Taiping Wealth Renown Protection Plan
We all strive to accumulate wealth as we grow, and hope our wealth can withstand the test of time through smart financial management, enabling us to build a better life for our loved ones and future generations.
Wealth is not only a hallmark of success, but also provides financial security for future generations. We are proud to launch “Taiping Wealth Renown Protection Plan” (the “Plan”), to help you to preserve and enhance your wealth. Not only does the Plan provide your family with financial security and stability, it also helps to lay a strong financial foundation for you and your family and the generations to come.
Growing your fortune through bonus
“Taiping Wealth Renown Protection Plan” is a participating policy and there are three income sources to increase your wealth: a Guaranteed Cash Value; a non-guaranteed Reversionary Bonus; and a non-guaranteed Terminal Bonus, together they will increase the potential to provide a strong financial foundation and a prosperous future for you and your family.
The Reversionary Bonus is non-guaranteed and it will accumulate throughout the duration of the Plan, allowing your policy value to grow with time. Its 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. Once declared, the face value of Reversionary Bonus is guaranteed.
Terminal Bonus is a one-off non-guaranteed bonus payable upon occurrence of the earliest of the following event:
The face value of Terminal Bonus will be paid upon the occurrence of (i), whereas the cash value of Terminal Bonus will be paid upon (ii).
Preserve your legacy with life protection
To relieve one’s financial burden, if the Insured passes away, we will pay the Death Benefit to your designated beneficiary as follows:
|if the Insured passes away on or before the twentieth (20th) Policy Anniversary or the Policy Anniversary immediately following the seventieth (70th) birthday of the Insured(whichever is later)||the Death Benefit equals to: the higher of the following: - 70% of the Sum Assured plus any face value of Reversionary Bonus and any face value of Terminal Bonus, - 100% of the Sum Assured; plus Prepaid Premium (if any); plus accumulated interest on the Prepaid Premium (if not yet withdrawn; if any); less any outstanding indebtedness under the plan due from you to TPLHK.|
|If the Insured passes away after the time stated above||the Death Benefit equals to: 70% of the Sum Assured plus any face value of Reversionary Bonus and any face value of Terminal Bonus; plus Prepaid Premium (if any); plus accumulated interest on the Prepaid Premium (if not yet withdrawn; if any); less any outstanding indebtedness under the plan due from you to TPLHK.|
Short Premium Payment Term with Whole Life Protection
The Plan provides adequate whole life protection and is available to Insureds between the age of 18 and 70. The Plan is denominated in US dollars with a minimum Sum Assured starting from US$500,000.
The Plan offers a Premium Term of 5 years and once the premium amount is determined, it will remain unchanged throughout the Premium Term, allowing you to exercise better financial planning.
Besides, you may choose to prepay premium at policy application subject to the “PREPAID PREMIUM” Provision. Prepaid Premium for the remaining Premium Term will enjoy a non-guaranteed Prepayment Interest Rate4, enabling you to achieve your saving goals more easily.
Financial flexibility meets your needs at different life stages
In addition to offering you with life insurance protection, the Plan also offers the opportunity for long-term wealth accumulation over the term of your policy in the form of:
Before the 10th Policy Anniversary Date, you can request to withdraw the cash value of Reversionary Bonus (if any). After the 10th Policy Anniversary Date, you can request to partially surrender5 your policy and withdraw a portion of the Guaranteed Cash Value to meet your financial needs at different phases in life.
Furthermore, you may also consider applying for a Policy Loan6 and borrow up to ninety percent (90%) of the sum of the Guaranteed Cash Value and the cash value of the Reversionary Bonus (if any), while keeping the policy in effect.
|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.
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.
TPLHK’s 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 distribution is 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 not guaranteed.
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 at least once a year (or more frequently upon change in economic and other related factors, if applicable). 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 for the same product, 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 TPLHK’s 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.
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 and diversifying 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 foreign exchange derivatives.
Key Product Risks
“Taiping Wealth Renown Protection Plan” is issued and underwritten by TPLHK. Please note the following Key Product Risks.
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 TPLHK’s official website (http://tplhk.cntaiping.com/) to find out the latest prevailing exchange rate for reference.
The Policy is designed for persons looking for life protection as their goal. If you terminate the Policy prior to claims, this may result in loss of all premium paid.
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 claims of the Policy, the Surrender Benefit received by the policyholder may be less than the total Premiums paid.
The minimum premium term of this policy is a five-year premium payment period. Non-payment of premium within the Premium Term may result in loss of coverage and financial loss.
Prepaid Premium clawback is permitted for the Prepaid Premium, subject to a clawback charge of USD 260, or 3.5% of claw back amount, whichever is higher. The values in the column(s) relevant to “Surrender Benefit” do not include Clawback Charge. No interest would be accrued to the policyholder if the Prepaid Premium is clawed back. Partial clawback is not permitted. We reserves the right to review and adjust the clawback charge and from time to time.
This Policy will terminate automatically upon the following whichever is the earliest:
Termination of your Policy under the circumstances stated above will not affect any claim or benefit arising prior to such termination unless otherwise stated.
The premium of the Policy 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 Option will be automatically exercised. 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 the 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 the Guaranteed Cash Value and cash value of Reversionary Bonus is insufficient to 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. You may browse TPLHK’s official website (http://tplhk.cntaiping.com/) to find out the relevant Automatic Premium Loan Rate for reference.
The Policy is issued and underwritten by TPLHK. Your Policy is subject to the credit risk of TPLHK and in extreme and the worst scenarios, you are at risk of losing all the premium paid and benefit amount.
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.
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 Policy 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 Reinstatement Date.
Issuance of the policy, the proposed Sum Assured and risk class are subject to underwriting approval and are not guaranteed. The Company reserves the final right to make the offer subject to the risk as identified.
TPLHK’s investment choices are based on Policy specifications and their individual characteristics. Professional and licensed asset management company has been appointed to manage the duration, currency exposure and the return according to the characteristics of the insurance products. The portfolios are built up to attain a balanced portfolio by investing in mainly fixed return financial assets, long term equity investments, fund investments, etc.
(i) Interest Rate Risk and Credit risk
The investments in debt and debt-related securities are subject to interest rate risk and credit risk. Interest rate fluctuations may affect the market value of underlying investments. Where long term interest rates rise, the market value of underlying investments is likely to fall and vice versa. Interest rate risk is the chance that such movements in interest rates will negatively affect the value of a security. Securities with greater interest rate sensitivity and longer maturities tend to produce higher yields, but are subject to greater fluctuations in value.
Credit risk reflects the ability of the borrower (bond issuer) to meet its obligations (pay the interest on a bond and return the capital on redemption date). Changes in the financial condition of an issuer, changes in economic and political conditions in general, or changes in economic and political conditions specific to an issuer, are all factors that may have an adverse impact on an issuer’s credit quality and security values. The credit worthiness of each issuer will be considered carefully and certain level of diversification will be pursued by the portfolio manager.
(ii) Liquidity risk
This product is a long term insurance policy. The policy contains value and, if you surrender your policy in the early policy years or before its maturity date, the amount you get back may be considerably less than the total premium you have paid. Application of the Plan may constitute the liquidity risk to your financial condition. You need to bear the liquidity risk associated with the Plan. Our investment manager will closely monitor the duration gap between assets and liabilities and will ensure to prepare sufficient funds to meet the maturity of each insurance contracts. Marketable fixed income instruments can be sold to provide cash flow for policy surrender when necessary.
Whilst the Policy is in force and after the first Policy Year, you may apply to us in writing in the prescribed form, for a loan secured by this Policy, subject to a minimum amount of USD5,000 and a maximum amount not exceeding ninety percent (90%) of the sum of the Guaranteed Cash Value and cash value of Reversionary Bonus at the time of our approval. We charge interest on all Policy Loan starting from the respective dates when the Policy Loan is incurred until it is fully repaid and we shall determine the interest rate at our sole and absolute discretion. If the total outstanding amount (including accrued interest) owing to us under the Policy exceeds 100% of the sum of the Guaranteed Cash Value and cash value of Reversionary Bonus, the Policy shall be terminated automatically with immediate effect. You may browse TPLHK’s official website (http://tplhk.cntaiping.com/) to find out its Policy Loan Rate for reference purposes.
Any premium(s) paid to us but not yet due (“Prepaid Premium”) 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 not guaranteed.
Where the Premium for the remaining years are paid in full together with the Premium of the first year, interest will accumulate for the Prepaid Premium. The amount of the Prepaid Premium for the remaining years is equal to the amount of the Premium before special discount (if any) 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 TPLHK’s 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.
The Plan is not equivalent to, nor should it be treated as a substitute for, time deposit. The Plan is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.
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 its 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.