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Agency Manual - SmartProtect Wealth Max (0537)
Agency Manual - SmartProtect Wealth Max (0537)
Agency Manual - SmartProtect Wealth Max (0537)
PLAN DESCRIPTION
a) This product is a limited pay investment-linked insurance policy with access to professionally
managed Unit Funds with the benefit of the life insurance cover.
b) This plan provides coverage up to age 70, 80 and 90 years next birthday.
c) Premiums paid are used to purchase units in the Unit Fund(s). The policy value of this plan will
vary directly with the performance of the Unit Fund(s).
d) Illustration Rule: This rule means any illustration is only quotable when Cash Value projected
under the best estimate assumptions* is able to sustain (positive figures) until maturity. This is a
requirement under then Investment Linked Business (BNMRHPD 029-36 Investment-linked
Business).
*Best estimate assumptions are reflective of the actual performance of the underlying funds
selected by the policy owner. In the event that the policy owner chooses multiple funds, the
weighted fund growth based on the percentage of allocation of premiums into the respective
funds will be used.
e) There’ll be no GSR for standard case at NB stage. For substandard cases; GSR loading will be
applicable for the case that fulfils the new GSR rules under item Premium v.
f) The policy will lapse if the Total Investment Value equals to zero or below except when NLG is in
effect.
BENEFITS
1. Death Benefit (Due to all causes)
Upon death of the Life Assured, the Company will pay the Basic Sum Assured (BSA) +
Additional Sum Assured (ASA) or Total Investment Value (TIV), whichever is higher. TIV is
calculated at NAV at the next Valuation Date.
In the event death occurs before age of 5, the Company will pay 100% of TIV or the following
percentage of BSA, whichever is higher.
Age Next Birthday of the Life Assured on Death Benefit after Lien
Policy Anniversary preceding Death
1 20% of the BSA
2 40% of the BSA
3 60% of the BSA
4 80% of the BSA
Full life cover will be given from age 5 years next birthday.
The payable amount is subject to an overall limit of RM24,000,000 per life, if the Life Assured
is covered under other policies or riders with similar benefits.
In the event of accidental death, the Company shall only pay either the benefit of Death Due
to Accidental Causes or Death Due to Accidental Causes (Public Conveyance), whichever is
applicable.
Page 1 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
In the event of accidental death of the Life Assured occurring before age 5 years next birthday, a
child lien (as per Death Benefit) shall apply. Full life cover will be given from age 5 years next
birthday.
The payable amount is subject to an overall limit of RM24,000,000 per life, if the Life Assured is
covered under other policies or riders with similar benefits.
In the event of accidental death, the Company shall only pay either the benefit of Death Due to
Accidental Causes or Death Due to Accidental Causes (Public Conveyance), whichever is
applicable.
In the event of accidental death of the Life Assured occurring before age 5 years next birthday, a
child lien (as per Death Benefit) shall apply. Full life cover will be given from age 5 years next
birthday.
*Public Conveyance means a mode of licensed transport available to the general public that
serves to carry its fare paying passengers from one place to another on scheduled trips over
established routes as its primary purpose. Public Conveyance shall include any public bus,
licensed taxi, peer-to-peer ridesharing under registered service provider, airport limousine, train,
monorail, licensed commercial aircraft and ferry. This definition does not cover cable car, any form
of transport chartered for private travel or unlicensed transportation.
Page 2 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Note:
- Initial Sum Assured refers to Basic Sum Assured at policy commencement.
- Current Sum Assured refers to Basic Sum Assured at death, accidental death or
TPD.
- Basic Sum Assured will stay level throughout whole policy term, unless policyholder
chooses to increase or decrease sum assured.
Page 3 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Total Accidental Death Benefit = 2 x RM30,000 = RM60,000
Page 4 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Scenario 9: Accidental death claim after TPD claim for BSA > RM10 million
Initial Sum Assured = RM15,000,000. TPD occurs at 10 years and 2 months, TIV =
RM2,000,000. Accidental death (Non-Public Conveyance) occurs at 15 years and 5 months.
TPD claim amount:
= Min (BSA + ASA – TIV, RM10,000,000)
= Min (RM15,000,000 + RM750,000 – RM2,000,000, RM10,000,000)
= Min (RM13,750,000, RM10,000,000)
= RM10,000,000
This TPD claim amount will be payable in 3 annual instalments with the first
being a lump sum of RM2,000,000 and the balance will be payable in two equal,
annual instalments of RM4,000,000 each. There will not be any ASA payout in
the future as the ASA portion of RM750,000 will be advanced first before the BSA in
determining the TPD claim amount.
Remaining sum assured
= RM15,000,000 – (RM10,000,000 – RM750,000)
= RM15,000,000 – RM9,250,000
= RM5,750,000
After TPD claim, the COI will be charged on the excess of remaining sum assured over TIV,
i.e. RM5,750,000 – RM2,000,000 = RM3,750,000
Total Accidental Death Benefit = 2 x RM5,750,000 = RM11,500,000
6. Booster Reward
A percentage (%) of Basic Sum Assured (BSA), where BSA is the lower of the initial sum
assured or any subsequent amendment made to the BSA will be credited into the TIV
account, subject to the following conditions:
a) the policy is inforce;
b) not more than 5 partial withdrawals are made; and
c) all premiums due are paid-up-to-date.
The percentage (%) of BSA for Booster Reward will be vary by coverage term as follow:
The Booster Reward will be payable based on the entry age as shown below until maturity of
the policy.
Page 5 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
7. Maturity Booster
While the policy is inforce, a percentage (%) of Basic Sum Assured (BSA) where BSA is the
lower of the initial sum assured or any subsequent amendment made to the BSA; will be
payable upon:
a) maturity of the policy; or
b) when death occurs on or after the policy anniversary on which the life assured has
attained age 80 years next birthday for coverage term up to age 90,
8. Maturity Benefit
The Total Investment Value (TIV) plus Maturity Booster, less indebtedness will be payable
upon maturity; if any. TIV is calculated at NAV at the next Valuation Date.
9. No-lapse Guarantee
There is a 6 years no-lapse guarantee for the first 6 policy years starting from the day the
policy is inforce. This means that the policy and its attachable supplementary benefits shall
continue to remain inforce even if the TIV becomes zero, subject to the following conditions:
a) Regular premium is payable consistently (Note: for 5-pay, the premium will cease at 5th
policy year, it is still qualified for no-lapse guarantee up to 6 years).
b) No premium holiday is allowed.
c) No partial withdrawal is allowed.
d) No reduction or termination of GSR (if any).
When the no-lapse guarantee is in effect, all benefits (after deducting any deficit amount in
the TIV) shall be payable upon a valid claim event, given the conditions above are met.
However, the policy will lapse if the TIV becomes zero in any year from the 7 th policy year
onwards.
Page 6 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Policy Fee and Insurance Charge due after the no-lapse guarantee takes effect will be
deducted when
(a) the Budgeted Premium and Great Saver Rider premium (if any) of this Policy is paid; or
(b) the Investment Top-ups is paid
until the Policy Fee and Insurance Charge due are fully paid.
Policy Fee and Insurance Charge due after the no-lapse guarantee takes effect will also be
deducted from any benefits payable under this Policy.
PREMIUM
i. Premium payment mode
Regular premium, choice of yearly, half-yearly, quarterly and monthly
CS Stage:
- During the premium payment term, if customer request to increase premium due to
increase of Sum Assured, inclusion of new rider, or simply increase premium without
increase of coverage, the additional premium will be treated as GSR.
- Customer is ALLOWED to amend GSR premium at CS stage. However, if there is any
reduction or termination of GSR, the No-lapse Guarantee will no longer be applicable.
Page 7 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
vi. Balancer
NB Stage:
Any excess in premium after SAM rule will be treated as Balancer.
Example:
• Life Assured: 30 ANB, Male Non-smoker
• SAM rule of 50
• Bought SPWM with BSA of RM500,000, PPT of 5 years, Coverage Term up to age 80,
with RM15,000 premium
• RM10,000 of the premium will be considered as Insurance Premium whereas the
remaining RM5,000 will be considered as Balancer.
CS Stage:
For reduction of sum assured, any excess in premium after SAM rule will be treated as
Balancer.
Example:
• Life Assured: 30 ANB, Male Non-smoker
• SAM rule of 50
• Bought SPWM with BSA of RM750,000, PPT of 5 years, Coverage Term up to age 80,
with RM15,000 premium
• At CS stage, reduce sum assured to RM500,000 without reducing BuP
• RM10,000 of the premium will be considered as Insurance Premium whereas the
remaining RM5,000 will be considered as Balancer.
PREMIUM ALLOCATION
i. Insurance Premium
Premium allocation depends on the premium payment term chosen.
Page 8 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
20 60% 60% 60% 80% 80% 80% 95% 95% 100%
ii. Single Premium Top-Ups / Golden Age Enhancer (GAE) / GSR / Balancer
Allocation Rate: 95%
CHARGES
i. Insurance Charge
- Insurance charges depend on the attained age next birthday, gender, occupation class,
medical rating and smoking status, where applicable. The Company may vary these
insurance charges at each policy anniversary.
- Insurance charges will be deducted in respect of Net Sum Assured.
Net Sum Assured = Basic Sum Assured – TIV, subject to minimum of zero
- The monthly insurance charges are calculated as the Net Sum Assured times one twelfth
of the risk rates corresponding to the attained age.
- These charges will be deducted by selling units already allocated to the Policy, at the
NAV on the next Valuation Date following the due date of the insurance charges.
where:
t = the number of business days from the preceding Valuation Date to the
Current Valuation;
K%* = the percentage charge (subject to the Investment Committee’s approval) for
the appropriate fund as follows:
Fund K% *
F17 Lion Enhanced Equity Fund 1.50
F18 Dana Gemilang 1.50
F1 Lion Balanced Fund 1.00
F4 Lion Fixed Income Fund 0.50
F5 Lion Progressive Fund 1.35
F6 Dana Sejati 0.50
F21 Lion Advanced Strategic Fund 1.35
F22 Lion Small Mid Cap Fund 1.40
F26 Lion ASEAN Fund 1.50
F10 Lion US-i Fund 0.75
F11 Lion UK-i Fund 0.75
F12 Lion AU-i Fund 0.75
* subject to management changes
- Value of Fund refers to the value of the appropriate fund as determined by the Company.
Page 9 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
FLEXIBLE OPTIONS
i. Single Premium Top-Ups (SPTU)
CS Stage:
- After the policy is inforce, SPTU can be included as Investment Top-Up at any time
provided that the current year’s and all previous years’ BuP have been fulfilled.
- Minimum SPTU is RM1,000.
- Any policy changes, i.e. increase SA, rider inclusion after premium payment term, the
required premium (based on sustainability test and subject to the min of RM1,000) will be
collected as SPTU.
b) The policyholder can choose to keep the sum assured unchanged or increase the sum
assured to the maximum sum assured (based on sustainability test) allowed.
c) The increase in regular BuP (GSR) during Premium Payment Term (5, 10 or 20; where
applicable) is payable up to premium payment term.
Example:
Customer is paying RM20,000 per annual for SPWM– 5pay, if he request to increase
premium to RM20,800 at the end of 2nd year, the extra premium of RM800 will be treated
at GSR, with GSR allocation rate of 95%, from 3rd to 5th years.
Page 10 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
c) For partial withdrawal, BSA will be reduced by the amount withdrawn. If the BSA is
reduced to an amount lower than the minimum SA of RM6,000, the BSA will be set to
RM6,000.
Example 1:
A policy with BSA=RM500,000, TIV =RM509,000, customer requested to exercise partial
withdrawal of RM508,000 and thus, the BSA is reduced to an amount lower than
RM6,000. By following rules (c) above, the BSA for this policy will be set to RM6,000 after
partial withdrawal.
Example 2:
Customer - 30 ANB, Male Non-smoker, BSA=RM500,000, PPT of 20 years, with
RM15,000 premium. With SAM rule of 50, RM10,000 of the premium will be considered
as Insurance Premium whereas the remaining RM5,000 will be considered as Balancer.
v. Fund Switching
A policy owner can sell units in any one fund at the NAV and purchase units in any of the
other funds at the NAV at no charge, at any time after the policy has turned in force. The
minimum amount sold to purchase units in another unit fund is RM1,000 per fund. However, if
the fund is less than RM1,000, it can be done provided all the units in that fund are switched.
More than one switch can be done at one time and this will be considered as a single switch.
UNDERWRITING GUIDELINES
i. Sum Assured
Minimum : RM500,000
Maximum : Subject to underwriting
Page 11 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Note: Cannot be longer than coverage term
v. Minimum Premium
For internal reference:
Premium Payment Term Minimum Annual Premium
5 and 10 1,500
20 1,200
Note:
If payer/ waiver rider(s) is attached to this plan, the NML calculation will only be counted if the
Total Annualized Premium to be waived per life is above RM250,000.
Page 12 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
RM6,000,000 Financial Questionnaire Part II (to be completed by
Proposer)
Financial Questionnaire Part I & Part II
Certified ITR/EA form for the past 3 years
RM6,000,001 and above
Company audited accounts/P&L for the past 3 years (if
applicable)
Business Registration Form 24/49 (if applicable)
b) Voluntary Reduction
Policyholder may voluntarily reduce the sum assured, subject to the minimum sum
assured limit of RM500,000.
AGENCY COMPENSATION
Balanced Scorecard (BSC)
Yes. Subject to Balanced Scorecard.
Page 13 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
FUNDS
i. Fund Asset Allocation
Policy owner can choose to invest in one or more of:
Local Funds
a) F1 Lion Balanced Fund
A fund which invests in a mixture of equities (ranging from 40% to 60%) and fixed income
securities. This fund seeks to provide medium to long-term capital appreciation, with a
moderate level of volatility.
d) F6 Dana Sejati
A fund which invests in Shariah approved fixed income securities, for example
government and corporate sukuk as well as Islamic money market papers/deposits. This
fund seeks to provide consistent return at low levels of volatility. Although the fund invests
mainly in Malaysia (40% to 100%), it may also partially invest in foreign Shariah approved
fixed income securities (up to 50%), to enhance the fund’s returns.
Page 14 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
g) F22 Lion Small Mid Cap Fund
A fund where 60% to 100% of investments are in equities with the balance in cash and/or
cash equivalents, which may be volatile in the short term. This fund seeks to achieve
medium to long-term capital appreciation, investing in Malaysian (50% to 100%) Small
and Medium Market Capitalisation (“Small Mid Cap”) equities. It may partially invest in
foreign Small Mid Cap equities (Asia Pacific excluding Japan region) if and when
necessary, to enhance the fund’s returns.
International Funds
a) F10 Lion US-i Fund
A fund which is passively managed and aims to track the performance of S&P500 over
the medium to long term (indexing strategy), which may be volatile in the short term. This
fund seeks to provide medium to long-term capital appreciation.
Page 15 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
OTHER PRODUCT FEATURES
i. Surrender Values
The cash value of the policy is the total value of all the units in all the funds selected by the
policy owner based on the NAV at the Next Valuation Date. Surrender value is subject to the
deduction of indebtedness, if any.
i. Paid-up Values / Extended Term Assurance / Policy Loans / Automatic Premium Loan /
Bonus Rate / Option to Purchase New Policy
Not applicable.
iv. Reinstatement
3 years. Reinstatement is subject to the deduction of any indebtedness to the Company.
v. Backdating
Not allowed.
Page 16 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Minimum / Maximum Sum Assured of the new policy
Minimum : Follow the minimum Sum Assured as required by the applicable plan at the
time of exercising the option
Maximum: Net Sum Assured (rounded to the nearest ringgit) of this policy at the time of
exercising the option:
If TIV is greater than the Sum Assured at maturity, then this policy will not be
entitled for the option.
If the Net Sum Assured at maturity is lower than the minimum Sum Assured
required for the new plan applied, then this policy will not be entitled for the
option.
Only ONE new policy can be purchased when this option is exercised. In the event where
the Net Sum Assured of this policy has exceeded the maximum Sum Assured allowed for
the converted policy, the policyholders will only be allowed to purchase one policy with
Sum Assured equal to the Maximum Sum Assured of the new policy. This policy will be
terminated immediately upon the new policy has taken effect.
The premium payable on the converted policy will be based on the attained age of the
Life Assured at the date of conversion
x. Policy Termination
On Monthly Due Dates, if TIV is insufficient to pay the policy fee and insurance charge, the
policy will lapse. The lapse date is determined on pro-rated basis.
Page 17 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
Income Benefits:
ix. IL Cash Assure Rider (Plan code: U206)
x. IL Invest Assure Rider (Plan code: U183)
Notes:
i. Please refer to the product write-up for the above riders for further details.
ii. All riders will automatically terminate when the Policy terminates due to any reason.
iii. Waiver and payers benefits coverage term is capped at the basic plan’s premium payment term.
iv. U170, U140 and U189 can co-exist.
v. If TIV > Basic Sum Assured (BSA), there is no risk charge applicable for the basic plan, but, risk
charges for the payer/waiver riders is still applicable.
AGENCY REQUIREMENT
Only agents who have passed the Certificate Examination in Investment-Linked Life Insurance (CEILI)
examination conducted by the Malaysian Insurance Institute (MII) or its equivalent are allowed to sell
investment-linked life insurance policies.
EXCLUSION
The Company shall refund TIV and Investment Values of the units which have been cancelled to pay
for Insurance Charges and policy fees due after the Risk Commencement Date or date of any
reinstatement of this Policy, whichever is later, and the amount of premiums that have not been
allocated to purchase units in the event of death of the Life Assured which:
1. Resulted from commits suicide within one year from the Risk Commencement Date or date of any
reinstatement of this Policy, whichever is later, while sane or insane.
The Company will not be liable to pay any benefit under this policy if TPD of the Life Assured:
1. has existed prior to the risk commencement date of this policy or the date of any reinstatement,
whichever is later.
2. is caused directly or indirectly by self-inflicted bodily injuries while sane or insane.
3. is caused by bodily injury sustained as a result of parachuting or sky diving or engaging in aerial
flights other than as a crew member or as a fare-paying passenger of a licensed commercial
airline operating on a regular scheduled route.
4. is resulted from the Life Assured committing, attempting or provoking an assault or a felony or
from any violation of law by Life Assured.
5. is resulted from the Life Assured driving a motor vehicle without possessing a valid driving
license. This exclusion will not apply if the Life Assured has an expired license but is not
disqualified from holding or obtaining such driving license under any laws, by-laws or regulations.
6. is resulted from war, whether declared or undeclared.
The Company will not pay the accidental death benefit for any Injury resulting in loss suffered, as a
result of, including any of the following whether directly or indirectly:
1. suicide, attempted suicide or self-inflicted injuries, while sane or insane;
2. bodily infirmity, or mental or functional disorder, or illness or disease of any kind, or any
infections, other than infections occurring simultaneously with and in consequence of an
accidental cut or wound;
3. war or any act of war, declared or undeclared, criminal activities, active duty in any armed
forces, direct participation in strike, riots and civil commotion or insurrection;
4. from the action of any armed forces, or from Accident or violence arising by reason of the
existence of a state of armed conflict;
5. engaging in aerial flights other than as a crew member or as a fare-paying passenger of a
licensed commercial airline operating on a regular scheduled route;
6. as a result of the Life Assured committing, attempting or provoking an assault or a felony, or
from any violation or attempted violation of law by the Life Assured or resistance to arrest;
Page 18 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
7. as a result of the Life Assured driving a motor vehicle without possessing a valid driving license.
This exclusion will not apply if the Life Assured has an expired license but is not disqualified
from holding or obtaining such driving license under any laws, by-laws or regulations;
8. while under the influence of alcohol or drugs unless taken as prescribed by a Physician. For the
avoidance of doubt, a person is considered as under the influence of alcohol if the breath,
blood or urine test result is over the following limit:
8.1 35 mcg of alcohol per 100ml of breath
8.2 80mg of alcohol per 100ml of blood
8.3 107 mg alcohol per 100ml of urine;
9. Injury arising from racing of any kind (except for foot racing), hazardous sports or activities that
involve speed, height, high level of physical exertion, highly specialized gear or spectacular
stunts such as but not limited to bungee jumping, parachuting, scuba diving, sky-diving, water
skiing, underwater activities requiring breathing apparatus, winter sports, Professional Sports
and illegal activities. For the avoidance of doubt, “Professional Sports” means engaging in any
physical activity in a professional capacity or where the Life Assured would or could earn
income or remuneration from engaging in such activity;
10. from childbirth, pregnancy and/or any complications thereof;
11. ionising radiation or contamination by radioactivity from any nuclear fuel or nuclear waste from
process of nuclear fission or from any nuclear weapons material; or
12. from the Life Assured engaging in commando or bomb disposal duties/training.
No accidental death benefit shall be made if the accident occurs prior to the risk commencement date
or date of any reinstatement, whichever is later.
Page 19 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
APPENDIX 1 Terminology
a) Budgeted Premium (BuP) = Insurance Premium + Balancer (if any)
b) Indebtedness: shall mean any unpaid policy fee and insurance charge. Any indebtedness
insured will be deducted from premium paid and any benefit or claim proceeds payable.
Page 20 of 22
Agency Manual (For internal reference only)
SmartProtect Wealth Max (Plan Code: 0537)
(Regular Premium Investment-Linked Insurance Plan)
APPENDIX 2 (Insurance Charges Table)
– Insurance Charge Rate Per Annum Per RM 1,000 Sum Assured
Page 22 of 22