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Wealth Grower Guaranteed Annuity Plan

Wealth Grower Guaranteed Annuity Plan

Product Summary

The Wealth Grower Guaranteed Annuity Plan (“the Plan”) is not only a life insurance plan with savings element, it also offers guaranteed annuity payments until the Insured reaches the age of 100, helping you to realise your dreams with a stable income stream.

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Guaranteed Annuity Payments

 

Short Payment Terms

 

Life Protection

 

International Emergency Assistance Service

 

Simplified Underwriting

Product Features

The Wealth Grower Guaranteed Annuity Plan (“the Plan”) is not only a life insurance plan with savings element, it also offers guaranteed annuity payments until the Insured reaches the age of 100, helping you to realise your dreams with a stable income stream. In case a mishap occurs during the annuity payment period, the Beneficiary1 can still receive the remaining guaranteed annuity payments. This way, your financial arrangement will not be affected, ensuring your family has sufficient financial support.

 Stable Income to Fund Your Future Plans

The Plan offers you a guaranteed annuity payment equivalent to 100% of the Basic Amount on every Policy Anniversary before Policy maturity and at the Policy maturity. This way, even though you’ve already retired, you can still receive the amount until the Insured reaches the age of 100, securing a stable income to fund your future plans. The times of guaranteed annuity payment is 100 minus the issue age of the Insured.

The guaranteed annuity payment and/or non-guaranteed dividend is payable every year, you may either withdraw the amount immediately or keep it in the Policy to accumulate interest2 for a flexible financial arrangement.

"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, guaranteed Cash Value, guaranteed annuity payments and dividends, but it is not applicable to the calculation of the death benefit. If the Basic Amount has been amended while this Policy is in force, the said Premium, guaranteed Cash Value, guaranteed annuity payments and dividends will be adjusted accordingly.

 Short Payment Terms for Whole Life Coverage

The Plan covers the Insured up to the age 100 and you only need to pay the Premium for 5 years. Alternatively, you can also prepay the Premiums 3 to suit your financial plans.

 Life Protection for Enhanced Legacy Planning

During the Premium payment term, if the Insured passes away, a death benefit equivalent to 101% of the Premium received (excluding the guaranteed annuity payments paid) or the guaranteed Cash Value at the date of death of the Insured, whichever is higher, will be payable to the Beneficiary. If there are any accumulated guaranteed annuity payments with interest, accumulated dividends with interest will also be paid in full, less all Indebtedness (if any). The Policy will be terminated thereafter.

In the event the Insured passes away after the Premium payment term, all the accumulated guaranteed annuity payments, dividend (if any) and corresponding interests (if any) will be paid to the Beneficiary1 in a lump-sum, less all Indebtedness (if any). The remaining guaranteed annuity payments will continue to be paid to the Beneficiary, enabling you to meet your family's financial needs through your legacy. The guaranteed annuity payments that the Beneficiary is eligible to receive will be 100 less the issue age of the Insured and the number of instalments of guaranteed annuity payments paid until the death of the Beneficiary.

The remaining guaranteed annuity payments will continue be paid to the Beneficiary during the annuity period as calculated above. In case the Beneficiary passes away, a lump sum of accumulated Premium received less the accumulated guaranteed annuity payments paid or the guaranteed Cash Value at the date of death of the Beneficiary (whichever is higher) plus accumulated dividends with interest (if any) and accumulated guaranteed annuity payments with interest (if any) less all Indebtedness (if any) will be paid to the inheritor of the beneficiary, and the Policy will be terminated thereafter.

 International Emergency Assistance Service4

Even if the Insured is diagnosed with an illness or is injured in an accident outside Hong Kong, you don’t need to worry too much as he/she may enjoy comprehensive coverage under the free 24-hour Worldwide Emergency Assistance Service.

 Simplified Underwriting Procedures

Application is simple as medical underwriting is not required.

Product Details

Wealth Grower Guaranteed Annuity Plan

Issue Age From 15 days after birth to 60 years old
Benefit Term To age 100 of the Insured
Premium Payment Term 5 Years
Policy Currency HKD or USD
Premium Payment Method Annual or Annual & Prepayment of Premium3
Basic Amount (Guaranteed Annuity Payments) HKD10,000 to HKD1,600,000 or USD1,250 to USD200,000

Note:
1 Only one Beneficiary can be assigned in any time while the Policy is effective.

2 The dividends and interest are not guaranteed. The actual benefits and/or returns may be lower or higher than the estimates. China Life Insurance (Overseas) Company Limited (“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, operational expenses and claims, etc.

3If customers opt for the Annual & Prepayment of Premium option, they can withdraw the unused prepaid Premium (including interest, if any) at one time and China Life (Overseas) will charge 2% of the withdrawal amount as withdrawal fee. The minimum fee will be HKD100 or USD12.5. Customers can withdraw the unused prepaid Premium once only. The interest rate of Prepayment of Premium is not guaranteed.

4 24-hour Worldwide Emergency Assistance Service is provided by Inter Partner Assistance Hong Kong Limited. The provision of services are subject to the terms and conditions of the Inter Partner Assistance Hong Kong Limited. China Life (Overseas) reserves the right to amend the terms and conditions thereof from time to time without prior notice.

The information provided herein is for reference only. Please refer to the insurance contract for the details of the provisions, benefit terms and exclusions of the Plan.

Product Important
Disclaimer

Please refer to the Policy documents for the complete definitions of the capitalized 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.

  1. 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.
  2. 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.
  3. Exclusions and Limitations - 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.
  4. 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 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.
  5. 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–include 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. 

  6. 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:
    Asset Type Target Asset Mix (%)
    Bonds and other fixed income instruments 50% to 90%
    Equity-type investment and other investments 10% to 50%
    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).
  7. 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 maybe 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 lapses or is surrendered, (b) the Maturity benefit are fully paid, (c) the death benefit are paid, (d) you do not pay the Premium within 31 days of the due date and the Policy has no guaranteed Cash Value, or (e) the Indebtedness is equal to or exceeds the guaranteed Cash Value of the Policy.

Disclaimer

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.

 

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