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Investment Linked Insurance
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U-Select is an investment-linked assurance scheme combining life insurance coverage and investment. It is available to applicants between the age of 18 and 70 (inclusive) and life insured between the age of 15 days and 70 (inclusive).
You are required to pay a regular Basic Premium for your U-Select policy while it is in force. Basic Premium is subject to the Face Amount and the age, gender and class of risk of the life insured. For reference, the minimum Basic Premium for a non-smoking 40-year-old man applying for a Basic Policy with the minimum Face Amount of US$50,000 or HK$375,000 will be US$ 951.00 per annum or HK$7,132.50 per annum, respectively. You may also increase your investment by making contributions in the form of lump sum investment and/or regular investment. The minimum amount of lump sum investment (per transaction) and annualised regular investment is US$100 or HK$800. By paying additional premium for optional supplementary contracts, you may also include in your U-Select policy additional insurance coverage such as life or critical illness protection.
All premiums you pay for your Basic Policy and supplementary contracts (if applicable), after deduction of the premium charges, shall be used to subscribe units in accordance with your selection of investment option(s). Such units shall be notionally allocated to the Basic Policy for determination of the value and benefits under the Basic Policy.
In the unfortunate event of death of the life insured, we will pay the beneficiary the Total Account Value plus the higher of (a) Face Amount; and (b) 5% of Total Account Value. You may specify the Face Amount according to your protection need (subject to minimum requirements of US$50,000 or HK$375,000).
You can temporarily suspend paying premium by applying for a premium holiday from the third policy year onwards as long as the Total Account Value is sufficient to cover the relevant fees and charges and premium of supplementary contracts (if applicable). Please note that, during premium holiday, such fees and charges and premium of supplementary contracts (if applicable) will continue to be deducted from the Basic Policy while it is in force.
We have made a number of investment options available to U-Selectfor your selection depending on your risk tolerance level and your investment strategies. You may also switch the units in the investment options recorded in your policy when there is any change in your strategies. Switching is free of charge and should be at least US$100 or HK$800 per transaction.
You can withdraw a portion of the Total Account Value by redeeming units free of charge. However, please note that once the partial withdrawal has been made from the Basic Account, you will no longer enjoy the conditional 10-year no lapse privilege and the Total Account Value and death benefit of your U-Select policy will be reduced.
In case of poor performance of the investment options you selected, the Total Account Value may fall significantly. With the conditional 10-year no lapse privilege, the Basic Policy and the relevant supplementary contracts (if any) shall guarantee to remain in force in the first 10 policy years even if the Total Account Value is insufficient to cover the relevant fees and charges. This privilege will remain in effect provided that in the first 10 policy years (i) no premium holidays have been exercised; (ii) no partial withdrawals have been made from the Basic Account; and (iii) the policy has not been lapsed and reinstated before.
Provided that your policy is in force on the 20th policy anniversary and you have paid the Basic Premium for at least 120 policy months within the first 20 policy years, you will be entitled to receive a one-off loyalty bonus for which the maximum is equal to the amount of Basic Premium paid in the 1st policy year. The loyalty bonus will be reduced if premium holiday has been exercised or the Basic Premium has been reduced in the first 20 policy years.
Basic Account
The sub-account into which units are notionally allocated with the Basic Premium and premium of the unit deducting supplementary contracts (if applicable) after deducting any applicable premium charge.
Basic Policy
The policy contract of U-Select as amended, supplemented and/or revised by endorsement from time to time.
Basic Premium
The premium of the Basic Policy you pay regularly while the policy is in force depending on the Face Amount selected, the insured’s issue age, gender and class of risk, which is subject to premium charge and other applicable fees and charges.
Face Amount
The amount selected by you and approved by the Company as shown on the policy information page as the “Face Amount” (any subsequent reduction in the Face Amount upon your request or as a result of benefits payment to you under any applicable supplementary benefits attached to the Basic Policy will be amended by an endorsement). It is used to calculate the death benefits under the Basic Policy.
Premium Payment Year
The year for which the Basic Premium and unit deducting supplementary contract premium (if applicable) have been paid, and such period shall count as from the policy date with respect to Basic Premium, and from the commencement date with respect to the unit deducting supplementary contracts. Any period of premium holiday will be excluded from the counting of Premium Payment Year.
Total Account Value
The total sum of the Basic Account value, the lump sum investment account value and the regular investment account value.
Valuation Day
In relation to an underlying fund, the day on which the assets of that underlying fund are valued, as determined by the fund manager of that underlying fund from time to time.
Up to 100% of the Basic Premium payable for the first 6 Premium Payment Years; 6% of each lump sum investment/regular investment received by us
0.5% / 12 per month of the Basic Account value payable from the 7th policy year onwards.
Subject to the Face Amount, Total Account Value and the attained age and/or issue age, gender and class of risk of the insured, and will be charged monthly from the 2nd policy year until the termination of the Basic Policy.
The underlying fund charges may include management fee, performance fee, bid-offer spread and/or switching fee and such fees will be deducted and reflected in the unit price of the underlying funds.