BESMART WEALTH FOR GENERATIONS

Transcription

1 LIFE INSURANCE - UNIVERSAL LIFE BESMART WEALTH FOR GENERATIONS Sun Life Hong Kong Limited (Incorporated in Bermuda)

2 WEALTH FOR GENERATIONS

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5 BESMART Wouldn t it be great if you could ensure that your wealth was preserved for your next generation After a lifetime of hard work, the legacy that you have built deserves to be protected for your next generation. Whether you plan it for your loved ones as part of your estate, or to business successors as an element of your continuity strategy, Sun Life Financial understands your desire to cultivate and preserve your wealth. This can be achieved through a tailor-made financial solution that offers whole-life protection with steady asset growth, as well as a way to securely and conveniently transfer your fortune to your next generation. This is where Sun Life Financial steps in your trusted partner for life s journey and achieving life s dreams. With BRIGHT UL Eternal Builder, we help you make wise provisions for the future, so you can lay a straight path for your successors. 2

6 How can BRIGHT UL Eternal Builder embrace your life? Catering to those seeking substantial coverage, BRIGHT UL Eternal Builder is a tailor-made universal life plan created to address the exclusive requirements. Offering lifelong protection until age 120, the plan centers on wealth preservation and continuity, forming an ideal complement to your legacy arrangement, estate planning strategy, business continuity measures, or financial collateral arrangements, so that your loved ones or business will be well taken care of, as you planned. The plan cultivates your wealth from inception, placing a Crediting Interest Rate 1 which is guaranteed throughout the 1 st year of the policy into your Account Value 2, while the Guaranteed Minimum Crediting Interest Rate offers a lifetime of steady growth. Should your circumstances change, the plan offers flexibility in the Sum Assured and the insured, who is the person protected under the policy, for a long-term strategy that remains true to your specific needs. Combining lifelong flexibility with stable returns, is designed to be a reliable complement to your legacy arrangements. Whether you intend to paint a bright future for your loved ones or secure future prosperity for your business, Sun Life helps you make timely preparations for a future of certainty. Remarks: 1. The crediting interest rate is guaranteed to be locked in during the 1 st policy year ( Guaranteed Lock in Crediting Interest Rate ). The Crediting Interest Rate will be subject to the Guaranteed Minimum Crediting Interest Rate starting from the 2 nd policy year. With respect to each Premium received during the 1 st policy year, the Guaranteed Lock in Crediting Interest Rate applied to each Premium received shall be based on the Crediting Interest Rate declared by Sun Life Hong Kong Limited ( Sun Life ) at the Policy Start Date and shall be guaranteed and fixed until the end of the 1 st policy year. 2. The Account Value of your policy is the Premiums, net of any Premium Charge, credited to your Policy; less any Partial Surrender, Cost of Insurance and Policy Administration Fee; plus interest accrued and earned daily at the crediting interest rate declared by Sun Life from time to time at Sun Life s sole discretion. 3

7 BESMART KEY FEATURES Safeguarding you with value-added whole-life protection Guaranteed Crediting Interest Rate plus Bonus Crediting Interest Rate Flexible arrangements to suit your financial plans Additional peace of mind via guaranteed scales of charges Policy options enhance your flexibility 4

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9 BESMART Whole-life protection up to age 120/120 years, whichever is earlier up to a maximum of USD2,000,000 per life free one-time cash advance Terminal Illness Benefit 3 Safeguarding you with value-added whole-life protection provides the insured person with whole-life protection under the policy up to age 120. In such an event, the beneficiaries will be entitled to a Death Benefit equivalent to the Current Sum Assured or Account Value under the policy, whichever is higher, bringing the fruits of your financial planning to bear. In the unfortunate event that the insured person is diagnosed with a terminal illness, can provide a one-time cash advance to address any immediate liquidity needs. The amount of this advance is up to 100% of the Death Benefit, with a maximum limit of USD2,000,000 per life. Before these payments are made, we will use these amounts to settle any outstanding loan with interests against your policy and any applicable interest. The remaining amount will then be paid to the policy owners. Remark: 3. If the Current Sum Assured is less than or equal to USD2,000,000, the Terminal Illness Benefit will be equal to the Death Benefit. The Policy will terminate and any remaining Account Value, less Loan Balance (if any) will be paid. If the Current Sum Assured is greater than USD2,000,000, the Terminal Illness Benefit will be equal to zero or USD2,000,000 less Loan Balance, whichever is higher. Current Sum Assured will be reduced by USD2,000,000 and the Account Value will be reduced by the higher of (a) USD2,000,000 less the Net Amount at Risk before the Terminal Illness Benefit is paid; and (b) zero. The Policy will remain inforce afterward. 6

10 No less than 2.0% per annum Guaranteed Minimum Crediting Interest Rate Extra 0.3% per annum Guaranteed Crediting Interest Rate plus Bonus Crediting Interest Rate For the entire duration of your policy, your wealth will grow through interest accumulation at a Crediting Interest Rate 4. offers a guaranteed lock-in of your initial Crediting Interest Rate for the 1 st policy year 5, offering protection from fluctuating market conditions. After the 1 st policy anniversary, our Guaranteed Minimum Crediting Interest Rate comes into effect, which ensures that your policy is never credited with less than 2.0% per annum. Starting from the 10 th policy anniversary, if the then Crediting Interest Rate is greater than the Guaranteed Minimum Crediting Interest Rate, you can enjoy extra 0.3% Bonus Crediting Interest Rate per annum. Even amid economic uncertainty, offers stable growth that can help offset the potential low returns or high volatility from other risk-based assets, allowing you to confidently preserve your wealth for your next generation. Bonus Crediting Interest Rate Remarks: 4. The Crediting Interest Rate is declared by Sun Life and is subject to change from time to time at Sun Life s sole discretion. 5. Guaranteed Lock in Crediting Interest Rate during the 1 st policy year will no longer be applicable after reinstatement. 7

11 BESMART Single Premium Lumpsum Premium Premium Payment Mode Flexible arrangements to suit your financial plans Premium flexibility Sun Life caters to your evolving needs throughout different stages of your life. A greater degree of protection may be suitable during the prime of your years, while your focus may shift to wealth accumulation as your financial obligations begin to subside later in life, enhancing the growth of your legacy. That is why accepts single premium at policy issue and/or a lump-sum premium 6, giving you a high degree of control over your financial arrangements and enabling you to re-balance your policy s protection and wealth accumulation components according to your latest requirements. Partial Surrender any time after the 1 st policy anniversary Ready liquidity To address your diverse financial needs, policy loans may be taken any time after the 1 st policy anniversary, is subject to the then current administrative rule. Alternatively, you may make a partial surrender 7 of your policy at any time after the 1 st policy anniversary which provide you the flexibility to adjust your level of protection, provided that your policy retains a minimum Surrender Value of USD5,000 and a minimum Sum Assured of USD1,000,000. Remarks: 6. The acceptance of lump-sum premium is at Sun Life s discretion, subject to the maximum premium amount following the then current administrative rules. 7. The maximum amount of any partial surrender within a policy year is 20% of Surrender Value in the beginning of the corresponding policy year. 8

12 Guaranteed scales of charges throughout the entirety Additional peace of mind via guaranteed scales of charges Prior to your premium being deposited into the Account Value, a Premium Charge will be deducted. The Policy Administration Fee and Cost of Insurance ( COI ) will be deducted from the Account Value where the Crediting Interest Rate will be credited. To ensure high transparency of the fees and charges, the Premium Charge, Policy Administration Fee, COI and Surrender Charges are calculated at guaranteed scales of charges. WEALTH FOR GENERATIONS 9

13 BESMART option of Sum Assured after the 1 st policy anniversary Policy options enhance your flexibility Change of Sum Assured Because Sun Life understands that your needs and financial obligations may change, offers you the option of increasing 8 or decreasing 9 the Sum Assured at any time after the 1 st policy anniversary. In this way, you can conveniently adjust your protection according to your evolving needs. elect to Change the insured at anytime Change of insured 10 (corporate owner only) In the event that the original insured person ceases to be employed by the company, you may elect to change the insured at anytime without limitation in frequency, ensuring that your business continues to be protected from the adverse impact of an uncertain future. Emergency relief anytime, anywhere with our Worldwide Emergency Assistance Benefit With our free 24-hour Worldwide Emergency Assistance Benefit 11, you can enjoy the assurance of emergency medical assistance wherever you travel, including medical evacuation and repatriation, pre-paid hospital admission deposit, transportation of essential medication and medical equipment, and more. Remarks: 8. An increase in the Sum Assured is subject to Sun Life s approval based on the evidence of insurability received at the time the additional Coverage is requested and the then current administrative rules. 9. A decrease in Sum Assured is subject to the then current administrative rules. Any decrease in Sum Assured will be subject to a Surrender Charge Rate as shown in the Policy Summary, which will be deducted from the Account Value. 10. Full medical underwriting is required for the new insured. Cost of medical check-up will be paid by the policy owner. This option is not applicable after the payment of Terminal Illness Benefit. 11. The Worldwide Emergency Assistance Benefit is provided by a third party company, Inter Partner Assistance Hong Kong Limited. This benefit is not guaranteed to be renewable. Please refer to a sample endorsement, which will be provided upon request, for details including definition, full terms and conditions, and exclusions. 10

14 Building Legacy Transfer Legacy planning can preserve your wealth and pass on your wealth to the next generation. Case Study Mr. A Age: 50 Non-smoker standard rates He has 2 children and USD10,000,000 in assets. Original Estate Plan Portfolio value: USD10,000,000 Mr. A will: Reserve USD4,000,000 for his retirement Reserve USD3,000,000 for the 1 st child Reserve USD3,000,000 for the 2 nd child Estate Plan with Portfolio value with death benefit: USD14,000,000 Mr. A can purchase with Sum Assured of USD6,000,000 (both children as the beneficiaries) by paying USD2,000,000 single premium from the legacy of USD6,000,000 originally reserved for both children. Each child will be entitled to the claim of USD3,000,000 from the death benefit of. After paying the single premium of USD2,000,000, he will have an additional USD4,000,000 for his retirement while keeping the same amount of legacy for each child. USD4,000,000 for retirement USD4,000,000 for retirement USD4,000,000 for retirement USD3,000,000 Legacy for 1 st child USD3,000,000 Legacy for 2 nd child USD2,000,000 Single Premium Sum Assured of USD6,000,000 from (1 st and 2 nd child as beneficiaries) USD4,000,000 for retirement Additional USD4,000,000 for retirement Remarks: The above case study is an example for illustrative purpose only and based on the assumption that the insured is aged 50 male, non-smoker standard rates, single premium paid in the amount of USD2,000,000 and current crediting interest rate. For the above example, in case Mr. A lives till age 100, the Account Value of his policy will be equal to the Sum Assured at age 100, i.e. USD6,000,000. The Account Value of Bright UL Eternal Builder will vary according to insured s issue age, gender, underwriting class, smoking status, the crediting interest rate and the amount of premium paid. 11

15 BESMART Protecting Your Business In order to mitigate financial loss in the event of the loss of a key person in your company, one of the financial solutions is to purchase a life insurance for your key person. Key Person (Insured) Company purchases for Key Person Premiums Company (Policy Owner) Death Benefit / Surrender Benefit When you purchase for your company s key person, you will receive a death benefit when the key person passes away. You can also change the insured at anytime to secure a smooth transition between key personnel while keeping the policy in force and do not need to apply for a new policy. Thus, BRIGHT UL Eternal Builder can minimize the risk and prevent the crisis from happening in your Company. 12

16 Key Product Information Plan Minimum Sum Assured USD1,000,000 Issue Age Age Benefit Term Premium Payment Term Premium Payment Mode Currency Crediting Interest Rate Guaranteed Minimum Crediting Interest Rate Bonus Crediting Interest Rate Individual policy: to age 120 Corporate policy: to age 120 or up to 120 years, whichever is earlier To age 120 Single premium and/or lump-sum premium (subject to Sun Life s approval) USD Current Crediting Interest Rate: 3.6% p.a. (Guaranteed Lock in for the 1 st policy year) 2.0% p.a. (Starting from the 2 nd policy year) 0.3% p.a. 12 (Starting from the 10 th policy anniversary) Remark: 12. Starting from the 10 th policy anniversary while this Policy is in effect, a bonus crediting interest rate of 0.3% per annum ( Bonus Crediting Interest Rate ) will be payable as extra interest accrued and earned daily in addition to the Crediting Interest Rate if the then Crediting Interest Rate is higher than the Guaranteed Minimum Crediting Interest Rate. 13

17 BESMART Benefit Schedule Death Benefit Maturity Benefit Surrender Benefit Terminal Illness Benefit Free Benefit Current Sum Assured or Account Value whichever is greater less any outstanding loan with interests The Maturity Benefit is payable if the insured is alive at the end of benefit term. The policy will be terminated after the Maturity Benefit is paid Maturity Benefit = Current Sum Assured or Account Value whichever is greater less any outstanding loan with interests Surrender Value = Account Value less Surrender Charge less any outstanding loan with interests One-time acceleration of benefit up to 100% of the Death Benefit, subject to the maximum limit of USD2,000,000 per life Worldwide Emergency Assistance Benefit Guaranteed Scales of Fees and Charges Premium Charge Policy Administration Fee Cost of Insurance ( COI ) Surrender Charge 6.0% of each premium payment will be deducted before the premium is deposited to the Account Value Applicable in the first 15 policy years Policy Administration Fee will be deducted from the Account Value on the first day of each policy month while the coverage takes effect The Policy Administration Fee rate will vary according to insured s issue age, gender, underwriting class 13 and smoking status COI in relation to the Policy is calculated as the Net Amount At Risk 14 multiplied by the relevant COI rate COI will be deducted up to attained age 120 from the Account Value on the 1 st day of each policy month while the coverage is in force. The cost will vary according to insured s attained age, gender, country of residence, underwriting class and smoking status Applicable in the first 15 policy years Surrender Charge will be applicable upon Full Surrender or Partial Surrender(s) or reduction of Sum Assured (except reduction of Sum Assured due to payment of Terminal Illness Benefit) The Surrender Charge rate will vary according to insured s issue age, gender, underwriting class and smoking status For the details of the benefit schedule and guaranteed scales of fees and charges, please refer to the Policy Document. Remarks: 13. Underwriting class is refering to the insured s personal health condition, family and personal health history, alcohol or drug usage, etc. 14. Net Amount at Risk means the higher of (a) the Current Sum Assured less Account Value; and (b) zero. 14

18 How works? Crediting Interest Rate and Bonus Crediting Interest Rate (if any) Flexible Premium Credit Deduct Premium Charge Credit Account Value Deduct Surrender Charge* Surrender Value + Deduct Death Benefit Deduct Monthly Charge 1. Cost of Insurance Charge 2. Policy Administration Fee^ ^ Policy Administration Fee is applicable to the policy in the first 15 years * Surrender Charge is applicable to the policy in the first 15 years + Surrender Value = Account Value Surrender Charge any outstanding loan with interests Any outstanding loan with interests Death Benefit = Current Sum Assured or Account Value, whichever is greater any outstanding loan with interests 15

19 BESMART Important Information: Crediting Interest Rate Philosophy Your Account Value will earn and accumulate interest at the Crediting Interest Rate. The Crediting Interest Rate can be changed by Sun Life Hong Kong Limited from time to time at our sole discretion, subject to any Crediting Interest Rate lock-in period and/or guaranteed minimum Crediting Interest Rate as stated in the policy document. The Crediting Interest Rate may be affected by, but not limited to, factors such as the interest rate environment, market outlook, persistency experience; with the investment return of the assets supporting the product normally being the most significant factor*. The experience of the investments backing the asset portfolio, less investment expenses, applicable taxes and our revenue margin, is passed-through to policyholders in the form of the declared Crediting Interest Rate. Please see our Investment Philosophy for more details on our investment policies, objectives and strategy for this product. In general, if experience is better than our expectation, then there is room to increase the Crediting Interest Rate; while if experience is worse than our expectation, the Crediting Interest Rate may need to be reduced. To avoid undue frequent changes to the Crediting Interest Rate, we employ an approach to smooth out favourable and unfavourable experiences over time which reduces short-term volatility to policyholders. As a result, you may enjoy a more stable Crediting Interest Rate into your Account Value. The management of universal life business is governed by our internal policies, as well as advice from our Committee for Oversight of Universal Life Crediting Interest Rates. Accepted actuarial principles and practices are applied to achieve fairness between different products and generations of policies to the extent practicable. At least annually, our appointed actuary reports on the Crediting Interest Rate to our Board of Directors, who is responsible for Crediting Interest Rate declarations. * Investment return includes investment income and changes in asset value of the backing portfolio. Performance of investment return is affected by interest earnings and other market risk factors including interest rate or credit spread movements, credit events, and price fluctuations in non-fixed income assets. Investments may also be impacted by persistency factors including policy lapse and partial surrender experience. Please refer to Sun Life Hong Kong Limited s website ( for crediting interest rate history. Investment Philosophy (Policies, Objectives, and Strategy) The investment strategy supporting this product is intended to provide long-term value to the policyholders with a suitable level of risk; and to achieve a main objective of delivering a fair chance of meeting illustrated non-guaranteed benefits in addition to the guaranteed benefits. The assets supporting the investment strategy span a diversified range of fixed income assets such as sovereign bonds, corporate bonds and corporate loans; as well as non-fixed income assets which are equity-like investments. The credit profile for the fixed income assets is a portfolio of diversified investment grade securities. Investments of below investment grade assets are prohibited unless as a result of credit rating downgrade during the portfolio holding period as per our risk appetite and investment policies. The current long-term target mix for the assets supporting this product is shown below: Asset Class Target Asset Mix Fixed Income Assets 75% 95% Non-Fixed Income Assets 5% 25% The actual asset mix percentages will fluctuate based upon market conditions and investment experience. Diversifying the investments between asset classes results in a more stable investment return over the long term. Investments are in the same currency as the underlying policies where appropriate, with considerations on availability of assets and risk/return tradeoffs. Unmatched currency exposures are managed with the use of appropriate hedging instruments. Derivatives may be used to hedge against market risks but are not intended to bring the risk profile beyond established risk tolerances. The investment strategy noted above may be subject to change, subject to a rigorous internal review and approval process. We will notify the policyholders upon any material changes. Key Product Risks: 1. offers flexibility in premium payment. Any premium in excess of the planned premium at policy issue will be subject to our approval and our then current administration rules. Also, if the actual premiums paid are lower than planned, your Account Value will also be lower than planned and this will impact your future benefit. 2. Upon any partial surrender, full surrender or reduction of Sum Assured during the first 15 policy years, Surrender Charge would be applied. For any surrender in early policy years, you may receive a Surrender Value significantly less than the total premiums paid and might suffer significant financial losses. 3. Partial Surrender will lead to reduction in both Account Value and Sum Assured, and your benefit will be reduced accordingly and may be insufficient to meet your needs. 4. The policy will be terminated automatically upon the earliest of the following: a. the insured passes away; or b. the Maturity Benefit is paid; or c. payment of Terminal Illness Benefit if Sum Assured is less than or equals to USD2,000,000; or d. Account Value is insufficient to cover any Cost of Insurance, Policy Administration Fee and loan balance. 5. If your Account Value is insufficient to cover any Cost of Insurance, Policy Administration Fee and loan balance, you might lose all your investments and benefits under your policy. Factors affecting the accumulation of Account Value include but are not limited to the followings: a. Insufficient premium to fund the policy; b. Crediting Interest Rate which is not guaranteed and depends on various factors as described in Crediting Interest Rate Philosophy and the applicable guarantees. Lower Crediting Interest Rates will lead to lower Account Value accumulation; c. Partial Surrender; d. Policy loan 6. Any transaction involving conversion between policy currency and other currencies would be exposed to foreign exchange risks such as the fluctuation in exchange rate against policy currency. 16

20 7. The cost of living in the future is likely to be higher than it is today due to inflation, so the benefit may be insufficient to meet your needs even if we meet our contractual obligation. You should hence consider the impact of inflation when you plan the benefit. 8. This plan is an insurance policy issued by Sun Life and your benefits are subject to of the paying ability of Sun Life. In the event that we become insolvent and are unable to meet the contractual obligation under the policy, you may lose all or part of your premiums paid and benefits. Key Exclusions: We will not pay any Terminal Illness claim (other than a claim under Death Benefit provision) directly or indirectly caused by or resulting from any of the following: a. any pre-existing condition which is diagnosed or which the insured contracted prior to the Issue Date or Effective Date of this benefit, or its last date of reinstatement, whichever is later; b. any congenital conditions; c. any human immunodeficiency virus (HIV) and/or any HIV-related illnesses including acquired immune deficiency syndrome (AIDS) and/or any mutations, derivation or variations thereof; d. the insured s attempted suicide or self-inflicted injury, while sane or insane; e. the insured s taking or absorbing, accidentally or otherwise, any intoxicating liquor, drug, narcotic, medicine, sedative or poison, except as prescribed by a Registered Medical Practitioner, as defined in the provisions; or f. the insured s inhaling any gas or fumes, accidentally or otherwise except accidentally in the course of duty. Important Note: This brochure is for reference only. Please refer to a sample Policy Document for details including definitions of capitalized terms, full terms and conditions of coverage, and exclusions. Cancellation Right: By giving us a written request, your policy will then be cancelled and any amounts paid will be refunded, provided that: (1) your written request for cancellation must be signed by you and received directly by our office (8/F, Sun Life Tower, The Gateway, 15 Canton Road, Kowloon, Hong Kong) within 21 days after the delivery of the policy or issue of a notice informing you/your representative about the availability of the policy and the expiry date of the cooling-off period, whichever is the earlier; and (2) no refund can be made if we have paid any proceeds under the policy. 17

21 Welcome to the World of Sun Life Hong Kong Sun Life Hong Kong is a wholly owned subsidiary of the Sun Life Assurance Company of Canada. Since February 22, 1892, Sun Life Hong Kong has been here to helping Hong Kong shine brighter over 125 years by providing excellent products and services. Sun Life Hong Kong is a leading international financial services organization providing a diverse range of products and services to individuals and corporate clients through our professional and experienced distributors. We provide total solutions to address your life and health protection, wealth management, and retirement planning needs. Besides offering a wide range of products, we are also an experienced group benefit and third party administrator in the pension administration business. We truly understand the needs of your various life stages, and offer a wide range of products including Savings & Protection, Health & Accident, Universal Life, and Investment-Linked Assurance Schemes. BRIGHT UL Eternal Builder is part of Sun Life s Universal Life series, providing a flexible financial solution and wealth accumulation plan for you. Sun Life Product Portfolio Savings & Protection Investment-Linked Assurance Schemes (ILAS) Health & Accident Universal Life What s next? You can find out more: Website: Client Service Hotline: App Store: SunGallery Please contact your Advisor

22 This brochure is intended to be distributed in Hong Kong only and shall not be construed as an offer to sell or a solicitation to buy or provision of any products of Sun Life Hong Kong Limited outside Hong Kong. Please refer to a sample Policy Document, which will be provided upon request, for details including definitions, full terms and conditions, and exclusions. If there is any conflict between the Policy Document and this brochure, the Policy Document shall prevail. Sun Life Hong Kong Limited (Incorporated in Bermuda) Sun Life Financial Café 8/F, Sun Life Tower, The Gateway, 15 Canton Road, Kowloon, Hong Kong Client Service Hotline: Fax: E / A member of the Sun Life Financial group of companies. Head Office in Toronto, Canada. Printed in October 2017 Issued by Sun Life Hong Kong Limited