Great Harvest Income Plan
Life is full of dreams and aspirations. You need a comprehensive financial plan to give you the resources to make your dreams a reality. Great Harvest Income Plan (the “Plan”) provides you with a stable stream of income through guaranteed cash coupons. It also offers potential wealth growth in the long term through non-guaranteed dividends and terminal dividend.
To give you more flexibility in asset allocation and help you pass your abundant harvests to your descendants, you can split the policy and change the insured for unlimited times.
Enjoy the below offer for successful enrollment during the promotion period!
Secure steady stream of income with guaranteed cash coupons
The Plan provides a steady stream of income. From the 5th policy anniversary to the 30th policy anniversary (i.e. cash coupon period), the Plan will offer a guaranteed cash coupon1 equivalent to 3.88% of the basic amount2 on each policy anniversary. A total sum of 100.88% of the basic amount2 will be paid throughout the benefit term.
You may leave the guaranteed cash coupons in the policy to accumulate interest3, or withdraw4 that to achieve different financial goals.
Double potential returns for wealth accumulation
To grow your wealth further, non-guaranteed dividends1,3(if any) will be payable starting from the 31st policy anniversary (i.e. start date of dividend) and every policy anniversary thereafter. You may leave the non-guaranteed dividends (if any) in the policy to accumulate interest3 or withdraw4 that as you wish. Besides, the Plan will provide non-guaranteed terminal dividend1,5 (if any) from the 8th policy anniversary (i.e. start date of terminal dividend), which helps to boost up the potential return.
Maturity benefit helps boost your capital
The Plan will provide a maturity benefit upon policy maturity, which is equivalent to the guaranteed cash value plus accumulated guaranteed cash coupons and interest3 (if any), accumulated non-guaranteed dividends (if any) and interest3 (if any), and non-guaranteed terminal dividend5 (if any), less all indebtedness (if any). The policy will be terminated thereafter.
Split your policy and pass it to your loved ones
You can distribute your wealth in the way you choose by exercising the hassle-free “policy split option”6, which allows you to divide your policy into multiple policies as you wish, whether you desire to pass your wealth to your next generation or prepare funds for your retirement.
Starting from the 5th policy anniversary or the premium expiry date (whichever is later), you may exercise the policy split option6 at any time to split the original policy into two or more new policies according to the designated percentages. Once the policy split is completed, you may also apply for change of insured7 to allocate your legacy and enjoy greater flexibility on wealth allocation.
Once the policy split is completed, you may also apply for change of insured7 to allocate your legacy and enjoy greater flexibility on wealth allocation.
Unlimited change of insured to pass on wealth across generations
We understand you wish to provide your loved ones with a secure financial future. This is why the Plan features the “change of insured option”7, allowing you to change the insured starting from the 1st policy anniversary for unlimited times while the insured is alive. The benefit term of the policy will be extended to age 138 of the new insured upon each change, giving your wealth more time to grow and pass on through generations.
Contingent insured to sustain insurance coverage
You can appoint and prioritize a maximum of 2 contingent insureds8 at a time while the insured is alive and the policy is in force. In case the insured unfortunately passes away, we will arrange the contingent insured who is first in line to be the new insured according to relevant administrative procedures and orders. The policy will continue to be effective so as to protect your legacy for future generations.
Life protection and settlement option
In case the insured passes away while the policy is in force and there is no contingent insured under the policy, we will pay the beneficiary a death benefit which is equal to the higher of:
1) 101% of accumulated premium due and paid of the basic plan (less any guaranteed cash coupons having been paid) at the date of death of the insured; or
2) sum of guaranteed cash value and non-guaranteed terminal divdend5 (if any) of the basic plan at the date of death of the insured
+ accumulated guaranteed cash coupons and interest3 (if any);
+ accumulated non-guaranteed dividends (if any) and interest3 (if any);
─ all indebtedness (if any).
The policy will be terminated after we pay the death benefit.
While the insured is alive, you can choose to settle the death benefit9 in a lump sum or by annual installments with a fixed amount over a fixed payment term of 10, 20 or 30 years, helping to safeguard your family’s financial future.
Great Harvest Income Plan
|Issue age||15 days to age 80|
|Benefit term||To age 138 of the latest insured|
|Premium payment term||5 years|
|Premium payment mode10||Annual, semi-annual, quarterly, monthly, or annual and premium prepayment11|
|15 days to age 60||Age 61 to 75||Age 76 to 80|
|Minimum basic amount2||HKD80,000/USD10,0000|
|Maximum basic amount2||HKD80,000,000/USD10,000,000||HKD40,000,000/USD5,000,000||HKD3,000,000/USD375,000|
- If premium holiday has been exercised under the policy, the Company will defer the cash coupon period, start date of dividend and start date of terminal dividend according to the premium holiday period as designated by the policyholder.
- “Basic amount” means the amount shown on the policy information page or endorsement as the “basic amount”. The “basic amount” is used to calculate 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, the said premium and relevant values of the policy will be adjusted accordingly.
- The dividends and interest are not guaranteed. The actual benefits and/or returns may be lower or higher than estimates. China Life (Overseas) reserves the right to revise these from time to time. The actual amount of dividends is subject to the overall performance of China Life (Overseas)’s participating businesses, including investment returns and claims, etc.
- You may withdraw the cash coupons and/or dividends at any time without any charge, however, the policy value and death benefit will be affected in case of withdrawal of cash coupons and/or dividends.
- Terminal dividend is a one-off dividend and is non-guaranteed. Amount of terminal dividend shown in proposal illustration is just an indicative figure. Declared terminal dividend is not perpetually attached to the policy. It may be reduced or increased at subsequent declarations. Its actual amount will only be determined when it becomes payable. The actual amount may be lower or higher than the projected figure. Under some circumstances, actual amount of terminal dividend may be zero. The amount of the terminal dividend is affected by various factors including but not limited to the performance of the underlying investments, so the amount is relatively volatile and will move up and down over time. China Life (Overseas) reserves the right to revise the terminal dividend from time to time. Past record is not necessarily indicative of future result. For more information, please refer to clause 5 and clause 6 of the product brochure under “Important information” and “Non-guaranteed benefit” risk.
Starting from the 8th policy anniversary (i.e. start date of terminal dividend), the terminal dividend shall be paid upon the occurrence of the earliest of the following conditions:
(i)when the Company pays the death benefit (only applicable if the sum of guaranteed cash value and terminal dividend (if any) of the basic plan at the date of death of the insured is higher than 101% of accumulated premium due and paid of the basic plan (less any cash coupons having been paid));
(ii)when the policy is surrendered by the policyholder; or
(iii)when the policy reaches the policy maturity date.
- There is no limitation on the number of split policies for exercising the “policy split option”. For the policy year in which the policy split option is exercised under the policy, the policyholder cannot apply policy split option for the split policy(ies) in the same policy year. Application for exercising the policy split option is subject to the followings:
(i)the basic amount of each split policy must not be less than the minimum basic amount of the basic plan determined by the Company at the time;
(ii)the sum of split percentage of all split policies equals to 100%;
(iii)there is no premium due and unpaid or indebtedness under the policy;
(iv)there is no claim pending for approval under the policy; and
(v)no change, cancellation, withdrawal or termination by the policyholder will be allowed once the application is submitted to the Company for exercising the policy split option.
Upon the Company’s approval of the application for exercising the policy split option, the following will apply:
(i)the policy split option will be effective provided that the application is approved by the Company with remarks duly signed by the Company’s authorized signatory(ies) or endorsements. The effective date of policy split option will be the date of the Company’s approval for such application (according to the Company’s records);
(ii)the policy will be terminated immediately and the split policies will take effect immediately when the policy split option is effective;
(iii)the policy year, policy date, policy effective date, cash coupon period, start date of dividend, start date of terminal dividend and the latest date of reinstatement (if any) of each split policy will be the same as the policy year, policy date, policy effective date, cash coupon period, start date of dividend, start date of terminal dividend and the latest date of reinstatement (if any) of the policy as of the policy split option effective date;
(iv)the policyholder, insured and beneficiary(ies) (with the respective designated percentage) of the split policies will be the same as the policyholder, insured and beneficiary(ies) (with the respective designated percentage) of the policy as of the policy split option effective date;
(v)the settlement option of death benefit, contingent insured(s) and sequence of contingent insured(s) of the split policies will be the same as the settlement option of death benefit, contingent insured(s) and sequence of contingent insured(s) of the policy as of the policy split option effective date;
(vi)cooling-off period will not be applicable to the split policies;
(vii)all rider(s) under the policy (if any) will be terminated immediately on the policy split option effective date;
(viii)the basic amount, guaranteed cash value, accumulated cash coupons with interest (if any) , accumulated dividends (if any) with interest (if any) and terminal dividend (if any) of the basic plan as of the policy split option effective date will be allocated to each split policy according to the corresponding split percentage;
(ix)the cash coupon (if any) and dividend (if any) of the policy as of the policy split option effective date will be calculated according to the basic amount of each split policy;
(x)the accumulated premium due and paid of the policy as of the policy split option effective date will be allocated to each split policy according to the corresponding split percentage;
(xi)similar policy split option will also be applicable to each split policy starting from the policy year immediately after the policy year in which the policy split option becomes effective; and
(xii)unless otherwise specified above, all benefits, terms and conditions of each split policy will be the same as those of the policy.
- When the Company receives the written request for the “change of insured”, the age of the new insured cannot be above (i) age 80 or (ii) the attained age of the current insured, whichever is lower. The Company must be satisfied with the insurable interest between the new insured and the policyholder. Both the current insured and the new insured must be alive at the time of the application for changing the insured. Such request must fulfill the related administration procedure of the Company. The policy’s basic amount, guaranteed cash value, policy date, policy year, premium expiry date, cash coupon period, start date of dividend, start date of terminal dividend, accumulated premium due and paid, death benefit, cash coupon (if any), accumulated cash coupons and interest (if any), dividend (if any), accumulated dividends (if any) and interest (if any), terminal dividend (if any), policy split option (if any), premium holiday (if any) and indebtedness (if any) will not be changed as a result of the change of insured.
- When the Company receives the written request for “designating the contingent insured”, the age of the contingent insured(s) cannot be above (i) age 80 or (ii) the attained age of the current insured, whichever is lower. The Company must be satisfied with the insurable interest between the contingent insured(s) and the policyholder. Such request must fulfill the related administration procedure of the Company. The policy’s basic amount, guaranteed cash value, policy date, policy year, premium expiry date, cash coupon period, start date of dividend, start date of terminal dividend, accumulated premium due and paid, death benefit, cash coupon (if any), accumulated cash coupons and interest (if any), dividend (if any), accumulated dividends (if any) and interest (if any), terminal dividend (if any), policy split option (if any), premium holiday (if any) and indebtedness (if any) will not be changed after the contingent insured becomes the insured.
- For the installment option, the remaining balance of death benefit will be deposited in the policy to accumulate interest (if any) until the end of the payment term. The interest will be calculated on an annual basis and it is non-guaranteed which will be determined by us from time to time. The accumulated interest (if any) will be paid together with the last installment of death benefit. If the beneficiary(ies) dies at any time before the Company has fully paid the death benefit, the Company shall pay the remaining balance of the death benefit with accumulated interest (if any) in a lump sum payment to the personal representative for the estate of the deceased beneficiary(ies). The policy will be terminated thereafter.
If the death benefit at the date of the insured’s death is less than HKD400,000/USD50,000, or the policyholder does not specify any settlement option, we will pay out the benefit amount to the beneficiary in a lump sum.
- 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 is lapsed or surrendered early, the policy cash value received by you may be considerably less than the total amount of the premiums paid.
- If you choose the annual and premium prepayment option, 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/USD25. You can withdraw the unused premiums once only. The interest rate of prepaid premium is 4% p.a. and this interest rate is guaranteed.
The information above is for reference only. Please refer to the Policy documents for the complete definitions of the capitalised terms, as well as all the terms and conditions of this product. You are reminded to review all of the relevant product materials provided to you and to seek independent professional advice if necessary.
- The Policy is underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)” or "us / we / our"). China Life (Overseas) is responsible for the features, underwriting and benefit payments under the Policy. You should fully understand all of the risks involved in this product and consider whether this product is affordable and suitable to you before making your application.
- China Life (Overseas) shall make the final decisions on the underwriting and claims. We shall rely on your submitted information to assess whether to accept or decline your application, and shall refund any Premium paid without interest for declined cases.
- Exclusions - The Accidental Death Benefit under this Policy shall not cover any claims if the Insured is involved in any of the following activities or the consequences directly or indirectly caused by any of the following events occur in respect of the Insured: (a) war, act of hostility (whether war declared or not), civil war, revolution or any military actions; (b) rebellion, civil commotion, strike or activities of terrorism; (c) contamination resulting from nuclear weapons, ionizing radiation, nuclear fuel or waste produced from the combustion of nuclear fuel (the said nuclear combustion shall include any self-sustaining process of nuclear fission); (d) during war, act of hostility (whether war declared or not), any military actions or repression of rebellion, the Insured is engaging in or taking part in military services; (e) directly or indirectly caused by the Insured engaging in aviation, except as a passenger on an aircraft of a commercial airline on a scheduled route; (f) self-inflicted injuries or suicide (whether sane or not) by or attempted by the Insured (whether felony or not); (g) childbirth, pregnancy, miscarriage or abortion, even if it is accelerated or induced by an Accident ; (h) surgery operated on the Insured and induced by disease, infected disease or incident that is not caused by an Accident ; (i) taking of poison or inhaling poisonous gas or poisonous mist (whether voluntary or not); except Accidental inhaling by the Insured in a fire ; (j) the Insured as a professional athlete participating in sports or earning income or remuneration through the sports; (k) participating in hunting, mountaineering, motor racing, horse racing, ice-skiing, skiing, scuba-diving, parachuting, hang-gliding, boxing or any other competitions or performances; (l) while the Insured is on duty as a professional driver and is entering, driving, operating, servicing, riding in or departing from any land vehicle or conveyance outside the territorial limits of Hong Kong and Macau; (m) the Insured is assaulted or murdered during rebellion, civil commotion, strikes or when making an arrest while the Insured is employed as a full-time or part-time police officer or cadet officer, or is an officer or a member of the Correctional Services Department; or (n) the Insured is assaulted or murdered during rebellion, civil commotion or strikes while the Insured is employed as a fireman, or is on duty as a fireman and is engaging in firefighting or activities for protecting people and property in a fire.
In addition, the information stated in this product brochure is for reference only. Please refer to the General Provisions for the exact terms and conditions and limitations such as incontestability, suicide and fraud etc. or all exclusions.
- Non-Payment of Premium / Automatic Premium Loan - You should pay Premium(s) on time according to the selected Premium payment schedule. 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 our corporate website www.chinalife.com.hk) to be declared by us 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 be lapsed 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.
- 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 to 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 provision. China Life (Overseas) will ensure a fair sharing of profits 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 relevant policies and the factor including but not limited to the investment returns, operating expense, claims experience, commission, persistency, past experience and future prospect. In addition, China Life (Overseas) will consider both past and future outlooks of all factors including but not limited to:
Claims – including the costs of providing death benefit as well as other benefits under the product(s).
Investment return – including the interest income, dividend income, outlook of interest rates and any changes in the market value of the product’s backing asset.
Expenses – including both direct expenses (e.g. commissions, underwriting, issue and premium collection expenses) and indirect expenses (e.g. general overhead expenses) related to the product.
Persistency – including policy lapse and partial surrender experience.
Note: The dividend or interest rate history is not an indicator of the future performance of this product.
- Investment Philosophy, Policy and Strategy - China Life (Overseas) aims to strive for minimizing volatility of the investment return and provides stable return as our 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 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 follow:
Please refer to China Life (Overseas) Company’s website www.chinalife.com.hk/products/dividendandinvestment for dividend history, Dividend and/or Crediting Interest Philosophy, Investment Philosophy, Policy and Strategy, as well as the fulfillment ratio of China Life (Overseas).
Asset type Target Asset Mix (%) Bonds and other fixed income instruments 50% to 90% Equity-type investment and other investments 10% to 50%
- Cooling-off Right - You have the right to cancel the Policy within the Cooling-off Period and obtain a refund of any Premiums paid by giving written notice to us provided that you have not made any claims under the Policy. Such notice must be signed by you and submitted to China Life (Overseas) at 22/F, CLI Building, 313 Hennessy Road, Wan Chai, Hong Kong within 21 days after the delivery of the Policy or issue of a Notice to you or your representative informing you that the Policy is available, whichever is earlier.
|What are the key product risks?|
|Credit risk:||This product is a life insurance Policy issued by China Life (Overseas). Any Premium paid will become part of our assets and our financial strength will affect our ability to meet our contractual obligations to you under the Policy. Therefore this product is subject to our 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 consider the potential currency and exchange rate risks before deciding which Policy currency you should take.|
|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 we fulfill all of our contractual terms and obligations.|
|Liquidity and Withdrawal risk:||You are obliged to hold the Policy and pay the Premium for the designated period of time. If you terminate the Policy prior to the Policy Maturity Date, you will suffer a financial loss. In case you make partial withdrawals from the Policy, your account value, death benefit and other Policy values will be reduced, and you may need to pay the relevant handling fee or charges (if any).|
|Non-guaranteed Benefit:||This 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 is lapsed or surrendered; or (b) the Company has paid the Policy Maturity Benefit; (c) the Company has paid the death benefit, (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.|
The information and descriptions contained herein are not intended to be complete descriptions of all terms, exclusions and conditions applicable to the products and services, but are provided solely for general informational purposes. For complete details please refer to the actual policy or the relevant product or services agreement.