Joanna Leung Senior Sales Managerprdlib.convoy.com.hk/prdportal/File/Product and Provider...©...

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Pacific

Joanna Leung

Senior Sales Manager

Zurich Life Insurance (Hong Kong)

© Zurich International Life Limited

INTERNAL USE ONLY

The information contained within this presentation has been obtainedfrom reliable and accurate sources but no representation or warranty,expressed or implied, is made as to the fairness, accuracy,completeness or correctness of the information. Neither Zurich norany of its presenters, associates, directors, officers or employees acceptany liability whatsoever for any direct, indirect or consequential lossand/or damage arising from or in connection with any use of orreliance upon the information and opinions contained herein orcommunicated during this presentation. The information in thispresentation shall not be reproduced in whole or in part without theprior written consent of Zurich. The information herein is correct atthe time of this presentation.

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Disclaimer


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Agenda

• What is Pacific?

• How does Pacific work?

• Protection

• Bonuses

• Your investment choices

• Surrender

• What does Pacific cost?

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Policy owner

Individuals

Trustees

Companies

Life insured

Single life

Joint life first death

Min./Max. age

Min.:19*

Max.:55*

Ownership and issue age

How does Pacific work?

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* Age next birthday


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Payment options

• Regular premium only

You can change your premium payment frequency on any policy anniversary

How does Pacific work? (Con’t)

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Monthly Yearly

Premium


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Premium (Con’t)


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PolicyCurrency

HKD USD GBP EUR

Regular premium which is paid:

• Monthly 4,000 500 350 400

• Yearly 48,000 6,000 4,200 4,800

Minimum regular premium


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A wide choice of currencies

The policy currencies available are:

– Policy currency cannot be changed after policy issuance

– Premiums can be paid in any freely convertible currency

Policy currency


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• HKD

• EUR• GBP

• USD


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With ease and flexibility


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• Payment method

– Initial premium : cheque, UnionPay

– Monthly regular premium: direct debit, credit card (charge applicable of 1.5% for each premium collected)

– Yearly regular premium : cheque, credit card (charge applicable of 1.5% for each premium collected) or telegraphic transfer


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Managing your policy


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PolicyCurrency

HKD USD GBP EUR

Minimum decrease amount of each regularpremium

• Monthly 400 50 35 40

• Yearly 4,800 600 420 480

• Premium adjustment

– Top up premium is not allowed

– Reduce regular premium is allowed after the Initial Contribution Period (ICP) of 36 policy months

Once you have decreased your regular premium, you may subsequently increase it up to the scheduled regular premium amount as of the policy commencement date but the amount cannot be higher than the scheduled regular premium amount as at the policy commencement date


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Managing your policy (Con’t)


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Stop paying regular premiums(21 days during the ICP)(90 days after the ICP)

Policy suspended• Policy level charges continue to be

deducted from policy• Death benefit remains in force• Waiver of premium benefit will be ceased

Terminated

If your total account value is insufficient to pay policy level charges during policy suspension


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Managing your policy (Con’t)


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Stop paying regular

premiums

Policy suspended

ReinstatementCan only reinstate the policy if the policy is suspended but has not been terminated

During the ICP• Must repay the outstanding regular

premiums during the policy suspension within the ICP

• The regular premium level to be restarted must be the same as the original regular premium amount

After the ICP• Payment of the outstanding regular

premiums during the policy suspension after the ICP is optional

• The regular premium level to be restarted is subject to the minimum regular premium requirement


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Cost

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Initial units

Accumulation Units

10 yrs ~ wholelife

36 mths ICP

1. ERC : 4%p.a. (on initial units)2. Policy Mgt Fee : 0.75% p.a. (on initial + accumulation units)3. Plan Fee : HKD60/mth4. Cost of Insurance



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Protection benefits – compulsory cover

Protection

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Death benefit payable will be the highest of:

i. 105% of the total account value; and

ii. the sum insured, less any partial surrender amount(s) and/or regular withdrawal amount(s) that has/have been paid to you; and

iii. the total premiums paid less any partial surrender amount(s) and/or regular withdrawal amount(s) that has/have been paid to you.


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Protection benefits – compulsory cover (Con’t)

Protection (Con’t)

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• Sum insured

= yearly regular premium x 10

or

= monthly regular premium x 120

– Capped at HKD6,000,000, USD750,000, GBP500,000 and EUR600,000, depending on the policy currency

– The amount of sum insured will not change once the policy has been issued


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1. Waiver of premium benefit

– Ensures that in the event of a long-term illness or disability, regular premiums for Pacific will be paid until you are able to return to work or you reach age 70 (age next birthday)

• What does this mean for the client?

– Protection cover will remain in force at the time it is most needed, as the premiums will be covered by Zurich up to your attained age of 70 (age next birthday)

Protection (Con’t)Protection benefits – optional benefit

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Welcome bonus

Bonuses

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• You will receive a welcome bonus upon our receipt of each payment of regular premium for the first policy year provided that:

i. Regular premium reaches qualifying level

ii. Payment is made on time

iii. Policy has never been suspended

• Welcome bonus will be allocated to the initial account in the form of additional notional units of investment choices

• Welcome bonus payable:

Monthly or yearly regular premium paid

Welcome bonus rateX


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Monthly Premium Bonus Allocation

Bronze HKD6,000 15%

Silver HKD8,000 30%

Gold HKD16,000 50%

Platinum HKD24,000 80%

Welcome Bonus

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ExampleMonthly Premium HKD24,000

Total Bonus = HKD24,000 x 80% = HKD19,200/mthDoesn’t link to the policy term

• Welcome bonus will be clawed back if your policy is suspended or fully surrendered during ICP

Bonuses


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• Monthly Policy Charge will be rebated every 10 years

• Allocate into Accumulation units

A loyalty bonus will be credited on the last Working Day of the tenth policy year and every ten policy years thereafter within the policy term provided that:

i. Policy is not suspended

ii. The regular premium is not decreased during the previous ten policy years from the relevant loyalty bonus payment date

Loyalty Bonus

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Bonuses (Con’t)


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• Mr. Lee’s Pacific policy : • The loyalty bonus payable is:

Bonuses (Con’t)Loyalty bonus – Case 1

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Monthly regular premium 1st to 3rd

policy year HKD5,000.

Monthly regular premium 4th to 21st


Loyalty bonus payable at the tenth policy year:

= Nil (regular premium has been decreased at the 4th policy year)

Loyalty bonus payable at the 20th

policy year:

= HKD60 x 12 months x 10 years= HKD7,200


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• Mr. Lee’s Pacific policy : • How much does Mr. Lee needs to repay in order to get the loyalty bonus upon reinstatement at the 12th policy year:

Bonuses (Con’t) Loyalty bonus – Case 2

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Monthly regular premium 1st to 5th

policy year HKD5,000

Policy is suspended during 6th to 11th

policy year

Mr. Lee reinstate his policy at 12th policy year with monthly regular premiumHKD5,000

Since Mr. Lee’s policy was suspended during 6th to 11th policy year and therefore Mr. Lee is not entitled to the loyalty bonus at the 10th policy year

In order to be entitled to the loyalty bonus at the 20th policy year, Mr. Lee is required to pay the outstanding regular premium during the policy suspension at the 11th policy year and continue to pay the monthly regular premium of HKD5,000 until the 20th policy year


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• Mr. Lee’s Pacific policy :

Bonuses (Con’t)Loyalty bonus – Case 2 (Con’t)

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Monthly regular premium 1st to 5th


Policy is suspended during 6th to 11th

policy year.

Mr. Lee reinstate his policy at 12th policy year with monthly regular premiumHKD5,000

= Outstanding regular premium during the 11th policy year= HKD5,000 x 12 months= HKD60,000

Loyalty bonus payable to Mr. Lee at the 20th

policy year:

= The total amount of monthly policy charge deducted from the 11th to 20th policy year= HKD60 x 12 months x 10 years= HKD7,200(Assuming that premiums have not been decreased and paid throughout )

Amount of outstanding regular premium payable by Mr. Lee upon reinstatement at the 12th policy year:


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Surrender

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You can partially surrender your policy free of charge at any time from the accumulation account after the ICP, provided that:

• Accumulation account value > Requested partial surrender amount;

• Surrender value is equal to or greater than HKD80,000;

• The requested partial surrender amount is not less than HKD8,000; and

• Your claim for the waiver of premium benefit (if any) has not been accepted.

Partial surrender


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• Mr. Lee’s Pacific policy (without WOP) • Mr. Lee’s request will be accepted as:

Surrender (Con’t)Partial surrender – Case 1

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Initial account value at 55th policy month = HKD308,000

Accumulation account value at 55th policy month = HKD185,000

Requests a partial surrender of HKD150,000 at the 55th

policy month

Surrender charge that will be incurred at 55th policy month if full surrender is made = HKD86,240

� The accumulation account value which is greater than the partial surrender amount;

� The requested partial surrender amount is not less than HKD8,000;

� Surrender value (as if full surrender request is made at the time immediately after the partial surrender is made) is greater than HKD80,000:

= (Initial account value + accumulation account value) - partial surrender amount –surrender charge

= (HKD308,000 + HKD185,000) –HKD150,000 – HKD86,240

= HKD256,760 (which is greater than HKD80,000)


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You can make regular withdrawals free of charge at any time from the accumulation account after the ICP, provided that:

– Accumulation account value before deduction > Requested regular withdrawal amount;

– Surrender value* is equal to or greater than HKD80,000;

– Each regular withdrawal amount is not less than HKD4,000; and

– Waiver of premium benefit claim (if any) has not been accepted by us at the time your application for regular withdrawal.

Regular withdrawal frequency

Regular withdrawals

Surrender (Con’t)

Monthly Yearly

*as if full surrender request is made at the time immediately after the regular withdrawals requestis received or after payment of each regular withdrawal is made (as the case may be)


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The table below illustrates the surrender charge rate applicable within each policy year in which the full surrender takes place:

Surrender charge table

Surrender (Con’t)

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Policy year Surrender charge rate

1 60%

2 36%

3 28%

4 28%

5 28%

6 28%

7 28%

8 24%

9 12%

10 0%


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Thank you

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Joanna Leung Senior Sales Managerprdlib.convoy.com.hk/prdportal/File/Product and Provider...©...

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