Introduction to PLP
Introduction to PLP
Introduction to PLP
What are the major types of Investment-Linked Assurance Schemes (ILAS)?
What are the major types of Investment-Linked Assurance Schemes (ILAS)?
Category
Death Benefit
Category
Death Benefit
105% of Account Value
Death Benefit is 105% of account value
105% of Account Value
Death Benefit is 105% of account value
Capital Preservation Upon Death
Death Benefit is at least 100% of total premiums paid (less withdrawals) or 105% of account value (whichever is higher).
Capital Preservation Upon Death
Death Benefit is at least 100% of total premiums paid (less withdrawals) or 105% of account value (whichever is higher).
PLP
PLP
For an insured aged under 65 upon death, the death benefit is at least 150%* of the total premium payable (less withdrawals) or 105% of the account value (whichever is higher).
For the insured aged 65 or above upon death, the death benefit is at least the total premiums paid (less withdrawals) or 105% of the account value (whichever is higher).
What are the characteristics of PLP?
What are the characteristics of PLP?
PLP is a type of Investment-Linked Assurance Scheme (ILAS) with relatively higher protection of an investment nature.
PLP is a type of Investment-Linked Assurance Scheme (ILAS) with relatively higher protection of an investment nature.
It expands the type of ILAS products in the market to meet an individual’s protection needs.
It expands the type of ILAS products in the market to meet an individual’s protection needs.
PLP, as authorized Investment-Linked Assurance Schemes, are part of the eligible collective investment schemes under the “New Capital Investment Entrant Scheme".
PLP, as authorized Investment-Linked Assurance Schemes, are part of the eligible collective investment schemes under the “New Capital Investment Entrant Scheme".
As a life insurance plan for long-term protection, PLP offers 1) higher death benefit payable to the beneficiary when the insured passes away before the age of 65 and 2) potential investment returns for the policyholder. However, these investment returns may fluctuate and it is vital that each person assesses his or her own risk tolerance.
As a life insurance plan for long-term protection, PLP offers 1) higher death benefit payable to the beneficiary when the insured passes away before the age of 65 and 2) potential investment returns for the policyholder. However, these investment returns may fluctuate and it is vital that each person assesses his or her own risk tolerance.
The death benefit is at least 150%* of total premium payable (less withdrawals) or 105% of the account value (whichever is higher) if the insured is under the age of 65 upon death.
The death benefit is at least 150%* of total premium payable (less withdrawals) or 105% of the account value (whichever is higher) if the insured is under the age of 65 upon death.
For an insured aged 65 or above upon death, the death benefit is at least the total premiums paid (less withdrawals) or 105% of the account value (whichever is higher).
For an insured aged 65 or above upon death, the death benefit is at least the total premiums paid (less withdrawals) or 105% of the account value (whichever is higher).
The minimum death benefit is not affected by the investment market conditions at the time of the death of the insured, and there is a guaranteed amount.
The minimum death benefit is not affected by the investment market conditions at the time of the death of the insured, and there is a guaranteed amount.
The fee structure is relatively simple and transparent.
The fee structure is relatively simple and transparent.
The funds available for selection as investment options are authorized by the Securities and Exchange Commission (SFC), and there should be at least one Environmental, Social and Governance (ESG) fund available to support sustainable development through investment.
The funds available for selection as investment options are authorized by the Securities and Exchange Commission (SFC), and there should be at least one Environmental, Social and Governance (ESG) fund available to support sustainable development through investment.
Currently available PLPs offer options for single or regular premium payments.
Currently available PLPs offer options for single or regular premium payments.
*Note: There are also different levels of death benefit for the insured who passes away under 65 available in the market.
*Note: There are also different levels of death benefit for the insured who passes away under 65 available in the market.
Illustrative example
How to calculate the death benefit of PLP?
How to calculate the death benefit of PLP?
A PLP taken out by Ms Assurance at age 35
A PLP taken out by Ms Assurance at age 35
Payment Term
10 years
Payment Term
10 years
Annual premium
HKD50,000
Annual premium
HKD50,000
Percentage for calculating the amount of death benefit
150%
Percentage for calculating the amount of death benefit
150%
Ms Assurance made withdrawal from her policy during the 5th policy year and passed away in the 8th policy year at the age of 42.
Ms Assurance made withdrawal from her policy during the 5th policy year and passed away in the 8th policy year at the age of 42.
Total premiums payable
HKD50,000 x 10 years = HKD500,000
Total premiums payable
HKD50,000 x 10 years = HKD500,000
Withdrawal amount
HKD50,000
Withdrawal amount
HKD50,000
Account value
HKD330,000
Account value
HKD330,000
The death benefit of Ms Assurance (whichever is higher)
The death benefit of Ms Assurance (whichever is higher)
(i) 105% of the account value
HKD330,000 x 105% = HKD346,500
(i) 105% of the account value
HKD330,000 x 105% = HKD346,500
(ii) 150% of total premiums payable less withdrawal amount
HKD500,000 x 150% - HKD50,000 = HKD700,000
(ii) 150% of total premiums payable less withdrawal amount
HKD500,000 x 150% - HKD50,000 = HKD700,000
Since the death benefit calculated in(ii) above is higher than (i), the death benefit of Ms Assurance is HKD700,000.
Since the death benefit calculated in(ii) above is higher than (i), the death benefit of Ms Assurance is HKD700,000.
Authorized products
Authorized products
For the latest product information of ILAS, PLP included, please visit the SFC website.
If you have any questions, please consult your insurance intermediary or your relevant insurance company.
For the latest product information of ILAS, PLP included, please visit the SFC website.
If you have any questions, please consult your insurance intermediary or your relevant insurance company.
Updated on : 15 November 2024
Updated on : 15 November 2024
© Copyrights 2024. The Hong Kong Federation of Insurers. All rights reserved
© Copyrights 2024. The Hong Kong Federation of Insurers. All rights reserved