Participating Insurance Plans
Participating insurance plans, or participating policies in short, are policies providing the policy owners an opportunity for wealth accumulation through dividend distribution, as well as guaranteed value and life protection.
Philosophy in Deciding Dividends
Participating insurance plans provide policy owners with an opportunity to receive a share of profits attributable to the participating life insurance business of our company by means of dividends (including annual dividends, accumulated interests of the annual dividends, and terminal dividend, if any), with the potential prospect of long-term rates of return. To accomplish the purpose, we invest in a wide range of asset portfolios that are prudently chosen by our company to balance the risk.
The actual amount of dividends payable is determined by the stipulated surplus sharing approach in our company’s policy, which is based on the past experience of our company, the long-term expectation of the participating life insurance business in the future, smoothing process and surplus sharing approach. The smoothing process mean that our company hold back some of the investment returns in good years to allow buffer for potentially lower return in later years; or we boost maintain bonus dividend rates temporarily in years having adverse return to avoid big drops in your policy non-guaranteed value. Dividends amount mainly depends on the overall performance of the participating life insurance business of our company, taking into account factors such as investment returns, claim experience, persistency and operating expense. The actual amount of dividends payable is recommended by our Appointed Actuary according to the aforementioned company’s policy and approved by the Board of Directors of our company. For the different plans target profit sharing ratio between policy owners and shareholders, please visit our website: https://life.luenfunghang.com/en/ProfitSharingRatio
Annual dividends paid can be left with the company and accumulated with interest. The annual dividends, interest rate (Dividends Accumulation Rate) and terminal dividends are determined based on market conditions and expected investment return of our company. In light of the above factors, dividends and Dividend Accumulation Rate are not guaranteed and may be higher or lower than the values illustrated in the benefit illustration provided at point of sale. For the Dividend Fulfillment Ratios of each participating insurance plan of Luen Fung Hang Life, please refer to the following website: https://life.luenfunghang.com/en/FulfilRatio