Splendid Universal Life Insurance Plan

Transcription

1 Page 1 Splendid Universal Life Insurance Plan Paves the way to a delightful life with flexibility Splendid Universal Life Insurance Plan ( Splendid or The Plan ) is a life insurance plan and is not a bank deposit. It is underwritten by Hang Seng Insurance Company Limited ( Hang Seng Insurance ). Set Course for A Life Well Lived Because detailed planning is essential for realising your dreams and goals in different life milestone, you need a comprehensive protection solution to ensure smooth sailing. Hang Seng Insurance specially presents you with the Splendid, providing you a long term and comprehensive life protection and flexible financial solution. With adjustable Sum Insured, Premium terms, and cash withdrawal at any time to suit your need, you can enjoy the versatility you need to embark the life journeys. I d like to assure my family with a comprehensive insurance protection. Mr Lee, aged 41 with a young daughter who just turned three. A thoughtful protection for your beloved Splendid offers you and your loved ones with extensive protection via both embedded and optional supplemental benefit. Life Coverage If the Life Insured has passed away while the policy is in force, the Death Benefit will be payable to the beneficiary(ies) in a lump sum equal to: The Sum Insured amount less any withdrawal amount (before any Surrender Charge) made from 12 months preceding the date of death of the Life Insured to the claim approval date; or Account Value, whichever is higher, less any outstanding charges and any Indebtedness (if any). The Account Value is determined by the date of the written notification of the Life Insured s death being received by Hang Seng Insurance. A positive Account Value must be maintained for the Plan to be in force. If the Account Value is insufficient to pay all Policy Charges for 45 consecutive days, the policy will be lapsed. Embedded Supplemental Benefits Splendid is embedded with Terminal Illness Benefit (1), Waiver of Premium on Disability Benefit (2) and Payor s Benefit (3) with no additional premium. Terminal Illness Benefit (1) : If the Life Insured is diagnosed with a Terminal Illness when the policy is in force, and death may occur within 12 months after the date of confirmed diagnosis, Hang Seng Insurance will pay you a 100% of the basic plan Death Benefit in advance to provide your family financial support. Upon the payment of this benefit, the policy will be terminated. Waiver of Premium on Disability Benefit (2) : If in the unfortunate event that the Life Insured becomes disabled before the Insurance Age (4) of 65 due to disease or bodily injury, and is unable to work for at least 183 consecutive days, Hang Seng Insurance will pay Planned Premiums (5) and any Supplemental Benefit Premiums (6) on your behalf during such disability period to ease financial burdens until termination of the premium payment period or the Waiver of Premium on Disability Benefit (2) (whichever is earlier). Payor s Benefit (3) : If the Payor dies or becomes disabled due to disease or bodily injury and is unable to work for 183 consecutive days or more during the Premium payment period and before the Insurance Age (4) of 65, Hang Seng Insurance will pay Planned Premiums (5) and any Supplemental Benefit Premiums (6) on your behalf during such disability period or until the Life Insured s Insurance Age (4) is 25 or until the Payor s Insurance Age (4) is 65 (whichever is the earliest).

2 Page 2 Optional Supplemental Benefit You can add the following optional supplemental benefit to meet personal needs: Critical Illness Benefit (Advance Payment) (7) : This Supplemental Benefit provides Life Insured with 59 Critical Illnesses, which include common critical illnesses like cancer, stroke and heart disease up until the Insurance Age (4) of 99. If the Life Insured is diagnosed with any one of the covered Critical Illnesses 90 days after the Policy issue date, Hang Seng Insurance will pay you an advance payment equals to 100% of the Death Benefit of the Basic Plan. The benefit of the basic plan shall be terminated upon payment of Death Benefit. I hope to have a steady growth of my wealth and can be flexibly used to accommodate my future plans. Mr Chan, aged 30 and planning to get married in five years. Financial Flexibility to Cater for Individual Needs Your financial needs and life goals may evolve from one life stage to the next. With Splendid, you have the flexibility to make financial plan and grasp your future. Adjustable Sum Insured You can adjust the Sum Insured according to your protection needs at specific time period. For Regular Premium Policy, Sum Insured can be adjusted at the end of the premium payment period. For a Single Premium policy, it can be adjusted on or after the first Policy Anniversary. Notes: Increasing the Sum Insured is subject to (i) underwriting; and (ii) increase in the Policy Expense Charge and Insurance Charge. Please refer to Policy Expense Charge and Insurance Charge under Policy Charges for details. Reducing the Sum Insured may induce Surrender Charge. Please see Surrender Charge under Policy Charges for details. Flexible Premium Payment Methods The Plan provides 2 types of premium: Planned Premium (5) and Unscheduled Premium (8). Planned Premium (5) : To suit your financial needs, you may pay your premium either monthly (9) or annually over 2 years or 5 years, or settle the total Premium in a single lump sum. The Planned Premium (5) you paid will be allocated to the Account Value after deducting the Policy Premium Charge. Unscheduled Premium (8) : You can make Unscheduled Premium (8) payments to boost up your Account Value and reap potential return from the policy account. The Unscheduled Premium (8) you pay will be allocated to the Account Value after deducting the Policy Premium Charge. Withdrawals and Policy Loans Depending on financial needs, while your policy is in force, you can make withdrawals from the policy account, provided that (i) a Surrender Charge based on Policy Year and premium payment term must be payable during the first 10 Policy Years; (ii) each withdrawal is no less than USD625; and (iii) the Account Value balance is no less than USD2,500 after any withdrawal. Withdrawals will reduce the Account Value which may also reduce the Death Benefit. If the Account Value is insufficient to cove r Policy Charges for 45 consecutive days, the policy will lapse. You may apply for policy loans after the first Policy Anniversary. Interest will be charged on policy loans at a rate determined by Hang Seng Insurance from time to time. At every loan application, the outstanding loan balance (including the new loan, any existing loans and accrued interests thereof) must not be exceed 75% of the Surrender Value. Potential Savings Return Splendid is designed to help you to realise your goals through wealth preservation and growth. An Interest Crediting Account in your policy The premiums you pay after deduction of Policy Premium Charge and any other applicable Policy Charges, will be deposited in the Interest Crediting Account as part of your Account Value. Throughout the policy term, Daily interests (if applicable) based on the prevailing General Crediting Interest Rate (non-guaranteed, though not less than 1.5% p.a. Guaranteed Minimum Crediting Interest Rate for USD policies).

3 Page 3 In addition, Splendid has a 1-year New Money Crediting Interest Rate, which will be applied to any Planned Premium (5) deposited into your account within the first policy year. Upon the expiry of the New Money Crediting Interest Rate period, the General Crediting Interest Rate will then apply. Loyalty Bonus To enhance your savings, Guaranteed Loyalty Bonuses will be credited to your policy account at the 15 th, 20 th, 25 th and 30 th Policy Anniversaries while the policy is in force. The amount of the Loyalty Bonus is equivalent to 2% of the average Account Value over the 60 policy months preceding the relevant Policy Anniversary. Notes : i. After deducting Policy Premium Charge upfront, the net amount of Planned Premium (5) or Unscheduled Premium (8) or any Supplemental Benefit Premiums (6) paid by you will accumulate as the Account Value. ii. Policy Expense Charge and Insurance Charge are deducted from the Account Value monthly. iii. Interests are credited to the Account Value at the prevailing General Crediting Interest Rate. Although not guaranteed and subject to change during the policy term, the General Crediting Interest Rate will not be less than the Guaranteed Minimum Crediting Interest Rate. In addition, the Plan has a 1-year New Money Crediting Interest Rate, which the first year Planned Premium (5) allocated to your account will accrue at such rate. Upon the expiry of the New Money Crediting Interest Rate period, the General Crediting Interest Rate will then apply. iv. Guaranteed Loyalty Bonuses will be credited to your policy account at the 15 th, 20 th, 25 th and 30 th Policy Anniversaries while the policy is in force. v. You may make withdrawals from the Account Value, subject to a Surrender Charge during the first 10 Policy Years. The Account Value will also be paid out upon policy surrender (subject to applicable Surrender Charge in the first 10 Policy Years) or policy maturity. You may apply for policy loans after the first Policy Anniversary. Interest will be charged at a rate determined by Hang Seng Insurance from time to time. Optional Critical Illness Benefit (Advance Payment) (7) Cover 59 critical illnesses, protect Life Insured until the Insurance Age (4) of 99 for extra peace of mind.

4 Page 4 Critical Illness (Advance Payment) (7) - at a glance Life Insured s Insurance Age (4) upon enrolment 15 days to age 69 Coverage Protection Period and Critical Illnesses Covered If the Life Insured suffers from any of the critical illnesses listed below, you will receive 100% of the Death Benefit under the basic plan. Your policy will be terminated upon payment of Death Benefit by Hang Seng Insurance. Otherwise as stated below, this Benefit will stay effective until policy maturity. Critical illnesses covered under this Benefit are: 1. Alzheimer s Disease 21. Encephalitis 41. Muscular Dystrophy 2. Amputation of Feet due to Complications from Diabetes 22. End Stage Liver Failure 42. Myasthenia Gravis 3. Apallic Syndrome 23. End Stage Lung Disease 43. Myelofibrosis 4. Aplastic Anaemia 24. Fulminant Hepatitis 44. Necrotising Fasciitis 5. Bacterial Meningitis 25. Heart Attack 45. Other Serious Coronary Artery Disease 6. Benign Brain Tumour 26. Heart Valve Surgery 46. Paralysis 7. Blindness 27. Hemiplegia 47. Parkinson s Disease 8. Brain Surgery 28. HIV Due to Blood Transfusion and Occupationally Acquired HIV 48. Pheochromocytoma 9. Cancer 29. Infective Endocarditis 49. Poliomyelitis 10. Cardiomyopathy 30. Irreversible Kidney Failure 50. Primary Pulmonary Arterial Hypertension 11. Chronic Adrenal Insufficiency (Addison s Disease) 12. Chronic Relapsing Pancreatitis 31. Loss of Hearing 51. Progressive Scleroderma 32. Loss of Independent Existence (Cover up to Insurance Age (4) 74) 52. Progressive Supranuclear Palsy 13. Coma 33. Loss of Limbs 53. Severe Rheumatoid Arthritis 14. Coronary Artery Bypass Surgery 15. Creutzfeldt-Jacob Disease (CJD) 34. Loss of One Limb and One Eye 54. Severe Ulcerative Colitis 35. Loss of Speech 55. Stroke 16 Crohn s Disease 36. Major Head Trauma 56. Surgery to Aorta 17. Dissecting Aortic Aneurysm 37. Major Organ Transplant 57. Systemic Lupus Erythematosus with Lupus Nephritis 18. Ebola 38. Medullary Cystic Disease 58. Third Degree Burns 19. Eisenmenger s Syndrome 39. Motor Neurone Disease 59. Tuberculosis Meningitis 20. Elephantiasis 40. Multiple Sclerosis Premium Premium payment term Additional premium is required for this Supplemental Benefit. Premium is determined by the Life Insured s Insurance Age (4) and gender, Sum Insured of the basic plan and whether the Life Insured is a smoker. Premium for this benefit is allocated to Account Value of the basic plan after deducting Policy Premium Charge. The payment term of this Benefit must be the same as basic plan.

5 Page 5 Fees and Charges Policy Premium Charge is deducted from premium for this Benefit before allocating to Account Value. Monthly insurance charge of this Benefit is deducted from the Account Value of the basic plan. # For details of charges for this benefit, please refer to Policy Charges and the terms and conditions of this Benefit. Splendid Plan at-a-glance Life Insured s Insurance Age (4) upon enrolment Policy Term Policy Currency Minimum Sum Insured Premium Payment Period 15 days to age 69 Up to the Policy Anniversary at the Insurance Age (4) of 99 of Life Insured (Account Value must be sufficient to cover all Policy Charges) USD USD100,000 Single premium, 2 years or 5 years Benefits Maturity Benefit Surrender Benefit Death Benefit Account Value less outstanding charges or indebtedness (if any); payable at the end of the policy term. Account Value less Surrender Charge (if applicable) The higher of: Sum Insured amount less any withdrawal amount (before any Surrender Charge) made from the 12 months preceding the Life Insured s date of death to the claim approval date; or Account Value, less any outstanding charges and any indebtedness (if any). Account Value is determined on the date that Hang Seng Insurance receives written notification of the Life Insured s death. General Crediting Interest Rate Although not guaranteed and subject to change during the policy term, the General Crediting Interest Rate will not be less than the Guaranteed Minimum Crediting Interest Rate. 1-year New Money Crediting Interest Rate Guaranteed Minimum Crediting Interest Rate Loyalty Bonus The first year Planned Premium (5) allocated to your account will accrue at such rate. Upon the expiry of the New Money Crediting Interest Rate period, the General Crediting Interest Rate will then apply. 1.5% p. a. (USD Policy) Guaranteed Loyalty Bonuses will be credited to your policy account at the 15 th, 20 th, 25 th and 30 th Policy Anniversaries during the effective policy term. Loyalty Bonus = 2% x average total Account Value of the last 60 policy months immediately preceding the relevant Policy Anniversary. Average Account Value of the past 60 Policy Months is calculated as follows: For Loyalty Bonus credited at the 15 th Policy Anniversary, average Account Value is the mean of all Account Values on the last day of each Policy Month between the 121 st and 180 th policy months (inclusive). For Loyalty Bonus credited at the 20 th Policy Anniversary, average Account Value is the mean of all Account Values on the last day of each Policy Month between the 181 st and 240 th policy months (inclusive). For Loyalty Bonus credited at the 25 th Policy Anniversary, average Account Value is the mean of all Account Values on the last day of each Policy Month between the 241 st and 300 th policy months (inclusive). For Loyalty Bonus credited at the 30 th Policy Anniversary, average Account Value is the mean of all Account Values on the last day of each Policy Month between the 301 st and 360 th policy months (inclusive).

6 Page 6 Supplemental Benefits (no extra premium) Critical Illness Benefit (Advance Payment) (7) (extra premium and charges required) Terminal Illness Benefit (1) up to expiry of the policy term Waiver of Premium on Disability Benefit (2) only applicable to Life Insured whose Insurance Age (4) is between 18 and 64 Payor s Benefit (3) only applicable to Life Insured whose Insurance Age (4) is between 15 days and 17 and Policyholder (Payor) whose Insurance Age (4) is between 18 and 60. Only applicable to Life Insured whose Insurance Age (4) is between 15 days and 69 upon enrolment. Policy Charges Charges Policy Premium Charge Policy Expense Charge Insurance Charge Applicable Rate & Details There is a 6% charge for all Planned Premiums (5), Unscheduled Premiums (8) and any Supplemental Benefit Premiums (6) paid before such premiums are allocated to the policy account per 1,000 Sum Insured per annum, payable monthly during the first 10 Policy Years. Hang Seng Insurance reserves the right to increase this charge rate at any time, subject to a maximum of 125% of the amount shown in policy schedule. The Insurance Charge per month is calculated as follows: Sum at Risk/1,000 x Monthly Cost of Insurance Rates Deducted from Planned Premiums (5), Unscheduled Premiums (8) and any Supplemental Benefit Premiums (6) Account Value Account Value The Sum at Risk, subject to a minimum of zero, is calculated as: A B where, A is the Sum Insured less any amount of withdrawal (before any Surrender Charge) made within 12 months preceding the relevant Monthiversary or on the relevant Monthiversary; and B is the Account Value. Insurance Charge for Critical Illness Benefit (Advance Payment) (7) The cost of insurance rates vary with Life Insured s underwriting class, Insurance Age (4), gender and whether the Life Insured is a smoker, as well as the current mortality. A full list of standard monthly cost of insurance rates can be found in your Proposal Summary. Hang Seng Insurance reserves the right to increase the cost of insurance rates at any time, subject to a maximum of 150% of the standard rates. If you elect Critical Illness Benefit (Advance Payment) (7), an additional Insurance Charge will be deducted from the Account Value. Monthly Insurance Charge for this benefit is calculated as follows: Sum at Risk/1,000 x Monthly Cost of Insurance Rates for Critical Illness Benefit (Advance Payment) (7). Sum at Risk is calculated as shown in the Insurance Charge section above. Account Value The cost of insurance rates for Critical Illness Benefit (Advance Payment) (7) vary with Life Insured s Insurance Age (4), gender and whether the Life Insured is a smoker. A full list of standard monthly cost of insurance rates for Critical Illness Benefit (Advance Payment) (7) is shown in your Proposal Summary. Hang Seng Insurance reserves the right to increase the cost of insurance rates at any time, subject to a maximum of 130% of the standard rates.

7 Page 7 Charges Surrender Charge Applicable Rate & Details * Must be paid together with the Planned Premium (5) for the basic plan and its Sum Insured, payment term and payment method must be the same as the basic plan. Surrender Charge is payable in any of the following events during the first 10 Policy Years: 1. Surrender and Lapse: Surrender Charge rate x Account Value 2. Withdrawal: Surrender Charge rate x withdrawal amount 3. Sum Insured reduction: Account Value x Surrender Charge rate x percentage of Sum Insured reduction. For Surrender Charge details, please refer to your illustration. Deducted from You will receive the balance of Account Value / Withdrawal amount after deduction of Surrender Charge. Important Notes: 1. This illustrative example is solely for reference and the graph is not shown in scale. 2. Account Value under the Guaranteed Basis may not be sufficient to cover all applicable Policy fees and charges. If the Account Value drops to zero or less, the policy will lapse. 3. Actual Account Value and Death Benefit will vary case by case as they are determined by the prevailing General Crediting Interest Rate and applicable Policy Charges. Actual Account Value in the future may fluctuate and may be higher or lower than the amount illustrated above.

8 Page 8 Frequently Asked Questions Q: How is Splendid different from other insurance plans? A: Designed with high flexibility, Splendid is for those seeking an insurance solution that fulfils their all-round protection requirements. In addition to life coverage for the Life Insured throughout the Policy Term, it also offers great versatility to help you manage and accumulate savings. What is more, you are free to adjust the Sum Insured to meet changing needs. Q: Will I be covered under Splendid guaranteed up to the Life Insured s Insurance Age (4) of 99? A: To keep your policy in force, the Account Value must be sufficient to settle all Policy Charges. If the Account Value fails to cover Policy Charges for 45 consecutive days, the Policy will lapse. To avoid Policy lapse, ensure that the Account Value is sufficient to pay for all Policy Charges. As long as the above conditions are fulfilled, your policy will stay in force until the Policy Anniversary after the Life Insured s Insurance Age (4) of 99. Q: Can I pay premiums at any time? A: The Plan provides 2 types of premium: Planned Premium (5) and Unscheduled Premium (8). Planned Premium (5) is determined by the Life Insured s Insurance Age (4), gender, Sum Insured, Premium payment period, Policy Currency and the Life Insured s smoking habit. Unscheduled Premiums (8) are sums you opt to pay into the policy while the policy is in force. You are free to set the amount for each Unscheduled Premium (8), subject to a minimum of USD625 per transaction which may be adjusted by Hang Seng Insurance from time to time. Hang Seng Insurance may accept or decline any Unscheduled Premium (8) at its discretion. All Planned Premiums (5) and Unscheduled Premiums (8) will be allocated to your Account Value after deducting the Policy Premium Charge. If there are any Supplemental Benefits under the policy, the Supplemental Benefit Premiums (6) will also be allocated to your Account Value after deducting the Policy Premium Charge. Q: When can I make withdrawals from the policy? Are there any conditions, restrictions or charges involved? A: Should you require cash for unexpected circumstances or planned life events, you can withdraw from the Policy Account at any time throughout the Policy Term, provided that (i) a Surrender Charge at a rate based on Policy Year and Premium Payment Period is payable during the first 10 Policy Years; (ii) every withdrawal is subject to a lower limit of USD625; and (iii) the Account Value balance must not be less than USD2,500 after any withdrawal. Withdrawals will reduce the Account Value and possibly the Death Benefit amount. The chances of policy lapse will be greater as well. If the Account Value is insufficient to cover Policy Charges for 45 consecutive days, the Policy will lapse. Q: How much will I get back if I surrender the policy? A: You can surrender (i.e., cancel) the policy by written notice at any time. The policy will terminate in such event and you will receive the Account Value after deducting any applicable Surrender Charge for the first 10 Policy Years. The amount net of all Policy Charges and Surrender Charge (if any) that you receive may be significantly less than the total premiums paid. Q: I enrolled basic plan with Single Payment, can I choose 5 years premium payment term for additional supplemental Critical Illness Benefit (Advance Payment) (7)? A: No. The Sum Insured, payment term and payment method of the Critical Illness Benefit (Advance Payment) (7) must be the same as the basic plan. Key Exclusions: Supplemental Benefit - Terminal Illness Benefit (1) No Terminal Illness Benefit (1) will be paid for any illness resulting directly or indirectly from, or caused or contributed by, any condition which existed before the Issue Date of the Policy or effective date of this Benefit or effective date of last reinstatement, whichever is the latest, in respect of the Life Insured and which presented sign or symptom of which the Policyholder or Life Insured was aware of or should reasonably have been aware of as of the Issue Date of the Policy or effective date of this Benefit or effective date of last reinstatement, whichever is the latest. Supplemental Benefit - Waiver of Premium on Disability Benefit (2) Hang Seng Insurance will not waive the premium if Disability results directly or indirectly from any of the following: (i) any pre-existing condition from which the Life Insured was suffering prior to or on the Issue Date of this Benefit or effective date of this Benefit or the effective date of last reinstatement, whichever is the latest (unless we 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 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 a hazardous sport, other than those stated in the application

9 Page 9 Supplemental Benefit - Payor s Benefit (3) Hang Seng Insurance will not waive the Premium if the Payor dies by suicide within one year after the Issue Date, the effective date of this Payor s 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 this Benefit or effective date of this Benefit or the effective date of last reinstatement, whichever is the latest (unless we 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 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. Supplemental Benefit - Critical Illness Benefit (Advance Payment) (7) (extra premium and charges required) 1. No benefit is payable for any Critical Illness resulting from, or caused or contributed by AIDS or Human Immunodeficiency Vir us (HIV) (except for the benefit defined under Critical Illness HIV Due to Blood Transfusion and Occupationally Acquired HIV). 2. No benefit is payable under for any Critical Illness from, or caused or contributed by, any of the following: (i) A self-inflicted injury or attempted suicide; (ii) Any Pre-existing Condition; (iii) Intoxication by alcohol or drugs not prescribed by a Registered Doctor; (iv) Violation or attempted violation of the law or resistance to arrest or participation in any criminal act; or (v) Travel in any aircraft, except as a fare paying passenger in a commercial aircraft. 3. No benefit is payable for any Critical Illness resulting from, or caused or contributed by, any Congenital Conditions or disorder or developmental conditions, which has manifested or was diagnosed before the Life Insured attains 18 years of Insurance Age (4). 4. No benefit is payable for any Critical Illness of which the signs or symptoms first occurred or diagnosed prior to the Issue Date, or within 90 days of the Issue Date or the effective date of last reinstatement of the Policy, whichever is the latest, except caused by Accident. 5. No benefit is payable for activities or diseases or illnesses excluded on the endorsement (if any). The above are only the major exclusions, for details of the exclusions, please refer to the relevant policy provision. Notes: 1. Terminal Illness Benefit will cease automatically upon benefit payout or termination of the basic plan (whichever is earlier). Please refer to terms and conditions of Supplemental Benefits for details. 2. Waiver of Premium on Disability Benefit is only applicable to Life Insured whose Insurance Age (4) is between 18 and 64 at the time of application. The Life Insured must hold a valid Hong Kong or Macau Identity Card to enjoy this benefit. Please refer to terms and conditions of Supplemental Benefits for details. 3. Payor s Benefit is only applicable to Life Insured whose Insurance Age (4) is between 15 days and 17 and Payor (i.e., the Policyholder) whose Insurance Age (4) is between 18 and 60. The Payor must hold a valid Hong Kong or Macau Identity Card to enjoy this benefit. Please refer to terms and conditions of Supplemental Benefits for details. 4. 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. 5. Planned Premium is determined by the Life Insured s Insurance Age (4) and gender, Sum Insured, premium payment period, Policy Currency and whether the Life Insured is a smoker. All Planned Premiums must be settled in the Policy Currency and premium payment period selected at the time of application. 6. Supplemental Benefit Premiums are determined by the Life Insured s Insurance Age (4) and gender, Sum Insured, premium payment period, Policy Currency and whether the Life Insured is a smoker. All Supplemental Benefit Premiums must be settled in the Policy Currency and premium payment period selected at the time of application. 7. Critical Illness Benefit (advance Payment) is only applicable to Life Insured whose Insurance Age (4) is between 15 days and 69. This benefit will cease upon payment of claim or early termination of the policy. Please refer to terms and conditions of Supplemental Benefits for details. Critical Illness benefit (Advance Payment) (7) is subject to underwriting requirements. 8. Unscheduled Premium is subject to a minimum of USD625 per transaction which may be adjusted by Hang Seng Insurance from time to time. Hang Seng Insurance may accept or decline any Unscheduled Premium at its discretion. 9. If you choose to pay Planned Premium (5) monthly, the amount of total Planned Premiums (5) paid on a monthly basis in a Policy Year will be higher than that paid on an annual basis. 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 amount of benefit you will get upon policy surrender or death of the Life Insured is uncertain because this entitlement is determined by the prevailing Account Value of your policy, which will be increased as credit interest earned and will be decreased as applicable Policy Charges deducted. The General Crediting Interest Rate depends on the investment returns on the underlying assets supporting the policies, 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:

10 Page 10 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 risks The risk that the values of assets and the interest earnings will be affected by the change of interest rate level and its outlook, and lead 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. Claims factor The actual experience of mortality and morbidity is uncertain which may lead to a higher than expected cost of providing mortality and living benefits. In this case, the Insurance Charge may be increased and the General Crediting Interest Rate may be reduced. Persistency factor The actual experience of policy surrender (full or partial) and policy lapse is uncertain, its effect on investment returns can vary depending on the size of any excess amount left behind after settling the surrender payment for the leaving policies. Expense factor The actual amount of expenses incurred and apportioned to the group of policies may be higher than expected. In this case, the Policy Expense Charge may be increased and the General Crediting Interest Rate may be reduced. Although not guaranteed, General Crediting Interest Rate is determined at the discretion of Hang Seng Insurance generally by reference to the return of its underlying portfolio and other business factors. It is also subject to a Guaranteed Minimum Crediting Interest Rate prescribed by Hang Seng Insurance at the time of policy issuance. Please refer to section Portfolio Factsheet for details. Hang Seng Insurance may increase the Policy Expense Charge and Insurance Charge at its discretion. For the Basic Plan, the maximum amount will be 125% of the scale of Policy Expense Charge at inception and 150% of the scale of Insurance Charge at inception respectively. For Critical Illness Benefit (Advance Payment) (7), the maximum amount will be 130% of the scale of Cost of Insurance Rates at inception. Should there be fluctuation of the General Crediting Interest Rate or increase in the Policy Expense Charge or Insurance Charge, interest generated under the policy may not be sufficient to cover all Policy Charges. As a result, 1) Surrender Value will be less than total premiums paid; 2) the policy lapses; and 3) the life protection period is shortened. Throughout the policy term, there is a chance of your policy being terminated when the total Account Value is not sufficient to cover all applicable charges. Upon such early termination, you could lose all your paid premiums and accrued benefits. Risks from delayed payment or missing the payment of premiums due You should pay the premium for the entire premium payment term when due. Any delayed payment or non-payment of regular premiums due may reduce your Account Value, Surrender Value and Death Benefit, resulting in potential policy lapse and shorter life protection period. Risks from Surrender The Policyholder can surrender the policy at any time after expiry of the cooling-off period. The amount of surrender benefit receivable may be less than the total premiums paid. For an idea of the Surrender Value you will potentially receive, please refer to your illustration summary. Policy Surrender is always subject to relevant terms and conditions of the policy. Loss of life coverage / Death Benefit Life coverage / Death Benefit under the policy will cease when the Surrender Value drops to zero. Risks from withdrawals Making withdrawals from your policy entails risks. The interest generated may not be sufficient to pay all Policy Charges, resulting in 1) Policy lapse; and 2) shorter life protection period. 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 apply for policy loan or 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 Surrender 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 risks As this Plan is denominated in currencies other than local currency, you are subject to exchange rate risks. Exchange rate fluctuates from time to time. 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.

11 Page 11 Important Notes Cooling-off period Splendid is an insurance plan with savings element and not any kind of bank deposit. Part of the premiums pays for the insurance and related costs. If you are not satisfied with your policy, you have a 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 and levy 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 Surrender Value upon surrender may be less than the total premium and levy you have paid. Policy loan The Policyholder may apply for a policy loan after the first Policy Anniversary. Loan interest will be applied and you will be advised of the rate of interest from time to time. Any policy loan and accrued loan interest may reduce the Surrender Value and Death Benefit of the policy. If at any time the Aggregate Amount of the new loan and any existing loan with accrued interest exceeds 90% of the Surrender Value, the Policy will be terminated. Please refer to the policy provision on the relevant terms and conditions. Eligibility Hang Seng Insurance reserves the right to stop accepting applications for the Plan without prior notice, or to accept or decline any application based on information provided by the Life Insured and Policyholder. The Plan is subject to Hang Seng Insurance s requirements on nationality and/or address of the Policyholder and/or Life Insured which are in force from time to time. If application is unsuccessful, paid premiums (without interest) will be refunded in full in the currency of premiums paid. Policy Currency Splendid is denominated in US Dollars. Premiums and benefits are paid in the selected Policy Currency. If Premiums are paid in currencies other than the Policy Currency, differences may occur as Hang Seng Insurance determines the exchange rates for conversion between the Policy Currency and the currencies in which Premiums are paid. Likewise, if any payments are settled in currencies other than the Policy Currency, differences may occur as Hang Seng Insurance determines the exchange rates for conversion between the Policy Currency and the payment currencies. Exchange rate movements may affect payment amounts, including but not limited to premium and benefit payments. Policy termination condition Hang Seng Insurance has the right to terminate your policy under any of the following circumstances, the Account Value is insufficient to cover Policy Charges for 45 consecutive days; The Aggregate Amount of the new loan and any existing loan with accrued interest exceeds 90% of the Surrender Value, the Policy will be terminated If Hang Seng Insurance reasonably consider 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 authority. For details of the above, please refer to the relevant terms and conditions in the policy provision. Applicable law This Plan is governed and bound by the law of the Hong Kong SAR. 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 would take into account various aspects of the staff performance but not solely on the sales amount.

12 Page 12 Dispute resolution a) Hang Seng Bank is an insurance agent authorised by Hang Seng Insurance Company Limited and the product is a product of Hang Seng Insurance Company Limited but not Hang Seng Bank ; and b) 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 dispute over the contractual terms of the insurance products should be resolved between Hang Seng Insurance Company Limited and you directly. This Plan 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 to Hang Seng Insurance consent or information that is requested from you or if you present a financial crime risk to a member of the HSBC Group. Such consequences include that Hang Seng Insurance may: take such actions as 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. With effect from 1 July 2017, the following new insurance terminologies are used for the purpose of reading the policy provisions and related policy documents of Splendid. The changes do not impact the original meanings and definitions of the insurance terminology concerned. For the meanings and definitions of the terminology, please refer to your policy provisions. Please refer to below table for the summary of changes: Old terminology Crediting Rate General Crediting Rate Guaranteed Minimum Crediting Rate New Money Crediting Rate Projected (Non-guaranteed) Basis New terminology Crediting Interest Rate General Crediting Interest Rate Guaranteed Minimum Crediting Interest Rate New Money Crediting Interest Rate Current Assumed Basis (Non-guaranteed) Portfolio Factsheet Universal Life Insurance Products Universal Life insurance products are long term insurance plans offering a high level of protection with competitive features and flexibility for policyholders' multi-generational planning needs and other insurance needs. For details of the product features and key risks of Universal Life insurance products, please refer to the relevant product materials and policy provisions or contact your relationship manager or insurance consultant. The benefits provided by Universal Life insurance products are impacted by the Crediting Interest Rates as well as applicable charges. The General Crediting Interest Rate is a floating rate determined by Hang Seng Insurance, subject to a guaranteed minimum floor as stipulated on policy provisions.

13 Page 13 Philosophy in Deciding the General Crediting Interest Rate The applicable General Crediting Interest Rates vary depending on the policy currency and product series. Such rates are regularly reviewed by Hang Seng Insurance at its discretion. Hang Seng Insurance will inform policyholders concerned for any subsequent change of the General Crediting Interest Rates for their policies. When determining the General Crediting Interest Rate, which applies to each policy, Hang Seng Insurance considers the investment returns on the underlying assets supporting the policies, as well as other factors, including but not limited to: the outlook of the long term future investment returns, the claims and surrender experience, and the expenses. If the investment returns over the long term are better than expected, then the General Crediting Interest Rate would increase and if the investment returns are worse than expected, then the General Crediting Interest Rate would reduce. The investment returns on the underlying portfolios of Splendid include interest earnings as well as losses or gains realized upon the disposal of assets or asset impairments. The claims include the cost of providing the death benefit and other insured benefits under policies of Splendid. The surrenders include total and partial surrenders, and their corresponding impact on investments. The investment returns on the underlying portfolios of Splendid are not guaranteed. In order to ensure that discretion exercised when defining the General Crediting Interest Rates is fair to all policyholders, and that any conflicting interests of policyholders with other policyholders and/or shareholders have been addressed having due regard to the fair treatment of policyholders, Hang Seng Insurance established a dedicated committee providing independent advice on the management of the universal life business. Investment Philosophy Hang Seng Insurance maintains a prudent approach to investing for the Universal Life underlying portfolios, with the primary goal being the delivery of long term value to policyholders. Policyholders of Splendid can select USD as its Policy Currency. The Policy Currency offered by Splendid is managed under a portfolio of assets denominated in USD and invested in different geographical markets (mainly US, Asia and Europe). Each portfolio is invested in Corporate and Government bonds under pre-determined diversification and rating objectives. The current long term investment strategy is to invest in diversified long term investment grade bonds rated BBB- or above. Unrated bonds may also be considered if they fit Hang Seng Insurance s risk appetite profile. However, the underlying portfolios of Splendid are conservatively positioned to limit the exposure to unrated bonds. Majority of the bonds are held by Hang Seng Insurance to maturity in order to match its long term liabilities. Subject to Hang Seng Insurance s investment policy, derivatives may be utilized to manage the investment risk exposure, for matching between assets and liabilities and for efficient portfolio management. The Policy in determining the General Crediting Interest Rates may be reviewed and adjusted by Hang Seng Insurance from time to time. For more updated information, please visit our website: You may also visit the above website to understand the historical Crediting Interest Rates of Universal Life insurance products of Hang Seng Insurance that had new policies issued in the previous 5 years for reference. The past or current performance of the business of Hang Seng Insurance may not be a guide for future performances. This product brochure is issued by Hang Seng Insurance containing only a consolidated and summary description of this Plan and is for reference only. You should read this product brochure in conjunction with the respective product factsheet(s), Portfolio Factsheet 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. INSULIFE_SPENPB 12/18 (HH)