1. UNIVERSAL LIFE INTRODUCTION

2. UNIVERSAL LIFE PRODUCT
CONTENT
INVESTMENT PRODUCT
UNIVERSAL LIFE PRODUCT
UL VS. TRADITIONAL PRODUCT
CATHAY UL PRODUCT
Q&A

3. INVESTMENT PRODUCT Investment product is a combination of Investment
Insurance
Investment
Insurance Part: Provide insurance protection
Investment part: provide investment tool to get profit

4. INVESTMENT PRODUCT Investment product includes:
Unit Link
Universal life
Interest is declared and base on monthly investment result.
Guaranteed rate
Interest is from difference
on bid price and ask price
Many fund options for
customer
Profit is safer because UL fund invest on safe assets
Higher profit when customer select higher risk funds
Investment products has same features:
Expense clear
Flexible payment
PO get investment result

5. UNIVERSAL LIFE PRODUCT
CONTENT
INVESTMENT PRODUCT
UNIVERSAL LIFE PRODUCT
UL VS. TRADITIONAL PRODUCT
CATHAY UL PRODUCT
Q&A

6. UNIVERSAL LIFE PRODUCT
ACCOUNT VALUE
ACCOUNT VALUE
Account value of UL product is similar to bank account:
Store premiums (“deposits“) collected from customer.
Earn monthly interest on allocated premium from investment result
Pay charge/cost as requirements or withdraw (bank account could be deducted bank fee/ withdrawn).

7. UNIVERSAL LIFE PRODUCT UNIVERSAL LIFE PRODUCT
Premium Payment
PREMIUM PAYMENT
Basic Premium
Basic protection
Top Up Premium
Increase investment return

8. UNIVERSAL LIFE PRODUCT
Initial cost & Allocated premium
Initial cost is deducted from collected premium to pay for service expenses
Initial Cost
Allocated Premium
Premium allocates to account value after deducting initial cost from collected premium
PREMIUM PAYMENT
Basic Premium
Initial cost
Allocated premium
Top up Premium
Initial
cost
Allocated premium

9. Increasing ACCOUNT VALUE
UNIVERSAL LIFE PRODUCT
Increasing ACCOUNT VALUE
Interest
ACCOUNT VALUE
Allocated premium
Bonus
Bonus is due to product design (maturity bonus, maintenance bonus…)
Bonus
Bonus
QL BH rủi ro: 1 phần QL BH rủi ro
Interest from investment activities of UL fund.
Initial Cost
Interest

10. Decreasing ACCOUNT VALUE
UNIVERSAL LIFE PRODUCT
Decreasing ACCOUNT VALUE
FMC
Deduct from investment rate to get declared rate
COI
ACCOUNT VALUE
Automatically deduct from AV monthly
PMC
Deduct when customer surrender policy
Surrender charge
Withdrawal cost
QL BH rủi ro: 1 phần QL BH rủi ro
Surrender value
Insurance benefit

11. Decreasing ACCOUNT VALUE
UNIVERSAL LIFE PRODUCT
Decreasing ACCOUNT VALUE
Policy management
cost (PMC)
The amount Company uses for activities to maintain policy and provide policy information
Cost of
Insurance
(COI)
Premium is used to pay for death benefit /TPD benefit
Fund management
cost (FMC)
Used to pay for investment activities expense and UL fund management expense
Surrender
charge
Used to pay for surrender policy activities

12. Decreasing ACCOUNT VALUE
UNIVERSAL LIFE PRODUCT
Decreasing ACCOUNT VALUE
FMC
COI
ACCOUNT VALUE
PMC
Surrender charge
Withdrawal cost
Surrender value
QL BH rủi ro: 1 phần QL BH rủi ro
Insurance benefit

13. Decreasing ACCOUNT VALUE
UNIVERSAL LIFE PRODUCT
Decreasing ACCOUNT VALUE
Withdrawal
Cost
the amount that the Policy Owner must pay when withdrawing a portion from the Surrender Value
Surrender value
PO could apply to get surrender value
(if any)
Insurance
benefit
Insurance benefit of UL product

14. Declared rate = investment rate – FMC
UNIVERSAL LIFE PRODUCT
Investment procedure 3
Declared rate = investment rate – FMC
Interest
ACCOUNT VALUE
Decreasing AV
Increasing AV 1 2
QL BH rủi ro: 1 phần QL BH rủi ro
Procedure:
①Values Increasing AV are allocated to Account value.
②Account Value deducts cost/fee/ payment decreasing Account value
③Remaining Account value is invested and get monthly investment result:
- Monthly, Company announces declare rate as customer’s investment result.

15. Increasing AV Decreasing AV UNIVERSAL LIFE PRODUCT ACCOUNT VALUE
Interest
FMC
Allocated premium
COI
ACCOUNT VALUE
PMC
Bonus
Surrender charge
Withdrawal cost
QL BH rủi ro: 1 phần QL BH rủi ro
Surrender value
Death/TPD

16. INSURANCE BENEFIT = SA+AV
UNIVERSAL LIFE PRODUCT
BENEFITS OF UL PRODUCT
BASIC DESIGN
ADVANCE DESIGN
Max (AV, SA)
SA+ AV
100% AV
Account Value
Sum Assured
INSURANCE BENEFIT =SA
INSURANCE BENEFIT = SA+AV
Account Value
SUM ASSURED
SA> AV
SA<AV
INSURANCE BENEFIT =AV SA SA

17. UNIVERSAL LIFE PRODUCT
CONTENT
INVESTMENT PRODUCT
UNIVERSAL LIFE PRODUCT
UL VS. TRADITIONAL PRODUCT
CATHAY UL PRODUCT
Q&A

18. COMPARE UL LIFE Vs. TRADITIONAL PRODUCT

19. UNIVERSAL LIFE PRODUCT
CONTENT
INVESTMENT PRODUCT
UNIVERSAL LIFE PRODUCT
UL VS. TRADITIONAL PRODUCT
CATHAY UL PRODUCT
Q&A

20. UL WHOLE LIFE I01 AND I02 I01 I02 Max (AV, SA) 100% AV SA+ AV 100% AV
Account Value
Sum Assured
DEATH/TPD BENEFIT
UL WHOLE LIFE I01 AND I02
I01
I02
Account Value
SUM ASSURED
Age 99
DEATH/TPD BENEFIT
Max (AV, SA)
100% AV
SA+ AV
100% AV
Death/ TPD
Long Life

21. Guaranteed Interest Rate 4% /year for first 10 years and
UL WHOLE LIFE I01 AND I02
FEATURE
I02
I01
Age at entry
0~60
0~50*
Policy Term
Until 99 years old SA
100 M ► 800 M (≤age 14)
100 M ► 2.5 B (>age 14 )
Guaranteed Interest Rate
4% /year for first 10 years and
3% /year for next years
Rider
All (except R05 and R06)
(*) premium of I02 in age 51~60 is too high, so Company doesn’t sell it

22. UL WHOLE LIFE I01 AND I02 I01 & I02 + Initial cost 50 8 55 9 20 7 40
An Tâm Hưng Thịnh
2014 (Dai-ichi)
Basic
Premium (%)
Top up premium (%)
Basic premium (%) 50 8 55 9 20 7 40 10 5 25
2.5
7~3 2
Policy year
Service expense : commission, bonus for agents;
Fix cost: salary for staff, printing cost, building lending cost +
Service expenses and fix cost in 1st and 2nd year are high, so initial cost is high in early years.

23. UL WHOLE LIFE I01 AND I02 I01 & I02 ~ + Surrender charge 100 80 60 40
An Tâm Hưng Thịnh
2014 (Dai-ichi)
First year Basic
Premium (%)
100 80 60 40 20
Policy year ~
Surrender charge is +
Surrender charge only applies for basic premium when customer surrender policy

24. CATHAY TERM UL I03 AND I04 I03 I04 Max (AV, SA) SA+ AV 100% AV 100% AV
Account Value
Sum Assured
DEATH/TPD BENEFIT
CATHAY TERM UL I03 AND I04
I03
Account Value
Sum assured
I04
BONUS
BONUS
DEATH/TPD BENEFIT
20 YEARS
20 YEARS
Max (AV, SA)
100% AV
15% ×Total (basic premium- total withdraw)
SA+ AV
100% AV
15% ×Total (basic premium - total withdraw)
Death/ TPD
Maturity
Risk SA: The Amount Company is responsible to compensate to death benefit to pay beneficiary
Maturity bonus

25. Guaranteed Interest Rate
CATHAY TERM UL I03 AND I04
FEATURE
I03
I04
Age at entry
0~60
Policy Term
20 years SA
100 M ► 800 M (≤age 14)
100 M ► 2.5 B (>age 14 )
Guaranteed Interest Rate
4% /year
Rider
All (except R05 and R06 )

26. CATHAY TERM UL I03 AND I04 I03 & I04 70 8 65 10.0 15 7 25 7.5 10 5 5.0
Initial cost
An Khang Tai Loc
(Hanwha)
I03 & I04
Basic
premium
Top up premium
Basic premium 70 8 65
10.0 15 7 25
7.5 10 5
5.0
2.5
Policy year
Service expense: commission, bonus for agents; policy issuing costs +
Service expenses in 1st and 2nd year are high, so initial cost is high in early years.

27. CATHAY TERM UL I03 AND I04 I03 & I04 ~ + Surrender charge 100 80 60 40
An Khang Tai Loc
(Hanwha)
I03 & I04
First year Basic
Premium
100 80 60 40 20
Policy year ~
Surrender charge is high in the first policy years because Company collect expenses which company pays to maintain policy. +
Surrender charge only applies for basic premium when customer surrender policy

28. GENERAL PRINCIPLE OF ALL CATHAY UL PRODUCT
Item
Note
FMC
2% / year
PMC
VND / month
COI
Base on risk premium
Premium Payment
First premium: one annual basic premium must be paid and total premium must not be less than 3M
Top up premium doesn’t exceed 5 times of FY base premium and not over SA
Customer must pay enough basic premiums for the first 2 policy years to avoid policy suspending.
+FMC =2.0%: The fund management cost in market commonly is about 2.0%
+PMC: cost is for CS, provide information (send letter of AV Information )
+Top up premium doesn’t exceed 5 times of FY base premium: this is MOF regulation
+Customer must pay enough basic premiums for the first 2 policy years to avoid policy suspending: to guarantee policy have enough AV to run long and protect customer benefits

29. GENERAL PRINCIPLE OF ALL CATHAY UL PRODUCT
Item
Note
Withdrawal
cost
Can withdraw after 1st year.
Free for amount of 20% Surrender Value or below for 1st withdrawal during each policy year.
Cost for excess amount of 20% Surrender Value for 1st withdrawal: max( 2%(withdrawal -20% SV), )
Cost full amount of 2nd withdraw onward: max (2% amount, 100,000VND).
Min withdrawal: 500,000 VND.
Max withdrawal: 85% Surrender Value
SA of
I01& I03
when customer withdraws money, SA could be deducted by withdrawal to maintain Risk SA to guarantee benefit for customer

30. COMMISSION AND PFYP (%)+
Policy year
PFYP
30.0
10.0
8.0
4.5 2 70 10
Basic premium
Top up premium
Example: Mr. B, 35 years old, purchased I01 with premium 10M (basic premium 6M, top up premium 4M). Calculate FYC?
Annual basic premium
Top up
premium
Total
Premium
6 M
4 M
10 M
Commission
30%×6= 1.8
4.5%×4=0.18
1.98

31. UNIVERSAL LIFE PRODUCT
CONTENT
INVESTMENT PRODUCT
UNIVERSAL LIFE PRODUCT
UL VS. TRADITIONAL PRODUCT
CATHAY UL PRODUCT
Q&A

32. Q&A (BASIC INFORMATION)
Mr.Nguyen Van B, 35 years old, purchased Whole Life Universal Life with the information as follow:
Sum Assured: 300 millions; Assume investment rate 6.0%
Premium Payment Period: 20 years
Total Annual Premium: 10 M including:
Annual basic premium
Top up
premium
Total annual premium
6 M
4 M
10 M
9 M 1M
Basic (I01)
Advanced (I02)
5thPolicy
year
10th Policy
20th Policy
46.4
114.6
331.6
43.6
109.2
301.8
Account Value
Basic (I01)
Advanced (I02)

33. Q&A (DEATH BENEFIT)
Question 1: Assume Mr. B is death at year 20th.Questions are as following:
With I01, how much is death benefit?
With I02, how much is death benefit?
Answer:
a) With I01, death benefit = max (AV, SA). Base on information in year 20th :
+ AV at year 20th : M
+ SA at year 20th : M
b)With I02, death benefit = AV+SA. Base on information in year 20th:
+ AV at year 20th : 301.8M
 Death benefit at year 20th : max(AV, SA)= 331.6M
 Death benefit at year 20th : SA+ AV = 601.8M

34. Q&A (WITHDRAWAL CHARGE)
Question 2: Mr. Nguyen Van B chose the Term Universal Life-Basic(I01),
If Mr. Nguyen Van B withdrew cash at the end of 10th Policy Year
with the amount of 10 M. How much withdrawal charge?
Answer:
+ Surrender value at year 10th : 114.6M (Surrender charge is 0)
+ 20% Surrender value: 20%× = 22.9M
Hence, Withdrawal 10M is less than 20% Surrender value.
Withdrawal charge is Free of charge for this first withdrawal

35. Q&A (WITHDRAWAL CHARGE)
Question 3: If Mr. Nguyen Van B withdrew cash at the end of 10th Policy Year with the amount of 50 M in 1st time. How much is withdrawal charge?
Answer:
+ Surrender value at year 10th : 114.6M (Surrender charge is 0)
+ 20% Surrender value: 20%× = 22.9M
=> So withdrawal higher than 20% Surrender value
+ Withdrawal charge = max( 2%(withdrawal -20% SV), )
= max ((50 M-22.9M) ×2%, 100,000)
= max( 542,000, 100,000) = 542,000

36. Q&A (WITHDRAWAL CHARGE)
Question 4: If Mr. Nguyen Van B withdrew cash at the end of 20th Policy Year with the amount of 30 M in 2nd time. How much is withdrawal charge?
Answer:
The Company will charge the cost at the maximum between:
2% total amount of withdrawal: 30 M x 2% = 600,000 VND
The amount of: 100,000 VND
So the cost Mr. Nguyen Van B must pay equal to :
MAX(2% total withdrawal amount, 100,000) = 600,000 VND

37.  Allocate premium is 6.68M Q&A (ALLOCATE PREMIUM ) Answer:
Question 5: If Mr. Nguyen Van B buy I01, how much is allocate premium contributed to his account value in 1st policy year?
Initial cost (%)
Policy year
Basic
premium
Top up premium 1 50 8
Answer:
Basic Premium
Top up premium
Total
Premium
6.00 M
4.00M
10.00 M
Initial cost
3.00 M
(50%× 6M)
0.32 M
(8%×4M)
3.32M
Allocate premium
3.00M
3.68M
6.68M
 Allocate premium is 6.68M

38. Q&A (SURRENDER VALUE) Answer: 5th 46.4M 6.0M 40.4M 10th 114.6 M
Question 6: If Mr. Nguyen Van B buy I01, then he surrender policy(Assume he haven’t withdrawn). How much surrender value does he get at:
End of year 5th
End of year 10th
Surrender charge (%)
5th year
10th year
100
Answer:
Policy year
Account value
FY basic premium
Surrender charge
Surrender value
5th
46.4M
6.0M
100%× 6M= 6.0M
40.4M
10th
114.6 M
0%× 6M =0.0M
 Surrender charge only applies on first year basic premium.

39. Answer: a) he buys I01 Q&A (SA AFTER WITHDRAWING)
Question 7: If Mr. Nguyen Van B made the 1st withdrawal in 10th years with amount 50M. How much is SA after he withdraw if
He buys I01
He buys I02
Risk SA: The Amount Company is responsible to compensate to death benefit to pay beneficiary
Answer: a) he buys I01
I01
Before withdrawing
After withdrawing SA
300.0M
250.0M
Account Value
114.6M
64.6M
Risk SA
185.4M
Both SA and AV are deducted 50M to maintain risk SA and
SA after withdrawing is 250M

40. Q&A (SA AFTER WITHDRAWING)
Question 7: If Mr. Nguyen Van B made the 1st withdrawal in 10th years with amount 50M. How much is SA after he withdraw if
He buys I01
He buys I02
Answer: b) he buys I02
I02
Before withdrawing
After withdrawing SA
300.0M
Account Value
109.2M
59.2M
Risk SA
The risk SA unchanged after withdrawing and
SA after withdrawing is 300M

41. Q&A (PREMIUM PAYMENT)
Question 8: Could Mr. Nguyen Van B pay premium in 1st policy year with monthly payment mode ?
Answer: No. he must pay first premium by annual payment mode and payment must equal to basic premium.
Question 9: Mr. Nguyen Van B doesn’t pay premium in 3rd policy year, then he pays 10M premium in 4th policy year. Is that premium put on 3rd policy year or 4th policy year?
Answer: that premium is put to 3rd policy year to compensate cost occurred in 3rd policy year.

42. Special Maturity Benefit: 15% x (120 M – 10 M) = 16.5 M
Q&A (MATURITY BONUS)
Question 10: If Mr. Nguyen Van B buy I03 and is alive till the Maturity Date and he withdrew cash at the 10th Policy Year with the amount of 10 M. Basic premium is 6M/year. How much maturity bonus could Mr. B get?
ANSWER:
At the Maturity Date, the Company will pay 15% x total (basic premium – withdrawal)
Basic premium is 6M; total basic premium is 120M (Policy term 20 years)
Total withdrawn cash: 10 M
Special Maturity Benefit: 15% x (120 M – 10 M) = 16.5 M

43. Q&A (Declared interest rate)
Question 11: Assume investment rate in Dec 2016 is 9.0%, Fund Management cost (FMC) is 2.0%. How much declared rate does Company declare ?
ANSWER: Company get Account value to invest. Monthly, company announce declared rate to customer. In Dec 2016:
Declared rate = investment rate – FMC
= 9.0% -2.0% = 7.0%
Question 12: what is portfolio of UL fund ?
ANSWER: portfolio of UL fund includes:
+ Government bond (High proportion in portfolio)
+ Term Deposit
+ Cash