Investment Products

Product code: I01-I02

Được phê chuẩn theo Công văn số 3047/BTC-QLBH ngày 07/03/2012 của Bộ Tài Chính

Product Feature
  • Active in protection for life, flexible in investment for profits.
  • You are a smart person and always stay active. You frequently make sharp decisions in your investments. You, for all time, have an awareness of the responsibilities you have for yourself and your family. Cathay Life Vietnam has successfully designed an all-rounded product just for you: Whole Life Universal Life.
  • Whole Life Universal Life is a universal life product that will satisfy all your needs.
  • Now, not only you can be in better control on making a suitable financial plan for future but also have more flexibility in adjusting the degree of investment according to your needs during different stages of your life. Buying this product can be seen as that you protect yourself and your family at the same time you have acquired an effective investment tool; and that is to invest without having to spend too much time and yet to guarantee returns with the professional and reliable Universal Life Fund of Cathay. With Whole Life Universal Life, staying protected while investing, never before have you earned more.
  • Strength of Products
    • Can flexibly pay premium depending on income at different points in time.
    • Appropriate premium rates with high Sum Assured.
    • At the same time, have insurance and have investment benefit according to market rate.
    • Can flexibly change Sum Assured depending on needs.
    • Can temporarily stop paying premium if financing is tight (from after 2nd policy year).
    • Can flexibly withdraw money for your own expenditure needs.
    • Can buy other riders to increase benefits.
  • How Universal Life Fund Operates

Premium after deducting initial cost will be invested to make interest and accumulated to Account Value. Each month, Cost of Insurance and Policy Management Cost will be automatically subtracted from Account Value.
At the beginning of each calendar month, Cathay will declare interest rate applied to Account Values. This interest rate may change but will not be lower than the minimum guaranteed rate of 4%/year for first 10 policy years and 3%/year for the remaining years. Cathay will implement safe investment policy, focusing in buying government bond to ensure we will fulfill our guaranteed rates

  • Premiums and Fees

Basic Premium: an amount that the Policy Owner pays to the Company in accordance with payment frequency and payment method as agreement. Basic Premium is determined according to Sum Assured, age and gender of the Insured.

Top-up Premium: the excessive amount of the Basic Premium paid by the Policy Owner and comply with the Company’s conditions.

Allocated Premium: the amount allocated into the Account Value to get interest and to increase value of the Account Value after deducting the Initial Cost.

Initial Cost: fee that is subtracted before premium is allocated to Account Value. This fee changes according to payment year and types of premium (Basic premium or Top-up premium).

Policy Year
1 2 3 4 5 6+
Percentage of Basic Premium 50% 20% 10% 5% 5% 2.5%
Percentage of Top-up Premium 8% 7% 5% 5% 5% 2.5%

Cost of Insurance: cost to pay for insurance benefit. This amount is based on the risk of death and total and permanent disability, depending on gender and age of the Insured. Cost of Insurance will be deducted monthly from Account Value.

Policy Management Cost: cost to pay for the maintenance of policy and is subtracted monthly from Account Value. Currently, this cost is at 15,000 VND/month. Policy Management Cost may change but at maximum 60,000 VND/month.

Fund Management Cost: cost to pay for the management of Universal Life Fund. Cathay will deduct a Fund Management Cost of 2%/year.
Surrender Charge: applied when Policy Owner requests to surrender policy.

Policy Year 1~5 6 7 8 9 10+
Percentage of 1st Year Basic Premium
100% 80% 60% 40% 20% 0%

Withdraw a Portion of Surrender Value: fee applied when customer requests to withdraw money from Surrender Value.

  1. Free if first withdrawn amount each policy year is 20% Surrender Value or less. If this amount is higher than 20% Surrender Value, withdraw fee is the higher amount between 100,000 VND and 2% of the excess amount.
  2. Withdraw fee is the higher amount between 100,000 VND and 2% of the total amount for the 2nd and other withdrawals during policy year.
Insurance Benefit
  • Death or Total and Permanent Disability Benefit

Cathay brings to you two insurance benefits so that you can choose for yourself the most suitable plan

Basic

If the Insured unfortunately dies or becomes totally and permanently disabled, Cathay will pay the higher amount between the Sum Assured and Account Value.

Basic benefit is more suitable for investment target than protection target.

Advanced

If the Insured unfortunately dies or becomes totally and permanently disabled, Cathay will pay the total amount of the Sum Assured and Account Value.

Advanced benefit focuses on protection more than investment.

 

Example: A male customer, 35 years old, buys Whole Life Universal Life with Sum Assured 300 million VND and pays 10 million VND each year for 20 years. After 20 years, Death or Total and Permanent Disability benefit would be:

  Guaranteed Interest Rate Declared Rate 8%/year
Account Value Insurance Benefit Account Value Insurance Benefit
Basic 241 300 420 420
Advanced 221 521 382 682
Unit: million VND
  • Investment Benefit

During effective period of policy, interest will be calculated monthly based on the declared interest rate and automatically added to Account Value.

  • Withdrawal from Policy

During effective period of policy, you can withdraw cash from Surrender Value of the policy to pay for your expenditure demands. Request to withdraw money can only be carried out after first policy year.

  • Change Sum Assured

During effective period of policy and after two policy years, you may request to change Sum Assured according to your insurance need.

  • Long-life Benefit

On the anniversary date when the Insured is 99 years old, Cathay will pay 100% Account Value

Rules of Purchase
Policy Term 20 years
Premium Payment Period Equals Policy Term
Entry Age Basic: 0 – 60
Advanced: 0 – 50
Minimum Period of Basic Premium Payment 2 years
First Premium Minimum 1 annual basic premium or 3 million VND
Minimum Sum Assured 100 million VND

 

More Information

Riders
Content of this page is only for product introduction. For more details, please refer to the Terms and Conditions of the policy.