Brighter Future
Income Plan
The Plan combines retirement financial planning and inheritance of wealth with flexible income.
The Plan combines retirement financial planning and inheritance of wealth with flexible income.
You work hard to realise your dreams and plan a bright future for your beloved family. Smart people like you, of course, have already planned well for tomorrow. However, the needs of you and your family will change during different stages in life. The external environment that fills with uncertainty may also bring you unexpected financial burden. What you are concerning about, Tahoe Life has already thought it through for you with its Brighter Future Income Plan (the “Plan"). Whether you want to withdraw funds to fulfill short-term goals, receive income payment annually to enjoy retirement, pass on the fruits of your hard work to the next generation as you wish, or your financial plan is being interrupted by the unforeseen, your different needs at different times can be properly taken care of by the flexible protection under the Plan.
The guaranteed cash payment, equivalent to 1.5% (applicable to 6-year premium payment term) or 2% (applicable to 9-year and 12-year premium payment terms) of the guaranteed maturity benefit2,4, will be payable on the 1st policy anniversary date and every policy anniversary date thereafter up to age 130 of the initial insured, the surrender of the policy or the death of the insured, whichever is earlier.
An additional one-off special booster of guaranteed cash payment, equivalent to 1.5% (applicable to 6-year premium payment term) or 2% (applicable to 9-year and 12-year premium payment terms) of the guaranteed maturity benefit, will be payable on the 15th policy anniversary date or on the policy anniversary date at or immediately following age 65 of the initial insured, whichever is later.
You may choose to accumulate the guaranteed cash payments in the policy to earn interest5, receive them in cash or apply them towards future premium payments.
An annual dividend will be payable on the policy anniversary date. You may choose to accumulate the annual dividends in the policy to earn interest5, receive them in cash or apply them towards future premium reduction.
If the policy has been effective for ten years, the Plan will also bring you additional returns by providing a one-off terminal dividend upon the surrender of the policy, the maturity of the policy or the death of the insured. Both the annual dividends and terminal dividend are not guaranteed.
The Plan offers terminal dividend lock-in option, allowing you to lock-in part of the terminal dividend and accumulate it as part of annual dividend for interest accumulations (“terminal dividend lock-in”), enabling you to raise the cash reserve and handle your financial needs in different life stages. On or after the 10th policy anniversary date, you may submit a written application to apply for terminal dividend lock-in according to your need. Each time you can lock-in a percentage of 10% of terminal dividend or above, and the total percentage of lock-in is capped at 60% of terminal dividend, while a three-year or above interval between each lock-in is required.
The Plan provides life protection up to age 130 of the initial insured. After the first policy anniversary date and during the lifetime of the insured, regardless of whether within the chosen income period, you may change the insured according to your plan; so you, your beloved and future generation can also be protected. The policy will continue to be effective up to age 130 of the initial insured, making it a meaningful gift for your future generation.
You can nominate a contingent owner once the policy becomes effective. Should the policyowner unfortunately pass away, the nominated contingent owner will become the new owner of the policy and can continue to exercise the rights under the policy without waiting for the completion of the probate.
Moreover, you can also nominate a contingent insured after the first policy anniversary date. Should the insured unfortunately pass away, the contingent insured will become the new insured, the Plan will continue to be effective until age 130 of the initial insured, helping you transfer your wealth to your next generation.
The Plan provides savings returns as well as life insurance up to age 130 of the initial insured, offering comprehensive protection for you and your loved ones. In the unfortunate event of the death of the insured, provided that the income option has not been exercised, the designated beneficiary will receive the death benefit which is equivalent to the guaranteed cash value2 at the date of death or total premiums due and paid of the basic plan of the policy less all guaranteed cash payments paid to you (whether accumulated or withdrawn) at the date of death, whichever is higher; plus accumulated guaranteed cash payments and interest5 (if any), accumulated annual dividends and interest5 (if any) and terminal dividend (if any), less any indebtedness of the policy.
In case you or the insured is unemployed for at least 30 consecutive days or suffer from one of the critical illnesses including cancer, heart attack, kidney failure, stroke or undergoing a coronary artery bypass surgery, you can apply for extending the grace period of the Plan from 31 days to a maximum of 365 days, during which you will still enjoy the coverage of the Plan. You may pay the premium due without interest by the end of the extended grace period and the policy will still remain effective.
No health declaration and medical underwriting are required if you apply for the basic plan only, making the application simple and hassle free.
According to your personal needs, you may choose to enhance the protection by adding various supplementary contracts, such as medical, critical illness, accidental and premium waiver supplementary contracts. Supplementary contracts are still effective during the chosen income period. You can pay the premiums of supplementary contracts by using income payments.
1. The guaranteed cash payment will be calculated based on the latest guaranteed maturity benefit, and payable yearly when the income option is not exercised.
2. The income option can be exercised for one time only when the policy is effective and is subject to any prevailing applicable rules determined in the sole discretion of Tahoe Life from time to time. Upon receipt and approval of the application of exercising income option by Tahoe Life, the surrender benefit will be converted into an income benefit, under which an income payment will be paid to the policyowner on a yearly basis during the chosen income period. At the end of chosen income period, the policy will be terminated, the balance of income benefit (and death benefit) will reach zero. All benefits and protection will be ceased. The income payment shall be projected based on the income benefit and a non-guaranteed interest rate. Therefore, the income payment is non-guaranteed. The actual income payment received may be higher or lower than those illustrated. The balance of the income benefit after deducting the income payment(s), will be accumulated at such non-guaranteed interest rate. The policyowner may apply to Tahoe Life in writing in the form that is required by Tahoe Life to terminate the income option during the chosen income period in exchange for the balance of the income benefit. The policy will terminate after Tahoe Life pays such balance. For details of income option, please refer to the policy contract of the Plan. For the projected amount of annual income payment, please refer to the illustration. Upon the income option is exercised, maturity benefit, surrender benefit and guaranteed cash value are no longer applicable to the policy. Tahoe Life will no longer pay any annual dividends, terminal dividend or guaranteed cash payments.
3. Initial insured means the insured whose life is insured by the policy at the commencement of the policy.
4. The guaranteed maturity benefit is used to calculate premium, guaranteed cash value, guaranteed cash payments, annual dividends and terminal dividend. In case the guaranteed maturity benefit is reduced while the policy is effective, the premium and benefit amounts payable will be reduced accordingly. The guaranteed maturity benefit is not equal to the death benefit and will not be paid upon the death of the insured. For details of the death benefit, please refer to the policy contract of the Plan.
5. The Plan is a participating policy. Annual dividends and terminal dividend (the “non-guaranteed benefits”) are not guaranteed, subject to change and will be determined by Tahoe Life from time to time. For details of the non-guaranteed benefits, please refer to the below section on “Non-guaranteed benefits”. Annual dividends will only be payable when the policy is effective and there are no overdue premiums. The accumulation interest rates for annual dividends and guaranteed cash payments are not guaranteed, subject to change and will be determined by Tahoe Life from time to time. For details of the annual dividends and terminal dividend, please refer to the below section on “About Policy Dividends” or visit Tahoe Life’s website, https://www.tahoelife.com.hk/tl/doc/pd_en.pdf.
6. After lock-in of terminal dividend, the Company will correspondingly reduce the amount of any future terminal dividend at a rate prorated to the terminal dividend which have been locked-in. You may submit a written request by filing with Tahoe Life’s prescribed form to cancel your application in respect of the lock-in(s) of terminal dividend which has/have yet to take place. Once approved, your cancellation request is irrevocable. For details of the terminal dividend lock-in option, please refer to the policy contract.
7. Accumulation interest rate for the balance of the income benefit is not guaranteed, subject to change and will be determined by Tahoe Life from time to time.
8. The premium prepayment option is only applicable to policies with 6-year premium payment term and annual payment mode. The application of prepayment of renewal premium can only be valid when the renewal premium and levy on renewal premium are fully pre-paid (“Prepaid Amount”) at the time of policy application together with the filled application form and signed illustration of premium prepayment option. Prior to the renewal premium due, the Prepaid Amount will not form part of the paid premium. The Prepaid Amount will not form part of the guaranteed cash value, nor any benefit under the policy, and will not be attributed to the calculation of death benefit. The accumulation interest rates for the Prepaid Amount are not guaranteed, subject to change and will be determined by Tahoe Life from time to time. If the insured passes away before the end of the premium payment term, the balance of the Prepaid Amount shall be returned to the policyowner or his/her estate. Upon policy surrender or full withdrawal of the balance of the Prepaid Amount before the end of the premium payment term, the relevant balance of the Prepaid Amount shall be returned to the policyowner, and any interest on the balance of the Prepaid Amount of that policy year will be forfeited. Only full withdrawal of the balance of the Prepaid Amount will be accepted by Tahoe Life.
9. Accumulation interest rate for the Prepaid Amount is not guaranteed, subject to change and will be determined by Tahoe Life from time to time.
10. After the first policy anniversary date, change of insured is subject to the prevailing applicable administrative rules, please refer to the relevant policy contract. Change of insured will not affect guaranteed maturity benefit, death benefit, accumulated annual dividends and interest (if any), accumulated guaranteed cash payments and interest (if any), terminal dividend (if any), guaranteed cash value, the balance of the income benefit (if any), policy date, maturity of the policy and policy year. Tahoe Life reserves the right to reject any application of change of insured.
11. Any application for the nomination of a contingent owner must fulfil the relevant rules and procedures as determined by Tahoe Life from time to time. Upon the death of the policyowner, the transfer of the ownership of the policy in accordance with the following conditions shall be approved and become effective after Tahoe Life's receipt of satisfactory proof of the policyowner's death and any documents as requested, and subject to fulfilling of the prevailing administrative rules and procedures of Tahoe Life: (i) if a contingent owner of the policy is nominated, the contingent owner will become the new owner of the policy provided that the contingent owner and the insured must be still alive during the approval of the contingent owner as the new owner of the policy; or (ii) if there is no contingent owner nominated or the contingent owner is unable or unwilling to take the ownership of the policy for whatever reason, the policy shall form part of the policyowner's estate. Tahoe Life reserves the right not to accept any application of nomination of contingent owner and not to approve the contingent owner as the new owner of the policy.
12. The following requirements must be fulfilled for the application of nomination of contingent insured: (i) a written request in Tahoe Life’s prescribed form signed by the policyowner, the insured, the contingent insured and assignee (if any), with all necessary documents required; (ii) only one person can be nominated as the contingent insured at any time; (iii) both insured and contingent insured must be still alive during the application; iv) relevant evidence that the contingent insured must fulfill the prevailing attained age requirement and in any case must not exceed the prevailing maximum issue age of the Plan at the time Tahoe Life receives the written request; and v) any prevailing rules determined in the sole discretion of Tahoe Life from time to time. Tahoe Life reserves the right not to accept any application of nomination of contingent insured and not to approve the contingent insured as the new insured of the policy. Tahoe Life shall, upon approval of such request, confirm the nomination in writing.
When the insured dies, the contingent insured will become the insured of the policy, provided that the following requirements and prevailing administrative policies and procedures of Tahoe Life have been fulfilled:
a. Tahoe Life’s receipt of satisfactory proof of the insured’s death and any documents as requested;
b. Tahoe Life’s receipt of relevant supporting document of the contingent insured, including but not limited to evidence of insurability of the contingent insured, as requested within 90 days from the date of death of the insured (otherwise, the eligibility of the contingent insured to become the new insured of the policy will be forfeited);
c. relevant evidence that the contingent insured must fulfill the prevailing attained age requirement, and in any case must not exceed the prevailing maximum issue age of the Plan on the date of death of the insured;
d. any prevailing rules (including but not limited to demonstrating an insurable interest) determined in the sole discretion of Tahoe Life from time to time; and
e. the contingent insured is alive during the approval of the contingent insured to become the new insured of the policy.
If there is no contingent insured nominated or the contingent insured is unable or unwilling to become the new insured of the policy for whatever reason, the death benefit shall be paid to the beneficiary. Please refer to the relevant policy contract for the details of the policy terms including the nomination of contingent insured.
13. The accidental death benefit shall be automatically terminated on the 10th policy anniversary date, the policy anniversary date on or immediately following the 70th birthday of the initial insured or the effective date of the new insured, whichever is earlier. This accidental death benefit is only applicable to the initial insured who is aged 65 or below on the policy date. The maximum benefit payable under the accidental death benefit to each initial insured in Tahoe Life shall be USD25,000, irrespective of the number of policies (excluding investment linked policy) underwritten by Tahoe Life for the initial insured.
14. Disability benefit is only applicable to the initial insured who is aged 55 or below on the policy date and will be automatically terminated on the policy anniversary date on or immediately following the 60th birthday of the initial insured.
15. The extended grace period benefit can be applied only if, (i) the premiums for the first two policy years for the Plan are due and paid and there is no indebtedness under the policy; and (ii) no premiums of the Plan has been prepaid. This benefit can be exercised once only and shall be automatically terminated on the earlier of: (i) the policy anniversary date on or immediately following the 65th birthday of the policyowner; or (ii) the end of premium payment term. Eligibility of the extended grace period benefit is subject to certain conditions and Tahoe Life’s approval, please refer to the policy contract for details.
16. Full underwriting is required for adding any supplementary contract. Please refer to the respective policy contract for the details of each supplementary contract. In the event of change of insured, all supplementary contracts will be terminated on the effective date of new insured and no supplementary contract can be attached to the policy thereafter.
