Calculation of Total Cash Value Ratio
The Total Cash Value ratio is calculated as the ratio of aggregate actual Total Cash Value against the illustrated amounts at the point of sale for all relevant policies in the reporting year. With reference to sales illustration, Total Cash Value is the amount policyholders receive upon policy surrender and it includes both guaranteed benefits (e.g. guaranteed cash value, guaranteed cash payments and guaranteed incomes) and non-guaranteed benefits (e.g. annual dividends and their accumulated interest, terminal dividends, cash value of reversionary bonuses, cash value of terminal bonuses, non-guaranteed incomes and their accumulated interest, and interest accumulated from guaranteed cash payments or guaranteed incomes), and excludes the account balance of the Future Premium Deposit Account. For calculation of such ratio it is assumed that all premiums are paid in full when due, no cash withdrawal or policy loans are taken throughout the term of the policy and policyholders opt to leave all relevant guaranteed and non-guaranteed benefits with the Company for interest accumulation based on the relevant actual interest rates or accrual (as applicable).