Participating Insurance Plan and Dividend Fulfillment Ratios

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 policies 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 capital growth. To accomplish  this purpose, we invest in a wide range of asset portfolios that are prudently chosen by our company to balance the risk. In general, the asset portfolios mainly consist of fixed income securities and equity investments.

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. Dividends amount mainly depends on the overall performance of the participating life insurance business of our company, taking into account of the factors including 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.

Annual dividends paid can be left with the company and accumulated with interest. The annual dividends, interest rate (Dividends Accumulation Rate) is 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  as illustrated in the benefit illustration at point of application. For the Dividend Fulfillment Ratios of each participating insurance plan of BOC Life, please refer to the following website:
https://www.boclife.com.hk/en/support/financial-information/dividend-fulfillment-ratios.html

Introduction of Participating Insurance Plans Video