1. What is GREAT Lifetime Payout 2 Special?
GREAT Lifetime Payout 2 Special is a regular premium participating whole life insurance plan with a premium payment term of 3 years. It provides a monthly payout for life at the end of each policy month, starting from the 43rd policy month.
It also allows you to take part in the performance of the participating fund in the form of bonuses that are not guaranteed. There are two main types of bonuses for this plan – cash bonus and terminal bonus.
2. What is the coverage under GREAT Lifetime Payout 2 Special?
GREAT Lifetime Payout 2 Special provides you with financial protection against death and terminal illness.
If the life assured suffered from any of the above events during the policy term, we will pay a lump sum benefit of 105% of the total standard annual premiums paid plus bonus (if any), less any debts. The policy will end after we make this payment.
There are certain situations when we will not pay the benefits under this policy. You can refer to the product summary for more details.
3. What will I receive in the monthly payout?
From the 43rd policy month onwards, you will start to receive a payout at the end of each policy month till a claim is admitted, or the plan is terminated, whichever is earlier. Alternatively, you may also choose to keep the payout with us to earn non-guaranteed interest. Please note that the non-guaranteed interest is subject to change without prior notice.
Each payout during the 43rd – 48th policy month comprises:
· Guaranteed survival benefit, also known as monthly income
Each payout starting from the 49th policy month comprises:
· Guaranteed survival benefit, also known as monthly income; and
· 1/12 of the yearly cash bonus that is declared yearly, starting from the 4th policy anniversary.
You can refer to the policy illustration to see how we will pay the monthly payout.
4. What other form of bonus(s) will I be receiving?
You will also receive the terminal bonus (if applicable) in a lump sum when you surrender your policy or when there is a claim admitted under the policy that terminates the policy, whichever event occurs first.
We usually review the terminal bonus yearly.
5. How will I be informed on the performance of the policy?
You will receive an annual bonus update that will include the following:
• the performance of the participating fund and its future outlook, which you should receive around the second quarter of each year after bonus is declared for your policy; and
• an annual statement regarding bonuses for your policy, which you should receive around the second quarter of each year after bonus is declared for your policy. For policies with cash bonus, you should receive the relevant statement within one month from your policy anniversary only when the cash bonus is due.
When there is a change in the rate of bonuses declared, you can ask us for an update of the illustrated values.
6. What happens if you surrender the policy early?
If you surrender your policy after the 14-day free-look period, you may lose part or all of the premiums paid. This is because the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.
7. What happens if you do not pay your premiums on time?
If you do not pay your premiums on time, your policy may lapse after the 30 days grace period. There will be no protection if your policy lapses. However, you may reinstate the policy within 6 months from the date it lapsed and usual reinstatement conditions apply.
8. What are the fees and charges?
We have included fees and charges when working out the premium and you will not be separately charged for these. Please refer to the Product Summary for details of the fees and charges.