Life insurance and long-term investment products offer both life coverage and investment flexibility
Blissful Bloom Protection Linked Plan (the “Plan”) is an investment-linked assurance scheme (“ILAS policy”), which is an insurance policy issued by BOC Group Life Assurance Company Limited (“BOC Life” or “the Company” or “we” or “us”), which provides both insurance protection and investment element with reference to the Investment Choices you selected. Your investments are therefore subject to the credit risks of BOC Life.
The Plan is not a bank deposit or savings plan, or investment fund without any insurance element.
The premiums paid by you towards your ILAS policy will become part of the assets of the Company. You do not have any rights or ownership over any of those assets. Your recourse is against the Company only.
The premiums paid by you, after deduction of any fees and charges applicable to the Plan, will be invested by BOC Life in the Underlying Funds corresponding to the Investment Choices you selected for BOC Life’s asset liability management. The Unit(s) allocated to the Account established and maintained under your ILAS policy is notional and solely for the purpose of determining the value and benefits under your ILAS policy. You are NOT investing directly in the Underlying Funds corresponding to the Investment Choices you selected. You do not have any rights or ownership over the Underlying Funds corresponding to the Investment Choices you selected.
The potential return on your ILAS policy is calculated and determined by BOC Life with reference to the performance of the Underlying Funds corresponding to the Investment Choices you selected and shall be subject to ongoing fees and charges which will continue to be deducted from your ILAS policy and may be lower than the return of the Underlying Funds corresponding to the Investment Choices you selected.
The Plan is designed to be held for a long-term period. Partial withdrawal, surrender, lapse, or termination of the ILAS policy in the early years may result in a significant loss of principal as well as bonuses awarded (if any). Poor performance of the Underlying Fund(s) corresponding to the Investment Choices you selected may further magnify your investment losses, while all charges are still deductible.
This ILAS policy is subject to an early encashment charge of up to 7.5% of the partial withdrawal amount made from the Base Account (in the case of a partial withdrawal made from the Base Account) or of the Base Account Value (in the case of a surrender) for the first 5 Policy Years and a premium charge of 2.5% of each Lump Sum Top-Up Premium paid (if any). It is only suitable for investors who are prepared to hold the investment for a long-term period.
If you are not prepared to hold your policy for at least 10 years, this ILAS policy is not suitable for you and it may be cheaper to purchase an insurance policy and make separate fund investments. You should seek independent professional advice.
Although your ILAS policy is a life insurance policy, because part of your Death Benefit is linked to the performance of the Underlying Funds corresponding to the Investment Choices you selected from time to time, your Death Benefit is subject to investment risks and market fluctuations. The Death Benefit payable may not be sufficient for your needs. The Cost of Insurance (“COI”) used to cover the insurance protection will be deducted from your ILAS policy. This charge may increase significantly when the insured gets older or your investments make a loss, etc.
The Investment Choices available under the Plan can have very different features and risk profiles. Some of them may even be of high risk. You may incur significant losses by investing in such Investment Choices and are strongly advised to exercise caution in relation to such Investment Choices. You should not invest in any Investment Choice if you do not fully understand and are not willing to assume its associated risks.
The investment choice designated with “(Dis)” in its name (the “Investment Choice (Cash Distribution)”) may distribute regular cash dividends through the Plan. If you invest in the Investment Choice (Cash Distribution), we will pay you cash dividend once we receive cash dividend from the underlying fund(s) of Investment Choice(s) (Cash Distribution). Please note:
The distribution of cash dividends from underlying fund of the Investment Choice (Cash Distribution), dividend amounts and distribution frequency are not guaranteed and are subject to the discretion of the underlying fund corresponding to the Investment Choice (Cash Distribution) you invested. The cash dividend amounts we have paid are not an indication, forecast or projection of future cash dividends in any way.
An underlying fund of the Investment Choice (Cash Distribution) may pay cash dividends out of its investment income, capital gains or capital, according to its dividend policy. The underlying fund may at its discretion pay cash dividends out of the capital or out of gross income while charging or paying all or part of its fees and expenses to/out of the capital, resulting in an increase in distributable income for the payment of cash dividends by the underlying fund and therefore, the underlying fund may effectively pay dividend out of capital.
Payment of dividends out of capital amounts to a return or withdrawal of part of your original investment or from any capital gains attributable to that original investment. Any distributions involving payment of cash dividends out of capital or effectively out of capital may result in an immediate reduction of the net asset value per unit of the underlying fund corresponding to the Investment Choice (Cash Distribution) you invested and is reflected in the unit price of the Investment Choice (Cash Distribution) accordingly, which may have a negative impact on the unit price of the Investment Choice (Cash Distribution).
The Investment Choice (Cash Distribution) that pays out cash dividends may lower the value of your ILAS policy when compared to an investment choice that does not distribute dividends. In this case, loyalty bonus, death benefit, surrender value and maturity benefit may be reduced accordingly; and Cost of Insurance may increase and has further negative impact on the value of your ILAS policy. If the value of your ILAS policy becomes insufficient to cover all the ongoing fees and charges, your ILAS policy may be terminated early, whereupon you could lose all the premiums you paid and all benefits (including your death benefit coverage) under your ILAS policy.
We reserve the right to vary the distribution policy of the Plan (including its investment choices) and related administration arrangement subject to relevant regulatory approval by giving at least one month’s prior written notice to you or any shorter period of notice in compliance with the relevant regulatory requirements. The dividend amount paid by the Investment Choice (Cash Distribution) and dividend composition information of the corresponding underlying fund for the last 12 months are available from BOC Life upon request. In addition, from the date of the launch of the Investment Choice(s) (Cash Distribution), such information is also available on our website.
You should fully understand the Investment Choice (Cash Distribution) and its associated risks before you select it.
Investment involves risks. Past performance should not be taken as an indication of future performance. Each Investment Choice is subject to market fluctuations and risks inherent in all investments. The notional Unit Prices of Investment Choices and the income accrued from investing in such Investment Choices (if any) may go down as well as up. Investment returns are not guaranteed.
You should not purchase this ILAS policy unless you fully understand the Plan and your financial consultant has explained how suitable the Plan could be for you. The final decision is yours.
You should not invest based on this material alone. You should read the offering documents of the Plan and the Underlying Funds carefully for details including the risk factors, charges, investment objectives and policies, etc. These documents are available from BOC Life upon request or downloadable from our website.
This website is issued by BOC Group Life Assurance Company Limited.