Wealthree Endowment Plan

Product Features

Can the customer prepay the second year premium together with first year premium at the time of policy application?
Yes, customer can select Wealthree Endowment Plan (Prepaid Premium) which policy currency is in HKD, if he/she would like to prepay second year premium. The prepayment amount will be deposited in a Premium Deposit Account (“PDA”) and earns a simple daily interest at a guaranteed rate for the first year. At the first Policy Anniversary, the balance of the PDA will be used automatically to settle the second year’s premium. (For the guaranteed interest rate of Premium Deposit Account, please refer to your policy illustration.)
For Wealthree Endowment Plan (Prepaid Premium), how is the prepayment amount calculated for the second year premium?
The prepayment amount is equivalent to the yearly premium divided by “1 + guaranteed interest rate”. For the guaranteed interest rate of Premium Deposit Account, please refer to your policy illustration.

Example: 
Guaranteed interest rate on policy illustration = 4%
Yearly premium =  HK$50,000
Prepayment amount = HK$50,000 ÷ (1 + 4%) = HK$48,076

The prepayment may differ slightly from the amount payable in your Policy due to rounding differences.
What benefits are payable in the event of insured’s death during the term of the policy?
Death benefits is calculated based on the date of the death of the Insured. 

For Wealthree Endowment Plan, the Death Benefit is equal to
  1. 110% of the Total Premiums Paid; or
  2. Guaranteed Cash Value, whichever is higher.
If the Insured dies during the grace period, FWD Life Insurance Company (Bermuda) Limited (“FWD Life”) will calculate the Total Premiums Paid to include the premium that is due for the second Policy Year. Death benefits will be paid after deducting any unpaid premiums.

For Wealthree Endowment Plan (Prepaid Premium), the Death Benefit is equal to 110% of the total premium paid which will be payable to the named beneficiary. If the death of the insured is before the first Policy Anniversary, FWD Life will also return the balance of Premium Deposit Account without administration charge to the policy holder.

What is the maximum limit on the Notional Amount and the equivalent Annual Premium?
Yes. The maximum Notional Amount is HKD 10,000,000 / RMB 8,000,000 (per life per this product, including Wealthree Endowment Plan and Wealthree Endowment Plan (Prepaid Premium)). Hence maximum annual premium for this Product is HKD4,700,300 and RMB 3,625,680 respectively.

Please note policy currency RMB is not applicable to Wealthree Endowment Plan (Prepaid Premium).
What is the minimum limit on the Notional Amount and the equivalent Annual Premium?
The minimum Notional Amount is HKD 100,000 / RMB 80,000, hence minimum annual premium for this Product is HKD 47,003 and RMB 36,256 respectively.

Please note policy currency RMB is not applicable to Wealthree Endowment Plan (Prepaid Premium).
Can customer reduce the premium / notional amount after the policy is issued?
The premium / notional amount cannot be reduced after the policy is issued as partial surrender is not allowed.

Application

Is it necessary for prospective policyholders to undergo medical examinations?
Medical examinations are not required for this Product.
Is backdating applicable to this Product?
Backdating is not applicable for this Product.
Are there any riders attachable to this Product?
No.

Policy Services

For Wealthree Endowment Plan (Prepaid Premium), can I prepay second year premium during any time of my first policy year?
No, you must prepay second year premium together with first year premium at the time of policy application.
For RMB denominated policies, can the policyholder pay the premium in HKD?

Yes, HKD is also acceptable. The currency conversion will be based on the prevailing market-based exchange rate between RMB and HKD as determined by FWD Life Insurance Company (Bermuda) Limited ("FWD Life") at its sole discretion from time to time. 


Please note policy currency RMB is not applicable to Wealthree Endowment Plan (Prepaid Premium).
If the policyholder surrenders the policy within the Cooling off Period, what are the arrangements on the refund of the premium?
For Wealthree Endowment Plan, the refund of any premiums paid will be defaulted to settle in policy currency (without any interest and administrative charge). If a customer chooses to receive any refund of premiums paid in HKD for RMB denominated plans, the amount payable will be the HKD equivalent of the RMB based on a market-based RMB-HKD exchange rate determined by FWD Life.

The customer will bear the exchange rate and currency risk if the policy is surrendered within the cooling off period.

For Wealthree Endowment Plan (Prepaid Premium), refund amount includes first year premium together with the prepayment amount without interest.
Is the RMB-HKD exchange rate applicable to this Product available for reference?
Yes, the latest exchange rate is available on this website:
http://home.fwd.com.hk/fundprice/exchangerate.aspx?LangID=E
Can the customer change the Notional Amount?
Customers can only change the Notional Amount during the Cooling off Period. The customer is required to sign a new illustration with revised notional amount for such request.
Can the customer partially surrender any value from Policy or apply for Policy Loan?
No, the customer cannot partially surrender any value from the Policy nor apply for Policy loan.
For Wealthree Endowment Plan (Prepaid Premium), can the customer withdraw the prepayment amount from the Premium Deposit Account?
No, the customer cannot withdraw any amount from the Premium Deposit Account.
What is the Surrender Benefit if the customer surrenders the Policy before maturity?
For Wealthree Endowment Plan, if the customer surrenders the policy before the end of the policy term, the surrender benefit is equal to the Guaranteed Cash Value less any unpaid premiums. 

For Wealthree Endowment Plan (Prepaid Premium), if the customer surrenders after 21-day cooling-off period and before the first Policy Anniversary, the surrender benefit is equal to the Guaranteed Cash Value. In addition, FWD Life will return the balance of the Premium Deposit Account (“PDA”) after applying an administrative charge of 3.5% of the balance of the PDA; otherwise, if the customer surrenders after first Policy Anniversary, the surrender benefits is equal to the Guaranteed Cash Value.

The Guaranteed Cash Value may be considerably less than the total premium paid. The Guaranteed Cash Value falling between two policy anniversaries will be determined by FWD Life by prorating the Guaranteed Cash Value as at last and next policy anniversaries.
For Wealthree Endowment Plan, what are the arrangements if premium remains unpaid at the expiration of the Grace Period?
If any premium remains unpaid at the expiration of the grace period, the Policy shall automatically cease to be in force from the first due date of the outstanding premium without notice to the Policy Owner. Any outstanding premium due shall be deducted from the Guaranteed Cash Value. Guaranteed Cash Value will be settled in policy currency and returned to the Policyholder.
For RMB denominated plans, can the customer choose to receive the Surrender Benefit and Maturity Benefit in HKD?
Yes. Though Surrender Benefit and Maturity Benefit will be defaulted to settle in policy currency, customer can request to receive the Benefit in HKD. If a customer choose to receive the benefit(s) in HKD for RMB denominated plans, the benefit(s) will be converted to HKD based on the prevailing market-based exchange rate between RMB and HKD as determined by FWD Life.

If the RMB depreciates substantially against the HKD upon a benefit(s) becoming payable, the customer will lose a substantial portion of the benefit(s) if the benefit(s) are paid in HKD.

Please note policy currency RMB is not applicable to Wealthree Endowment Plan (Prepaid Premium).
For RMB denominated plans, can the beneficiary choose to receive the Death Benefit in HKD?
Yes. Though Death Benefit will be defaulted to settle in policy currency, beneficiary can request to receive the Benefits in HKD. If beneficiary chooses to receive the benefit(s) in HKD for RMB denominated plans, the benefit(s) will be converted to HKD based on the prevailing market-based exchange rate between RMB and HKD as determined by FWD Life.

If the RMB depreciates substantially against the HKD upon a benefit(s) becoming payable, the customer will lose a substantial portion of the benefit(s) if the benefit(s) are paid in HKD.

Please note policy currency RMB is not applicable to Wealthree Endowment Plan (Prepaid Premium).
Is dividend payable under this Product?
This Product is a non-participating policy and will not distribute any dividends. The policy will provide guaranteed return upon maturity.