Both types of policies can accumulate substantial savings. The earlier you start, the more you could earn from the policy by the time you retire.

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1 Frequently Asked Questions on Insurance products General Enquiries 1. Why bother with insurance? Life insurance gives you and your family financial protection against the financial loss that can happen after your death or if you suffer a total and permanent disability. It can also give you a retirement income or act as a financial back-up in emergencies and protect you against healthcare costs. 2. What types of life insurance are there? No one likes to think about the possibility of a serious accident or death, so people often avoid thinking about life insurance. While life insurance protects your family should the worst happen, some policies can also provide an excellent way of saving for your future or your retirement. Depending on the type of insurance plan you have, you may get back what you put into a life insurance policy with interest when the policy matures. Whole-life and endowment policies Whole-life and endowment policies are types of life insurance policies that carry a savings element by building up a cash value. Part of your premium gets invested, often with a choice between a guaranteed return on your money or an investment linked to the performance of the financial market. A whole-life policy will stay in force until death, even if you live up to the age of 99, given that you do not cash out your policy earlier. An endowment policy, on the other hand, matures after a set term of, say 10 or 25 years. Both types of policies can accumulate substantial savings. The earlier you start, the more you could earn from the policy by the time you retire. Term life insurance policy A term life insurance policy is taken up for a fixed duration or term and will pay a lump sum if the policyholder dies during the term of the policy. There is no savings element to a term life insurance policy, thus the policy will simply cease at the end of the term, with no cash value payable. A term life policy can be linked to a mortgage, whereby the benefits will decrease as the mortgage is paid off. Riders which cover Total Permanent Disability (TPD) or Critical Illness (CI) are typically attached to whole-life and endowment policies. Please refer to the "Your guide to Life Insurance" for details at 3. What is an investment linked policy? An investment-linked policy (ILP) is a life insurance policy which provides a combination of PUBLIC - 1

2 protection and investment. ILPs do not provide guaranteed cash value. The value of ILP depends on the price of the underlying funds into which the ILP sub-funds feed into, which in turn depends on how the investments in the underlying funds perform. Fees, expenses and insurance charges for an ILP are paid for through a deduction of purchased units. 4. How much should my coverage be? Your Financial Consultant will be in the best position to perform a thorough fact-find to evaluate your protection needs. According to 2011 Protection Gap Study commissioned by Life Insurance Association (LIA), it shows a working adult requires an average protection need of S$626,000, which translates to approximately 10 times of his or her annual salary. (Source: LIA Protection Gap Study 2012 MediaRelease 3 Aug 12, 5. How do I make a claim? You should contact your insurance company's claims department as soon as possible. You will then be asked to fill in a claim form and submit documentary evidence to support your claim: Full medical evidence and receipts for medical treatment in the case of medical claims. Birth and death certificates for personal accident/life insurance policies where a death benefit is payable. 6. How to make an inquiry or lodge a complaint to us on your life insurance policy? Should you have any inquires or complaints on your life insurance policy, please contact our customer service hotline at What if I change my mind after purchasing the plan? As with all life insurance plans, you can review your policy and decide whether the plan is suitable for your needs within the free-look (cooling off) period. If you decide cancel the plan within the free-look (cooling off) period, we will refund all premiums you have paid, less any applicable administrative cost. 8. What if I miss a premium payment? There is a 30-day grace period for premiums that are due. If you cannot make the payment within the grace period, the policy may be converted to premium holiday status, an automatic policy loan or terminated, depending on the type of policy. Please refer to the Product Summary of each product for more information. 9. How can I keep track of the policy's transactions? You will receive a policy statement printed on 31 December each year. PUBLIC - 2

3 ValueTerm 1. What is ValueTerm? ValueTerm is a level term non-participating term plan which provides financial protection against untimely death and total permanent disability. 2. Does ValueTerm acquire cash value over time? No, ValueTerm is a term plan which does not acquire cash value. 3. Can I further enhance the coverage of the plan? Yes, depending on your needs and affordability, you may choose to attach optional benefits (riders) like accidental death, family income, critical illness etc to enhance the overall coverage of the plan. 4. Is there any convertibility option under this plan? Yes, before the policy expires and if you are below 60 years old, you can convert the policy to a whole-life insurance or an endowment insurance without proof of good health. The cover for the whole-life or endowment insurance has to be the same of less than the cover amount on the term policy but it should not exceed S$200,000. The premium rate for the converted policy will depend on your age at the date of conversion. 5. Is medical underwriting required? Yes, medical underwriting and financial underwriting are required for ValueTerm. 6. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 7. What if I miss a premium payment? Refer to Q8 of General Enquiries. 8. How can I keep track of the policy's transactions? Refer to Q9 of General Enquiries. 9. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, freelook (cooling off) period, contractual rights, warnings, exclusions and disclaimers, etc. Benefit Illustration specific to your case showing total death benefits of the plan. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 3

4 Early Critical Care 1. What is Early Critical Care? Early Critical Care is a standalone level term non-participating protection plan which provides financial protection with coverage from early stages of a covered medical condition to intermediate and critical stages. It also provides death benefit, maturity benefit, and additional coverage on special critical illness as well as premium waiver benefit. 2. Which special critical illness benefits are covered under Early Critical Care and what will the payout be? Upon the diagnosis of any of the 4 special critical illnesses listed below, a lump sum equivalent to 20% of the sum insured will be payable subject to: 1) maximum of S$25,000 for each special critical illness benefits and 2) each special critical illness is claimable only once per life time regardless of the number of policies issued to you by the Company. Dengue Hemorrhagic Fever Diabetic Retinopathy Osteoporosis Severe Rheumatoid Arthritis 3. How much can I get back upon the expiry of the policy's term? The benefit amount of S$3,000 shall be payable after the policy expires. 4. How much can I get back from this policy upon death? The death benefit amount of S$3,000 shall be payable upon death. 5. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 6. Is medial underwriting required? Yes, medical underwriting and financial underwriting are required for Early Critical Care. 7. What if I miss a premium payment? Refer to Q8 of General Enquiries. 8. How can I keep track of the policy's transactions? Refer to Q9 of General Enquiries. 9. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. PUBLIC - 4

5 Benefit illustration specific to your case showing total death benefits of the plan and Maximum Early Critical Care Benefit Guaranteed. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 5

6 MortgageProtector 1. What is MortgageProtector? MortgageProtector is a decreasing term insurance policy with the choice of term from 10 to 40 years. It provides a reducing amount of financial protection against death and disability for a specific period. Depending on your needs, it covers either a single life or lives of two who took up a housing loan for their shared property. 2. Does MortgageProtector acquire cash value over time? No, MortgageProtector is a term plan which does not acquire cash value. 3. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 4. What is my premium commitment? The first month premium will be waived and thereafter the premium charged are level and guaranteed. Premium payment will stop 4 years before the policy term expires. 5. Is medial underwriting required? Yes, medical underwriting and financial underwriting are required for MortgageProtector. 6. What if I miss a premium payment? Refer to Q8 of General Enquiries. 7. How can I keep track of the policy's transactions? Refer to Q9 of General Enquiries. 8. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Benefit illustration specific to your case showing death benefits of the plan, Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 6

7 LifeEnrich 1. What is LifeEnrich? LifeEnrich is a participating plan which participates in the profits of the insurance fund through non-guaranteed bonuses that may be declared and allocated from time to time. It provides whole of life financial coverage against death. 2. What is my premium commitment? Premiums are only payable up to the payout age (age 55 or 62). Life cover continues after the payout age even without payment of premium. 3. When do I get my return? Policyowner decides when to receive the guaranteed cash benefit - either when the life insured reaches age 55 or 62 (the payout age). Premiums are only payable up to the payout age. Life cover continues after the payout age even without payment of premium. 4. What are the options available upon reaching the payout age? When the life insured reaches the payout age, in the absence of any claims, the guaranteed cash benefit will be payout to you. There are 3 withdrawal options available: a) Withdraw the full amount in one lump sum; b) Deposit the full amount with us and accumulate interest at our prevailing interest rate which is not guaranteed and may change from time to time. You may choose to withdraw the amount reinvested and accumulated interest at any time thereafter without penalty until you reach 99 years of age; or c) Receive a fixed monthly income of specified amount or for a specified period. The balance will accumulate at our prevailing interest rate which is not guaranteed and may change from time to time. 5. How much can I get if I surrender the policy? The insurance plan is meant for customers with medium to long term investment horizon. If you surrender the policy before the end of the policy term, you will receive the Cash Value, being the value acquired by the policy over time (if any), which the Company will pay you when you surrender the policy or if the policy is terminated, in accordance with the terms of the policy, less any amount that is due and owing to us. Early termination of the plan may result in a significant loss of your investment. Please contact your Financial Consultant to find out more. 6. Is medial underwriting required? Yes, medical underwriting and financial underwriting are required for LifeEnrich. 7. What if I miss a premium payment? Refer to Q8 of General Enquiries. 8. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. PUBLIC - 7

8 9. How can I keep track of my plan? Refer to Q9 of General Enquiries. 10. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, freelook (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Benefit illustration specific to your case showing projected total surrender values and projected total death benefits of the plan. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 8

9 Savings Accumulator 1. What is Savings Accumulator? Savings Accumulator is an endowment plan that pays coupon payment twice a year starting from the end of the third policy year and also participates in the profits of the insurance funds through non-guaranteed bonuses that may be declared and allocated from time to time. This plan provides financial protection against death and terminal illnesses. To increase the flexibility of the plan, you may choose a premium term of 10, 15, 20 or 25 years. 2. What are the key benefits of Savings Accumulator? On top of providing financial coverage against death and terminal illness, you will also receive the following (if applicable): Guaranteed coupon - You will receive a guaranteed coupon payment of 2.50% of the sum insured every half-yearly starting from the end of the third policy year Guaranteed maturity benefit - Upon maturity of the policy, in the absence of any claims, the guaranteed maturity benefit will be paid out to you. The amount is stated in the Benefit Illustration. Cash value - Savings Accumulator acquires cash value starting from the third policy year onwards. The amounts of cash value you may acquire in each policy year are stated in the Benefit Illustration. Reversionary bonus - This plan participates in the profits of the insurance funds through nonguaranteed reversionary bonuses which may be declared annually from the end of second policy year onwards. Terminal bonus - We may pay a terminal bonus upon death, surrender or maturity of the policy. The rate of the terminal bonus is based on the percentage of the reversionary bonus(es) accumulated under the policy and varies at different policy anniversaries. 3. Can I further enhance the coverage of the plan? Yes, depending on your needs and affordability, you may choose to attach optional benefits (riders) like accidental death, family income, critical illness, total and permanent disability etc. to enhance the overall coverage of the plan. 4. Is medial underwriting required? There is no need for medical underwriting for Savings Accumulator plan with policy term 10 and 15, unless optional supplementary benefits (riders) are added. Medical underwriting is only applicable for Savings Accumulator plan with the policy term of 20 and 25 years. However, financial underwriting is still applicable to all Savings Accumulator plans. 5. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 6. What if I miss a premium payment? Refer to Q8 of General Enquiries. PUBLIC - 9

10 7. How can I keep track of my plan? Refer to Q9 of General Enquiries. 8. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Benefit illustration specific to your case showing projected total surrender values and projected total death benefits of the plan. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 10

11 SecureIncome 1. What is SecureIncome? SecureIncome is a 2-in-1 plan comprising first an accumulation term for a fix period of time, followed by the income term. Below is some information of the 2 terms: Accumulation Term - During the accumulation term, SecureIncome is a non-participating plan and it is not entitled to any profits that company's life insurance fund may make (i.e. does not pay bonuses) Income Term - During the income term, this becomes a participating plan. It participates in or shares in the profits of the company's life insurance fund in the form of dividends that are not guaranteed. SecureIncome provide financial coverage against death and terminal illness. Depending on your preferred investment horizon, there are 2 policy terms available - SecureIncome 10 and What is the difference between SecureIncome 10 and 55? Both SecureIncome 10 and SecureIncome to age 55 consist of 10 years of Income Term. However, for SecureIncome 10, the accumulation term is 10 years while for the accumulation term is up to the policy year when the life insured reaches age Is the payout of death or terminal illness benefit uniform throughout the policy year? No. If the life insured dies or is diagnosed with terminal illness during accumulation term, the following (less any sum owing to us) will be paid out in one lump sum: Between the first to the fifth policy year - The higher of 101% of total premiums paid, or cash value at the date of death/ terminal illness diagnosis. After the fifth policy year - The higher of 110% of total premium paid, or the cash value at the date of death/ terminal illness diagnosis. 4. Does this plan acquire cash value? Yes, SecureIncome acquires cash value from the third policy year onwards. The amount of cash value you may acquire in each policy year is stated in the Benefit Illustration, which you can obtain from your Financial Consultant. 5. What is unemployment benefit? If you are unemployed for at least thirty (30) consecutive days and we accept your claim for the Unemployment Benefit, the Grace Period in respect of the next premium or premium installment due will be extended (Extended Grace Period) up to three hundred and sixty five (365) days from that due date. Please refer to the product summary for details. 6. What is policy loan and how can I apply policy loan? If the policy has acquired a cash value, you may apply for a loan from us up to a maximum of ninety percent (90%) of the guaranteed surrender value. We will charge interest daily on the outstanding amount under a policy loan at our prevailing rates which may be changed from time to time. The accrued interest will be a debt owing to us under the policy. The guaranteed surrender value is stated in the Benefit Illustration. 7. Is medial underwriting required? Yes, medical underwriting and financial underwriting are required for SecureIncome. PUBLIC - 11

12 8. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 9. What if I miss a premium payment? Refer to Q8 of General Enquiries. 10. How can I keep track of my plan? Refer to Q9 of General Enquiries. 11. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc Benefit illustration specific to your case showing projected total surrender values and projected total death benefits of the plan. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 12

13 Capital Builder 1. What is Capital Builder? Capital Builder is a single premium non-participating 7-year plan which provides financial protection against untimely death of the life insured. You may use cash or your Supplementary Retirement Scheme (SRS) account to invest into this plan. Upon the maturity of the policy and in the absence of any claims, the maturity benefit will be paid out to you. 2. Does this plan acquire cash value? Yes, Capital Builder acquires a surrender value from the first policy year onwards and the minimum surrender value acquired is guaranteed. Please refer to the Benefit Illustration for the amount of surrender value you may acquire on each policy year. 3. Is medial underwriting required? No, medical underwriting is not required for Capital Builder. However, financial underwriting is still applicable. 4. What if I change my mind after purchasing the plan? Refer to Q7 of General Enquiries. 5. How can I keep track of my plan? Refer to Q9 of General Enquiries. 6. What documents should I take note of? Our Financial Consultants will go through the following documents before you apply for the plan. It is important to read these documents and understand the product before making your purchase: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Benefit illustration specific to your case showing projected total surrender values and projected total death benefits of the plan. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides PUBLIC - 13

14 Growth Manager/ Growth Manager Plus 1. What is Growth Manager/ Growth Manager Plus? On top of providing financial protection against death and terminal illness, Growth Manager and Growth Manager Plus are regular premium whole life investment-linked plans which allow you to invest into the suites of investment linked policy sub-funds available. 2. Is there any penalty for terminating Growth Manager / Growth Manager Plus in the earlier years? Full and partial surrender penalty is imposed on Growth Manager and Growth Manager Plus in the earlier years. Please refer to your Financial Consultant for details. 3. Do Growth Manager/ Growth Manager Plus come with non-guaranteed bonuses? No, Growth Manager and Growth Manager Plus are not entitled to non-guaranteed bonuses. The surrender value is also not guaranteed. 4. Is medical underwriting required for Growth Manager/ Growth Manager Plus? Medical underwriting is only applicable for Growth Manager Plus. However, financial underwriting is required for both Growth Manager and Growth Manager Plus. 5. Is there any charge for switching between investment choices? Currently there is no switching fee. 6. How can I keep track of the progress of my investments and the unit prices of my investment choices? You will receive an annual statement showing details of your policy and the progress of your investments. Daily unit prices of the investment choices are published on the Straits Times and the Business Times. They are also available on the fundsupermart s website: 7. What documents should I take note of? Your Financial Consultant will go through the following documents before you apply for the plan. It is important for you to read these documents and understand the plan before making an application: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look(cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Benefit Illustration specific to your case showing projected total surrender values and projected total death benefits of the plan Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides The relevant Fund summaries and Product Highlights Sheets PUBLIC - 14

15 Asset Manager II 1. What is Asset Manager II? Asset Manager II is a single premium whole life investment-linked plans which allows you to invest into the suites of investment linked policy sub-funds available. It provides financial protection against the untimely death of the life insured. 2. Is there any penalty for terminating Asset Manager II in the earlier years? No. 3. Is medical underwriting required for Asset Manager II? Medical underwriting is not required for Asset Manager II. However, financial underwriting is required. 4. Is there any charge for switching between investment choices? Currently there is no switching fee. 5. How can I keep track of the progress of my investments and the unit prices of my investment choices? You will receive an annual statement showing details of your policy and the progress of your investments. Daily unit prices of the investment choices are published on the Straits Times and the Business Times. They are also available on the fundsupermart s website: 6. What documents should I take note of? Your Financial Consultant will go through the following documents before you apply for the plan. It is important for you to read these documents and understand the plan before making an application: Product summary describing the key benefits and features of the plan, time horizon and risk profile, fees and charges to be borne by the policyowner, risk associated with the product, free-look (cooling off) period, contractual rights, warnings, exclusions and disclaimers etc. Goal Planner report HSBC Service Guide Life Insurance Association (LIA) consumer disclosure guides The relevant Fund summaries and Product Highlights Sheets Important notes: The products mentioned in this FAQ are underwritten by HSBC Insurance(Singapore) Pte. Limited (Reg No N), 21 Collyer Quay #02-01 Singapore This FAQ contains only general information. It does not constitute an offer to buy or sell an insurance product or service. A person interested in the product(s) should read the relevant Product Summary, Fund Summary (where applicable) and Product Highlights Sheet (where applicable) for details before deciding whether to buy the product(s). Copies of the Product Summary, Fund Summary and Product Highlights Sheet can be obtained from our authorized product distributors. Buying a life insurance policy is a long term commitment. An early termination of the policy incurs high cost and the surrender value payable may be less than the total premiums paid. Information is correct as at 28 March This material is issued by HSBC Insurance (Singapore) Pte. Limited. PUBLIC - 15