(1) The Customer Protection Declaration shall be completed, either in Chinese, Portuguese or in English for each new individual life policy proposed/applied by a customer. The insurance intermediary shall inform the applicant/proposer that a copy of the Customer Protection Declaration will be attached to the policy when it is issued;
(2) For identification purpose the intermediary must fill in the full names of the insurer issuing the new policy (the insurer may pre-print its name on the form), the applicant/proposer of the new policy, and the relevant application/proposal/policy number;
(3) If the applicant/proposer answers “No” to the question 1 of Section A, he/she shall sign Section C and the intermediary shall countersign Section D only after the applicant/proposer is fully satisfied with the explanation given by the intermediary of the terms and conditions of the new policy;
(4) If the applicant/proposer answers “Yes” to the question 1 of Section A, he/she shall complete Section B. The intermediary must fully explain and discuss with the applicant/proposer any real or potential disadvantage of changing hi/her existing insurance arrangement in relation to financial implication, insurability implication and claim eligibility implication;
(5) The intermediary may use 2 times the annual premium of the existing policy(ies) to illustrate the financial implication or compare the net change in values of the new and existing policies in 5 years;
(6) The intermediary shall advise the applicant/proposer to retrieve the values (at the next anniversary date) of the existing policy(ies) from the insurer of the existing policy(ies); (7) The intermediary must fill in the values of the new policy;
(8) The total premium paid in 5 years should not include any riders or supplementary benefits which do not affect the cash value;
(9) The intermediary must provide comment whenever “no disadvantage” is ticked against those point listed. Additional papers may be used. However, both intermediary and client must sign on all papers that are used;
(10) The intermediary shall read and explain the Declarations in Section C before the applicant/proposer signs them;
(11) The intermediary shall countersign in Section D, declaring that he/she has explained fully the implication of the decision of the applicant/proposer in regard to the existing policies, including all the terms and conditions of the new policy to be issued.
Non Unit – linked Policies
Appendix F
ILLLUSTRATION DOCUMENT
XYZ LIFE ASSURANCE COMPANY LIMITED
A IMPORTANT:
THIS IS A SUMMARY ILLUSTRATION OF THE BENEFITS OF YOUR POLICY AND IN NO WAY AFFECTS THE TERMS AND CONDITIONS STATED IN THE POLICY DOCUMENT.
B Proposal Summary for the ABC product
1. Name: Age: Sex: C Smoker/Non Smoker
2. D Basic Plan Summary (Currency: )
E Initial Sum Assured: F Initial Monthly Premium:
3. Basic Plan Illustration Summary (Currency: )
G
End of Policy Year
DEATH BENEFIT CASH VALUE
J Total Premium H1 Guaranteed H2 Non-Guaranteed H3 Total I1 Guaranteed I2 Non-Guaranteed I3 Total 1 2 3 4 5 10 15 20 25 30 At age 65
4. Benefit Summary (Currency: )
Benefit Description K Initial Protection Amount L Initial Monthly Premium Basic Plan
eg. Accidental Death Benefit Double Indemnity Hospital Income
M Total Monthly Premium:
=========
5. Explanation
(i) The above is only a summary illustration of the major benefits of your policy. You should refer to your agent or the Company for more information or, if appropriate, a more detailed proposal; (ii) The Basic Plan Illustration in Section 3 relates only to your Basic Plan excluding any riders or
additional benefits as shown in Section 4 (if applicable) and assumes that all premiums are paid in full when due;
optional (iii) The amount of total premium(s) may differ slightly from the total of the premiums payable in the policy due to rounding differences;
(iv) The projected dividend values included in the above are based on the Company's current dividend scales and are not guaranteed. The actual dividends paid may change with the values being higher or lower than those illustrated;
N1 (v) As illustrated in the above, you can leave the amount of projected dividends and the cash payments to accumulate with the Company at a special interest rate which will change from time to time. The current interest rate used to illustrate the effect of accumulation in the above is X % pa. This rate is not guaranteed. You can also cash all or part of the amount of projected dividends and the cash payment without affecting the protection amount but the values shown above will be reduced accordingly;
N2 (vi) If the interest rate and assumed dividend scales remain unchanged throughout your policy term, then the future premium on the Basic Plan can be paid out of accumulated dividends (and cash payments) from
Universal Life (Non-Linked) Policies Illustration Document
XYZ LIFE ASSURANCE COMPANY LIMITED
A IMPORTANT:
THIS IS A SUMMARY ILLUSTRATION OF THE BENEFITS OF YOUR POLICY AND IN NO WAY AFFECTS THE TERMS AND CONDITIONS STATED IN THE POLICY DOCUMENT.
B Proposal Summary for the ABC product
1. Name: Age: Sex: C Smoker/Non Smoker
2. D Basic Plan Summary (Currency: )
E Initial Sum Assured: F Initial Modal Premium:
3. Basic Plan Illustration (Currency: )
End of Policy Year
Assumed Declared Rate
Total Premiums
Guaranteed Death Benefit X % Current rate (optional) Y %
Total Cash Value G Total Death Benefit Total Cash Value G Total Death Benefit Total Cash Value G Total Death Benefit 1 2 3 4 5 10 15 20 25 30 At age 65 [H] 4. Explanation
(i) The above is only a summary illustration of the major benefits of your policy. You should refer to your agent or the Company for more information or, if appropriate, a more detailed proposal; [If projection is
based on current scale of charges]
(ii) The Basic Plan Illustration in Section 3 relates only to your Basic Plan excluding any riders or additional benefits. It assumes that all modal premiums are paid in full as planned without exercising the skip premium option and the current scale of charges remain unchanged; [If projection is
not based on current scale of charges]
(ii) The Basic Plan Illustration in Section 3 relates to your Basic Plan excluding any riders or additional benefits. It assumes that all [ I ] modal premiums are paid in full as planned without exercising the skip premium option and the assumed scale of charges used in this summary illustration remain unchanged. The scale of charges used are however different from that
currently charged by the company;
Optional (iii) The amount of total premium(s) may differ slightly from the total of the premiums payable in the policy due to rounding differences;
(iv) The total cash value and total death benefits payable shown in Section 3 are calculated on the basis that the "Assumed Declared Rates" remain unchanged throughout the term of the policy.
These rates are for illustrative purposes only and are not guaranteed nor based on past performance. The actual return may be different;
[If current rate projection is included]
(v) The current interest rate declared by the Company shall in no way be interpreted as a projection or estimation of the future return. The future declared rate maybe higher or lower.
5. Declaration
I confirm having read and understood the information contained in this summary of illustrated benefits.