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3. How can I find out about the benefit illustration of a life insurance policy prior to purchasing it?

For most life insurance policies, insurance companies are required to provide benefit illustrations to the customers at the point-of-sale according to the following requirements:

 

  • An authorized insurer should prepare an inforce re-projection illustration based on the current policy option chosen by the policy holder (e.g. withdrawal, premium offset, top-up, etc.), and the updated actuarial assumptions and the authorized insurer’s current view of the market outlook.
  • The re-projection should start from the policy year in which the re-projection is performed, taking into account the policy’s updated inforce policy status (e.g. attained age, current sum assured, etc.).
  • Relevant warnings of associated risks and explanatory notes should be suitably modified and presented.

 

For some particular product types (e.g. ILAS, participating, universal life (non-linked) and non-participating policies), authorized insurers are required to provide further information to the customers according to additional requirements applicable to the specific product types.

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