Contents of the Policy Benefit Illustration

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Christopher Summers
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1 Policy enefit Illustration Guide for Universal Life Products (Goal Access, Integrated Protection Plus, Salary Savings Protection Plan) This document serves to guide the policyholders ( You ) to understand the general components of your Policy enefit Illustration. In order to better manage customer expectation, HS Life (International) Limited ( the ompany ) will provide policyholder a Policy enefit Illustration on every policy anniversary, which will be attached to the Annual Statement sent to you by mail. The Policy enefit Illustration will be based on the policy s updated inforce status (e.g. attained age, current sum insured, etc.). The re-projection will start from the policy year in which the re-projection is performed and is based on the updated assumptions derived from the company s current view of the market outlook. Please be aware that the illustrative figures shown in the Policy enefit Illustration are not guaranteed and they are for illustrative purposes only. The actual return may be lower than or higher than the current projected figures. ontents of the Policy enefit Illustration Policy Summary enefit Summary Summary Illustrations Explanatory Notes rediting Interest Rate History (if applicable) Summary Illustration with Alternative rediting Interest Rate (if applicable) Insurance Terminology Glossary (if applicable) 1

2 1. Policy Summary Section 1 provides a summary of your policy details and personal information. XXXXXXXXXXXXX XXXXXXXXXXXXX A A This section shows some basic information of the Life Insured, the Policy Number and the Policy Effective Date. This section shows the Account Value as of re-projection date. Account Value is the accumulation of premiums paid, with interest added less any harges, and less any previously withdrawn amounts in accordance with the terms and conditions of the policy. This section shows the Print Date of the Policy enefit Illustration for possible future reference. Please note that we may not be able to show the policy change requests that are under processing as of the Print Date. 2

3 2. enefit Summary Section 2 shows the current status, i.e. current sum insured, current premium amount, premium payment term, benefit term and current extra rating of your policy, including asic Plan and Supplementary benefits (if any). A A This section shows the current premium amount of each enefit as of the Print Date. This section shows the total current premium as of the Print Date. This section shows all extra adjustment to the standard premium of your policy (if any). It can be either in percentage or amount term. Your current premium amount mentioned in A and will already take into account this extra rating. 3

3. asic Plan and Supplementary enefit Summary Illustration Section 3 shows an updated illustration summary of Account Value, ash/ Surrender Value and Death enefit of your policy at the end of

4 3. asic Plan and Supplementary enefit Summary Illustration Section 3 shows an updated illustration summary of Account Value, ash/ Surrender Value and Death enefit of your policy at the end of different policy years/ at different ages, projected from current policy anniversary to maturity. The calculation is based on your asic Plan including any supplementary benefits (if applicable). A D E 1 2 4

5 A D E Description of the illustration. The illustration shows the policy year in terms of end of policy year (1) and at age (2). When the age of the Life Insured at the end of policy year shown in that row in 1 is the same as that of the row in 2, the respective values under different columns for these two rows will be identical. The projected Account Value, ash/surrender Value and Death enefit under Guaranteed asis and urrent Assumed asis (non-guaranteed) are shown in different columns. ash/surrender Value is the net Account Value of the policy after deduction of any Surrender harges. Figures under the Guaranteed asis are calculated using Guaranteed Minimum rediting Interest Rate and maximum scale of charges. Figures under urrent Assumed asis (non-guaranteed) are calculated using current forecast rediting Interest Rate and current scale of charges (which may be subjected to changes), and therefore are not guaranteed. 5

4. asic Plan Summary Illustration (if applicable) For policies with Supplementary enefit selected, an additional illustration summary will be provided.

6 4. asic Plan Summary Illustration (if applicable) For policies with Supplementary enefit selected, an additional illustration summary will be provided. This section shows an updated illustration summary of Account Value, ash/ Surrender Value and Death enefit of your policy at the end of different policy years/ at different ages, projected from current policy anniversary to maturity. The calculation is based on your asic Plan only excluding any supplementary benefits (if applicable). 6

5. Explantory Notes To enhance information transparency, Section 5 provides you with the explanatory notes which cover all the key assumptions used to prepare the

7 5. Explantory Notes To enhance information transparency, Section 5 provides you with the explanatory notes which cover all the key assumptions used to prepare the benefit illustration. It also includes a number of risk warnings on non-guaranteed benefits, inflation and currency to remind you to be aware of these key product risks. 7

8 6. rediting Interest Rate History (if applicable) Section 6 shows the website of the ompany s rediting Interest Rate history for your reference. However, please note that the past performance or current performance of the ompany s business may not be a guide for future performance. 8

9 7. Appendix I asic Plan and Supplementary enefits (if any) Summary Illustration with Alternative rediting Interest Rate (if applicable) Upon your request, this section will be provided which shows the projected values using a specified Alternative rediting Interest Rate. This illustration summary is prepared based on the latest policy status, assumptions and options as at the re-projection date with assumptions that there are no policy changes in the future and all premiums, including Supplementary enefit Premiums (if any) are paid in full as planned. A The Alternative rediting Interest Rate option provides you an opportunity to obtain the projected values based on an alternative specified crediting interest rate. The rate should not be higher than the crediting interest rate under current assumed basis (nonguaranteed), but higher than the guaranteed minimum crediting interest rate. It can also provide you a projection of policy values due to the changes in the crediting interest rate for your reference. 9

10 A The projected Account Value, ash/surrender Value and Death enefit under urrent Assumed asis (non-guaranteed) and Alternative rediting Interest Rate asis (non-guaranteed) are shown in different columns. Figures under urrent Assumed asis (non-guaranteed) are calculated using current forecast rediting Interest Rate and current scale of charges (which may be subjected to changes), and therefore are not guaranteed. Figures under Alternative rediting Interest Rate asis (non-guaranteed) are calculated using alternative crediting interest rate and current scale of charges (which may be subjected to changes), and therefore are not guaranteed. 10

8. Insurance Terminology Glossary Section 8 shows a list of new insurance terminologies to be used for the purpose of reading the policy provisions and related policy documents and their general

11 8. Insurance Terminology Glossary Section 8 shows a list of new insurance terminologies to be used for the purpose of reading the policy provisions and related policy documents and their general meanings. This section is only applicable to the inforce policies with insurance proposal date before 1 July Issued by HS Life (International) Limited Incorporated in ermuda with limited liability 11

Contents of the Policy Benefit Illustration

Contents of the Policy Benefit Illustration Policy enefit Illustration Guide for Participating Products This document serves to guide the policyholders ( You ) to understand the general components of your Policy enefit Illustration. To better manage