ACE GOLDEN TOUCH SAVER PLAN II

Transcription

1 ACE GOLDEN TOUCH SAVER PLAN II AN IDEAL PLAN TO HELP YOU BUILD A GOLDEN FUTURE ACE Golden Touch Saver Plan II ( Golden Touch ) provides you a customized one-stop financial solution to enjoy wealth accumulation through attractive interest rates, financial flexibility and life protection. In addition, you can convert the surrender value to annuity at ease. With Golden Touch, you can easily customize your savings plan to achieve your various financial goals at different life stages. Golden Opportunity for Wealth Accumulation Crediting Interest Your Account Value 1 will accrue with Crediting Interest on a daily compound basis at the Crediting Interest rate of 3.75% per annum 2. Special Interest Moreover, Special Interest of 1% per annum 3 will be credited to your account every 5 years starting from the 10 th policy anniversary and on policy maturity. Extra Bonus In addition to Crediting Interest and Special Interest, Golden Touch offers you Extra Bonus 4 every 5 years starting from the 10 th policy anniversary at a fixed bonus rate (as set out in the table below) to further boost your Account Value. Policy Anniversary at which Extra Bonus will be Credited to the Account Extra Bonus Rate 5-year Payment 10-year Payment 20-year Payment 10 th 3.5% 4% 4% 15 th 3.5% 4% 4% 20 th 4% 4% 4% 25 th 4% 4% 4% 30 th and every 5 th policy anniversary thereafter 4% 4.5% 5% 3% p.a. Minimum Interest Rate 5 If the policy has been issued for 12 years or more, your Account Value applied for the calculation of the death benefit, surrender value or maturity value will not be less than the amount calculated at the Minimum Interest Rate of 3% per annum. Page 1 of 6

2 Lifetime Annuity Income to Realize Your Dream All of us look forward to a retirement life which is free of financial worries. Upon policy surrender, you may exercise annuity option 6 to convert all or part of your surrender value into annuity income payment for retirement. There are 2 annuity options for your selection: Fixed Income Life Annuity A fixed monthly income will be paid until age 105 or your death, whichever is earlier. Fixed Income Life Annuity with 20-year Annuity Income Payment Guarantee Period A fixed monthly income will be paid within the 20-year Annuity Income Payment Guarantee Period whether or not you are alive. If you live longer than the Annuity Income Payment Guarantee Period, you will continue to receive the fixed monthly income until age 105 or your death, whichever is earlier. However, if you pass away during the Annuity Income Payment Guarantee Period, your designated beneficiary will continue to receive the fixed monthly income until the end of the Annuity Income Payment Guarantee Period. Financial Flexibility to Suit Your Financial Goals Golden Touch offers flexible premium payment options - 5/10/20 years for your selection. You can suspend payment of the basic premium 7 any time provided that your account has Cash Value 1, to meet your specific needs. Furthermore, you can make cash withdrawals any time and at no cost provided that your account has Cash Value. Additional Cushion to Provide You with Peace of Mind Supplementary Benefits to Enhance Your Protection Easy Application without Medical Examination In the unfortunate event of the insured s death, the death benefit will be: (i) the total basic premium paid less the total cash withdrawal (if any); or (ii) 101% of the Account Value, at the insured s death, whichever is higher. You can choose to attach supplementary benefits, including medical, critical illness and accident riders, to the plan to enhance your protection. Application for Golden Touch is simple and fast without the need for medical examination. For more details, please refer to the following sections Remarks and ACE Golden Touch Saver Plan II at a Glance. Remarks: 1. Account Value is the basic premium paid and interest and bonus credited less applicable charges and any cash withdrawals. Cash Value is equal to Account Value less surrender charge. 2. Crediting Interest rate is determined by ACE Life Insurance Company Ltd. (the Company ) and is subject to change from time to time at the Company s sole discretion during the policy term. The future rate could be higher or lower than the current rate. 3. Special Interest is payable every 5 years starting from the 10 th policy anniversary and on policy maturity. On the relevant policy anniversary, the Company will retrospectively re-calculate the Crediting Interest for that calculation period as if the Crediting Interest during such period has been accrued at the Crediting Interest rate plus the Special Interest rate. The additional amount of Account Value calculated as a result of including the Special Interest rate will be credited to the account as Special Interest. Special Interest rate is determined by the Company and is subject to change from time to time at the Company s sole discretion during the policy term. The future rate could be higher or lower than the current rate. 4. Extra Bonus is equal to the applicable Extra Bonus rate times the average month-end Account Value of the 60 policy months immediately preceding the relevant anniversary at which the Extra Bonus will be credited to the account. 5. Minimum Interest Rate once determined at policy inception will not be changed during the policy term. Amount calculated at the Minimum Interest Rate is based on the following: (i) Crediting Interest has been accrued at the Minimum Interest Rate throughout the policy term; (ii) Extra Bonus and Special Interest are not included in the calculation; and (iii) Payment of basic premium, cash withdrawal (if any) and charge deduction follow the calculation of the Account Value. 6. You may exercise annuity option upon satisfaction of the following: (i) You are the insured of the policy; (ii) The policy has been issued for over 10 years; (iii) You exercise the annuity option after the end of premium payment term of the policy; (iv) Your age is between 55 and 85 when you exercise annuity option; and (v) The amount of surrender value that you apply for annuitization shall not be less than the minimum requirement as determined by the Company from time to time. 7. When no basic premium is received after the expiry of the grace period and provided that the account has Cash Value, premium holiday will be automatically applied. Monthly charges will continue to be deducted from the account during premium holiday. Page 2 of 6

3 ACE Golden Touch Saver Plan II at a Glance Policy Information Premium Payment Term 5-year / 10-year Payment 20-year Payment Insured Age Age 0-70 Age 0-65 Policy Term Up to age 100 Currency Payment Mode Basic Premium US dollar Monthly / Annually Minimum amount Annual: US$750 Monthly: US$62.5 Maximum amount Individual consideration Death Benefit Cash Withdrawal * Death benefit is equal to (i) the total basic premium paid less the total cash withdrawal (if any); or (ii) 101% of the Account Value, at the insured s death. whichever is higher. Minimum amount US$250 per transaction Maximum amount 90% of Cash Value Current Interest Rates ** Crediting Interest Rate 3.75% per annum Special Interest Rate 1% per annum Minimum Interest Rate 3% per annum * The minimum and maximum levels are determined by the Company and are subject to change at its sole discretion. ** The current interest rates are declared by the Company as of 27 March You should refer to the proposal of this plan for the latest current interest rates applicable to your policy at application. Charges # Premium Charge Monthly Charges Premium charge will be deducted from each of the basic premium paid. It is equal to the basic premium paid times the applicable premium charge rate. Policy maintenance charge Policy maintenance charge will be deducted from the Account Value each month until the end of the respective charge period of each premium payment term. It is equal to the Deduction Base ## times the applicable policy maintenance charge rate. Administration charge Administration charge is US$4 per month and will be deducted from Account Value each month until policy termination. Surrender Charge Surrender charge will be deducted from the Account Value upon policy surrender or lapse within the respective surrender charge period of each premium payment term. It is equal to the Deduction Base ## times the applicable surrender charge rate. # Please refer to the proposal and policy document of this plan for the current scale of charges. ## Deduction Base is equal to the initial annual basic premium multiplied by the surrender charge period. If the payment mode of your policy is monthly, the initial annual basic premium is equivalent to your monthly basic premium at policy inception in annualized amount. Any reduction of basic premium will not reduce the Deduction Base. Page 3 of 6

4 Illustrative Example: How Golden Touch can help you plan for a comfortable retirement Assumptions Policyowner and Insured : Mr. Chan (Non-smoker) Issue age : 35 years old Premium payment term : 20 years (i.e. ends at age 54) Payment mode : Annual Annual basic premium : US$5,000 At age 35 At age 55 Mr. Chan starts his retirement plan with Golden Touch. Total basic premium paid by Mr. Chan in 20 years is US$100,000. At age 65 Mr. Chan retires and converts the amount payable at surrender of US$254,779 + (255% of the total basic premium paid) to Fixed Income Life Annuity. At age 95 Mr. Chan receives fixed monthly annuity income of US$1,450^ since then. Up to age 95, the total annuity income received in these 30 years is US$522,000. US$ $20,000 $18,000 $16,000 $14,000 $12,000 Total annuity^ income received: US$522,000 $10,000 $8,000 $6,000 $4,000 $2,000 0 Age Policy Year Total basic premium paid: US$100, % of the total basic premium paid + The projection of surrender value assumes that the Account Value at policy surrender has been accrued at the Crediting Interest rate of 3.75% per annum and Special Interest rate of 1% per annum (both of which are non-guaranteed), plus applicable bonuses and less applicable charges. ^ It is based on the assumed annuity interest rate of 5% per annum (which is non-guaranteed). Notes: The above illustrative example is hypothetical and for illustrative purpose only. Please refer to the relative policy document for the exact terms and conditions. CONTACT US ACE Life Insurance Company Ltd. (Incorporated in Bermuda with Limited Liability) 33/F, ACE Tower, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong Customer Service Hotline: Page 4 of 6

5 U.S. FOREIGN ACCOUNT TAX COMPLIANCE ACT Under the U.S. Foreign Account Tax Compliance Act ( FATCA ), a foreign financial institution ( 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 an 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. FATCA applies to ACE Life Insurance Company Ltd. (the Company ) and this Product. The Company is a participating FFI. The Company is committed to complying with FATCA. To do so, the Company requires you to: (i) (ii) provide to the Company certain information and documentation including, as applicable, your U.S. identification details (e.g. name, address, the US federal taxpayer identifying numbers, etc); and consent to the Company reporting this information and documentation and your account information (such as account balances, interest and dividend income and withdrawals) to the IRS. If you fail to comply with these obligations (being a Non-Compliant Accountholder ), the Company is required to report aggregate information of account balances, payment amounts and number of non-consenting US accounts to IRS. The Company could, in certain circumstances, be required to impose FATCA Withholding Tax on payments made to, or which it makes from, your policy. Currently the only circumstances in which the Company may be required to do so are: (i) (ii) if the Inland Revenue Department of Hong Kong fails to exchange information with the IRS under IGA (and the relevant tax information exchange agreement between Hong Kong and the U.S.), in which case the Company may be required to deduct and withhold FATCA Withholding Tax on withholdable payments made to your policy and remit this to the IRS; and if you are (or any other account holder is) a nonparticipating FFI, in which case the Company may be required to deduct and withhold FATCA Withholding Tax on withholdable payments made to your policy and remit this to the IRS. You should seek independent professional advice on the impact FATCA may have on you or your policy. Page 5 of 6

6 ACE insured means being protected by one of the world s leading insurance companies with people who understand your risks and go out of their way to help. This leaflet is intended as a general reference and does not form part of the policy. Please refer to the policy document for exact terms and conditions. This leaflet is intended to be distributed in Hong Kong only and shall not be construed as an offer to sell or solicitation to buy or provision of any of our products outside Hong Kong ACE Group. Coverages underwritten by one or more companies of the ACE Group. Not all coverages available in all jurisdictions. ACE, ACE logo, and ACE insured are trademarks of ACE Limited. P110/EN/0315/HD/SH Page 6 of 6