1. The yearly income will be payable from the end of the accumulation period as long as the life insured is alive and while the policy is in force. The yearly income comprises:
- guaranteed yearly income at 0.8% of the sum insured; and
- non-guaranteed yearly income (if any).
You may choose to receive the yearly income payouts or accumulate them with us at the prevailing non-guaranteed interest rate of 3.25% p.a. based on the participating fund earning an illustrated investment rate of return of 4.75% p.a. or 2.25% p.a. if the illustrated investment rate of return is 3.25% p.a.
2. The capital guarantee, which is derived based on yearly premium payment mode, applies only at the end of the Accumulation Period or the end of:
- 10th policy year for policies with a 10-year premium payment term;
- 15th policy year for policies with a 15-year premium payment term;
- 20th policy year for policies with a 20-year premium payment term; or
- 25th policy year for policies with a 25-year premium payment term,
whichever is earlier; and if all yearly premiums due on the policy have been paid before the end of the grace period. Capital guarantee applies to the basic plan only.
3. If the life insured dies while the plan is in force, we will pay the sum of:
- 108% of the total yearly premiums due to-date or the guaranteed cash value, whichever is higher;
- a non-guaranteed terminal bonus (if any);
- accumulated guaranteed yearly income and non-guaranteed yearly income (if any); and
- interest on the accumulated guaranteed yearly income and non-guaranteed yearly income (if any),
less amounts owing (if any), outstanding premium (if any) and future instalment premiums which are required to make up the full year’s premiums (if any).
4. If the life insured is diagnosed with a terminal illness while the policy is in force, we will advance the death benefit.
5. The premium payment term you select must be equal to or less than [75 less the life insured’s entry age].