Transcript DreamSaver
VivoSave Product Training
Prepared By: Life Insurance Department
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Key Product Features
Plan Type Premium Type Premium Payment Term & Entry Age
• Limited pay regular premium participating endowment plan • Cash only
Premium Payment Term
10 15
Minimum Entry Age (LB)
0 0
Maximum Entry Age (LB)
50 45
Minimum and Maximum Sum Assured
Minimum • $10,000 Maximum • Up to $100,000: Guaranteed Acceptance regardless of health condition • Above $100,000: Subject to health underwriting *Note: Financial Questionnaire for Annualized Premium >= $24,000 3
Death & TPD (Before age 65) Benefit Extended Death Benefit Optional Riders (Subject to Underwriting)
Key Product Features
• The following benefits are applicable for the first 5 policy years:
Standard Life Non-Standard Life
Subject to Underwriting 105% of all the net premiums paid (excluding premium payable on riders) & accumulated bonuses Guaranteed Acceptance 105% of all the net premiums paid (excluding premium payable on riders) & accumulated bonuses Subject to Underwriting 101% of all the net premiums paid (excluding premium payable on riders) & accumulated bonuses Guaranteed Acceptance 105% of all the net premiums paid (excluding premium payable on riders) & accumulated bonuses • After the first 5 policy years, the benefit payable is higher of sum assured or net premiums paid (excluding premiums payable on riders) + accumulated bonuses • Payable in the event of Insured’s death after the first 5 policy years.
• 8% of sum assured payable at each death anniversary for a fixed period of 10 years.
• First payment starts at the policy anniversary following the
Insured’s death .
• Special Waiver of Premium (1 st & 3 rd party policies) • Waiver of Premium (3 rd party policy only) • Enhanced Waiver of Premium (3 rd party policy only) 4
Key Product Features
Cash Benefit
• Guaranteed cash payout.
• Payable starting from the policy anniversary after premium payment term. • Amount of Cash Benefit payable as follows:
Order of Cash Benefit Amount
1 to 10 11 to 20 3% of sum assured 6% of sum assured 21 and above 8% of sum assured • Option to withdraw or deposit at prevailing interest rate, currently set at 3.5% p.a.
Maturity Benefit @ age 85 LB
• Comprises of 1. Final Cash Benefit 2. Sum assured 3. Accumulated bonuses 4. Deposits with Income, if any
Bonus
• Annual Bonus currently set at 1.3% of sum assured compounded at 1.3% p.a.
• Special Bonus 5
Key Product Features
Automatic Premium Loan Paid-Up Option Policy Loan Nomination Assignment Trust Policy
• Available after the first 2 years of premiums have been paid • Default option to keep policy in force if there is sufficient cash value after Grace Period • Available after the first 2 years of premiums have been paid • Consequences * Reduction in sum assured * Reduction in benefits payable for death, TPD and maturity benefit * Cash Benefit and extended death benefit will not be payable • Upper limit: 80% of prevailing surrender value • Current interest rate: 5.5% p.a. • Allowed, based on prevailing nomination guidelines • Allowed, based on prevailing assignment guidelines • Allowed, based on criteria set out in the prevailing Insurance Act 6
VivoSave
Male, age 35 (LB) with $50,000 sum assured and 10 year premium payment term.
$ Age 35 Guaranteed Acceptance Coverage after 5 policy years
•
Higher of sum assured or total premiums paid + accumulated bonuses
•
Extended Death Benefit @ 8% of sum assured x 10 years Coverage in first 5 policy years
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105% of total premium paid + accumulated bonus Total Premium Paid $108,804 Cash Benefit @ 3% of SA $1,500 per year Cash Benefit @ 6% of SA $3,000 per year Cash Benefit @ 8% of SA $4,000 per year Maturity Benefit $496,423 Age 85 Total Cash Benefit Withdrawn: $125,000 Guaranteed acceptance is given regardless of health condition if: 1.
Sum assured per life for this plan is up to $100,000, and 2.
No rider is attached.
Note: The above example assumes that the Life Participating Fund earns an investment return of 5.25% p.a.
VivoSave
Boy, age 5 (LB) with $50,000 sum assured and 10 year premium payment term.
$ Guaranteed Acceptance Coverage after 5 policy years
•
Higher of sum assured or total premiums paid + accumulated bonuses
•
Extended Death Benefit @ 8% of sum assured x 10 years Coverage in first 5 policy years
•
105% of total premium paid + accumulated bonus Total Premium Paid $133,033 Cash Benefit @ 3% of SA $1,500 per year Cash Benefit @ 6% of SA $3,000 per year Cash Benefit @ 8% of SA $4,000 per year Age 5 Total Cash Benefit withdrawn: $245,000 Maturity Benefit $2,135,867 Age 85 Guaranteed acceptance is given regardless of health condition if: 1.
Sum assured per life for this plan is up to $100,000, and 2.
No rider is attached.
Note: The above example assumes that the Life Participating Fund earns an investment return of 5.25% p.a.
Application Process & Application Form
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Documents to Submit
These are the standard documents needed: 1.
Completed Application Form 2.
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Benefit Illustration & Product Summary My Financial Portfolio (MFP) / Fact Find Form Copy of Policyholder’s / Insured’s NRIC Cash or Cheque (Payable to “NTUC Income”) if applicable GIRO Application Form, if applicable Foreign Life Questionnaire, if Insured is a foreigner Financial Questionnaire (if the annual premium is $24,000 and above) 10
Cash Benefit Option
Policyholder to indicate option for Cash Benefit. If no option is indicated, we will pay out the Cash benefit via cheque to policyholder.
Guaranteed Acceptance
No health underwriting if SA is up to $100,000 and without rider
Benefit Illustration & Product Summary
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Coverage in first 5 years
105% of total premium paid + accumulated bonus
Coverage after first 5 years
Figures included extended death benefit Lump sum: $592,927 Ext death benefit: $40,000 Total: $632,927
Product designed to provide best value in the long term
Effect of Deposits
Opportunity to earn accumulated interest amounting up to $644,251.
Total amount of accumulated interest can be more than the total Cash Benefit.
Projected Death Benefit
Assuming all Cash Benefits are withdrawn
Guaranteed Cash Value
decreases because Cash Benefits are withdrawn
Effect of Deposits
Opportunity to earn accumulated interest amounting up to $644,251.
Total amount of accumulated interest can be more than the total Cash Benefit.
Deposit Cash Benefit Start Deposit Again Start Deposit Again Cash Flow Flexibility
Option in WinQuote to illustrate effect of making 2 lump sum withdrawal
Details of product for policyholders to make an informed decision
A little sweetener…
From September to November, enjoy complimentary year-end shopping spree on us…
Total Monthly Incepted API* (net)
Above $1,000 Above $5,000 Above $10,000 Every $5,000 above $10,000
Voucher Amount
$50 $120 $300 $150
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Terms & Conditions
Qualifying Period : 1 st Sep to 30 th Nov 2012 Qualifying cases (only RP plans) must be incepted with Qualifying Period For 5-year premium payment term policies, 50% of the API will be taken as credit This is a monthly promotion. API is calculated on a monthly basis and will re-start at beginning of each month Please refer to promotion announcement for full list of terms and conditions
Question & Answer Session
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