You need a smart and effective financial planning to protect and grow you fortune. "DIAMOND CLUB UNIVERSAL LIFE" provides you with flexible financial planning and whole life protection. Once you have successfully enrolled the Plan, you can earn accumulated interest to meet your financial needs at different stages in life.
Regular return for your savings The plan has a lock-in crediting interest rate and a minimum crediting interest rate. Interest will be accrued on the Account Value according to the crediting interest rate declared by TPLHK. You can enjoy a lock-in crediting interest rate of 4.5% per annum for the first three policy year. After the lock-in period, your Account Value will be accrued with a minimum crediting interest rate of not less than 3% per annum to enhance wealth growth.
Flexible choices to fit your needs The plan has a Premium Deposit Account that allows you to prepay premium for the Policy. Based on your financial status and needs, you may select from 2 different premium payment methods, including “Annual” or “Annual and Prepayment for the 2nd and 3rd Year Premium”. Prepayment of the 2nd and 3rd Year Premium will enjoy a prepayment interest rate of 4.5% per annum, enabling you to achieve your goals more easily.
Financial flexibility for your needs You can apply for Partial Withdrawal form the Policy* to cope with any unexpected events.
Peace of mind with whole life protection This plan is a whole life insurance with a premium term of only 3 years. If the Insured dies while the policy is in force, the Beneficiary will receive a Death Benefit consisting of 101% of Net Premiums Paid or Account Value, whichever is higher, plus Premium Deposit Account Balance (if any) and less any outstanding indebtedness due from you to us under this plan.
Transparent charges Fees and charges are clearly setout in the plan, allowing your management goals under control.
Simple and easy application Subject to our prevailing rules and regulations, only simplified underwriting is required for this plan if the “accumulated sum assured of life coverage” of 101/105 death benefit product (including Premier Saving Series / Wealth Growth Series / Wealth Power Series / EliteJoy Series/ Diamond Club Series) is for less than or equal to USD500,000 and proposed insured is under the age of 65, no medical examination is required.
* Withdrawal charges will be waived for the first 20% of the Account Value each policy year as at time of partial withdrawal.
|Issue Age (Previous Birthday)||From 15 days after birth to 65 years old|
|Benefit Term||Whole Life|
|Policy Currency||USD /HKD|
|Minimum Premium Per Year||USD10,000/ HKD80,000|
|Premium Term||3 Years|
|Premium Payment Method||Annual or Annual and Prepayment for the 2nd and 3rd year premium|
|Interest Rate Lock-in Period||The first three policy years|
|Crediting Interest Rate (during Lock-in Period)||4.5% per annum|
|Minimum Crediting Interest rate (After Lock-in Period)||3% per annum|
|Prepayment Interest Rate||Guaranteed at 4.5% per annum （Upon successful enrolment in the Plan from now until 31 March 2018 (both dates inclusive),and the Premium for the second and third year are paid in full together with the Premium of the first year）|
|Premium Charge||6% for the first year premium payment 2.5% for the second year premium payment 0% for the third year and thereafter premium payments|
|Policy Fee||The current Policy Fee is USD6 / HKD48 per month. Policy Fee will be deducted from Account Value at the beginning of each policy month until the insured person is 120 years of age. Maximum Policy Fee is set at 0.15% of Account Value per month.|
|Surrender Charge/ Withdrawal Charge||You will be subject to a Surrender Charge if the Policy lapse. For Surrender or Partial Withdrawals in the first nine policy years, the applicable Surrender Charge or Withdrawal Charge is set out in the following table.
|Surrender Benefit||Composed of : a) Account Value b) less Surrender Charge and Prepaid Premium Clawback Charge (if any) c) less any outstanding indebtedness due from you to us under the Policy (if any) d) plus Premium Deposit Account balance (if any)|
|Death Benefit||Composed of : a) higher of the following at the date of claim - 101% of the Net Premiums Paid for the Plan - Account Value b) less any outstanding indebtedness due from you to us under the Policy (if any) c) plus Premium Deposit Account balance (if any)|
|Partial Withdrawal||The amount requested to be withdrawn by way of Partial Withdrawal request must be no less than the minimum Partial Withdrawal amount (USD1,500/ HKD12,000) and subject to maintaining the minimum Account Value (USD10,000/ HKD80,000) after withdrawal. No Partial Withdrawal is allowed more than once in each Policy Year.|
|Policy Loan||A minimum loan amount of USD1,000/ HKD8,000 and a maximum amount not exceeding ninety percent (90%) of the Surrender Benefit.|
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.
Crediting Interest Rate of Universal Life Policies In line with our Investment Philosophy, we aim to achieve long-term stable Crediting Interest Rate. It is expected that this product will invest in a basket of asset classes, and after deducting applicable fees, we will determine the Crediting Interest Rate under different circumstances. We will review and determine the Crediting Interest Rate, and declare to the policyholders at least once a year.
To avoid market fluctuation leading to significant volatility of Crediting Interest Rate, as a general rule, the Crediting Interest Rate will be smoothed out in order to reduce large short-term fluctuations. Smoothing will be performed when the targeted and hypothetical Crediting Interest Rates differ significantly, thus maintaining a long-term stable Crediting Interest Rate.
To determine the Crediting Interest Rate, the following factors are the key considerations:
·Current and forecasted financial stability of the fund, and its ability to support the minimum Crediting Interest Rate if applicable.
·Maintaining a long-term stable Crediting Interest Rate expectation.
·Investment Returns: This product will invest in a basket of asset classes, including but not limited to stocks, real estates, government bonds, corporate bonds, funds, alternative investments, cash and etc., its realized gains and unrealized gains due to price fluctuations in its underlying assets.
·Surrenders: Including policy surrender, partial withdrawal and policy lapse, and their corresponding impact on the underlying investment of the products.
·Claims: Any claims or compensation applicable costs;
·Expenses: Any insurance policy applicable expenses, including commission and general administrative expenses etc.
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||Long-Term Target Allocation (%)|
|Fixed Income and Alternative Investment||60% to 100%|
|Equity and Fund||0% to 40%|
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.
DIAMOND CLUB UNIVERSAL LIFE 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 liquidity of an insurance policy is limited. You should hold the policy until the end of benefit term and reserve adequate liquid assets for emergency use. While the policy is in force, the policyholder may terminate the policy by sending a written termination request. If the policy is terminated or surrendered before the end of benefit term of the policy, the Surrender Benefit received by the policyholder may be less than the total amounts of premium paid.
3. Premium Term Risk
The minimum premium term of this policy is a three-year premium payment period. Non-payment of premium within the premium term may result in loss of coverage and financial loss.
4. Fee and Charges Risk
For the scales of charges used in the Basic Plan, please refer to the section of "Charges" of this brochure. The current scale of charges, unless otherwise specified, is not guaranteed and is subject to the company’s sole discretion to change with prior written notice to policyholders 1 month before it becomes effective.
5. Account Value Risk
The policy may lapse when the Account Value falls to zero or becomes negative.
6. Termination Conditions
This Basic Plan will terminate automatically upon the following whichever the earliest:
(i) upon the death of the Insured; or
(ii) upon the surrender of the Policy in accordance with its terms; or
(iii)if any Premium or indebtedness remains unpaid at the end of the Grace Period; or
(iv) if the amount of the outstanding indebtedness (including accrued interest) under the Policy exceeds 100% of the Surrender Benefit.
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.
7. Credit Risk of Issuer
The Policy is issued and underwritten by TPLHK. Your Policy is subject to the credit risk of TPLHK and in the worst case, you may lose all the premium paid and benefit amount.
8. Inflation Risk
If the annual inflation rate is higher than the Crediting Interest Rate, the purchasing power of the Account Value will be affected or cancelled out by inflation.
9. 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.
10. Further Assessment
If the “accumulated sum assured of life coverage” of 101/105 product (including Premier Saving Series / Wealth Growth Series / Wealth Power Series / EliteJoy Series/ Diamond Club Series) exceeds USD250,000 and proposed insured is of the age of 65 or above, full health declaration and full underwriting are required. If the “accumulated sum assured of life coverage” of 101/105 product exceeds USD500,000, full underwriting is required and subject to individual consideration. Otherwise, simplified underwriting will be proceed.
# Definition of “sum assured of life coverage”: the maximum amount of death benefit during the coverage period is calculated as below:
• For 101 product (such as Diamond Club Series): yearly premium x total payment term x 1% • For 105 product (such as Premier Saving Series): yearly premium x total payment term x 5% • For other life product: 100% of basic sum assured • For Critical Illness product which contain death benefit:
11. Investment Risk
The plan involves investing in a basket of assets including exposures to global equities, bonds and alternative investments. The non-guaranteed benefits, return and performance of the plan will be adversely affected by the fluctuations of the global capital market, which is exposed to interest rate risk, equity risk, credit spread risk, real estate price risk, liquidity risk, foreign exchange rates risk and counterparty risk.
12. Risks from withdrawal
Should you choose to obtain partial withdrawal from the policy, there is a risk that the interest generated in the policy is unable to cover the policy charges, and lead to 1) reduction in Death Benefit and 2) Policy lapses and 3) shorter life protection period.
13. 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. The clawback charge would be deducted from the Account Value. 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.
The Insured's age is calculated based on the age of his/her previous birthday.
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.