Participating Insurance Plans
Participating insurance plans (participating policies) provide policy owners with an opportunity for wealth accumulation through dividend distribution, along with 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 through 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 prudently selected by our company to balance 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 our experience, the long-term expectation of the participating life insurance business in the future, the smoothing process and surplus sharing approach. Dividend 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 our company’s Board of Directors.
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 the 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. Please click here for the Dividend Fulfillment Ratios of each participating insurance plan of BOC Life.
Introduction of Participating Insurance Plans Video
