PRODUCT KEY FACTS Venture Investment-linked Plan 12 / 2014

Transcription

1 PEANUTS 2014 Peanuts Worldwide PRODUCT KEY FACTS Venture Investment-linked Plan 12 / 2014 MetLife Limited This statement provides you with key information about this product. This statement is a part of the offering document. You should not invest in this product based on this statement alone. There is a Glossary section at the end of this statement. For those words which are underlined, please refer to the Glossary section for explanations. Quick facts Name of insurance company: Single or regular premium: Regular premium frequency: Policy currency: Min premium: Max premium: Minimum premium payment term: Period with surrender charge: Governing law of policy: Death benefit (life benefit) : MetLife Limited Regular premium Annual US Dollar US$12,000 per year Subject to the underwriting requirement Premium payable up to age 100 of the insured person First 6 policy years The laws of Hong Kong Special Administrative Region The greater of: (a) 101% of the total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals); and (b) 105% of the Account Value of the Basic Premium Account. If there is any amount of outstanding or unpaid policy charges, the life benefit will be reduced by such an amount. For details, please refer to the Your Life Protection section of the Product Brochure of this product. Important This investment-linked assurance scheme ( ILAS policy ) is a long-term investment-cum-life insurance product. It is only suitable for investors who: - are willing to accept that the principal will be at risk; - are prepared to hold this ILAS policy for long term; and - have both investment and estate planning objectives as it is a packaged product that includes both investment and insurance element with death benefits payable to third party beneficiaries. This ILAS policy is not suitable for investors with short- or medium- term liquidity needs. 1

2 Venture Investment-linked Plan Important (continued) Fees and charges - Up to 10.92% of your premiums will be paid to MetLife Limited to cover all the fees and charges at the ILAS policy level, of which 0.36% is the cost of life protection, and this will reduce the amount available for investment. Please note that the above figures are calculated based on the following assumptions: (a) the payment of regular premium of US$12,500 per annum (approximately HK$100,000 by an exchange rate of US$1 to HK$8); (b) you hold your ILAS policy for 20 years; (c) an assumed rate of return of 3% per annum throughout 20 years; and (d) there is no early withdrawal / termination of your ILAS policy. You must understand that these ILAS level charges are on top of, and in additional to, the Underlying s level charges. The above figures do not take into account any early surrender / withdrawal charges. The above percentages of your premiums for covering the total fees and charges are calculated based on the assumptions above for illustration purposes. The actual percentages may change depending on individual circumstances of each case. Long-term features - Early surrender / withdrawal charges: There will be an early Surrender Charge of up to: 10% of the Initial Basic Premium in case of policy surrender within first 6 years; 8% of the Initial Basic Premium in case of partial withdrawal available during the 2 nd to 6 th policy year. Intermediaries remuneration Although you may pay nothing directly to the intermediary who sells / distributes this ILAS policy to you, your intermediary will receive remuneration which, in effect, will be borne out of the charges you pay. Your intermediary should disclose to you in writing at the point-of-sale information about intermediary remuneration. The amount of remuneration actually receivable by your intermediary may vary from year to year and may be higher in the early policy years. You should ask your intermediary before taking up your ILAS policy to know more about the remuneration that your intermediary will receive in respect of your ILAS policy. If you ask, your intermediary should disclose the requested information to you. What is this product and how does it work? Venture Investment-linked Plan is an investment-linked assurance scheme. It is a life insurance policy issued by MetLife Limited (the Company or MetLife ). This is not a fund authorized by the SFC pursuant to the Code on Unit Trusts and Mutual s ( UT Code ). The premiums you pay, subject to the deduction of any applicable fees and charges of your ILAS policy, will be invested by the Company in the Underlying s corresponding to the Investment Options you selected and will accordingly go towards accretion of the value of your ILAS policy. Your ILAS policy value will be calculated by the Company based on the performance of the Underlying s corresponding to the Investment Options you selected from time to time and the ongoing fees and charges which will continue to be deducted from your ILAS policy value. Note, however, that all premiums you pay towards your ILAS policy, and any investments made by the Company in the Underlying s corresponding to the Investment Options you selected, will become and remain the assets of the Company. You do not have any rights or ownership over any of those assets. Your recourse is against the Company only. Due to the various fees and charges levied by the Company on your ILAS policy, the return on your ILAS policy as a whole may be lower than the return of the Underlying s. Please see page 4-5 for details of the fees and charges payable by you. Underlying s corresponding to the Investment Options available for selection are listed in the Investment Options booklet. These funds are authorized by the SFC pursuant to the UT Code. Although your ILAS policy is a life insurance policy, because part of your life benefit is linked to the performance of the Underlying s corresponding to the Investment Options you selected from time to time, your life benefit is subject to investment risks and market fluctuations. The life benefit payable may be significantly less than your premiums paid and may not be sufficient for your individual needs. 2

3 Venture Investment-linked Plan What are the key risks? Investment involves risks. Please refer to the Principal Brochure for details of this product, including the risk factors. Credit and insolvency risks This product is an insurance policy issued by the Company. Your investments are subject to the credit risks of the Company. The Investment Options available under this product can have very different features and risk profiles. Some may be of high risk. Please read the Principal Brochure and the offering documents of the Underlying s involved for details. Early surrender/ withdrawal penalty This ILAS policy is designed to be held for a long term period. Early surrender, partial withdrawal from the Basic Premium Account, or suspension or reduction of the Basic Premiums may result in a significant loss of principal. Poor performance of Underlying s may further magnify your investment losses, while all charges are still deductible. Suspension of premium With no premium contribution during the period of premium suspension, the value of this ILAS policy may be significantly reduced due to fees and charges, which are still deductible during the period of premium suspension. Market risks Return of this ILAS policy is contingent upon the performance of the Underlying s and therefore there is a risk of capital loss. Foreign exchange risks The investment returns of your ILAS policy may be subject to foreign exchange risks as the assets or investments held by the Underlying s may be denominated in a currency which is different from that of your ILAS policy. Is there any guarantee? This product does not have any guarantee of the repayment of principal. You may not get back the full amount of premium you pay and may suffer investment losses. Other features Start-up Bonus 2% of the Initial Basic Premium is applicable to policies with the Initial Basic Premium of US$250,000 or above, subject to terms and conditions. The Start-up Bonus will be credited to your policy in the form of additional notional units of the Investment Options according to your latest investment allocation instruction within 1 month after receipt of the Initial Basic Premium. You will not be entitled to the Start-up Bonus if you cancel the policy within the cooling-off period. Please refer to the Your Bonus section of the Product Brochure of this product for details. 3

4 What are the fees and charges? Venture Investment-linked Plan The Company reserves the right to vary the policy charges or impose new charges with not less than 1 month s prior written notice or such shorter period of notice in compliance with the relevant regulatory requirements. Scheme level Type of Charges Policy Administration Charge Surrender Charge Applicable Rate The Policy Administration Charge will be levied at the rate of a percentage of the prevailing Account Value of the Basic Premium Account in accordance with the relevant policy year: Policy Year Percentage of the Account Value of the Basic Premium Account % per month (i.e. annual rate of 1.68%) 7 and thereafter 0.07% per month (i.e. annual rate of 0.84%) In all circumstances (except the death of the insured person resulting from suicide within the first 13 policy months), the Policy Administration Charge relating to a full policy month that has been deducted will not be refunded. Surrender Charge will be levied in any of the following scenarios: i. Partial withdrawal from the Account Value of the Basic Premium Account (only available after the Initial Contribution Period) Surrender Charge = Initial Basic Premium X applicable rate of Surrender Charge X (Account Value withdrawn (before deducting any Surrender Charge incurred as a result of withdrawals) Account Value of Basic Premium Account before such withdrawal) Deduct from Deducted from the Basic Premium Account monthly in advance through reduction of notional units of Investment Options in proportion to the respective value of the Investment Options under the policy on the first day of each policy month. Deducted from the Account Value withdrawn at point of partial withdrawal. ii. Surrender Surrender Charge = Initial Basic Premium X applicable rate of Surrender Charge Deducted from the Account Value at point of surrender. The applicable rates of the Surrender Charge are set out in the table below: Policy Year Applicable rate of Surrender Charge 1 10% 2 8% 3 6% 4 4% 5 3% 6 1.5% 7 and thereafter 0% For the avoidance of doubt, reduction of the Basic Premium will not reduce the amount of the Surrender Charge as the rate of the Surrender Charge is expressed in terms of the Initial Basic Premium. In the case where the Account Value of the Basic Premium Account is less than the Surrender Charge, the Surrender Charge that may be imposed shall be capped at such amount equal to the Account Value of the Basic Premium Account. In that case, the surrender value becomes zero, which means you have lost all your investment. Switching Fee Currently nil. - 4

5 What are the fees and charges? (continued) Venture Investment-linked Plan Please refer to the Fees and Charges section of the Product Brochure of Venture Investment-linked Plan for details of the charges. Underlying s level You should note that the Underlying s corresponding to the Investment Options may have separate charges on management fee, performance fee, bid-offer spread and/or switching fee. You do not pay these fees directly as the fees will be deducted and such reduction will be reflected in the unit price of the Underlying s. For details, please refer to the offering document of the Underlying s, which are made available by the Company upon request. What if you change your mind? Cooling-off period Cooling-off period is a period during which life insurance policyowners may cancel their policies and get back their original investments (subject to market value adjustment). Provided that you have not made any claim under the policy, you can make the request within the earlier of 21 days after the delivery of the policy or issue of a notice to you or your representative. Such notice should inform you / your representative of the availability of the policy and expiry date of the cooling-off period. Please refer to the cooling off initiative issued by HKFI from time to time for reference. Your request to the Company must be in writing. Such notice must be signed by you and received directly by the Company at Level 20, Cityplaza 3, 14 Taikoo Wan Road, Taikoo Shing, Hong Kong. You may get back the amount you paid subject to any market value adjustment. Market value adjustment is calculated solely with reference to the loss/ gain (as the case may be) in realizing the value of any assets acquired through investment of the premiums made under the policy. For the avoidance of doubt, you will not be entitled to the Start-up Bonus if you cancel the policy within the cooling-off period. Insurance company s information MetLife Limited Phone: (852) Address: Level 20, Cityplaza 3, Fax: (852) Taikoo Wan Road, Taikoo Shing, customerservices@metlife.com.hk Hong Kong Website: Important The Company is subject to the prudential regulation of the Insurance Authority. However, the Insurance Authority does not give approval to individual insurance products, including Venture Investment-linked Plan referred to in this statement. If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. 5

6 HK-MKT-AG/DSF/IA-LERKFS Glossary Venture Investment-linked Plan 1. Account Value means the sum of the value of all the policyowner s selected Investment Options. The value of each of the policyowner s selected Investment Option is determined by multiplying the number of notional units the policyowner holds by the latest available Redemption Price of the Investment Option. 2. Basic Premium means the amount specified as such in the policy schedule and as reduced by the relevant clause in the policy provision (if applicable). 3. Basic Premium Account means the notional account in which notional units of Investment Options allocated by using the Basic Premium and the Start-up Bonus (if applicable) under the policy are recorded. 4. Initial Basic Premium means the Basic Premium paid in respect of the first policy year. 5. Initial Contribution Period means the first policy year from the policy inception date. 6. Investment Option means an investment option that is made available for selection under Venture Investment-linked Plan and as set out in the Investment Options booklet of Venture Investment-linked Plan. 7. Issue Price means the price at which a notional unit of Investment Option shall be notionally allocated to the policy. Issue Price of a notional unit of an Investment Option is equal to the net asset value per unit of the corresponding Underlying. 8. Redemption Price means the price at which a notional unit of Investment Option shall be notionally redeemed from the policy. Redemption Price of a notional unit of an Investment Option is equal to the net asset value per unit of the corresponding Underlying less bid-offer spread, if any, charged at the Underlying level. 9. Underlying means a unit trust or mutual fund, authorized by the SFC, to which an Investment Option is linked. 6

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8 HK-MKT-AG/DSF/IA-LERIOB PEANUTS 2014 Peanuts Worldwide LLC

9 Table of Contents How does the Plan Work? 3 Premium 4 Your Bonus 5 Your Investment 6 Your Life Protection 7 Partial Withdrawal 8 Policy Maturity 9 Policy Surrender 9 Termination of Policy 9 Fees and Charges 10 General Information About the Plan 12 General Information About Investment Options 15 Glossary 16 1

10 Important Risk Warning: 1. Venture Investment-linked Plan (the Plan ) is an investment-linked assurance scheme ( ILAS ), which is an insurance policy issued by MetLife Limited (the Company or MetLife ). This is not a fund authorized by the Securities and Futures Commission ( SFC ) pursuant to the Code on Unit Trusts and Mutual s. Your investments are therefore subject to the credit risks of the Company. 2. The premiums paid by you towards the Plan will become part of the assets of the Company. You do not have any rights or ownership over any of those assets or the units of the Underlying s. Your recourse is against the Company only. 3. Returns on investments under the Plan will be determined by the Company with reference to the performance of the Underlying s which correspond to the Investment Options selected by you. 4. Returns on investments under the Plan will be subject to the fees and charges of the Plan and may be lower than the returns of the corresponding underlying SFC-authorized funds. 5. The Plan is designed to be held for a long term period. Early surrender, partial withdrawal from the Basic Premium Account, or suspension or reduction of the Basic Premiums may result in a significant loss of principal. Poor performance of Underlying s may further magnify your investment losses, while all charges are still deductible. 6. Investment involves risks. The Investment Options available under the Plan can have very different features and risk profiles. Some may be of high risk. 7. The investment returns of the Plan may be subject to foreign exchange risks as the assets or investments held by the Underlying s may be denominated in a currency which is different from that of the Plan. 8. You should not purchase the Plan unless it has been explained to you, you understand it and you consider that it is suitable for you. The final decision is yours. 9. You should not invest based on this document only and should also read the Product Key Facts Statement and Investment Options booklet of the Plan and the offering documents of the Underlying s which are made available by the Company. SFC authorization is not a recommendation or endorsement of the Plan nor does it guarantee the commercial merits of the Plan or its performance. It does not mean the Plan is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. The Plan has been authorized by the SFC. Such authorization does not imply official recommendation. SFC does not take any responsibility for the contents of the offering documents of this Plan, makes no representation as to its accuracy or completeness, expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the offering documents of this Plan. If you are in doubt, you should seek professional advice. All facts and figures in this Product Brochure are up-to-date as at the date of the Product Brochure. The Company accepts full responsibility for the accuracy of the information contained in the offering documents of this Plan at the date of publication and confirm, having made all reasonable enquiries, that to the best of our knowledge and belief there are no other facts the omission of which would make any statement misleading. MetLife Limited is subject to the prudential regulation of the Insurance Authority. However, the Insurance Authority does not give approval to individual insurance products including the Plan. Product Brochure (Publication Date: December 2014) The offering documents of the Plan comprise Principal Brochure of the Plan (which consists of this Product Brochure and the Investment Options booklet of the Plan) and Product Key Facts Statement of the Plan. The Investment Options booklet of the Plan sets out a list of Investment Options currently available for your selection under your policy. This Product Brochure should be read in conjunction with the Investment Options booklet of the Plan and the Product Key Facts Statement of the Plan. Please refer to the Glossary section as set out on page 16 for definitions of various defined terms. 2

11 How does the Plan Work? You can choose your Basic Premium level according to your personal financial needs, subject to the minimum and maximum annual limits. For details of the minimum and maximum limits, please refer to the Premium section. On the next available valuation date following the date of receipt of the premium by the Company on a cleared fund basis, the Company will allocate notional units of your selected Investment Options to the Basic Premium Account under the Plan. You may also receive the Start-up Bonus for the Initial Basic Premium. For details and conditions of the Start-up Bonus, please refer to the Your Bonus section. During the policy term, the Policy Administration Charge is the only recurring fee charged at the Plan level. The Policy Administration Charge is charged on the Account Value of the Basic Premium Account and will be deducted from the Basic Premium Account on a monthly basis through reduction of notional units of the Investment Options. The charges at the Underlying level will be reflected in the unit prices of the Underlying. In case of partial withdrawal, surrender or termination of the policy during the first 6 policy years, the Surrender Charge shall apply. For details of the Surrender Charge, please refer to the Fees and Charges section. Basic Premium 1 Basic Premium Account Policy Administration Charge 3 Surrender Charge 3 Underlying Charges 3 Start-up Bonus 2 1. Please refer to the Premium section for details. 2. Please refer to the Your Bonus section for details. 3. Please refer to the Fees and Charges section for details. 3

12 Premium Basic Premium Basic Premium has to be paid annually. The minimum annual limit is US$12,000 and the maximum amount is subject to the underwriting requirement. Based on the Basic Premium, notional units of your selected Investment Options will be allocated to the Basic Premium Account of your policy solely for the purpose of determining the Account Value. Such notional units will be allocated on the next available valuation date following the date of receipt of the premium by the Company on a cleared fund basis. Please refer to the General Information - Investment Option for details of valuation date of an Investment Option. Premium Flexibility You have the flexibility to reduce the Basic Premium subject to the minimum annual limit of US$12,000 as required by the Company or even temporarily suspend your premium payment anytime by submitting a written request to us. You can also apply in writing to resume the premium payment anytime. If you would like to increase your Basic Premium, you have to apply for a new policy. Initial Contribution Period The Initial Contribution Period is the first policy year from the policy inception date. During the Initial Contribution Period, partial withdrawal is not allowed. The Basic Premium payments are assumed to continue for the rest of the policy years after the Initial Contribution Period unless we have received any other premium payment instruction for the subsequent policy years from you in writing. If you would like to increase your Basic Premium, you have to apply for a new policy. Important Notes: 1. Reduction of the Basic Premium will not reduce the amount of the Surrender Charge as the rate of the Surrender Charge is expressed in terms of the Initial Basic Premium, i.e. the Basic Premium paid in respect of the first policy year. 2. Partial withdrawal is not allowed during the Initial Contribution Period. 3. Reduction of the Basic Premium and suspension of the Basic Premium payments will not incur any Surrender Charge. 4. During the suspension of Basic Premium payments, the Policy Administration Charge will continue to be deducted monthly from Basic Premium Account as usual and on-going fees and charges at the Underlying level will be deducted and such reduction will be reflected in the unit price of the Underlying corresponding to the Investment Option. The Account Value accumulated may be significantly reduced due to fees and charges, which are still deductible during the period of premium suspension. 4

13 Your Bonus Start-up Bonus Important Notes: 1. The rate of the Start-up Bonus listed does not represent the rates of return or the performance of your investment. 2. Since the Start-up Bonus is credited to the Basic Premium Account, it will be subject to the policy charge applicable to the Basic Premium Account as set out in the Fees and Charges section. 3. You will not be entitled to the Start-up Bonus if you cancel the policy within the cooling-off period. 4. Your participation in the Plan should not solely rely on the Start-up Bonus only. To apply for the Plan, you should decide on the overall features and risks of the Plan. Provided that the Initial Basic Premium is US$250,000 or above, a Start-up Bonus will be credited to your policy in the form of additional notional units of the Investment Options according to your latest investment allocation instruction within 1 month after receipt of the Initial Basic Premium. The Start-up Bonus is calculated according to the following formula: Start-up Bonus = Start-up Bonus Rate Initial Basic Premium Initial Basic Premium Start-up Bonus Rate Below US$250,000 Not applicable US$250,000 or above 2% Illustrative Example for the Calculation of the Start-up Bonus: All figures in the example below are for the illustrative purpose only and do not represent the actual or anticipated returns. Initial Basic Premium : US$300,000 Applicable rate of Start-up Bonus : 2% Start-up Bonus in total : US$300,000 2% = US$6,000 5

14 Your Investment Selection of Investment Options The Company will be investing the premium received from the policyowners into the Underlying s corresponding to the Investment Options as selected by the policyowners for the Company s asset liability management. Your paid premiums towards your policy will become part of the assets of the Company. You do not have any rights or ownership over any of those assets or the units of the Underlying s. Your recourse is against the Company only. You can tailor your investment portfolio by selecting from a wide range of Investment Options across various financial instruments and sectors in global markets to tap into the investment opportunities. You can decide your own investment mix with a maximum of 10 Investment Options #. The allocated percentages should be in whole numbers and not less than 10% # for each selected Investment Option. The combined percentages must be 100%. Please refer to the Investment Options booklet for details of the Investment Options currently available under the Plan. For the relevant investment objectives and risk factors of the Underlying s, please refer to the offering documents of the relevant Underlying s. The potential return on investments under the Plan will be subject to the fees and charges of the Plan and may be lower than the returns of the corresponding Underlying s. # The Company reserves the right to vary the minimum allocated percentage of each Investment Option and the maximum number of Investment Option held under the policy of the Plan from time to time with not less than 1 month s prior written notice. Unlimited Switching among Investment Options As your investment strategy may change from time to time, you have the flexibility to switch among Investment Options. Currently, you can enjoy unlimited number of switching free of charge. The current minimum amount for switching is US$100 per transaction. The Company reserves the right to vary the minimum amount for switching from time to time with not less than 1 month s prior written notice. For details of the Investment Options available under the Plan, please refer to the Investment Options booklet. Changes of Investment Options The Company may at any time change or terminate any Investment Options under the Plan, and will provide the policyowner with not less than 1 month s prior written notice or such shorter period of notice as permitted under the relevant regulatory requirements. Dividends of Underlying s If dividends are declared and become payable in respect of an Underlying and your policy is still in force, the Company will allocate to the policy notional units of the Investment Option in respect of which the dividends of the Underlying s are declared. If such means of distribution is not feasible, the Company will distribute the dividends to you via other means available (e.g. by cheque) at the time of payment. You will be notified of such dividends distribution in the periodic statement. Suspension of Dealing of Investment Options and Deferral of Payment The Company reserves the right to suspend dealing of the Investment Options including but not limited to, subscription, switching or withdrawal made to the policy, or defer the payment of any proceeds under the policy of the Plan for delays in exceptional circumstances beyond the Company s direct control including, without limitation, closure of any exchange or trading market, unexpected governmental or regulatory intervention in foreign exchange, or suspension of valuation or dealing of or closure of the relevant Underlying (s). In such exceptional circumstances, any payment under the policy of the Plan affected by such suspension or deferment will be deferred accordingly. No interest will be paid in respect of any delays in payments caused by those exceptional circumstances. The Company will not be responsible for any change in the unit price of the Investment Option as a result of any such suspension. 6

15 < Your Life Protection The Plan provides the Life Benefit which is the greater of: (a) 101% of the total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals); and (b) 105% of the Account Value of the Basic Premium Account. If there is any amount of outstanding or unpaid policy charges, the Life Benefit will be reduced by such an amount. If the insured person commits suicide during the first 13 policy months, no Life Benefit shall be payable. The Company shall only pay the Account Value of the Basic Premium Account plus refund of the policy charges collected under the policy. Life Benefit will normally be paid within 1 month upon the approval of the death claim by the Company. No interest is payable in respect of the period between the date of death of the insured person and the date of payment of the Life Benefit. Illustrative Examples for the Calculation of the Life Benefit Payable All figures in the examples below are for the illustrative purpose only and do not represent the actual or anticipated returns. Example 1 The total Basic Premiums of US$6,000,000 has been paid. The Account Value of US$10,000 (before deducting any Surrender Charge incurred as a result of withdrawals) has been withdrawn from the Basic Premium Account preceding the death of the insured person. Scenario 1 : 105% of the Account Value of Basic Premium Account is greater than 101% of total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals). Account Value of the Basic Premium Account = US$7,000, % of total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals) US$6,000, % - US$10,000 = US$6,050,000 < 105% of the Account Value of the Basic Premium Account US$7,000, % = US$7,350,000 Therefore, the Life Benefit payable =105% of the Account Value of the Basic Premium Account = US$7,350,000 Scenario 2 : 101% of total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals) is greater than 105% of the Account Value of Basic Premium Account. Account Value of the Basic Premium Account = US$1,100, % of total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals) US$6,000, % - US$10,000 = US$6,050, % of the Account Value of the Basic Premium Account US$1,100, % = US$1,155,000 Therefore, the Life Benefit payable = 101% of total Basic Premium paid, less any and all withdrawals from the Basic Premium Account (before deducting any Surrender Charge incurred as a result of withdrawals) = US$6,050,000 7

16 Partial Withdrawal To meet your changing financial needs, you may cash out part of your Account Value without surrendering the policy starting from the 2 nd policy year (i.e. after the Initial Contribution Period) subject to a minimum limit of the Account Value withdrawn of US$500 and a minimum Account Value of the Basic Premium Account immediately after withdrawal of US$1,000. The Company reserves the right to vary the minimum limit of the Account Value withdrawn and minimum Account Value of Basic Premium Account from time to time with not less than 1 month s prior written notice. Partial withdrawals during the 2 nd - 6 th policy years are subject to applicable Surrender Charge. However, no Surrender Charge will be required for partial withdrawals of the Account Value starting from the 7 th policy year onwards. The applicable Surrender Charge = Initial Basic Premium applicable rate of Surrender Charge (up to 8%) (Account Value withdrawn (before deducting any Surrender Charge incurred as a result of withdrawals) Account Value of Basic Premium Account before such withdrawal) For details of Surrender Charge (including the calculation of the applicable Surrender Charge and the corresponding illustrative example), please refer to the Fees and Charges section. The net amount of withdrawal will be normally made to you within 1 month after our receipt of your written notice of such withdrawal. We will not pay any interest on the withdrawal amount in respect of the period between the receipt of the withdrawal notice and the date of payment. Important Notes: 1. The Plan is designed to be held for a long term period. Partial withdrawal from the Basic Premium Account may result in a significant loss of principal. Poor performance of Underlying s may further magnify your investment losses, while all charges are still deductible. 2. Partial withdrawals during the 2 nd - 6 th policy years are subject to applicable Surrender Charge. As such, the net amount of withdrawal received by you may be less than the Account Value withdrawn from the Basic Premium Account. 8

17 Policy Maturity The maturity date of the policy of the Plan is the policy anniversary on or immediately following the 100 th birthday of the insured person. The maturity benefit equal to the Account Value of the Basic Premium Account, will normally be made to you within 1 month after our receipt of your valid written application of the maturity benefit payment at the registered office of the Company. We will not pay any interest on the maturity benefit in respect of the period between the maturity date of the policy and the date of payment. Policy Surrender You may surrender the policy for its surrender value by providing a written request in the form specified by the Company. The Surrender Charge of a maximum of 10% of the Initial Basic Premium will apply to the Basic Premium Account during the first 6 policy years. Upon surrender, the policy will be terminated and you will receive the surrender value which is equal to the Account Value of the Basic Premium Account (less any applicable Surrender Charge). For details of the Surrender Charge (including the calculation of the applicable Surrender Charge and the corresponding illustrative example), please refer to the Fees and Charges section. The payment will normally be made to you within 1 month after our receipt of your notice of surrender. We will not pay any interest on the surrender value in respect of the period between the date of our receipt of your notice of surrender and the date of payment. Termination of Policy The policy will terminate on the occurrence of the earliest of the following events: 1. Death of the insured person ; or 2. Surrender of the policy; or 3. Maturity of the policy; or 4. The Account Value of the Basic Premium Account is equal to or less than zero. 9

18 Fees and Charges The current charges of the Plan are shown below. Scheme Level Type of Charges Applicable Rate Deduct from Policy Administration Charge Surrender Charge The Policy Administration Charge will be levied at the rate of a percentage of the prevailing Account Value of the Basic Premium Account in accordance with the relevant policy year. Policy Year In all circumstances (except the death of the insured person resulting from suicide within the first 13 policy months), the Policy Administration Charge relating to a full policy month that has been deducted will not be refunded. Surrender Charge will be levied in any of the following scenarios: i. Partial withdrawal from the Account Value of the Basic Premium Account (only available after the Initial Contribution Period) Surrender Charge = Initial Basic Premium applicable rate of Surrender Charge (Account Value withdrawn (before deducting any Surrender Charge incurred as a result of withdrawals) Account Value of Basic Premium Account before such withdrawal) ii. Surrender % per month (i.e. annual rate of 1.68%) 7 and thereafter 0.07% per month (i.e. annual rate of 0.84%) Surrender Charge = Initial Basic Premium applicable rate of Surrender Charge The applicable rates of the Surrender Charge are set out in the table below: Policy Year Percentage of the Account Value of the Basic Premium Account Applicable rate of Surrender Charge 1 10% 2 8% 3 6% 4 4% 5 3% 6 1.5% 7 and thereafter 0% For the avoidance of doubt, reduction of the Basic Premium will not reduce the amount of the Surrender Charge as the rate of the Surrender Charge is expressed in terms of the Initial Basic Premium. In the case where the Account Value of the Basic Premium Account is less than the Surrender Charge, the Surrender Charge that may be imposed shall be capped at such amount equal to the Account Value of the Basic Premium Account. In that case, the surrender value becomes zero, which means you have lost all your investment. Deducted from the Basic Premium Account monthly in advance through reduction of notional units of Investment Options in proportion to the respective value of the Investment Options under the policy on the first day of each policy month. Deducted from the Account Value withdrawn at point of partial withdrawal. Deducted from the Account Value at point of policy surrender. Switching Fee Currently nil. The Company reserves the right to vary the policy charges or impose new charges with not less than 1 month s prior written notice or such shorter period of notice as permitted under the relevant regulatory requirements. For any increase and addition of Underlying charges, such increase and addition of charges will also be imposed on the policy, and the Company will give you prior written notice in compliance with the notice period as required by the applicable laws and regulations. If any new or additional taxes or regulatory charges are imposed by the relevant laws or regulatory authorities to your policy, an additional fee will be imposed to cover such charges with a prior written notice in accordance with the relevant regulatory requirements. 10

19 Underlying s Level You should note that the Underlying s of the Investment Options may have separate charges including but not limited to the bid-offer spread, other management fee, performance fee, incentive fee and other fund charges. You do not pay these fees directly as the fees will be deducted and such reduction will be reflected in the unit price of the Underlying s. Charges relating to the Underlying s are different and are subject to change from time to time by the investment managers and other service providers of the Underlying s with a prior written notice in accordance with the relevant regulatory requirements. For details, please refer to the offering documents of the Underlying s, which are made available by the Company upon request. Illustrative Examples for the Calculation of the Surrender Charge Examples are hypothetical and for illustrative purposes only. Example 1 : Policy surrender Assumptions: Initial Basic Premium = US$30,000 The Basic Premiums have been paid in the first 3 policy years. You surrender the policy during the 4 th policy year. Account Value of the Basic Premium Account = US$100,000 There is no outstanding policy charge. Policy surrender $ $ $ Year 1 Year 2 Year 3 Year 4 Policy Inception 1 st anniversary 2 nd anniversary 3 rd anniversary 4 th anniversary $ represents the Basic Premium Payment The applicable rate of the Surrender Charge is 4% as the policy surrender occurs in the 4 th policy year. Surrender Charge = Initial Basic Premium applicable rate of Surrender Charge = US$30,000 4% = US$1,200 Hence, the surrender value = Account Value of the Basic Premium Account - Surrender Charge = US$100,000 - US$1,200 = US$98,800 Example 2 : Partial withdrawal Assumptions: Initial Basic Premium = US$30,000 The Basic Premiums have been paid in the first 3 policy years. Account Value of Basic Premium Account before withdrawal = US$100,000 Account Value withdrawn in the 4 th policy year = US$25,000 Withdrawal $ $ $ Year 1 Year 2 Year 3 Year 4 Policy Inception 1 st anniversary 2 nd anniversary 3 rd anniversary 4 th anniversary $ represents the Basic Premium Payment The applicable rate of the Surrender Charge is 4% as the partial withdrawal from the Basic Premium Account occurs in the 4 th policy year. Surrender Charge Net amount of withdrawal received by policyowner = Initial Basic Premium x applicable rate of Surrender Charge (Account Value withdrawn (before deducting any Surrender Charge incurred as a result of withdrawals) Account Value of Basic Premium Account before such withdrawal) = US$30,000 4% (US$25,000 US$100,000) = US$300 = Account Value withdrawn - Surrender Charge = US$25,000 - US$300 = US$24,700 11

20 General Information - About the Plan Type of Scheme The Plan is an investment-linked assurance scheme offered by MetLife Limited and is classified as Class C (linked long term) insurance business under the First Schedule to the Insurance Companies Ordinance (Chapter 41 of the Laws of Hong Kong). Party Involved MetLife Limited is the insurance underwriter of the Plan and its registered office is at Level 20, Cityplaza 3, 14 Taikoo Wan Road, Taikoo Shing, Hong Kong. MetLife Limited is a wholly-owned subsidiary of MetLife, Inc. in Hong Kong and operates under the MetLife brand. Policy Currency The Plan is denominated in US dollars. Rounding All proceeds payable under the policy shall be rounded down to 2 decimal places. Any remaining balance after such rounding will be accrued to the Company for its own benefit. Application The Plan is available to people aged from 15 days to 59 (The age mentioned in this Product Brochure refers to the age of the insured person at the last birthday). The Plan is not available for US persons. To apply, simply complete and submit the application form together with the remittance for the initial premium to us. Enquiry and Complaint In case you have any enquiry or complaint, please feel free to contact: Your intermediary; or Our Customer Services Hotline at Cooling-off Period Provided you have not made any claim under the policy, you may make a written request to cancel the policy. The request must be signed by you and received directly by us within 21 days after the delivery of the policy or the issue of a notice informing you/ your representative about the availability of the policy and the expiry date of the cooling-off period, whichever is earlier. You will receive all the premiums paid subject to any market value adjustment. Market value adjustment is calculated solely with reference to the loss/ gain (as the case may be) in realizing the value of any assets acquired through investment of the premiums made under the policy. For the avoidance of doubt, you will not be entitled to the Start-up Bonus if you cancel the policy within the cooling-off period. The cooling-off period is a requirement of The Hong Kong Federation of Insurers and is subject to change from time to time. Borrowing Power and Restrictions The Plan does not provide for policy loans and has no borrowing power. Report and Publication The Company provides periodic statements summarizing the holdings in each Investment Option, the Account Value and the transactions during the period. Unit prices of the Investment Options are available at the Company website Policy Provisions Sample policy provisions of the Plan are available for reference free of charge at the registered office of the Company. Governing Law The policy shall be governed by and interpreted in accordance with the laws of Hong Kong Special Administrative Region. The Company and policyowners will submit to the non-exclusive jurisdiction of the courts of Hong Kong Special Administrative Region for the resolution of all disputes arising from the policies. Taxation Taxation will depend on the tax rules in your country of residence and domicile. You are recommended to seek professional advice on your tax liabilities. 12

21 Foreign Tax Reporting and Withholding Obligations As you may appreciate, although MetLife Limited is an authorised insurer incorporated in Hong Kong, we may from time to time be subject to various tax reporting and withholding obligations imposed by the foreign laws, treaties, regulations, inter-governmental agreements, agreements with foreign governments or tax authorities which are binding on us, or any other rules, codes, or guidelines of a binding nature in other jurisdictions (collectively, Applicable Laws and Regulations ). An example is the Foreign Account Tax Compliance Act of 2010 enacted by U.S. Government and the United States Treasury Regulations promulgated thereunder ( FATCA ) that apply to MetLife Limited and this Plan, and MetLife Limited is a participating Foreign Financial Institution ( FFI ). MetLife Limited is committed to complying with FATCA. Under FATCA, a FFI is required to report to the U.S. Internal Revenue Service ( IRS ) certain information on U.S. persons that hold accounts with that FFI outside the U.S. and to obtain their consent to the FFI passing that information to the IRS. An FFI which does not sign or agree to comply with the requirements of an agreement with the IRS ( FFI Agreement ) in respect of FATCA and/or who is not otherwise exempt from doing so (referred to as a nonparticipating FFI ) will face a 30% withholding tax ( FATCA Withholding Tax ) on all withholdable payments (as defined under FATCA) derived from U.S. sources (initially including dividends, interest and certain derivative payments). The U.S. and Hong Kong have signed a Model 2 inter-governmental agreement ( IGA ) to facilitate compliance by FFIs in Hong Kong with FATCA and which creates a framework for Hong Kong FFIs to rely on streamlined due diligence procedures to (i) identify U.S. indicia, (ii) seek consent for disclosure from its U.S. policyholders and (iii) report relevant tax information of those policyholders to the IRS. For the purpose of complying with the Applicable Laws and Regulations by the Company and to the extent not prohibited by applicable laws, the Company may from time to time be required to disclose any and all of your personal information and policy information to any governments or tax authorities whether within or outside Hong Kong, including without limitation your full name, date of birth, place of birth, residential address, mailing address, taxpayer identification number, social security number, citizenships, residency, tax residency and the tax regime to which you are subject in respect of any tax reporting and/or tax payment responsibility. You would therefore need to provide us with all necessary information, update us promptly of any changes or additions to such information, and complete and sign such documents and do such things as we may reasonably require for the above purpose. For the Company to comply with the Applicable Laws and Regulations and to the extent not prohibited by applicable laws, we will have the right to (i) request any person (other than you) who is entitled to access the policy value or change a beneficiary or claim or receive a benefit payment under the policy to provide (and/or complete and sign such document relating to) such information as we may reasonably require, including without limitation his/her/their full name, date of birth, place of birth, residential address, mailing address, citizenships, residency, tax residency, taxpayer identification number, and social security number, and (ii) disclose any and all such information to any government or tax authorities whether within or outside of Hong Kong. Such person may include policy claimant, assignee or beneficiary who is entitled to a policy loan, withdrawal, surrender, policy claim or benefit payment, as the case may be. 13

22 If you or any other person referred to in the paragraph above fail to make the disclosures, sign the documents or do such things as we may require in the above, or if any information provided is inaccurate or not promptly updated for the Company to comply with the Applicable Laws and Regulations, or if we are prevented under Hong Kong laws or otherwise from making the necessary disclosures as mentioned in the above, we will have the right to deduct or withhold such amount(s) from any payment payable under the policy, or provide (whether before or after termination of the policy) your policy information to such government or tax authorities whether within or outside Hong Kong as may be required for us to comply with the Applicable Laws and Regulations provided that such actions shall not be prohibited by applicable laws. If you have any doubt on the impact of the Applicable Laws and Regulations on you or your policy, you should seek independent professional advice from your tax advisors. 14