There are certain milestones that are worth celebrating in life and may come with large expenses, such as marriage, children’s education, and retirement. Life, however, is all about changes especially in this ever-changing world. In order to respond to uncertainties comfortably and prepare for the planned events in different stages of life, you need your savings strategy to be well designed, flexible and comprehensive.
Let’s see how Flexi Power Saver works in different stages of your life.
Significant cash payment plus potential returns
The graph below is for illustrative purpose only and is based on a premium payment term of 6 years and an accumulation period of 18 years.
The graph above assumes that all premiums are paid in full when due and as planned, and no benefits or withdrawals have been paid before or becomes payable. It is not drawn to scale nor is it a projection of policy value¹.
Guaranteed cash value
Flexi Power Saver carries a cash value, and such cash value³ is guaranteed by the Company. For instance, under the premium payment term of single premium, you can be assured that the cash value³ will reach 100% of your total premiums paid as early as the end of policy year 7⁴.
For information on other premium payment terms, please contact your Financial Consultant.
After the policy has been in-force for 3 years, you may also benefit from terminal dividend. Terminal dividend is not guaranteed and may be reduced or increased by the Company from time to time. Please refer to the sections “Flexi Power Saver at a Glance” and “Dividend Philosophy” in the product brochure for Flexi Power Saver for the circumstances under which the terminal dividend may be payable.
Guaranteed cash payment and special cash payment
At the end of the accumulation period, you will be entitled to the cash payment that comprises:
Enjoy the flexibilty with dual accounts
To keep your wealth growing, on the first day of the flexi saving period, your policy value¹ will be allocated to the Growth Account and / or the Flexi Account5. The default allocation is based on the accumulation period you have chosen. You can also customise your preferred allocation to optimise your saving portfolio and strike the balance between liquidity and growth.
Highlights of Flexi Account and Growth Account
Growth Account Lock-in Option
Subject to the Company’s approval and the prevailing administrative rules of the Growth Account Lock-in Option⁶, you can apply for the Growth Account Lock-in Option to capture and secure any market upside by transferring part of the value of the Growth Account (“Lock-in Amount”) to the Flexi Account. Once the Lock-in Amount is approved by the Company, it will be deducted from the cash value and terminal dividend (if any) proportionally, and transferred to the Flexi Account as soon as practicable. The notional amount shall be reduced accordingly.
Wealth accumulation for next generations
Flexi Power Saver goes the extra mile and gives you extra flexibility to accumulate your wealth across generations.
- The policy will last up to age 138⁷ of the latest insured
- The change of insured of the policy is up to a maximum of 3 times subject to the prevailing administrative rules of the change of insured option⁸
- The change of insured will not affect the values under the policy
Life protection to protect yourself and the loved ones
Should the worst ever happen to the insured, Flexi Power Saver provides death benefit to the designated beneficiary.
To allow greater flexibility, we can pay the death benefit in a lump sum or regular instalments at your own choice. If you choose the payment by instalments option, the death benefit will be paid at such regular intervals over a specified period of time to be agreed by the Company, with interest accrued on the balance of death benefit yet to be paid. The current interest rate is 2% p.a., which is non-guaranteed and may be changed by the Company from time to time at our sole discretion.
For Suicide exclusion, please refer to the Important Information section in the product brochure for Flexi Power Saver.
- The policy value is equal to the total surrender value before any deduction of indebtedness and / or outstanding premiums.
- The notional amount is used for the calculation of premium and relevant values under the policy of Flexi Power Saver; it is not equivalent to the death benefit of the insured and is only one of the factors in determining the death benefit payable. Notional amount will be adjusted on the first day of flexi saving period by multiplying the latest notional amount as at the end of the accumulation period by the percentage of the policy value allocated to the Growth Account on the first day of the flexi saving period. For the avoidance of doubt, notional amount refers to the latest notional amount unless otherwise specified.
- The underlying cash value rate used to calculate the cash value is guaranteed by the Company. If there is any change in the notional amount, the corresponding cash value will be adjusted accordingly.
- Only applicable to single premium payment and excludes any part of the premiums paid as a result of the insured being classified as a special class or any premiums paid for any supplement(s).
- On the first day of flexi saving period, any amount allocated to the Flexi Account will be applied to repay any indebtedness and / or outstanding premiums immediately after the allocation at the discretion of the Company.
- An application for the Growth Account Lock-in Option must satisfy the following conditions: (1) the Lock-in Amount is not less than the minimum amount as may be determined by the Company from time to time; (2) the application for the Lock-in Amount will not result in the notional amount being less than the minimum amount specified by the Company from time to time if such application is approved and implemented; and (3) the application shall be in the form specified by us and in such manner satisfactory to us in accordance with the administrative rules of the Company. The amount you apply to transfer from the Growth Account to the Flexi Account will be used to settle any indebtedness and / or outstanding premiums at the discretion of the Company immediately before the proposed transfer.
- “Age 138” refers to the policy anniversary on or immediately following the latest insured’s 138th birthday, whichever the earlier.
- Written application should be made by you for the change of insured and such request is subject to the Company’s approval, administrative rules, underwriting, and any other requirements of the Company in effect from time to time. Unless otherwise specified, the change of insured will not affect the terms and conditions of Flexi Power Saver. The new insured must be the policy owner himself / herself, his / her spouse or child under age 18, or a juvenile member of a newer generation of the policy owner’s family under age 18 (e.g. grandchild or great-grandchild of the policy owner) subject to the juvenile trust policy arrangement acceptable by the Company. The new insured must be age 60 or below as at the effective date of the change of insured, and the date of birth of the new insured must not be more than 5 years earlier than the date of birth of the initial insured of the policy. Both the existing insured and the new insured must be alive on the effective date of change of insured. The change of insured must be endorsed in writing by the latest insured (i.e. existing insured) and the new insured. The change of insured option can only be exercised up to a maximum of 3 times. After the change of insured, all supplement(s) will be terminated on the effective date of change of insured and no supplement(s) can be attached thereafter. The Company reserves the right to seek satisfactory evidence of insurability from the new insured. Please refer to the policy contract for details.