MediCash Lifetime Insurance Plan

Transcription

1 MediCash Lifetime Insurance Plan A Complete Protection to Last a Life Time Youth and health may be your strongest assets, yet potential health problems may emerge as you age, straining your finances when you least expect it. That is why you need the most comprehensive protection that stays with you for life, safeguarding your health along the way. Hang Seng Insurance Company Limited ( Hang Seng Insurance ) designed MediCash Lifetime Insurance Plan ("MediCash" /this "Plan") to provide comprehensive coverage to the age of 99, plus projected Annual Dividends and Guaranteed Cash Value to help you realise your savings plans. Prepare today for a future free of worry. Comprehensive protection that addresses your future needs Fixed cash benefit (1) to the age of 99 (2) MediCash offers protection to the Life Insured up to the age of 99 (2). If the Life Insured is hospitalised as a result of an accident or illness (3), or receives surgical treatment in hospital (3)(4), a fixed cash benefit (1) amount will be payable. MediCash works by setting up a Medical Account for you according to your selected Sum Insured, from which all benefits will be paid out. Provided that your Medical Account limit has not yet been exceeded, the Life Insured can enjoy protection up to 99 years of age (2) regardless of the health condition. Once the limit has been reached or the Life insured reaches 99 (2), the policy will be terminated. Incremental protection to meet future needs The benefit amounts for the Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5) will automatically be increased (8) by 5% of their respective initial benefit amounts (7) each year while the Life Insured is between the ages of 65 and 84 (6). Once the Life Insured reaches 84 (6), the respective benefits will be doubled (8), helping you to cope with rising medical expenses. Fixed cash benefit (1) for increased versatility MediCash provides cash benefit (1) payments in fixed amounts regardless of your actual medical expenses or claim pay-outs from other group medical plans or medical insurance policies. The payment amounts are determined by the claimable amounts under the Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5), giving you greater flexibility in your finances. A Death Benefit (9) allows your love to endure In the event that the Life Insured has passed away while the policy is in force, the designated beneficiary(ies) will receive a Death Benefit equal to the Sum Insured minus the Total Medical Claims Paid (if any), plus accumulated policy dividends and interest (10) (if any), so that your family will be well cared for. The policy will be terminated upon payment of the Death Benefit. Global Medical Protection Medical coverage under MediCash remains effective in most regions worldwide (11). If the Life Insured is hospitalised as a result of an accident or illness (3), he or she will be entitled to the Medical Benefits outlined in this Plan. Manage your finances at ease with different choices of payment term and fixed premiums The premiums for MediCash are calculated based on the gender, smoking habits and age (12) of the Life Insured upon enrolment. Once the policy comes into effect, the premium will remain level and fixed throughout the policy term. You may also select a payment term of 10, 15 or 20 years to better suit your financial plans. Embrace your life with savings growth Projected policy dividends (10) distribute every year MediCash distributes policy dividends (10) every year. You can choose to withdraw the dividends (10) in cash, or keep them in the policy to accumulate interest (10) and withdraw them at anytime during the policy term to realise your personal goals. Additional flexibility through Cash Value MediCash comes with a Cash Value. Even if you surrender the policy during the policy term, you can withdraw the Net Cash Value of the policy, which is equivalent to the Guaranteed Cash Value minus Total Medical Claims Paid (if any), plus accumulated policy dividends and interest (10) (if any). Once the Cash Value has been withdrawn, the policy will be terminated. P. 1

2 Easy enrolment for timely protection Application for MediCash is easy. Provided that the Life Insured and/or the Policyholder fulfil the requirements of the Plan including Insurance Age (6) and Sum Insured limit, no medical examination will be required (16), making it easier to secure the protection you need (13). MediCash Plan at-a-glance Application Age (12) Payment Term Policy Term Policy Currency Sum Insured of Your Preference Daily Hospital Cash Benefit (5) Surgical Cash Benefit (5) 1-55 years old 1-50 years old 1-45 years old 10 Years 15 Years 20 Years Until Insurance Age (6) of 99 (2) HK or US Dollars Minimum Sum Insured: HK$200,000 or US$25,000 Maximum Sum Insured: HK$2,400,000 or US$300,000 (14) Daily Hospital Cash Benefit (5) is calculated in accordance with the number of days of confinement in hospital and will be deducted from the Medical Account. For every 24 consecutive hours that the Life Insured stays in a hospital will be regarded as one-day hospital confinement. If the initial hospital confinement duration is not less than 18 hours and a charge of daily room and board by the hospital is incurred, this will be regarded as the first day of hospital confinement. Daily Hospital Cash Benefit (5) Amount: 0.25% of Sum Insured or the maximum benefit amount (whichever is lower) Maximum benefit amount (15) : HK$2,000 or US$250 Maximum Period Payable: 365 days per confinement (16). If two or more hospital confinements are caused by the same or related injury, sickness, disease or illness, those hospital confinements will be regarded as one single hospital confinement provided that each of them is not separated by more than 90 days from the date of discharge of the immediately preceding related hospital confinement. Surgical Cash Benefit (5) : Benefit amount based on the Sum Insured or the maximum benefit amount (15) (whichever is lower) Classification of Surgery Complex Major Intermediate Minor Benefit amount based on the Sum Insured 20% of Sum Insured 12% of Sum Insured 6% of Sum Insured 3% of Sum Insured Maximum benefit amount (15) HKD USD $120,000 $15,000 $72,000 $9,000 $36,000 $4,500 $18,000 $2,250 For surgical procedures or operations required during hospitalisation (3)(4), this Plan will pay the Surgical Cash Benefit (5) for the related surgical procedures or operations according to the Classification Schedule of Surgical Operations. If the Life Insured has undergone surgical procedures or operations (3)(4) due to same or different sickness, disease, illness or injury during one single hospital confinement, Hang Seng Insurance will only pay the Surgical Cash Benefit (5) for the surgical procedures or operations which provides the highest benefit amount according to the Classification of Surgery. If a Surgical Cash Benefit (5) has been claimed by the Life Insured and afterwards, another surgery(ies) (3)(4) due to the same injury, sickness, disease or illness is / are performed in subsequent hospital confinement(s), whilst the time gap between each hospital confinement (3) is not more than 90 days, counting from the date of discharge of the immediately preceding hospital confinement to the start date of subsequent hospital confinement, then the Surgical Cash Benefit (5) payable during these hospital confinements will be calculated with reference to the surgery (3)(4) with the highest Surgical Cash Benefit (7) after deducting the amount of Surgical Cash Benefit (5) already paid. P. 2

3 Features of Premium Global Coverage Supplemental Benefit (Additional premium required, and should be enrolled at the time of the application or within the premium payment period for this plan) Others Level and fixed once the policy is issued (17) Benefit Areas: Hong Kong SAR, Macau SAR, Singapore, Malaysia, Japan, Taiwan, United Kingdom, Thailand, South Korea, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxemburg, Monaco, Netherlands, Norway, Spain, Portugal, Sweden, Switzerland, USA, Canada, Australia and New Zealand. If the Life Insured requires hospital confinement or undergoes surgical procedure (3)(4) during hospitalisation outside the Benefit Areas: Benefit amounts of Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5) : Reduced by 50% of the respective benefit amounts mentioned in this table. For the Hospital Confinement or the surgery procedure (3)(4) / operation performed in the People's Republic of China, "Hang Seng Insurance" will only process claims in relation to the Daily Hospital Cash Benefit (5) or Surgical Cash Benefit (5) if such Hospital Confinement or surgery procedure (3)(4) / operation is occurred in a Class 3 Grade A hospitals or above (18) in Mainland China. The Maximum Period Payable for each hospital confinement (16) : 90 days (1) Waiver of Premium on Disability Benefit (19) (2) Payor's Benefit (20) Policy loan is not available and the policy is not assignable as collateral for applying for a loan. And increase in Sum Insured is not applicable. Frequently Asked Questions Q: Are there any different effective dates (17) for the benefits covered in this Plan? A: Life protection and Medical Benefits for injury due to accident take effect immediately from the Policy Date. Medical Benefits for tonsils, adenoids or any diseases peculiar to the female generative organs will be payable 120 days after the Issue Date of the policy. Other Medical Benefits will be payable 30 days after the Issue Date of the policy. Q: If the Sum Insured of my policy is HK$500,000 and no adjustment has ever been made, how will the Indexation of Medical Benefits apply? When I reach the Insurance Ages (6) of 65 and 66, what are the changes to my Medical Account, Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5)? A: The benefit amount for your medical protection will automatically be increased (8) by 5% of initial benefit amount (7) every year between the Insurance Ages (6) of 65 and 84. Example (in HKD): Medical Account $500,000 (The Sum Insured or Medical Account balance will not be increased. Assuming that no claim has ever been made, the Medical Account balance shall remain unchanged.) Medical Protection The benefit amounts without indexation (8) at the end of the Insurance Age (6) of 64 (This is the initial benefit amount (7) which will be used as the calculation basis for the annual indexation (8) ) The benefit amounts after indexation (8) at the Insurance Age (6) of 65 (The benefit amount of medical protection has been increased (8) by 5% of the initial benefit amount (7) ) The benefit amounts after indexation (8) at the Insurance Age (6) of 66 (The benefit amount of medical protection has been increased (8) by another 5% of the initial benefit amount (7) ) Daily Hospital Cash Benefit (7) $1,250 $1,312.5 ($1,250 x 105%) $1,375 ($1,250 x 110%) Surgical Cash Benefit (7) Complex Surgery $100,000 $105,000 ($100,000 x 105%) $110,000 ($100,000 x 110%) Major Surgery $60,000 $63,000 ($60,000 x 105%) $66,000 ($60,000 x 110%) Intermediate Surgery $30,000 $31,500 ($30,000 x 105%) $33,000 ($30,000 x 110%) Minor Surgery $15,000 $15,750 ($15,000 x 105%) $16,500 ($15,000 x 110%) P. 3

4 The example assumes: (1) The policy is in force (2) All premiums are paid in full when due Q: Are there any restrictions on the Benefit Areas of this Plan? A: The Benefit Areas of this Plan cover many countries. Please refer to the Global Coverage in the MediCash Plan at-a-glance of this factsheet. If you are confined in a hospital and require surgical procedure (3)(4) outside the Benefit Areas, the benefit amounts for the Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5) will be reduced by 50% accordingly and the Maximum Period Payable for each hospital confinement (16) is 90 days. Q: What is the definition of "Hospital Confinement" or "Hospitalisation"? If I undergo a minor surgery (3)(4) in a clinic, will I receive Medical Benefits under this Plan? A: Hospital Confinement or Hospitalisation refers to a period of continuous confinement in a hospital before discharge, which confinement duration is not less than 18 hours and a charge for daily room and board by the hospital is incurred. No benefit will be payable if the surgery (3)(4) is undergone in a clinic. Q: The minimum confinement duration is 18 hours, so what is defined as a day of hospital confinement? A: For every 24 consecutive hours that a Life Insured stays in a hospital will be regarded as one-day hospital confinement. If the confinement duration is not less than 18 hours and a charge of daily room and board by the hospital is incurred, this will be regarded as the first day of hospital confinement. Q: Is the Classification of Surgery listed in the policy? How are the common surgeries (3)(4) classified? A: The Classification of Surgery is listed in the Classification Schedule of Surgical Operation ( Classification Schedule ) of the policy. We will send the Classification Schedule to you together with your policy upon its issuance. Hang Seng Insurance reserves the final decision on the classification of surgery and has the absolute discretion to determine the surgeries (3)(4) which are not set out in the Classification Schedule. Hang Seng Insurance may revise or amend the Classification Schedule as appropriate or necessary from time to time without prior notice. The following are the common surgeries (3)(4) and their classification (for reference only): Classification of Surgery Complex Major Intermediate Minor Surgery Example Coronary artery bypass graft (bypass) Excision of Aneurysm Complete pneumonectomy Hemihepatectomy Percutaneous transluminal coronary angioplasty (PTCA) Extraction of Cataract Cholecystectomy / Removal of gallbladder Excision of uterine fibroid / Excision of ovarian cyst Removal of appendix / Appendectomy Colonoscopic polypectomy Excision of lymph node (deep) Excision of pile / Haemorroidectomy Endoscopic biopsy of lung Dilation & curettage of uterus (D & C) Oesophogastroduodenoscopy (OGD) Ligation of pile Q: When do I need to submit the claim application and who can I call if I have enquiries on a claim? A: Under normal circumstances, you should submit the claim application to Hang Seng Insurance within 60 days after the completion of surgery treatment (3)(4) or hospitalisation. You may call our Claims Hotline at and our Customer Service Representative will be pleased to provide you with assistance. P. 4

5 Key Exclusions 1. Congenital conditions; 2. Pre-existing conditions; 3. Illness or surgical procedure occurring within 30 days after the Issue Date of the policy (Except treatment for injury caused by accident); 4. Treatment or surgical procedures for tonsils, adenoids or any diseases peculiar to the female generative organs within 120 days after the Issue Date of the policy; 5. Intentional self-inflicted injury or attempted suicide; 6. Dental care and treatment, eye glasses or hearing aids, beauty and cosmetic surgical procedure; 7. Hospital treatment associated with pregnancy, birth and infertility; 8. Hospital treatment for drug abuse, alcohol, AIDS, sexually transmitted disease, psychiatric or mental disorders and inborn disability; 9. Hospital treatment due to war or suicide; 10. Physical examinations, health check-ups or tests not incidental to treatment or diagnosis of a covered injury or disease or illness or any treatments which are not medically necessary. Supplemental Benefit (Additional premium required, and should be added at the time of application or within premium payment period): Waiver Of Premium On Disability Benefit (19) No premium will be waived if Disability was resulted from any of the following: (i) any pre-existing condition from which the Life Insured was suffering prior to the issue date of this Benefit (unless Hang Seng Insurance have agreed in an endorsement to this Policy that such condition will not be excluded); (ii) wilful self-inflicted injury; (iii) insanity or mental infirmity or disease; (iv) committing or trying to commit a criminal offence; (v) taking or absorbing any drug, medicine, sedative or poison, except as prescribed by a Registered Medical Practitioner; (vi) engaging in hazardous sports, other than those stated in the application. Payor s Benefit (20) No Premium will be waived by "Hang Seng Insurance" if the Payor commits suicide within one year after the Issue Date of the Policy or the effective date of this Benefit or the effective date of last reinstatement, whichever is the latest, or if Disability was resulted from any of the following: (i) any pre-existing condition from which the Payor was suffering prior to or on the Issue Date of the Policy or effective date of this Benefit or the effective date of last reinstatement, whichever is the latest (unless Hang Seng Insurance have agreed in an endorsement to the Policy that such condition will not be excluded); (ii) wilful self-inflicted injury; (iii) insanity or mental infirmity or mental disease; (iv) committing or trying to commit a criminal offence; (v) taking or absorbing any drug, medicine, sedative or poison, except as prescribed by a Registered Doctor; (vi) engaging in hazardous sports, other than those stated in the application. The above are only the major exclusions, for details of the exclusions, please refer to the relevant policy provision. Notes: (1) Hang Seng Insurance offers no recommendation or guarantee as to whether the benefit to be received from other insurance companies or medical benefits providers would be affected if benefit for the same claims is received from Hang Seng Insurance. You are required to check with the relevant companies on this. In the event that the Life Insured is covered by more than one MediCash policy, please refer to MediCash Plan at-a-glance for the maximum benefit payable on Daily Hospital Cash Benefit (5) and Surgery Cash Benefit (5). (2) After the policy takes effect, you shall be entitled to a Medical Account with value equivalent to the Sum Insured of the policy to settle the respective medical claims covered under the policy provisions. As long as your Medical Account has a positive balance, the policy shall remain in force until the Insurance Age (6) of 99. Your policy will be automatically terminated once your Medical Account balance reaches zero. (3) The surgical treatment (4) and hospital confinement received by the Life Insured must be medically necessary, meaning medical services which are necessary for the care or treatment of the sickness, disease, illness or injury and which are consistent with the diagnosis and customary medical treatment for medical condition; and are also in accordance with good and prudent medical practice. (4) The surgical procedures (4) or operations for the Life Insured must be certified by a Registered Doctor and must be performed in a hospital by a Registered Doctor who is qualified in a specialty suitable for the surgical procedure involved. (5) The amounts of Daily Hospital Cash Benefit and Surgical Cash Benefit are calculated based on the Sum Insured and cannot be higher than the maximum benefit amount mentioned in MediCash Plan at-a-glance of this factsheet. (6) Insurance Age means, at any date, the age of the Life Insured or Policyholder (if applicable) on the most recent birthday prior to the Policy Date plus the number of completed Policy Years. If the Life Insured s or Policyholder s (if applicable) birthday is on the Policy Date, it will be calculated based on the age on such Policy Date. (7) Initial benefit amount refers to the benefit amount before indexation (8) at the end of Insurance Age (6) of 64. If the Sum Insured has been adjusted during the Insurance Age (6) between 65 and 84, the respective initial benefit amount will be adjusted accordingly. For details of the Sum Insured adjustment, please refer to the relevant policy provisions. (8) The indexation is not applicable to the Sum Insured and / or Medical Account, and assuming that no adjustment has been made in the Sum Insured between the Insurance Age (6) of 65 and 84. The maximum benefit amount for Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5) mentioned in MediCash Plan at-a-glance of this factsheet will also be increased by 5% every year accordingly (based on the initial maximum benefit amount). (9) If the Life Insured dies by suicide, whether sane or insane, within one year of the later of the Issue Date and the effective date of reinstatement, the liability of Hang Seng Insurance will be limited to any amount paid to Hang Seng Insurance by the Policyholder under the Policy less any amount paid by Hang Seng Insurance under the Policy in respect of coverage since such date. (10) Policy dividends and interest rate used for policy dividends accumulation are not guaranteed. Please refer to Illustration Summary for current accumulation interest rate. (11) If the Life Insured is hospitalised outside the Benefit Areas, the related benefit amount and Maximum Period Payable for the benefits will be reduced accordingly. Please refer to the Global Coverage in MediCash Plan at-a-glance of this factsheet for details. (12) Application Age means, at any date, the age of the Life Insured or Policyholder on the most recent birthday prior to the Policy Date. If the Life Insured s or Policyholder s birthday is on the Policy Date, it will be calculated based on the age on such Policy Date. (13) This Plan is subject to the relevant requirements on nationality, and / or addresses of the Policyholder and / or Life Insured as determined by Hang Seng Insurance from time to time. Hang Seng Insurance reserves the right to accept or decline any applications for the Plan based on the information provided by the Life Insured and / or Policyholder during enrolment. (14) If the Life Insured is holding a valid Chinese Mainland ID document, the maximum Sum Insured is HK$800,000 or US$100,000. P. 5

6 (15) If the Life Insured applies for more than one MediCash, the maximum benefit amount of Daily Hospital Benefit (5) and Surgical Cash Benefit (5) will be calculated with reference to each Life Insured, but not on per policy basis. The claimed amount shall not exceed the maximum benefit amount of Daily Hospital Cash Benefit (5) and Surgical Cash Benefit (5) mentioned in MediCash Plan at-a-glance of this factsheet. The maximum benefit amount will be automatically increased (8) by 5% every year (based on the initial maximum benefit amount) between the Insurance Age (6) of 65 and 84. The Medical Benefits under the first issued policy will be payable by Hang Seng Insurance first, followed by the second issued policy, and so on. (16) A single Hospital Confinement, or two or more Hospital Confinements, may be regarded as one single Hospital Confinement. (17) No benefit will be given under this Plan for hospitalisation or surgical treatment (3)(4) for tonsils, adenoids or any diseases peculiar to female generative organs within 120 days after the Issue Date of the policy. The Medical Benefits related to sickness, disease or illness will be effective after 30 days of the Issue Date of the policy. (18) Class 3 Grade A hospitals or above shall mean any of the hospitals formally assessed and rated by the Mainland Government Ministry of Health of the PRC as a Class III Grade A hospital or above excluding mental hospitals, clinics for prevention and control of specific diseases, and medical institutions which do not operate for the purpose of providing direct medical treatment of illnesses of patients but operate primarily for rehabilitation, convalescence, drug addiction treatment, alcohol addiction treatment, nursing, aged care or cosmetology. The hospital must be equipped with medical equipment and facilities that meets the standard required by the relevant hospital management regulations in the PRC, and must provide 24 hours per day in-patient medical and nursing services rendered by Registered Doctors and nurses. (19) Waiver of Premium on Disability Benefit refers to the case that the Life Insured becomes disabled caused by accident or illness and unable to work for at least 183 consecutive days before the Insurance Age (6) of 65, all premiums due and payable during the period of disability will be waived until the recovery of the Life Insured, the Life Insured reaches the Insurance Age (6) of 65 or until the end of premium payment term (whichever is the earliest). Waiver of Premium on Disability Benefit is only applicable to the Life Insured at the Insurance Age (6) of 18 or above. The Life Insured must hold a valid Hong Kong or Macau identity card. Please refer to the Supplemental Benefit of Waiver of Premium on Disability Benefit for full details and conditions. (20) Payor s Benefit refers to the case that in the unfortunate event of death of the payor during the period of Payment Term, payment of each premium (including premium paid for Supplemental Benefits) falling due thereafter until the end of the Waiver Period will be waived; if the payor becomes disabled caused by accident or illness and unable to work for at least 183 consecutive days, all premiums due and payable during the period of disability will be waived until the Life Insured reaches the Insurance Age (6) of 25 or until the payor reaches the Insurance Age (6) of 65 (whichever is earlier). Payor s Benefit is only applicable to the Life Insured with Insurance Age (6) of 17 or below at the time of application, and the payor with Insurance Age (6) of 18 to 55 at the time of application. The payor must be a Hong Kong or Macau valid identity card holder to be eligible for this benefits. Please refer to the Supplemental Benefit of Payor s Benefit for full details and conditions. Product risks Credit risk The benefits of this Plan are subject to the credit risk of Hang Seng Insurance. Policy benefits include Death Benefit, surrender benefit and maturity benefit (if applicable) etc. The premium that you pay will become parts of Hang Seng Insurance s assets, and the life insurance plans of Hang Seng Insurance involve policy benefits such as Death Benefit, surrender benefit and maturity benefit payable to the Policyholders or beneficiaries by Hang Seng Insurance. You should bear the credit risk associated with Hang Seng Insurance [i.e. the risk that Hang Seng Insurance may not be able to deliver its obligations bound by the policies (including the payment of policy benefits) due to financial difficulties]. Risk affecting Non-guaranteed benefit determination The scales for calculating dividends (10) are not guaranteed and are determined by the Hang Seng Insurance from time to time. Whether dividends (10) are payable and the size of the dividends (10) to be paid depend on the performance of relevant participating policies with regard to investment returns on the assets supporting the policies under this Plan, as well as other factors including but not limited to claims, persistency experience, expenses, and the long term future performance outlook (both economic and non-economic factors). The key risk factors are further described below: Investment risk factors The investment performance of the assets supporting the policies is subject to various market risk factors including but not limited to: - Interest rate risk The risk that the interest earnings and the values of assets will be affected by the change of interest rate level and its outlook, which leads to investment loss. - Equity risk The risk that the prices and volatilities of equity type investments and alternative investments will change, which leads to investment loss. - Credit risk The risk of investment losses due to the default or change in credit quality of issuers of debt securities or counterparties. - Currency risk The risk that the values of investments that are in other currencies different from the policy currency will be affected by the change of exchange rates. Claims factor The actual experience of mortality and morbidity is uncertain which may lead to a higher than expected claim or living benefit payment and result in worse performance. Persistency factor The actual experience of policy surrender (full or partial) and policy lapse is uncertain, and therefore it has impact on both the current performance and future return of the portfolio of the policies. Expense factor The actual amount of expenses incurred and apportioned to the group of policies may be higher than expected and impact the overall performance of the product. The expenses may include direct expenses which are specifically related to the group of policies, such as commission, underwriting, policy acquisition and maintenance expenses. It may also include indirect expenses such as general overhead costs which will be allocated to the group of policies. The interests earned on the accumulated dividends (10) are determined based on an interest rate which is not guaranteed and may be adjusted by Hang Seng Insurance at its discretion from time to time. Please refer to section "Notes on Participating Policy" for the detail. P. 6

7 Risk from the delay of or missing the payment of premiums due You should pay the premium for the entire premium payment term when due. Any delay or missing of the payment of premiums due may lead to policy lapse, and the amount (if any) you get back may be significantly less than your premiums paid. Risks from Surrender If you surrender the policy after the expiry of the cooling-off period, the surrender proceeds to be received may be significantly less than the total premium paid. Please refer to the illustration summary of this Plan for the projected surrender values. All details regarding policy surrender should be referred to the relevant policy provisions. Liquidity risk This policy is designed to be held for a long term period. Should you have liquidity needs for any unexpected events, you may surrender the policy in full subject to the respective policy terms. However, this may cause the policy to lapse or to be terminated earlier than the original policy term, and the amount (if any) you get back may be significantly less than the premiums paid. You may also apply for withdrawal of any amounts that are left within the policy to accumulate but the amount available for withdrawal is not guaranteed and the amount of death benefit and cash value will reduce accordingly subsequent to the withdrawal. Inflation risk Cost of living is likely to be higher in the future than it is today due to inflation, therefore you may receive less from the policy in real term in the future even if Hang Seng Insurance meets all of its contractual obligations. Policy currency risk By choosing the plans denominated in currencies other than local currency, you are subject to exchange rate risk. Exchange rate fluctuates from time to time. Upon the currency conversion, you may suffer a loss of your benefit values and the subsequent premium payments (if any) may be higher than your initial premium payment as a result of the exchange rate fluctuations. You have considered the aforesaid exchange rate risk factors, conversion arrangement and the potential loss associated before applying for the Plan. Important notes Cooling-off period MediCash is an insurance plan with a savings element and not any kind of bank deposit. Part of the premium pays for the insurance and related costs. If you are not satisfied with your policy, you have the right to cancel it within the cooling-off period (that is, 21 days after the delivery of the policy or in 21 days after the issue of notice that informing you/your representative about the availability of the policy and expiry date of the cooling-off period, whichever is earlier) and obtain a refund of any premiums paid. A written notice signed by you should be received by Hang Seng Insurance Office at 18/F, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong within the cooling-off period. After the expiration of the cooling-off period, if you cancel the policy before the end of the term, the projected total cash value upon surrender may be less than the total premium you have paid. Grace Period The Plan offers a Grace Period of 30 days for payment of any premium when due. If a premium is not paid by the end of the Grace Period, this policy will be immediately lapsed with effect as at the due date of the first unpaid premium. Policy termination condition Hang Seng Insurance has the right to terminate your policy under any of the following circumstances, If you cannot make the premium payment by the end of a 30-day Grace Period, your policy will be immediately lapsed with effect as at the due date of the first unpaid premium. After the Policy lapses, any Net Cash Value as at the premium due date will be paid to the Policyholder. If Hang Seng Insurance reasonably considers that by continuing the policy or the relationship with you, Hang Seng Insurance may break any laws, or Hang Seng Insurance or a member of the HSBC Group, may be exposed to action censure from any authorities. For details of the above, please refer to the relevant terms and conditions in the policy provision. Philosophy in deciding the dividends, investment policy and strategy For details of the philosophy in deciding the dividends, investment policy and strategy, please refer to section Notes on Participating Policy. For the most updated information on dividends, investment policy and strategy, and the historical fulfillment ratios of this Plan, please refer to the Company website: Commission disclosure The Hang Seng Insurance would provide Hang Seng Bank Limited ( Hang Seng Bank ) the relevant commission and performance bonus in accordance to the selling of this plan. The existing sales staff remuneration policy employed by Hang Seng Bank will take various aspects of the staff members' performance into account and will not solely consider the sales amount. P. 7

8 Dispute resolution Hang Seng Bank is an insurance agent authorised by Hang Seng Insurance and the product is a product of Hang Seng Insurance but not Hang Seng Bank ; and In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between Hang Seng Bank and you out of the selling process or processing of the related insurance product transaction, Hang Seng Bank will enter into a Financial Dispute Resolution Scheme process with you; however any disputes over the contractual terms of the insurance products should be resolved between Hang Seng Insurance and you directly. MediCash is underwritten by Hang Seng Insurance Company Limited which is authorised and regulated by the Insurance Authority of the HKSAR. Hang Seng Bank is an insurance agent authorised by Hang Seng Insurance Company Limited. Customer Enquiry hangseng.com Tax Reporting and Financial Crime Hang Seng Insurance and other members of the HSBC Group have certain obligations to Hong Kong and foreign legal or regulatory bodies and government or tax authorities, and are bound by HSBC Group s requirements, regarding you and your policy and Hang Seng Insurance may from time to time request consent and information from you in relation to these obligations and requirements. There are consequences, which will be set out in your policy terms, if you fail to provide consent or information that is requested from you to Hang Seng Insurance or if you present a financial crime risk to a member of the HSBC Group. Such consequences include that Hang Seng Insurance may: take actions that are necessary to enable it or a member of the HSBC Group to meet these obligations and requirements; be unable to provide new, or continue to provide all of the services to you; be required to withhold payments or benefits that would otherwise be due to you or your policy and permanently pay those over to tax authorities; and terminate your policy. The amount you get back from the policy in the event of benefits or payments withholding and/or policy termination by Hang Seng Insurance as mentioned above plus the total amount that you have received from the policy (if any) before policy termination may be less than the total amount of the premium(s) you have paid. Hang Seng Insurance recommends that you seek your own independent professional advice on your tax liabilities. This product brochure is issued by Hang Seng Insurance. It contains only a consolidated summary of this Plan and is for reference only. You should read this product brochure in conjunction with the respective product factsheet(s), Notes on Participating Policy and illustration and refer to the policy provisions for the detailed terms and conditions and charges of this Plan. Please refer to the relevant policy for exact terms, conditions and exclusions of this Plan, and the policy will be considered final. For details of this Plan and the policy terms, please contact any Hang Seng Bank branch. Hang Seng Insurance will provide a specimen copy of the policy provision upon request. P. 8

9 Notes on Participating policy Hang Seng Insurance issues participating policies, which are life insurance contracts providing both guaranteed and non-guaranteed benefits. The guaranteed benefits may include the following: 1) guaranteed death benefits, 2) guaranteed cash values, 3) guaranteed annuity payments and 4) guaranteed maturity values. The non-guaranteed benefits include policy dividends, which may be paid or varied at the discretion of Hang Seng Insurance. The policy dividend of this Plan, if any, is in form of annual dividend which is declared by Hang Seng Insurance on an annual basis. Once declared, the amount of annual dividend for the year becomes vested and will be credited to your policy. The key feature of participating policies over other forms of insurance policies is that in addition to the guaranteed benefits receivable, policyholders will also benefit from additional dividend payments if the performance of relevant participating policies is better than which required to support the underlying guarantees. The better the performance, the greater the annual dividend payments, and, conversely, the worse the performance, the lower the annual dividend payments. Dividend Philosophy Annual dividend allows policyholders to participate in the financial performance of the life insurance operations. Whether annual dividend is payable and the size of the dividend which Hang Seng Insurance distributes or pays depend on the performance of relevant participating policies with regard to investment returns on the assets supporting the policies, as well as other factors including but not limited to claims, persistency, expenses, and the long term future performance outlook (both economic and non-economic factors). Performance of policies managed similarly are pooled together when deciding the amount of annual dividend to be paid. Please refer to section Product risks - Risk affecting Non-guaranteed benefit determination on the product brochure for the detail of key risk factors. Hang Seng Insurance conducts regular review on the level of annual dividend payable to policyholders. Both actual performance in the past and management's outlook of long-term future performance will be assessed against expected (assumptions underlying the prevailing dividend scale of us), if there are variances, they will then be considered sharing with policyholders through the adjustment of annual dividend scales. If the performance over the long term is better than expected, then the annual dividend amount paid would increase. If performance is worse than expected, then annual dividend amount paid would decrease. When considering the adjustment of annual dividend scales, Hang Seng Insurance operates a smoothing philosophy. The level of annual dividend will only be changed if the actual performance is significantly different from the expected over a certain period of time or if management s expectation of long-term future performance changes. In order to achieve broad fairness among policyholders of participating products, Hang Seng Insurance will carefully consider the experiences of different groups of policies so that each group of policies will receive a fair return reflecting mostly its own performance. Hang Seng Insurance has also established a dedicated committee to review the fairness of treatment to policyholders and to provide independent advice on the management of the participating policies and the determination of dividend level. Investment Strategy Hang Seng Insurance operates an investment strategy with key objectives as follows: i. Ensure that we can meet the guaranteed benefits that we have committed to you; ii. Deliver to you competitive long-term returns through the non-guaranteed policy dividends; and iii. Abide by a pre-defined set of risk appetite. Participating Policy (Policy Currency: HKD / USD) The assets supporting the participating policies assets are carefully managed and monitored according to a predefined set of risk appetite. The asset portfolio predominantly consists of fixed income assets issued by government and corporate entities with good credit quality and long term prospects. Growth assets, including equity, property, hedge fund, private equity and etc. are managed on prudent basis and utilized in order to enhance investment performance in the long run. Subject to our investment strategy, derivatives may be used for hedging or efficient portfolio management. The asset portfolio is well diversified in different types of assets, and is invested in different geographical markets (mainly Asia, US and Europe) and industries. Investment for fixed income assets are mainly in HKD and USD to match the currency of the underlying policies while growth assets are invested in various currencies for diversification. P. 9

10 Target Asset Allocation The current long-term target strategy is to allocate assets attributed to this product as follows: Asset Type Fixed Income Growth Assets Allocation % Participating Policy (Policy Currency: HKD / USD) 80%-100% 0%-20% There could be slight deviation from the above range due to market fluctuation. Actual allocations will take into consideration past investment performance of the assets supporting the policies, prevailing market conditions and future outlook, and the guaranteed and non-guaranteed benefits of the policies. As the performance of the growth assets investment plays an important role in determining the level of non-guaranteed benefits, under normal circumstances and free from any investment and operational constraints, it is expected that the allocation to growth assets will fall within the higher end of the range as specified, in order to optimize the chance of achieving the illustrated level of non-guaranteed benefits. The management and investment strategy of the asset portfolio may be subject to change depending on the market conditions and economic outlook, and we would inform policy owners should there be any material changes. Accumulation interest rate Policyholders can choose to accept their policy dividends, and/or endowment coupon and/ or annuity payments either in cash or to leave them with Hang Seng Insurance to accumulate with interests (if applicable). The rates of interests are not guaranteed and will be determined by Hang Seng Insurance from time to time. The review on such accumulation interest rates will be conducted regularly with reference to the portfolio bond yields, prevailing market conditions, outlook on bond yields, and the likelihood of policyholders leaving their payment for accumulation. The policy in determining the policy dividends and accumulation interest rates may be reviewed and adjusted by "Hang Seng Insurance" from time to time. For more updated information, please visit You may also visit the above website to understand the historical fulfilment ratio of dividend distribution for reference purposes. However, the past performance or current performance of "Hang Seng Insurance" s business may not be a guide for future performances. 如你欲索取此計劃之中文版產品冊子, 請聯絡 生銀行 之分行職員或致電 生保險 熱線 PPL455-R14 (09/17) (LT) P. 10