ManuTerm Product Manual

Transcription

1 ManuTerm Product Manual Version Date: September 2013 Page 1

2 Table of Content Product Description...3 Objective...3 Target Customers...3 Product Proposition...4 Product Details...5 A. Level Premium Period...5 B. Term Conversion Privilege...8 Plan Characteristics Special Administration Rules A. Underwriting B. Policy service C. Claims Version Date: September 2013 Page 2

3 Product Description There is nothing more important than our beloved family and we want to safeguard their future. With affordable premium, ManuTerm enables your customers to obtain sufficient life coverage that could ease the financial burden on their family during difficult moment. ManuTerm is a pure life insurance plan with guaranteed coverage up to age 75. It eases customers financial planning by guaranteeing the level premium for the first 10/20 policy years (first level premium period). Premium will be adjusted upon the expiry of the first level premium period and on every 10 th policy anniversary thereafter. It also provides flexibility to customers that they can choose to convert their ManuTerm to a level premium whole life policy before reaching the age of 65 without evidence of insurability. Objective ManuTerm provides a solution to customers who are looking for sufficient life protection with affordable premium. Target Customers Juvenile and young working level - Limited budget but looking for life insurance plan - Get sufficient life coverage at low cost of premium Family bread-winner - Plan actively for maintaining the living standard and easing the financial burden of family Customers who already possess life protection - Feel that the existing life protection is not enough and look for a higher life protection amount to supplement the existing life protection Mortgagor - Protection against outstanding mortgage payments for the surviving family Version Date: September 2013 Page 3 All the information contained in this document, produced by Manulife (International) Limited ( Manulife ), is for the reference of specified recipients only and Manulife shall not be liable for the truthfulness or correctness of such information. Unauthorized re-dissemination

4 Product Proposition Major Features Details Affordable premium for sufficient life coverage Customers can be covered by sufficient life coverage with affordable of premium Level premium period of the first 10 or 20 policy years Premium is fixed for the first 10 or 20 policy years at customer s choice ( first level premium period ) Premium will be adjusted* upon the expiry of the first level premium period and on every 10 th policy anniversary thereafter Premium is level and guaranteed within a 10-year period after each adjustment Guaranteed protection to age 75 The protection period of ManuTerm is up to age 75 Convertibility to whole life policy The plan is convertible to a new level premium whole life policy before age 65 # and no evidence of insurability is required * Premium adjustment will be based on the attained age and the premium rate prevailing at the time of the adjustment # The new policy available will be determined by the Company at the time when this option is exercised Version Date: September 2013 Page 4 All the information contained in this document, produced by Manulife (International) Limited ( Manulife ), is for the reference of specified recipients only and Manulife shall not be liable for the truthfulness or correctness of such information. Unauthorized re-dissemination

5 Product Details A. Level Premium Period Customers can choose 10 years or 20 years as their first level premium period in which the premium is guaranteed to be fixed. The premium of ManuTerm will be adjusted upon the expiry of the first level premium period and on every 10 th policy anniversary thereafter based on the attained age and the premium rate prevailing at the time of adjustment. Premium will remain level and guaranteed within a 10-year period after every premium adjustment. (i) ManuTerm 10 ManuTerm 10 - Illustrative example 1: Insured: Male non-smoker with issue age of 20 Policy: ManuTerm 10 (TP10) FA = HKD1,500,000 Premium within every 10 policy years is level and guaranteed Premium will be adjusted on every 10 th policy anniversary (i.e. age 30, 40, 50 ) The renewal premiums shown in illustration for age 30, 40 are non-guaranteed, the Company may adjust the premium at these ages. The policy will be terminated at age 75 (the last level premium period would be less than 10 years in this case). Premium is level and guaranteed within this 10 years period Annual Premium within this 10 years period = HKD1,280 Premium once determined is level and guaranteed within this 10 years period Annual Premium within this 10 years period = HKD1,565 Premium once determined is level and guaranteed within this 10 years period Annual Premium within this 10 years period = HKD3,350 Aug 1, 2013: - Policy of ManuTerm 10 issued - Insured s age = 20 yrs old Aug 1, 2023: Insured s age = 30 yrs old Aug 1, 2033: Insured s age = 40 yrs old Version Date: September 2013 Page 5

6 ManuTerm 10 - Illustrative example 2: Insured: Male non-smoker with issue age of 60 Policy: ManuTerm 10 (TP10) FA = HKD500,000 Premium within every 10 policy years is level and guaranteed Premium will be adjusted on every 10 th policy anniversary (i.e. age 70) The renewal premium shown in illustration for age 70 is non-guaranteed, the Company may adjust the premium at that age. The policy will be terminated at age 75 (the last level premium period would be less than 10 years in this case). Premium is level and guaranteed within this 10 years period Premium once determined is level and guaranteed within this 5 years period Annual Premium within this 10 years period = HKD6,735 Annual Premium within this 5 years period = HKD13,990 Jan 1, 2014: - Policy of ManuTerm 10 issued - Insured s age = 60 yrs old Jan 1, 2024: Insured s age = 70 yrs old Dec 31, 2029: Policy will be terminated as the Insured reaches the age of 75 yrs old Version Date: September 2013 Page 6

7 (ii) ManuTerm 20 ManuTerm 20 Illustrative example 1: Insured: Male non-smoker with issue age of 20 Policy: ManuTerm 20 (TP20) FA = HKD1,500,000 Premium for the first 20 policy years is level and guaranteed Premium will be adjusted upon the expiry of the 20 th policy year (i.e. age 40) and on every 10 th policy anniversary thereafter (i.e. age 50, 60, 70) Premium will remain level and guaranteed within a 10-year period after every premium adjustment The renewal premium shown in illustration for age 40, 50, 60 and 70 is nonguaranteed, the Company may adjust the premium at that age. The policy will be terminated at age 75 (the last level premium period would be less than 10 years in this case). Premium is level and guaranteed within this 20 years period Annual Premium within this 20 years period = HKD1,355 Premium once determined is level and guaranteed within this 10 years period Annual Premium within this 10 years period = HKD3,350 Premium once determined is level and guaranteed within this 10 years period Annual Premium within this 10 years period = HKD7,010 Aug 1, 2013: - Policy of ManuTerm 20 issued - Insured s age = 20 yrs old Aug 1, 2033: Insured s age = 40 yrs old Aug 1, 2043: Insured s age = 50 yrs old Version Date: September 2013 Page 7

8 B. Term Conversion Privilege ManuTerm can be wholly or partially converted to a level premium whole life policy before the insured reaches the age of 65 without evidence of insurability. Products available for this option will be determined by the Company at the time when this option is exercised. Currently, this option is open to the following products: Premier Estate Protector Premier Protector La Vie (enhanced death benefit) MyWay Whole in One (attained age conversion only) ManuSelect Investment Protector Application of this option must be submitted before insured s age 65 Premium of the new policy can not be less than the minimum premium requirement for that product, as determined by the Company on the conversion date If ManuTerm policy is partially converted, the remaining face amount of this policy must not be less than the regular minimum ManuTerm amount required by the Company. Evidence of Insurability will be required if the face amount or death benefit of the new policy exceeds the sum insured of ManuTerm policy or there is addition of riders. Rating of the new policy will be determined according to the risk class to which the insured belonged to under ManuTerm policy on the conversion date. Version Date: September 2013 Page 8

9 There are 2 conversion options available for selection: (i) Original Age Conversion (ii) Attained Age Conversion Original Age Conversion Attained Age Conversion Eligibility of conversion 5 years from the Policy Year Date of the ManuTerm policy Anytime Policy Year date of new policy The Policy Year Date of the ManuTerm policy The conversion month and year of the new policy The conversion day must be the same as that of policy year day of the original policy Rating Characteristics of the new life policy According to the issue age of the ManuTerm policy According to the attained age of the Policy Year Date of the new policy (Please refer to Special Administration Rules section for PC and commission arrangement of Term Conversion.) Version Date: September 2013 Page 9

10 Subject to the conditions in the following paragraphs, the following list of riders can be transferred from the original ManuTerm to the new policy: Accident Assistance Benefit (AAB) Accidental Death and Dismemberment Benefit (ADDB) Accidental Death Benefit (ADB) Cash Assistance Benefit (CAB) (without the right to exercise premium structure conversion) Hospital Income (HI) Hospital Benefit (HB) Hospital Benefit Out-patient Benefit (HBOB) Premium Waiver Benefit (PWB) Take Care Personal Accident Benefit (TCB) Conditions for rider transfer: The rider is still available for new business when term conversion is exercised. The rider can be attached to the new policy according to the latest product rules, which include but not limit to rider attachment availability, maximum issue age limit etc. The commission on the transferred rider will be released according to the number of year since the rider was effective on the original policy. For example, if the rider has been attained the 3rd coverage year since its effective date, commission on the transferred rider will be released starting from year 4 commission rate. Transferred riders will carry the loading, exclusions and pre-existing conditions applied on the original riders. Special Conditions for Premium Waive Benefit transfer: No waiver will be granted under the new policy in respect of any total disability occurring before the conversion date. The premium payment period of the new policy must be equal to or longer than 25 years. Otherwise, underwriting will be required. Version Date: September 2013 Page 10

11 Plan Characteristics Plan Details Issue age Benefit & Premium Payment Period Currencies Level Premium Period Premium Structure Basic Plan ManuTerm 10 : ManuTerm 20 : Up to age 75 HKD/USD ManuTerm 10 : First level premium period : 10 years Subsequent level premium period : 10 years ManuTerm 20 : First level premium period : 20 years Subsequent level premium period: 10 years Premium is level and guaranteed for the first level premium period Premium will be adjusted upon the expiry of first level premium period and on every 10 th policy anniversary thereafter based on attained age and the premium rate prevailing at the time of the adjustment The illustrated premium at every premium adjustment year is not guaranteed Premium Mode Monthly/Quarterly/Semi-annual/Annual Semi-annually 0.52 Modal factor Quarterly Monthly 0.09 Policy factor HKD USD Annual Version Date: September 2013 Page 11

12 Semi-annual Quarterly Monthly 20 3 Minimum Face Amount Maximum Face Amount Participating HKD320,000 / USD40,000 Subject to Underwriting and Reinsurance Non-participating Banding HKD USD - Band 1 320, ,999 40, ,999 - Band 2 1,000,000 7,999, , ,999 - Band 3 8,000,000 15,999,999 1,000,000 1,999,999 - Band 4 16,000, ,000,000 + Minimum Premium HKD USD Annual Semi-annual Quarterly Monthly Rating characteristics Available Riders Premium Waiver Benefit Based on issue age, sex, smoking status, banding Rates per 1,000 Renewal premium is described above in Premium Structure Rider availability table (Manutouch > PRODUCTS > Individual Financial Products > Product Overview > Other Information Premium is yearly renewal adjusting according to attained age. The rate is not guaranteed. Version Date: September 2013 Page 12

13 Special Administration Rules A. Underwriting Normal underwriting rules apply B. Policy service 1. Term Conversion Convertible to level premium whole life policy through Attained Age or Original Age Term Conversion (if still applicable) before the insured reaches age 65. For Attained Age Term Conversion: - If the conversion takes place within 5 years after ManuTerm is issued: Full commission and PC are payable on the new plan while those for old plan will be reversed. - If the conversion takes place 5 years after ManuTerm is issued: Full commission will be paid on the new converted plan. Commission on the portion of premium transfer to new converted policy will be charged back. Full PC will be released on the new converted plan. For Original Age Term Conversion: - Full commission and PC are payable on the new plan while those for old plan will be reversed. 2. Date Back Date Back is allowed with up to a maximum of 6 months. 3. Increase/Decrease Face Amount Increase Face Amount: allowed but can only be done within the first 6 months and effective since policy inception, subject to underwriting on the increased amount. Decrease Face Amount: allowed but subject to min Face Amount. 4. Reinstatement Reinstatement is allowed within three year from the lapsed date. 5. Currency Change Currency change is not allowed. 6. Replacement Rule Replacement rule applied if any existing coverage is surrendered, lapsed or reduced within six months prior to or six months after the Policy Year Date (PYD) of a new application of ManuTerm on the same insured. For avoidance of doubt, ManuTerm, ManuTerm Benefit, Select Ten, Select Ten Rider, Econo Term, Econo Term Rider, Level Term, Mortgage Protector and Mortgage Benefit are all included as existing coverage. C. Claims Follow existing death claims practice on term plans. Version Date: September 2013 Page 13