Insurance Glossary

Policy Owner:

The individual or organization who has a need of insurance, signs into the Policy with the Company and pays premium. Policy Owner must declare and sign into the application form herself/himself. Policy Owner may at the same time be the Insured or the Beneficiary.

Organization: an organization must be duly established and is validly operating in Vietnam.

Individual: a person who must be a resident of the Socialist Republic of Vietnam and of at least full of eighteen (18) years old and has full capacity for civil acts at the time of applying for the application form according to Civil Code of Vietnam.

The Insured:

The individual resides in Vietnam and being accepted to be the Insured under the Terms & Conditions by the Company. The Insured may at the same time be the Beneficiary or the Policy Owner.

Beneficiary(ies):

Individual(s) or organization(s) who has(have) been designated by the Policy Owner to receive the insurance benefits under the Terms and Conditions of this Policy.

Accident:

A single or an uninterrupted sequence of events caused by external and violent force or external and violent thing without the Insured's intention and desires onto the Insured's body while this Policy is in force. Such event or uninterrupted sequence of events must be the direct cause of the covered bodily injury or death of the Insured.

Effective Date:

The date as specified in this Policy on which the Policy Owner pays the first premium and completes application form if the Company approves this Policy and the Policy Owner and the Insured are alive.

Sum Assured:

The amount which is agreed between the Company and the Policy Owner and expressed in the Policy. Sum Assured may be changed according to the Terms & Conditions of this Policy.

Premium:

The amount the Policy Owner must pay to the Company in accordance with premium frequency and premium mode as agreement.

Premium Due Date:

The dates on which the premium is due to be paid in accordance with premium frequency as specified in the page of this Policy.

Unearned Premium:

The amount of premium remaining after deducting the portion of premium proportion of the days between previous Premium Due Date and the occurrence date of the events for paying Unearned Premium to the total days between previous and next Premium Due Dates.

Insurance Age:

The Insured's age on Effective Date of the Policy based on the last nearest birthday and being used to determine premium.

Policy Year:

One calendar year commencing from the Effective Date to the first Policy Anniversary Date or any consecutive following years commencing from the latest Policy Anniversary Date to the next Policy Anniversary Date.

Temporary Insurance:

The Company will temporarily insure the Insured for the less minimum amount of two hundred (200) million Vietnam Dong and the Sum Assured of basic insurance as specified in application form if the Insured is died by an accident during the temporary insurance term, no matter how many Application form the Insured has. If the first premium is exceeded 200.000.000 VND, the Company will pay the Death Benefit with the amount equal to the first premium.

Automatic Premium Loan:

Before the end of the grace period, the Policy Owner may state, either in the application or in a written declaration to require the Automatic Premium Loan, the Company shall use the then-current Surrender Value under this Policy (or, where a Policy Loan has been taken out, from the remaining Surrender Value after deduction of the Policy Loan's principal and accrued interest, if any) to make an Automatic Premium Loan to cover the premium and interest due from the Policy, in order to allow this Policy to remain in effect.

Declared Interest Rate:

An interest rate is declared by the Company on the first day of each calendar month, which is then applicable to the Policy during the month commencing in that calendar month. The information thereof can be obtained at the Company's service center or by accessing the Company's website.

12-month Average Declared Interest Rate:

The average of last 12-month Declared Interest Rates applied to the Policy during a policy year.

Interest Feedback:

At the end of each Policy Year during Premium Paying Period, Interest Feedback, an amount equal to the interest accrued on the mid-year Surrender Value at the excess, if any, of the 12-month Average Declared interest rates over the pricing interest rate of this Policy, can be requested by the Policy Owner. In case the Policy Owner does not request for a payment of Interest Feedback, the amount will be accumulated and accrued at the Declared Interest Rate monthly until the termination date of the Policy.

Free Look period:

Within twenty one (21) days from the Issue Date, the Policy Owner has right to refuse the Policy by sending the notice in writing to the Company, return the insurance contract and invoices or other necessary documents as required by the Company. The Company shall refund the first premium paid without interest, after deducting the reasonable fees or the medical check up fees or any insurance benefits have been paid related to the Policy, if any.

Grace Period:

If the Policy Owner fails to pay a premium timely and fully as agreement, the Company allows a grace period of sixty (60) days from the Premium Due Date. In this grace period, the Company does not charge interest on the unpaid premium and the Policy is still valid. If the premium is not paid by the end of the grace period, this Policy will become lapsed and its effect is suspended.

Surrender Value:

The amount of money (if any) which the Policy Owner will receive if the Policy Owner terminates the Policy while the Policy is on effective period. The Policy has Surrender Value, if the Policy Owner pays premium fully for two (02) year and this Policy is on effective at least two (02) year.

Policy Loan:

When the Policy Owner has paid sufficient premiums to accumulate the Surrender Value, the Policy Owner may apply in writing to the Company for a Policy Loan which the amount shall not exceed eighty five percent (85%) of the Surrender Value at that point of time.