HLA EverGrow, HLA EverGain & Riders (Ever Series)

Transcription

1 HLA EverGrow, HLA EverGain & Riders (Ever Series) New Series of Unit-Linked Policy Prepared by: SMPD Department Last Updated : 3 June 2013

2 Contents 1. Why New Series of ILP? 2. What is Ever Series? 3. Differences between Ever Series, Perfect Series & Venture Series 4. Components of Ever Series 5. Features & Benefits 6. HLA EverGreen Fund Series 7. Fund Options & Fees 8. Premium/ Insurance Charges 9. Underwriting Guidelines 10. Agency Compensations 11. Sales Materials 12. Launch Date 13. Target Market 14. Unique Selling Propositions 15. Questions & Answers 16. Sales Ideas/ Presentations

3 Why New Series of ILP? BEST of Traditional PRODUCT INNOVATION New Features that provides the Best of Both Worlds! EVER SERIES BEST of Unit-Linked

4 What is Ever Series? Basic Plan : EverCash Riders EverCare Rider Waiver Riders : : : Two ILP endowment as follow: EverGrow: Education plan covering unborn child and children up to age 5 EverGain : General savings plan Non-participating riders with guaranteed yearly income starting from the end of Year 1 & Year 6 with limited payment of 6 years. Non-participating rider providing comprehensive cover for unborn child & expecting mother. Three options available : Superior, Deluxe & Premier Non-participating riders providing waiver of premium benefit. 4 types of waiver : CIWP, TPDWP, WOP & LCWOP. Premium payment & coverage option : Basic Term Rider Term Rider Payment Term Full Premium Payment Term 20 6, 10, 20 years 3 24 Full Premium Payment Term 25 6, 10, 25 years

5 What is Ever Series? The Basic Plan : HLA EverGrow Secure the Best for Your Child! A regular premium unit-linked policy that helps to plan smartly for child key educational milestones. Built in with Complete Protection even before birth. Provides flexibility to convert the plan to reduced paid up as early as 3 rd policy anniversary.

6 What is Ever Series? The Basic Plan : HLA EverGain Secure the Best for Yourself! A regular premium unit-linked policy that enable wealth accumulation to achieve personal financial needs at different life stages. Provides flexibility to convert the plan to reduced paid up as early as 3rd policy anniversary.

7 What is Ever Series? The Riders : EverCash Yearly Income Rider A limited 6-pay rider which provides guaranteed yearly income starting from end of 1 st or 6 th policy year. EverCare Pre-Natal Coverage Rider A single premium rider which provides comprehensive coverage during the crucial prenatal stage CIWP, TPDWP, LCWP & WOP Waiver of Premium Riders Riders which provide waiver of premium benefit

8 Differences between Ever Series, Perfect Series & Venture Series No. Descriptions Ever Series Perfect Series Venture Series 1. Basic Plan name HLA EverGrow HLA EverGain Perfect Education Perfect Protection Perfect Retirement 2. Policy Term 20 and 25 years only Perfect Education up to age 25 Perfect Protection & Retirement up to age Riders available Only the follows: - EverCash 1 Rider - EverCash Rider - EverCare Rider - CIWP - TPDWP - LCWP - WOP 4. Rider Basis Premium Paying without unitization All existing riders except: - Income Cash Rider - Child Disability Allowance Rider - Juvenile Critical Illness Rider - Child Care Allowance Rider Premier & Standard Premium Paying with unitization Venture Education Venture Life Venture Woman Venture Education up to age 25 Venture Life & Woman up to age 100 All existing riders. Unit Deducting

9 Differences between Ever Series, Perfect Series & Venture Series No. Descriptions Ever Series Perfect Series Venture Series 5. Model Basic Unit Account & Riders. Only basic plan has fund value as riders are premium paying non unitized. Insurance charge applicable to basic plan only, 6. Regular Top Up Option (RTUO) RTUO available. Dual Account (Basic Unit Account & Rider Unit Account). Basic plan and riders shall have own fund value and relevant charges are deducted from respective fund value. Both basic unit account and rider unit account has own RTUO. Single Account. Basic plan and riders insurance charges are deducted from the single/ same fund value. RTUO available. 7. Reduced Paid Up Option Available from 3 rd up to last policy anniversary if fund value is sufficient Not available. 8. Coverage Options Increasing Cover only Increasing and Level Cover

10 Differences between Ever Series, Perfect Series & Venture Series No. Descriptions Ever Series Perfect Series Venture Series 9. Funds HLA EverGreen Fund Series with Weekly pricing basis 10. Funds tenure EverGreen Fund Series - Fixed term with 5 options available Cash Fund - Open ended 11. Funds Unique Feature 12. Option at Funds maturity Provides a guaranteed unit price at maturity EverGreen Funds (Boosted Highest Profit Lock-in) 3 options available: - Fully Reinvest - Fully Withdrawal - Partial Reinvest/ Withdrawal HLA Venture Fund Series with Daily pricing basis. Open ended (Venture Fund Series). No guaranteed on unit price. Investor bear risk of market fluctuation. Not available.

11 Differences between Ever Series, Perfect Series & Venture Series No. Descriptions Ever Series Perfect Series Venture Series 13. Sum Assured Multiple 14. Guaranteed Additional Allocation The minimum Sum Assured Multiple is computed based on the basic annual premium only. Yes, applicable to Basic Annualized Premium of RM12,000 and above Not available. The minimum Sum Assured Multiple is computed based on the total annual premium of both basic plan and all attaching riders. 15. Guaranteed Bonus Units Yes, available starting from beginning of Year 7. Not available. 16. Allocation Rates (for premium payment of 20 years and above) Higher allocation rates - 40%, 52%, 78.5%, 83.5%, 92.5%, 92.5% Standard 40%, 40%, 75%, 75%, 85%, 85%

12 Differences between Ever Series, Perfect Series & Venture Series No. Descriptions Ever Series Perfect Series Venture Series 17. Option at maturity (education plan) Not available, May convert to a regular premium whole life unitlinked plan without evidence of insurability. In addition, may continue to invest by keeping the whole maturity proceeds in the policy (BSA will be revised to 125% of total maturity proceeds). May convert to a regular premium whole life unitlinked plan only without evidence of insurability. 18. Auto-Rebalancing mechanism Not available Available in 4 options of Investment Strategy. Not available

13 Components of Ever Series Basic Account Rider(s) Basic Account Premium + Rider Premium Allocated Premium Unallocated Premium (80% to purchase units in EverGreen (to pay for initial funds and 20% in Cash Fund) expenses) = Total Premium Payable EverGreen Funds Cash Fund Pay insurance charges & policy fee Balance = Basic Account Fund Value (To meet management expenses, commission etc) When insufficient cash funds to pay insurance charges / policy fee

14 Components of Ever Series Riders premium were not allocated to purchase units as these are Premium Paying Riders without unitization. The EverGreen Fund(s) selected must not have tenure longer than the basic policy term. Policy fee and insurance charge to be deducted by way of unit cancellation of Cash Fund ONLY. In the event that the Cash Fund is insufficient to support the insurance charges and other expenses, the policy will automatic liquidate units from EverGreen Fund Series and transfer to Cash Fund.

15 Features & Benefits - HLA EVERGROW & HLA EVERGAIN

16 Features & Benefits (Basic Plan) 1. Death, TPD & OAD Coverage In the event of Death (any causes), TPD (prior to age 65) and OAD (age 65 onwards) of the Life Assured, the amount payable shall be the SUM of : - Sum Assured; and - Account Value at the Next Valuation Date immediately following the date of notification of Death/ the date of admission of the TPD or OAD claim In the event of Death/ TPD of Life Assured from commencement date to 30 days after birth, the amount payable shall be the higher of Total Premium Paid or Fund Value. OAD is applicable to HLA EverGain only.

17 Features & Benefits (Basic Plan) Juvenile Lien shall apply to HLA EverGrow. The scale is as follows: Attained Age at occurrence Amount of Benefit Payable (% of Sum Assured) 0, % 40% 60% 80% 100% May reinvest TPD/ OAD claim proceeds with 100% allocation

18 Features & Benefits (Basic Plan) 2. Boosted Highest Look Back Profit Lock-in at Maturity On weekly basis, the Minimum Unit Price at maturity is Locked-in based on the Highest Unit Price x Boost Factor observed to-date, where the initial value of the Boost Factor are as follow: Fund Term Initial value as of 01/02/2011 (before tax) HLA EverGreen years 119.5% HLA EverGreen years 122.5% HLA EverGreen years 127.0% HLA EverGreen years 130.0% HLA EverGreen years 137.5% Boost Factor decline linearly towards 100% by 2/3 into the tenure of the respective fund

19 What is a profit lock in system? Guaranteed Minimum Unit Price at Maturity - At each point of investment, your unit price will be multiplied with a booster factor. - This boosted unit price will be the unit price guaranteed at maturity. This maturity unit price is the minimal guaranteed you would receive. - Whenever the boosted unit price reaches a new high, the minimal guaranteed unit price at maturity will be revised to this higher unit price.

20 Conventional Conventional Investment Investment Unit Price Significant Loss at MATURITY. You invest here market crashes Time

21 Highest Highest Look-Back, Unit price Profit lock-in Lock-In Unit Price You invest here market crashes Highest Unit Price is locked in & guaranteed at MATURITY. Time

22 Highest Boosted Lock-In Highest Boosted Lock-in Unit Price Unit Price You invest here market crashes Highest Boosted Unit Price is locked in and guaranteed at MATURITY. Time

23 Example: How to Lock In Boosted UP Week Boost Factor Unit Price Boosted Unit Price Locked In Boosted Unit Price Lock in only if boosted unit price is higher than previous locked in boosted unit price. Since this week boosted unit price is lower than previous locked in boosted unit price, so no new locked in boosted unit price

24 Features & Benefits (Basic Plan) 3. Reduced Paid Up Policy Owner may convert the plan to a reduced paid up plan commencing from 3 rd up to last policy anniversary provided that the fund value is sufficient. Premium will cease there onwards. Upon conversion to reduced paid up plan, you may reduce or maintain the Basic Sum Assured (BSA). Minimum allowable BSA depends on when the policy is converted.once converted to the reduced paid-up plan, the basic coverage will be guaranteed until maturity. The policy fee and insurance charges shall cease upon conversion to a reduced paid up plan. Hence, the number of units available in the basic account shall not reduce anymore and shall only increase due to Bonus Units which would be given to Policy Owner starting from beginning of year 7 onwards.

25 Features & Benefits (Basic Plan) Minimum BSA Allowable Upon Conversion to Reduced Paid Up Plan Reduced Paid Up (policy anniversary) Minimum BSA allowable 3 rd 15% of original BSA 4 th 20% of original BSA 5 th 25% of original BSA 6 th 30% of original BSA 7 th 35% of original BSA 8 th 40% of original BSA 9 th 45% of original BSA 10 th 50% of original BSA 11 th 55% of original BSA 12 th 60% of original BSA 13 th 65% of original BSA 14 th 70% of original BSA 15 th 75% of original BSA 16 th 80% of original BSA 17 th 85% of original BSA 18 th 90% of original BSA 19 th 95% of original BSA 20 th to 24 th 100% of original BSA

26 Features & Benefits (Basic Plan) 4. Regular Top Up Option RTUO will be available at any premium due date starting from 2 nd Policy Year (1 st Policy Anniversary) onwards RTUO premium is not included in Annual Target Premium (ATP) calculation of minimum Sum Assured Multiple (SAM) 95% of the RTUO premium will be allocated to purchase units into the funds throughout the policy term Policy owner is not allowed to select a different fund allocation for RTUO premium

27 Features & Benefits (Basic Plan) 5. Guaranteed Bonus Units Additional units (guaranteed bonus units) would be given to the policies starting from beginning of Year 7 as follows Policy Year (% of Investment Account Balances) and onwards 0.20 Worth about 50% of AP

28 Features & Benefits (Basic Plan) Example: 30 MNS, Annual Premium =5k, Policy term =20, Fund allocation : 80% in EverGreen 2030 and 20% in Cash Fund. Policy Year Projected Account Value (Bull) at end of year Guaranteed Bonus Units (% of AV) at beginning of year Guaranteed Bonus Units (RM) Projected Unit Price (Bull) Extra Units 6 25, , , , , , : : 0.20 : : : , Total 2, , Total value at maturity = # of extra units * Unit Price at maturity = * RM 2.84 = RM 2,854.27

29 Features & Benefits (Basic Plan) 6. Guaranteed Additional Allocation Additional premium allocation will be given to policy during the first 2 years with Basic Annualized Premium of RM12,000 and above. The scale is as follows: Basic Annualized Premium Guaranteed Additional Allocation (% of premium) 1,500 11,999 0% 12,000 23,999 2% >= 24,000 4%

30 Features & Benefits EVERCASH RIDERS EverCash 1 Rider GYI from end of 1 st year EverCash Rider GYI from end of 6 th year

31 Features & Benefits (EverCash) 1. Guaranteed Yearly Income Provides steady guaranteed yearly income starting from end of 1 st or 6 th policy year until expiry. All yearly income will be paid out to Policy Owner. Option to accumulate with the Company is not available. However, Policy Owner may reinvest the yearly income through One Time Top Up where the allocation shall be 100%. The yearly income will be reinvested in accordance to the selected funds allocation with exception to Cash Fund. The reinvestment option is available even after policy has been converted to reduced paid up.

32 Features & Benefits (EverCash) Why Reinvest the Yearly Income? Reinvestment of yearly income provides Policy Owner the opportunity to capture dollar cost of averaging although premium ceases (if convert to reduced paid up plan) Reinvestment also allows exposure to uptrend market.

33 Features & Benefits (EverCash) 2. Death & TPD Coverage Upon death (all causes)/ TPD (prior to age 65) of Life Assured, the amount payable shall be 100% of the outstanding yearly income yet to be paid to Policy Owner. In the event of Accidental TPD, the amount payable shall be an additional 300% of the outstanding yearly income (400% of outstanding YI). May reinvest TPD claim proceed with 100% allocation. Juvenile Lien is not applicable.

34 Features & Benefits (EverCash) 3. Reduced Paid Up Reduced Paid Up option is available on 3 rd, 4 th or 5 th policy anniversary. Upon conversion to a reduced paid up plan, all the benefits (ie death, TPD, additional amount upon accidental TPD and Guaranteed Yearly Income) payable shall be reduced to a lower amount. In the event of premium default, if non-forfeiture option is not selected by Policy Owner at the end of grace period, the Reduced Paid Up option shall automatically apply. 4. Guaranteed Level Premium Premium shall remain unchanged for the entire premium payment term.

35 Features & Benefits (EverCash) 5. Cash Surrender Value EverCash Riders provide guaranteed CSV even during the first 2 years (as early as end of 1 st policy year). 6. Policy Loading/ Large Size Discount Yearly Income (RM) Yearly Income (RM) Policy Loading per RM1,000 Yearly Income (RM) to 1, Discount per RM1,000 Yearly Income (RM) 1, to 1, , to 2, , to 3, , to 4, , to 7, , to 9, , and above 70

36 Features & Benefits - EVERCARE RIDER

37 Features & Benefits (EverCare) This Rider provides comprehensive cover for unborn child & expecting mother. Coverage can commence as early as 13 weeks of pregnancy. 3 types of plan available: Benefit Amount Payable Superior Deluxe Premier Pregnancy Complications (6 Complications) RM 5,000 Maternal Death (up to 30 days of delivery) RM 20,000 Death of Foetus RM 10,000 Death of Child (within 30 days of birth) RM 10,000 Congenital Conditions (15 Conditions) RM 20,000 Neonatal ICU/HDU for new born child (immediately following birth, up to 30 days) Incubation for new born child (immediately following birth, up to 30 days) RM 500 per day RM 200 per day RM 700 per day

38 Features & Benefits (EverCare) Birth Before Birth After Birth Pregnancy Complications Death of Foetus Neonatal ICU/ HDU for new born Child Incubation for new born Child Maternal Death Death of Child Congenital Conditions Immediately following birth, up to 30 days Immediately following birth, up to 30 days up to 30 days of delivery within 30 days of delivery Coverage up to child age 2 Payable in one lump sum. Head Start in Education Planning as early as 13 weeks into pregnancy!

39 Single Premium Amount Plan Single Premium Superior RM 600 Deluxe RM 1,000 Premier RM 2,200 3 different plan types to suit your budget. The earlier you purchase EverCare is the better as same premium shall apply irrespective of entry point.

40 6 Pregnancy Complications 1. Abruptio Placentae Pregnancy Complications Separation of Placentae from uterine wall 2. Amniotic Fluid Embolism Entering of Amniotic Fluid into mother s blood stream 3. Disseminated Intravascular Coagulation (DIC) Entrance of uterine material with tissue factor activity into maternal circulation which results in hemorrhage 4. Ectopic Pregnancy Implantation of fertilized ovum occurs outside the uterine cavity 5. Eclampsia Seizure or unexplained coma during pregnancy 6. Still Birth Delivery of dead child

41 15 Congenital Conditions 15 Congenital Conditions Defects on Heart 1. Tetralogy of Fallot Hole in the Heart 2. Atrial Septal Defect Opening in upper 2 chambers 3. Transposition of Great Vessels Switch of position between Artery and Aorta (Blue Baby) Defects to Organs on the Head 1. Congenital Blindness (both eyes) 2. Congenital Cataract (both eyes) 3. Congenital Deafness (both side) Defects on Genetic 1. Down Syndrome 4. Truncus Arteriosus Combined Artery and Aorta into one great Artery

42 Features & Benefits (EverCare) 15 Congenital Conditions- Con t Defects on Limbs 1. Absence of Foot (either one or both) 2. Absence of Hands (either one or both) Defects on Body 1. Anal Atresia Without anal opening 2. Congenital Diaphragmatic Hernia Hole in Diaphragm 3. Spina Bifida Defect on the spine 4. Oesophageal astresia Esophagus not connected to stomach 5. Trachea-oesophageal fistula Abnormal connection between esophagus and trachea

43 Things to Note (EverCare) Gynaecology report and ultrasound (2D or 3D) are required for all applications Expenses incurred for gynaecology report and ultrasound (2D or 3D) will be reimbursed to Policy Owner. Maximum reimbursement amount is RM150 per policy (Based on original receipt). Birth Certificate must be provided within 180 days from Expected Delivery Date (EDD). If the Birth Certificate is not produced within the stipulated period, the basic policy shall be automatically surrendered. For Superior Plan, coverage shall cease upon 1st Life Assured attains 30 days old. For Deluxe and Premier Plan, the coverage shall cease upon 1 st Life Assured attains age 2.

44 Exclusions (EverCare) A pre-existing condition; Elective termination of pregnancy other than for medical reasons where medical reasons here shall mean a recommendation from a specialist that the pregnancy will endanger the life of the Life Assured (Mother); or Death, which arises as a direct result of an intentional or deliberate act, or omission of the policy owner, the parents of the foetus or infant, or someone who lives with or supervises the child; or Foetal death less than 12 full weeks; Complications of pregnancy resulting from infertility treatment including In Vitro Fertilisation (IVF); a deliberate act for example but not limited to, taking intoxicating liquor, drugs or poison, suicide or attempted suicide or intentional self-injury while sane or insane; the use of unprescribed drugs where such drugs are required by law to be prescribed by a registered Medical Practitioner; or is caused directly or indirectly by the existence of Acquired Immune Deficiency Syndrome (AIDS) or the presence of any Human Immuno-deficiency Virus (HIV) infection; or any unlawful, criminal or deliberate act or omission, direct participation in riot, strike or civil commotion.

45 Competitor Analysis (EverCare) Description Company P HLA Entry Pregnancy Care Minimum 18 weeks into pregnancy Cover 3 types of complications only Minimum 13 weeks into pregnancy Cover more pregnancy complications (6 types) Child Care (ICU/ HDU) ICU/ HDU applicable to ICU/ HDU applicable to all premature birth only new born Congenital Conditions Cover 10 conditions only Cover 15 conditions Congenital Conditions Reimbursement on gynae report expense Premium/ Insurance Charge 3,415 Reimbursement on hospitalisation up to RM25k Up to RM150 (Estimated Gross Premium) Lump sum payment of RM20k upon diagnosis (subject to survival of 30 days) Up to RM150 2,200 (Gross premium)

46 Funds

47 HLA EverGreen Fund Series Consists of five funds with different maturity dates: Funds Maturity HLA EverGreen December 2023 HLA EverGreen December 2025 HLA EverGreen December 2028 HLA EverGreen December 2030 HLA EverGreen December 2035 With these five Funds, you have all the flexibility to match your savings plan

48 Fund & Fees Aggressive Funds HLA EverGreen 2023 Fund HLA EverGreen 2025 Fund HLA EverGreen 2028 Fund HLA EverGreen 2030 Fund HLA EverGreen 2035 Fund Money Market Fund HLA Cash Fund Fund Management Fee (p.a) 1.30% of NAV Fund Management Fee (p.a) 0.25% of NAV The Fund Management Fee shall remain unchanged for the entire Fund tenure

49 How the Funds work? How the Funds optimize your saving? The performance of the Funds are linked to a basket of global multi-assets allocated dynamically to optimize gains for your savings. Geographical Diversified across US, Europe, China, Japan, Emerging Markets Asset Types Strategy Risk Management Equities, Currency Rates, Commodities, Property, Hedge Fund Strategies All weather strategy that allows long or short in assets and regularly re-balances between defensive and risky assets to capture all market trends with a long position in an overall portfolio. Monitor frequently the volatility of the fund underlying with a target of 10%.

50 Daily Dynamic Exposure The allocation mechanism aims to maximize the exposure to the underlying Risky Asset when it is performing well, and minimise the exposure when the opposite occurs. This exposure is managed between a Risky Asset (ie: the Max InvestSave PSSIA) and a Defensive asset (ie: cash) Diagram of Exposure levels Risky Asset Risky Asset Risky Asset Defensive Asset Leverage During times of Underperformance of the Risky Asset, the investment is allocated towards a defensive asset (eg: cash) During times of strong performance of the Risky Asset, the entire investment is invested into the risky asset, and may include added leverage

51 Daily Dynamic Exposure CIMB Evergreen is a customised Index designed by CIMB which employs a multi-asset, all-weather quantitative investment strategy, based on the well-researched Efficient Frontier Optimisation Theory. Multi-asset Universe Asset Classes include Equities, Currency, Rates, Commodities, Property, Hedge Fund Strategies Diversified Globally: US, Europe, China, Japan, Emerging Markets Systematic and Dynamic Allocation Asset weightings can be both long or short Regularly re-balanced to capture all market trends Risk Control Volatility monitoring Target Volatility set at 10% Higher return with lower volatility

52 Daily Dynamic Exposure Proforma Performance Analysis Performance (%) Key Benefits Outstanding and consistent performance Benefit from both upward and downward trends Daily control of volatility Annualised Return Average Volatility Sharpe Ratio 10.28% 11.32% 0.98 Period from 6 June 2002 to 31 Jan 2012

53 How How to to increase savings? Guaranteed Bonus Units Premiums Guaranteed Bonus Units EverGreen Funds Auto Transfer Cash Fund Policy Fee Guaranteed Yearly Income Reinvest 100% Non-Death Claim Proceeds reinvest 100% Paid up Charges Insurance Charges

54 Premiums

55 Premium/ Insurance Charges Insurance Charge is applicable to Basic coverage only. Insurance Charge rate is dependent on attained age, gender, term and sum assured. Premium for the Premium Paying Rider are on Guaranteed Level Premium basis Premium rates are dependent on entry age, gender, term, sum assured and smoker status (applicable to some riders).

56 Premium Allocation (Basic Premium) Premium Allocation: Policy Term 1 (%) 2 (%) 3 (%) Policy Year 4 (%) 5 (%) 6 (%) 7 and above (%) 20 and Premium Allocation is not applicable to the Riders Additional premium allocation would be given for first 2 years in the event that the Basic Premium is RM12,000 and above (large size incentive). For any subsequent increase of Basic Premium where the increased amount is at least RM12,000, the additional allocation would also be given for 2 years (on top of 1 st and 2 nd year allocation rates) on the amount increased.

57 Premium Allocation (Basic Premium) Example of Large Size Incentive Policy year Basic Ann. Premium (RM) Status for Additional Allocation Premium Allocation 1 st 6,000 Not qualified Amt Pol Yr All. Rate 6,000 1 st 40% 2 nd 18,000 Layer 1 : 6,000 (Not qualified) Layer 2 : 12,000 (qualified, entitled) 3 rd 30,000 Layer 1 : 6,000 (Not qualified) Layer 2 : 12,000 (qualified, entitled) Layer 3 : 12,000 (qualified, entitled) Amt Pol Yr All. Rate 6,000 2 nd 52% 12,000 1 st 40% + 2% Amt Pol Yr All. Rate 6,000 3 rd 78.5% 12,000 2 nd 52% + 2% 12,000 1 st 40% + 2%

58 Premium Allocation (Basic Premium) Example of Large Size Incentive con t. Policy year Basic Ann. Premium (RM) Status for Additional Allocation 4 th 30,000 Layer 1 : 6,000 (Not qualified) Layer 2 : 12,000 (qualified, not entitled*) Layer 3 : 12,000 (qualified, entitled) Premium Allocation Amt Pol Yr All. Rate 6,000 4 th 83.5% 12,000 3 rd 78.5% 12,000 2 nd 52% + 2% * Additional premium allocation is only available for 2 years only. When it moves to 5 th Policy Year, Layer 3 would also NOT entitled to any additional premium allocation as this layer already received the additional premium allocation for 2 years.

59 Underwriting Guidelines

60 Underwriting Guidelines (Basic Plan) Age Eligibility (Based on Life Assured Age Last Birthday) HLA EverGrow If Life Assured is an unborn child Life Assured Minimum Maximum Unborn Child 13 weeks into pregnancy Before Birth Mother 16 years* 40 years Policy Owner 18 years 65 years** * If the mother is also the payor, min entry age shall be 18 years old ** If purchase any of the Waiver of Premium Riders

61 Underwriting Guidelines (Basic Plan) Age Eligibility (Based on Life Assured Age Last Birthday) HLA EverGrow If Life Assured is at least 30 days Life Assured Minimum Maximum Child 30 days 5 years Policy Owner 18 years 65 years** ** If purchase any of the Waiver of Premium Riders

62 Underwriting Guidelines (Basic Plan) Age Eligibility (Based on Life Assured Age Last Birthday) HLA EverGain Life Assured Minimum Maximum 1 st Life Assured 6 years 70 years Policy Owner 18 years 65 years** 2 nd Life Assured 16 years 65 years** ** If purchase any of the Waiver of Premium Riders

63 Underwriting Guidelines (Basic Plan) Minimum Basic Sum Assured Entry Age Multiple of Basic Annualised Premium and above 15 Maximum Basic Sum Assured is subject to underwriting decision 60% of BSA is used in determining medical requirement

64 Underwriting Guidelines (Basic Plan) Basic Annualized Premium Required Minimum RM 1,500 EverGain EverGrow (if LA is an unborn child) EverGrow (if LA is at least 30 days old) Maximum subject to underwriting RM5,000 subject to underwriting RTUO would be available starting from 1 st policy anniversary/ 2 nd policy year. Policy Term Available Only 2 options available as follows: 20 years 25 years

65 Underwriting Guidelines (Basic Plan) Special Lien Customer who wish not to go through any medical assessment or to have simplified medical assessment may opt for application of Special Lien. The sum assured used for underwriting would be lower as shown in table below: Age Sum Assured used for Underwriting (% of BSA purchased) % of BSA 36 onwards 50% of BSA The Special Lien is as follows and is only applicable to Death / TPD due to natural causes. Year 1 Year 2 Year 3 Thereafter 50% 35% 20% 0%

66 Underwriting Guidelines (EverCash) Age Eligibility (Based on Life Assured Age Last Birthday) Minimum Maximum 30 days 65 years If policy is issued on unborn child, EverCash can only be added upon Life Assured attains age 30 days old, subject to underwriting approval. The Rider will be backdated to policy commencement and difference in premium with interest will be calculated from the Commencement Date of the Policy.

67 Underwriting Guidelines (EverCash) Yearly Income Minimum Maximum RM 600 Subject to Underwriting 15 times of Yearly Income shall be used in the determination of medical requirement. Rider Term Available Only 2 options available as follows: 20 years 25 years The rider term MUST coincide with the basic policy term

68 Underwriting Guidelines (EverCare) Age Eligibility (Based on Life Assured Age Last Birthday) Life Assured Minimum Maximum Unborn Child 13 weeks into pregnancy Before Birth Mother 16 years 40 years Gynaecology Report and Ultrasound are required for all applications

69 Underwriting Guidelines (EverCare) Accept or Decline basis. Decline coverage if the mother has a history of or currently having any of the following conditions: Mother is overweight (BMI of 33 or greater based on non-pregnant weight) Diabetes High blood pressure Any surgery to the female reproductive organ Endometriosis moderate to severe Pelvic inflammatory disease Sexually transmitted disease Blood disorder Epilepsy Heart disease Kidney disease Liver disease Asthma moderate to severe Pre-eclampsia Miscarriage Pre-mature birth

70 Underwriting Guidelines (EverCare) Decline coverage if : Any genetic disorders of either the Life Assured (mother), or any offspring of the Life Assured that are defined under this coverage (ie congenital blindness, Tetralogy of Fallot etc) Any pregnancy complications that the Life Assured (mother) that are defined under this coverage (ie Abruptio Placentae, Still Birth, DIC etc) Warrants a +75% extra mortality or greater

71 Underwriting Guidelines (Waiver of Premiums) Age Eligibility (Based on Life Assured Age Last Birthday) Rider Minimum Maximum CIWP 30 days 70 years TPDWP, LCWP & PR 30 days 65 years

72 Underwriting Guidelines (Waiver of Premiums) Rider Term Available Basic Term Rider Term Rider Payment Term Full Premium Payment Term 20 6, 10, 20 years 3 24 Full Premium Payment Term 25 6, 10, 25 years Purchase waiver term same as policy term if intend to claim tax relief under Education policy

73 Agency Compensations

74 Commission Structure (Basic Plan) Basic Commission (% of Basic Annualized Premium) Policy Term Policy Year % % % % % % Total (%) 20 & Production Bonus : 5% (Flat rate, non tiered) Persistency Bonus 2 nd & 3 rd year persistency bonus (10%) AQBI :Same as existing Regular Premium ILP Production Credit Same as existing Regular Premium ILP

75 Commission Structure (EverCash) Basic Commission (% of Rider Annualized Premium) Policy Year % % % % % % Total (%) Production Bonus : 5% (Flat rate, non tiered) Persistency Bonus 2 nd & 3 rd year persistency bonus (10%) AQBI :Same as existing Regular Premium ILP Production Credit Same as existing Regular Premium ILP

76 Commission Structure (Waiver Riders) Basic Commission (% of Rider Annualized Premium) Premium Payment Term Policy Year % % % % % % % Total

77 Commission Structure (Waiver Riders) Basic Commission (% of Rider Annualized Premium) cont Premium Payment Term Policy Year % % % % % % % Total Production Bonus : 5% (Flat rate, non tiered) Persistency Bonus :2 nd & 3 rd year persistency bonus (10%) AQBI :Same as existing Regular Premium ILP Production Credit :Same as existing Regular Premium ILP

78 Commission Structure (EverCare) Basic Commission: 10.5% of Single Premium Production Bonus Nil Persistency Bonus Nil AQBI : Nil Production Credit : 10% of Single Premium

79 Sales Materials

80 Launch Date 28 December st Enhancements - 29 April 2011 (EverCash 1 & TPDWP & extension of payment term for waivers) 2 nd Enhancements - 3 August 2011 (RPU, RTUO, Lien & removal of EverCash s cap) 3 rd Enhancements - 30 March 2012 (Ext of entry age of EverGain, RPU for EverCash, Enhancement for waivers term range) 4 th Enhancements - 30 May 2013 (Revision of min premium purchasable for HLA EverGain & HLA EverGrow, revision of min GYI purchasable for EverCash & EverCash 1 Rider)

81 Sales Materials HLA EverGrow HLA EverGain

82 Sales Materials Proposal Form Fund Allocation Section You are required to fill up this section as per Sales Illustration (page 2)

83 In Sales Illustration Sales Materials To fill up proposal form as per below in Red.

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