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Enricher Savings Insurance Plan 凱裕儲蓄保障計劃

‘These slides serve as training materials that include product information provided by Aviva Life Insurance Co. Ltd. (“Aviva”) and should not be treated as marketing material. The information herein (“Information”) is strictly

confidential and is for Aviva’s designated intermediaries’ internal use only. Further, the Information should not to be reproduced, in whole or part and shall not be disclosed to any third part(ies) including policy holders and

prospect customers for whatever purpose without Aviva’s consent., Any opinions or information contained in this document is made on a general estimate basis and shall not be regarded as any statement, representation or

warranty made by Aviva. For more details, please refer to the relevant terms and conditions. The Information is updated in February 2013 and Aviva reserves all rights to modify or alter the same without notice.’

‘These slides serve as training materials that include product information provided by Aviva Life Insurance Co. Ltd. (“Aviva”) and should not be treated as marketing material. The information herein (“Information”) is strictly confidential and is for

Aviva’s designated intermediaries’ internal use only. Further, the Information should not to be reproduced, in whole or part and shall not be disclosed to any third part(ies) including policy holders and prospect customers for whatever purpose

without Aviva’s consent., Any opinions or information contained in this document is made on a general estimate basis and shall not be regarded as any statement, representation or warranty made by Aviva. For more details, please refer to the

relevant terms and conditions. The Information is updated in February 2013 and Aviva reserves all rights to modify or alter the same without notice.’


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Longevity and Financial Obligations Are you ready to meet “them”?!

20s

30s

40s

50s

60s

70s

70s+

10s

0s

Now In 5-yr time In 10-yr time In 20-yr time In 25-yr time In15-yr time

You and your spouse retirement

Support your retired parents

Support your kids

Help them to achieve their special

milestones in life

Meet retirement needs and live a quality and healthy life

Plan for your next

generations

Give them the best education

A solution targeted to “Sandwiches Group” aged between 30s and 50s for their long

term financial obligations that will need disciplined savings to fulfill

Life

expectancy

increase

(Male:84

Femaile:91)

+

Financial

obligations

also rise

Sa

nd

wic

hes G

rou

p






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Life Expectancy & Retirement Social phenomenon

10 years Your

grandparents

Your parents

You

Retire at age 65 Passes away at age 75

20 years

Retire at age 60 Passes away at age 80

29 / 36 years

Retire at age 55 Passes away at age

84 / 91

Male

84 years old*

Female

91 years old*

*HKSAR Census and Statistics

Department Hong Kong Population

Projections 2012-2041

Life expectancy

increase

Financial obligations also increase

Retirement period increase






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Different Life Stages - Are you ready?

5 10 20 25 15 45 40 35 30

Children ‘s

education

Children enter

another life stage

Pass to next

generation

First mortgage Prepare for

Retirement Enjoy life

First

mortgage

Enjoy retirement

life with loved one

Prepare for

Retirement

Caring

Parents

Far-sighted

Individuals

Married

Couples

To create a better future for your children, a good education is the best gift to them.

Marriage, is a life-long promise of taking care your love.

We work hard to enjoy life and create our ideal and independent life.

X years later

Grandchild

born

What if you

do not have sufficient

EDUCATION

FUNDS for your

children?

What if you

do not have

sufficient funds to

support your

FAMILY LIVINGS?

What if you

do not have

sufficient savings

for RETIREMENT ?






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Perceived Solution to Long Term Obligations Myth vs. Fact

Rely on kids

Investment

Buy a

property to

save for

retirement

Savings in

bank

Fact: Need your own reserve

and flexible cash:

• Many single people

• Low fertility rate

(1.1 in 2010)*

• High divorce rate

• Costly to raise siblings

• 2-decade of cash outflow

Fact: Hurdle to own a

property is too high

• Difficult to save for

down payment

• You have a mortgage to

pay

• Plus other carrying

costs

Fact: Need top up on saving

• Extreme low interest rate

(0.01%)

• Inflation risk (3.7% in

2012 Nov)**

I Bond? limited quota

• 1/3 of HK populations

have no MPF

• A lot of them are

housewives, including

YOUR SPOUSE!

Fact: Get guaranteed return

with reasonable upside

• High volatility in

investment market

• Return is not guaranteed

Perceived solutions

MPF * Source: Population Reference Bureau [2011

World Population Data Sheet ]

is good choice to fill your financial gap!

** Source: 2012 Trading Economics






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Enricher Savings Insurance Plan - Product Key Selling Points

Guaranteed return and future upside

Flexible cash flow Withdraw the guaranteed cash coupons and annual dividends or leave them

with Aviva for interest accumulation

Extra life protection

Hassle-free application No health underwriting is required

✓

✓

✓

✓

Guaranteed cash coupons

= 6% of the sum assured for whole life

Annual dividends

(non-guaranteed)

Whole life protection Free terminal illness

benefit






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Benefits Protection

Free terminal illness benefit1,4

Death benefit1

Non-guaranteed annual

dividends1,2,3

Guaranteed cash coupons1,2

Product Overview

1 Any indebtedness will be deducted from any payment made by Aviva. 2 Provided that the policy is still in force and all premiums are paid in full when due. 3 The annual dividends are based on Aviva’s current dividend scales and are not guaranteed.

The scales can be changed from time to time by Aviva.

4 Terminal Illness” “TI” means the conclusive diagnosis of an illness that is expected to result in the death of the

life assured within 12 months. The TI must be diagnosed by a specialist and diagnosis must be confirmed by

Aviva’s appointed registered medical practitioner. And, all pre-existing condition will be excluded. The policy

will be terminated upon diagnosis of TI of the life assured and we will accelerate the payment of the death

benefit as the TI benefit. This benefit is not applicable to Chinese Mainlanders and Life Assured aged 65 or

above. Please refer to terms and conditions for details.

Plan ahead and prepare for you and your loved ones

No health

UW!






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Far-sighted

individuals

Double-income

couple

The target customers of Enricher Savings are:

Caring parents Single-income

couple

Targeted Customers of Enricher Savings






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Product Information

Enricher Savings Insurance Plan

Product type Participating whole life coupon plan

Premium terms 5 years 10 years 15 years

Issue age – life assured (LA) 1 month – 70 (ANB) 1 month – 65 (ANB) 1 month – 60 (ANB)

Issue age – policyholder 19 and above (ANB)

Policy term Up to age 99 (ANB)

Policy currency HKD/ USD

Min./ Max.

sum assured (SA)

Min. SA per policy = HK$50,000/ US$6,300

Max. SA per life = NA [iSQS limit : HK$9,999,000/ US$9,999,900] SA must be in multiples of HK$1,000/ US$100

Living benefits A. Guaranteed cash coupons (GCC)^ • 6% of the SA, payable on each policy anniversary (PA) from the 1st PA until the LA aged 99 (ANB)

B. Non-guaranteed annual dividends (AD)^* • Payable on each PA from the 1st PA until the LA aged 99 (ANB)

Settlement and payment options

• Default to leave GCC and AD with Aviva for non-guaranteed interest accumulation (currently at 4% p.a. for

all policies) [Different settlement options can be applied for GCC and AD);or

• To withdraw GCC and AD - paid by cheque or transfer to bank account [must be same payment options for

GCC and AD, default to be paid in HKD for both HKD/USD policies]

Customer can change the above options at anytime during the policy term, the option will take effect starting

from the next policy anniversary

Customer can withdraw any accumulated GCC or AD subject to the min. amount HK$1,000/ US$125 per

withdrawal

^Provided that the policy is still in force and all premiums are paid in full when due. Any indebtedness will be deducted

from any payment made by Aviva.

*The annual dividends are based on Aviva’s current dividend scales and are not guaranteed. The scales can be

changed from time to time by Aviva.

New

New






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Product Information (Con’t)

Death benefit The 1st – 2nd policy year: (a) TPP less total GCC paid; plus

The 3rd policy year onwards: (a) Higher of (i) “110% of TPP” less “total GCC paid”; (ii) GCV; plus

(b) accumulated (acc.) GCC with interest (if any); plus

(c) acc. AD with interest (if any); less

(d) Indebtedness (if any)

Embedded benefit Terminal illness benefit#

#“Terminal Illness” “TI” means the conclusive diagnosis of an illness that is expected to result in the death of the life

assured within 12 months. The TI must be diagnosed by a specialist and diagnosis must be confirmed by Aviva’s

appointed registered medical practitioner. And, all pre-existing condition will be excluded.

The policy will be terminated upon diagnosis of TI of the life assured and we will accelerate the payment of the

death benefit as the TI benefit. This benefit is not applicable to Chinese Mainlanders and Life Assured aged 65 or

above. Please refer to terms and conditions for details.

Future premium

deposit (FPD)

• FPD a/c application or dump-in payment is allowed at anytime during the premium term

• The required premiums will be deducted annually from the a/c when premiums become due

• The remaining balance of the a/c will accumulate at a non-guaranteed interest rate (currently

1.25% p.a. for HKD & 1.50% p.a. for USD) starting from the effective of the a/c

• Full/ partial withdrawal of the a/c is allowed subject to a withdrawal charge (currently 3.5% of the

withdrawal amount for all policies) except upon death/ terminal illness claim, policy paid-up and

maturity Remarks:

• Applicable for annual payment mode only

• Applicable for bank draft/ cheque/ DBS a/c transfer only

• Min. premium: 2-year annual premiums (including the initial premium and after discounted with interest)

• Max. premium: total remaining future premiums (before discount with interest)

• Additional premiums may be required to keep the policy in force if the non-guaranteed interest rate

drops or future premiums payable change (if any)

• No interest will be declared after the policy is paid up

• Min. withdrawal amount is subject to HK$100/ US$10

• Withdrawal charge is fixed once the a/c is effective but it is subject to change to new application from

time to time by the Company

• Commission of the basic plan will only be applied after the premium is deducted

New

New






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Product Information (Con’t)

Large size discount

Premium Terms 5 years 10 years 15 years

Sum Assured (HK$/ US$) Discount per 1,000 Sum Assured

HK$50,000 – HK$99,999/

US$6,300 –US$12,499

0 0 0

HK$100,000 – HK$299,999/

US$12,500 – US$37,499

35 25 22.5

HK$300,000 or above/

US$37,500 or above

40 30 27.5

New






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Operational Notes - Underwriting and Policy Servicing

Payment Method Initial Premium:

•Telegraphic Transfer

•Bank Draft

•Cheque

•Credit card (VISA/Master) ***FOR MONTHLY PAYMENT MODE, FIRST 2-

MONTH ONLY***

Subsequent Premium:

•Telegraphic Transfer

•Bank Draft

•Cheque

•Direct Debit through client’s HKD bank account #(only HKD a/c is

applicable)

Telegraphic

Transfer

Account Number

Payment in HKD: 016-233-3333503028

Payment in USD: 016-478-788-025-696

TT confirmation must be attached with application form

Exchange Rate Prevailing Weekly Exchange Rate for currency conversions will be shown in

Aviva Website

# Customer who choose to pay the subsequent premiums via direct debit should note that the respective bank account should be

ACTIVE at the time of premium transfer.






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Operational Notes – Application Form Quick Note

175,000

86,817.5






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Operational Notes – Application Form Quick Note

Option 1 (Default):

Accumulate with

interest

Option 2:

Withdraw – By HKD

cheque

Option 3:

Withdraw – By direct

credit






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iSQS User interface

• Input Life Assured/ Policyholder Information

Click “Next” after

filled in all

required info






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iSQS User interface (Con’t)

• Input Life Assured/ Policyholder Information

Click “Next” after

filled in all

required info






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• Select plan

1. Click “Select”

2. Click “Whole Life”

3. Click “Regular Premium”

4. Click “Enricher Savings

Insurance Plan”






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• Input plan information

Click “Compute” &

“Next” after filled

in all required info

• You may choose to

enter “Indicative

Premium” instead

of “Sum Assured”

• You may click

“Future Premium

Deposit” if

customers would

like to apply FPD

(applicable for

“Annual” payment

mode only)






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Click “Next” as

no rider can be

attached






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Click “Generate” if

all the information

are correct






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Click “Generate” for

proposal

You may choose:

• Accumulated Option

only (default option)

• Accumulated & Paid

Out Option

You may also choose:

• English BI

• Chinese BI






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FAQ

1. What are the surrender/ maturity benefits of the policy?

Surrender/ maturity benefits are equal to the sum of guaranteed cash value, accumulated

guaranteed cash coupons with interest (if any), accumulated annual dividends with

interest (if any) less indebtedness (in any).

2. When will the annual dividends and guaranteed cash coupons be payable?

They will be payable starting from the 1st policy anniversary, provided that the policy is

still in force and all premiums are paid in full when due.

If a claim or surrender arise before the policy anniversary, annual dividends and

guaranteed cash coupons for that relevant year will not be paid. Interest for any

accumulated annual dividends and guaranteed cash coupons will be paid calculated as

of last policy monthiversary.

3. Once the policyholder has withdrawn the annual dividends and guaranteed cash

coupons from the policy, can he/she deposit the same amount back to the policy

later to earn non-guaranteed interest?

No, the policyholder cannot deposit the withdrawn annual dividends and guaranteed cash

coupons back into the policy.






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FAQ (Con’t)

4. What are annual dividends?

In addition to guaranteed benefits, a participating policy provides policyholders with

non-guaranteed benefits in the form of annual dividends.

Annual dividends depend on the profits arising from the performance of the

participating fund, which depend on investment yield, claims experience and expenses

incurred in managing the participating policies. Annual dividends’ rates are declared

annually and depend on the performance of the participating fund to date and changes

in expected future performance.

Annual dividends are not guaranteed and payable annually on each policy anniversary.

Customers can choose to accumulate the annual dividends with Aviva for interest

accumulation.






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FAQ (Con’t)

5. What is the purpose of having “change on assumed investment yield” in the

benefit illustration?

Since the investment yield will vary which affects customers’ non-guaranteed benefits

(annual dividends) of the policy, so two scenarios of change in the “assumed

investment yield”, 1% increase and 1% decrease in the “assumed investment yield” are

shown in the benefit illustration to illustrate the impact on the change in annual

dividends in order to assist customers to understand more on the impact.

The “change on assumed investment yield” will NOT affect the guaranteed benefits of

the policy.

6. Is “assumed investment yield” shown in the benefit illustration guaranteed?

No, the “assumed investment yield” shown is not guaranteed, the actual investment

yield of the company will vary. The actual investment yield may be higher or lower than

the “assumed investment yield” in any page of the benefit illustration.






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FAQ (Con’t)

7. Does the product accept application from Chinese Mainlanders?

Yes, follows existing guideline, the product accepts Chinese Mainlanders’ application

from the selected province and cities, however the free terminal illness benefit is not

applicable to them.

8. Assuming a policy is paid in monthly premium mode and the life assured passed

away in the middle of the policy year. Will the beneficiary need to pay the premium

relating to the remaining months in the same policy year upon death claim?

No, Aviva will not request the beneficiary to pay the premium relating to the remaining

months in the same policy year upon death claim.

9. Assuming a policy is paid in yearly payment mode and the life assured passed

away in the middle of the policy year. Will Aviva refund the premium paid relating

to the remaining months of the same policy year upon death claim?

No, Aviva will not refund the premium paid relating to the remaining months of the same

policy year upon death claim.






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Appendix – Market Fact

Retirement Needs

Inflation Trends

Interest Rate

I Bond

MPF coverage for HK population

MPF sufficiency

Education burden on parents






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Appendix: How much Retirement Savings do we need?

Live longer

Male: 84 years old* / Female: 91 years old* (Projection as at 2041)

How much you need if you want to maintain your present living standard?

According to the Hong Kong 2011 Population Census, the median monthly income

from main employment of the working population = HK$12,000**

Assume the monthly expenses after retirement equal to 80% of the current monthly

income = HK$ 9,600

60 90 Age

Retire here

HK$9,600 x 12 months x 30 years (assume inflation rate is 3.7%***)

= HK$ 6,598,484

Retirement funds required

* HKSAR Census and Statistics Department Hong Kong Population Projections 2012-2041

** HKSAR Census and Statistics Department Hong Kong 2011 Population Census - Thematic Report : Household Income Distribution in Hong Kong

*** The inflation rate in Hong Kong is 3.7 % in Nov 2012. Source: 2012 Trading Economics.

http://www.censtatd.gov.hk/fd.jsp?file=B11200572012XXXXB0100.pdf&product_id=B1120057&lang=1






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Appendix: The Purchasing Power is Eroded by Inflation

The inflation rate in Hong Kong is 3.7 % in Nov 2012. (The avg. inflation rate

from 1981 – 2012 was 4.6%)1

1. http://www.tradingeconomics.com/hong-kong/inflation-cpi






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Appendix: Continued Low Interest on Bank Deposits

Sources: Hong Kong Monetary Authority

Period Sep 2012 Past 3 years

Avg. interest rate on bank deposits 0.01% 0.01%






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Appendix: Can the Yield from Bonds Help? United Nations Bond?

Source : U.S. Department of the Treasury update to 5-Jun-2012

Period Annual yield

1 year 0.18%

5 years 0.68%

10 years 1.57%

20 years 2.23%

30 years 2.63%

I-Bond? • 3 years, HK$10,000 per lot

• Interest payable semi-annually. The interest payment will be determined by

comparing the year-on-year inflation rate of Hong Kong with a fixed interest rate,

payable whichever is higher.

• Lower limit of return：1%

• Limited quota, you cannot subscribe for more even if you want！






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Appendix:

Can MPF cover your spouse?

Source: Hong Kong Government Thematic Household Survey Report 41 2009

Population

between 15

to 64*

Employed

Population*

Non-

working

population

2010 HK employable population

(Thousand persons)

*: In HK, the youngest employable age is 15 and 65 is the official retirement age.

About 1/3 of HK locals do not

have retirement coverage,

among whom many are

housewives!






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Appendix: Is MPF Sufficient Enough?

MPF max. monthly contribution: HK$2,500 (include both employer and employee)

MPF contribution

HK$2,500 x 12 months x 38 years (with 5% return per annum)

= HK$ 3,318,148

Only cover 50% of the retirement fund required

22 60 Age

MPF maturity Assume

start working here Must prepare

another

supplemental

source of savings!






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Appendix: How much will be the education cost ?

Kindergarten Primary Secondary University Total

Government /

Subsidized HK$30,000 HK$0 HK$0 HK$200,000 HK$230,000

Private / Direct

Subsidy Scheme HK$90,000 HK$120,000 HK$180,000 HK$200,000 HK$590,000

Local study – 19 years tuition fee

Overseas university study

4 Years Total (in terms of HK$)

USA $1,154,182

Canada $924,800

Australia $1,456,000

UK $1,160,000

Source: Education Bureau of the HKSAR, the Ming Pao Daily News






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Happy Selling

Thank You

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