount / Benefit / Maturity Benefit) for Premier Saving Series / Wealth Growth Series / Wealth Power Series /EliteJoy Series exceeds USD 5,000,000 and proposed insured is of the age of 65 or above, full health declaration is required for full underwriting. If the accumulated Amount Applied exceeded USD 10,000,000, full health declaration is required for full underwriting, for the purpose of individual consideration. Full underwriting may result in extra premium loading. In such event, the total premium payable will not be equal to the total premium stated in this illustration. As such, the Guaranteed Annual Return will be reduced accordingly and different from this illustration.
10. Investment Risk Relating to Equities and Bonds
The plan involves investing in a basket of assets including exposure to global equities and bonds. The investment returns of the plan will be affected by the investment performance of global equities and bonds. Interest rate fluctuations and equity fluctuations may adversely affect the non-guaranteed benefits, return and performance of the plan. The non-guaranteed benefits, return and performance of the plan are subject to the credit risk of the issuer(s) of the bonds (in which the plan invests) which is not guaranteed by the insurer, agents or distributors. Foreign exchange rates risk applies as most of the equity assets include exposure to the global equity markets and will be denominated in currency which is different from the currency of the plan. Whilst foreign exchange rate risk is currently managed with currency hedge for bond, residual risk remains.
11. Prepaid Premium Clawback Charge
Prepaid Premium clawback is permitted for the Prepaid Premium, subject to a clawback charge of USD 260, or 3.5% of clawback amount, whichever is higher. No interest would be accrued to the policyholders if the Prepaid Premium is clawed back. Partial clawback is not permitted. We reserve the right to review and adjust the clawback charge from time to time.
1.The notional amount in this product brochure does not represent the amount of death benefit payable when the Insured dies. It serves only as an amount for the calculation of premium and other policy values of this plan.
2.The Insured’s age is calculated based on the age of the previous birthday.
Any premium(s) paid to us but not yet due shall, subject to any maximum amount as determined by us from time to time, accumulate interest at the Prepayment Interest Rate for any Prepaid Premium. The Prepayment Interest Rate is determined by us from time to time and is not guaranteed.
Where the Premium for remaining premium term are paid in full together with the Premium of the first year, interest will accumulate for the Prepaid Premium. The prepaid premium for the remaining years is equal to the premium of the first year times the number of the remaining years. The Prepayment Interest Rate of this product is not applicable to any other products unless otherwise stated. You may withdraw the Prepaid Premium and / or any interest thereon in accordance with our procedures. Any interest earned but not withdrawn will be non-interest bearing for the remaining term of the Policy. The balance of any Prepaid Premium and / or interest thereon that is not withdrawn shall be automatically used to offset any premium due and payable which is not paid within the Grace Period.
4. POLICY LOAN
You can apply for a Policy Loan up to 90% of the sum of the Guaranteed Cash Value and the cash value of the Reversionary bonus. When an amount becomes payable under the Policy, the amount of the outstanding Policy Loan (together with accrued interest) will be deducted from the said amount until all outstanding indebtedness are fully repaid. If the Policy Loan and the accrued interest exceed the sum of the Guaranteed Cash Value and the cash value of the Reversionary Bonus, the Policy will be terminated automatically.
A customer who has purchased the life insurance plans has a right to cancel the policy within the cooling-off period and obtain a refund of any premium(s) paid less any withdrawals. Provided that no claim has been made, the customer may cancel the policy by giving written notice to TPLHK within 21 days after: (1) the delivery of the policy or (2) notification (informing the availability of the policy and expiry date of the cooling-off period) to the customer/his/her representative, whichever is earlier. The premium will be refunded in the currency of premium payment at the time of application for this policy. If the currency of premium payment is not the same as the plan currency, the refundable premium amount in plan currency under this policy will be converted to the currency of premium payment at the prevailing currency exchange rate as determined by TPLHK in our absolute discretion from time to time upon payment. After the cooling-off period expires, if a customer cancels the policy before the end of benefit term, the actual cash value may be substantially less than the total amount of premiums paid.