Crisis Care – Prime Whole Life Plan

Timely protection to safeguard your stable future

Critical Illness Protection

Crisis Care – Prime Whole Life Plan

The rapid pace of life makes people ignore the importance of a healthy diet and proper rest, exposing them to various critical illnesses•

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Hong Kong’s most common cause of death in 2015 was cancer, followed by pneumonia and heart disease(a).Number of new cases of cancer in Hong Kong hit a historical high of 30,318 in 2015, with 700 more cases

time in history(b).

Patients’ median age at cancer diagnosis was 68 years in men and 62 years in women. Approximately 1 in 4 men and 1 in 5 women will develop cancer before the age of 75(b).

With advanced medical technology, the survival rate of cancer greatly increased, while the medical expenses are even more dreadful.•

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It is estimated that the 3-year treatment cost for lung cancer is about HKD1,000,000(c).The cost of coronary bypass operation is about HKD400,000(c).Monthly expense of cancer treatment by targeted therapy drugs can be up to HKD60,000(d).

Sources:(a)(b)(c)(d)Remarks: The above information and the examples of medical expenses are for reference only.

Leading Cause of all Deaths, Healthy HK, Department of Health. Last updated May 2017. Overview of Hong Kong Cancer Statistics of 2015, Hong Kong Cancer Registry, Hospital Authority. Last updated: Oct 2017 Charges of Union Hospital and news reports. cancerinformation.com.hk, (Data collection date: Jan 2018)

We strive every day to create a better life for ourselves and our loved ones. However, Life is full of uncertainties. We may suffer critical

ensure that we can cope with the heavy medical burden and continue to achieve our dreams in the event of a critical illness. TPLHK brings you “Crisis Care – Prime Whole Life Plan” (the “Plan”) which providing adequate critical illnesses protection, whole life insurance protection as well as the opportunity of wealth accumulation. Your needs are well-taken care that gives you extra peace of mind.

cost of coronary bypass operationHKD400,000

3-year treatment cost for lung cancerHKD1,000,000

Monthly expense of targeted therapy drugs

HKD60,000

Thanks to the improvement of health awareness and medical advancement, many early stage critical illnesses can be cured with timely medical diagnosis and treatment. TPLHK pays attention to your health needs and provides you with a full range of critical illness protection to protect the health of you and your loved ones.

Product Feature

Comprehensive Protection against 103 Illnesses“Crisis Care – Prime Whole Life Plan” provides you with comprehensive whole life coverage including both Major Critical Illness Conditions and Early Stage Critical Illness Conditions, ensures that you are well protected.

(i) (ii)(iii)(iv)(v)(vi)

A once-only per Early Stage Critical Illness payment of 20% of the current Sum Assured will be paid if the Insured is diagnosed with the Covered Early Stage Critical Illness, giving the Insured immediate support in seeking appropriate and timely medical treatment upon onset of the disease, for added peace of mind.

life assured and cannot exceed the current Sum Assured. The Insured is allowed to make another claim for Early Stage Critical Illness

can put the Insured at ease even suffering from Early Stage Critical Illness more than once.

3 subject to the terms of the Policy,

(i)(ii)(iii)(iv)(v)(vi)

Accumulate wealth with ease by Terminal Bonus“Crisis Care – Prime Whole Life Plan” offers Guaranteed Cash Value and Terminal Bonus, enabling you to accumulate your wealth while you are enjoying the protection under the Plan. Terminal Bonus is a one-off non-guaranteed bonus payable upon occurrence of the earliest of the following event:(i)

(ii)(iii)The face value of the Terminal Bonus will be paid when payment is upon (i) and (ii), and the cash value of the Terminal Bonus will be paid upon (iii).

Various Payment Terms for Financial FlexibilityYou can choose from a premium payment term of 5 years, 10 years, 15 years or 20 years to cope with your financial planning. Besides, you may choose to prepay premiums for the remaining premium years for enjoying a non-guaranteed Prepayment Interest Rate4, thereby accelerating your wealth accumulation.

100% of the current Sum Assured1； plus

Prepaid Premium (if any); plusAccumulated Interest on the Prepaid Premium (non-guaranteed; if any); plusthe face value of the Terminal Bonus2 (non-guaranteed; if any); lessTotal Amount Claimed (if any); lessoutstanding indebtedness due from you to TPLHK under this Policy (if any).

63Major Critical

Illness Conditions

40 Early Stage

Critical Illness Conditions

Total of 103 Critical Illness

Conditions

100% of the current Sum Assured; plusthe face value of the Terminal Bonus (non-guaranteed; if any); plusPrepaid Premium (if any); plusAccumulated Interest on the Prepaid Premium (non-guaranteed; if any); lessTotal Amount Claimed (if any); lessoutstanding indebtedness due from you to us under this Policy (if any).

Sum Assured of this Policy; or

surrender of this Policy.

Case illustration.)

Insured Mrs. Wong (Age 40, non-smoker)

Insured Plan “Crisis Care – Prime Whole Life Plan”

Current Sum Assured USD100,000

Annual Premium USD2,542.58

Premium Payment Term 20 years

(i)

(ii)

(iii)

Carcinoma-in-situ (CIS) at Breast and Carcinoma-in-situ (CIS) at Uterus belongs to the Covered Early Stage Critical Illness Conditions. There can be multiple claims for

Terminal Bonus is a one-off non-guaranteed bonus. The Terminal Bonus payable is based on the TPLHK's dividend / bonus scales determined by the current investment return assumption and are not guaranteed. The actual amount payable may change anytime with the values being higher or lower than those illustrated.

Age 42 Age 45 Age 50

Mrs. Wong was diagnosed with Carcinoma-in-situ (CIS)

at Breast(i)(Covered Early Stage

Critical Illness Conditions)

Early Stage

USD20,000(20% the current Sum Assured)

Mrs. Wong was diagnosed with Carcinoma-in-situ (CIS)

at Uterus(i)

(Covered Early Stage Critical Illness Conditions)

Early Stage

USD20,000(20% the current Sum Assured)

Mrs. Wong was diagnosed with Breast Cancer(Covered Major

Critical Illness Conditions)

(Hypothesis: Terminal Bonus(ii)

= USD4,336)

Major (iii)

USD64,336(100% the current Sum Assured less Total Amount Claimed for Early Stage

Bonus)

Product Information

Plan Type Basic Plan

Issue Age5

(Age Last Birthday) 15 days to age 70 15 days to age 65 15 days to age 60 15 days to age 55

Premium Payment Term 5 years 10 years 15 years 20 years

Coverage Period Whole Life6

Policy Currency USD / HKD

Minimum Sum Assured USD20,000 / HKD160,000

Premium Payment Mode Annual / Semi-annual / Quarterly / Monthly(or to choose Annual and Prepayment Premium for the remaining policy years)

Covered Major Critical Illness Conditions1 Cancer 33 Encephalitis2 Cerebral Metastasis 34 Hemiplegia3 Acute Necrohemorrhagic Pancreatitis 35 Major Head Trauma4 Aplastic Anaemia 36 Meningeal Tuberculosis5 Chronic Relapsing Pancreatitis 37 Multiple Sclerosis6 End Stage Liver Failure 38 Muscular Dystrophy 7 End Stage Lung Disease 39 Paralysis 8 Fulminant Hepatitis 40 Parkinson’s Disease 9 Kidney Failure 41 Poliomyelitis10 Major Organ Transplant 42 Primary Lateral Sclerosis11 Medullary Cystic Disease 43 Progressive Bulbar Palsy (PBP)12 Severe Crohn's Disease 44 Progressive Muscular Atrophy

13 Systemic Lupus Erythematosus (S.L.E.) with Lupus Nephritis 45 Spinal Muscular Atrophy

14 Systemic Scleroderma 46 Progressive Supranuclear Palsy15 Ulcerative Colitis 47 Stroke16 Cardiomyopathy 48 Total Blindness17 Dissecting Aortic Aneurysm 49 AIDS due to Blood Transfusion18 Eisenmenger’s Syndrome 5019 Heart Attack 51 Diabetic Complications20 Infective Endocarditis 52 Ebola21 Primary Pulmonary Arterial Hypertension 53 Elephantiasis22 Replacement of Heart Valve 54 Haemolytic Streptococcal Gangrene23 Surgery for Disease of the Aorta 55 HIV Acquired due to Assault 24 Surgery to Coronary Arteries 56 Loss of Limbs25 Alzheimer's Disease 57 Loss of One Limb and One Eye26 Amyotrophic Lateral Sclerosis (ALS) 58 Loss of Speech27 Apallic Syndrome 59 Major Burns28 Bacterial Meningitis 60 Occupational Acquired HIV29 Benign Brain Tumour 61 Severe Rheumatoid Arthritis30 Coma 62 Severe Osteoporosis31 Creutzfeldt-Jakob Disease 63 Terminal Illness32 Deafness

Covered Early Stage Critical Illness Conditions1 Insulin Dependent Diabetes Mellitus 21 Less Severe Kidney Disease 2 Kawasaki Disease 22 Moderately Severe Crohn's Disease3 Rheumatic Fever with Valvular Impairment 23 Early Systemic Scleroderma 4 Osteogenesis Imperfecta 24 Moderately Severe Ulcerative Colitis5 Hemophilia A and Hemophilia B 25 Early Cardiomyopathy 6 Still's Disease 26 Pericardectomy 7 Dengue Haemorrhagic Fever 27 Early Amyotrophic Lateral Sclerosis (ALS) 8 Wilson’s Disease 28 Moderately Severe Creutzfeldt-Jakob Disease 9 Carcinoma-in-situ (CIS) 29 Moderately Severe Muscular Dystrophy 10 Early Stage Cancer of Prostate 30 Moderately Severe Parkinson' s disease

11 Angioplasty and other Invasive Treatments for Coronary Artery Disease 31 Moderately Severe Poliomyelitis

12 Systemic Lupus Erythematosus (S.L.E.) 32 Moderately Severe Primary Lateral Sclerosis 13 Aortic Aneurysm 33 Early Progressive Bulbar Palsy (PBP) 14 34 Early Progressive Muscular Atrophy 15 Diabetic Retinopathy 35 Early Spinal Muscular Atrophy 16 Endovascular Treatment of Peripheral Arterial Disease 36 Early Progressive Supranuclear Palsy 17 Facial Reconstructive Surgery for Injury due to Accident 37 Early Elephantiasis 18 Hepatitis with Cirrhosis 38 Moderately Severe Rheumatoid Arthritis 19 Skin Transplantation Due to Accidental Burning 39 Chronic Lung Disease 20 Chronic Auto-immune Hepatitis 40 Surgical Removal of Pituitary Tumour

current Sum Assured.)

Covered Illnesses Schedule

This brochure is for reference only. Please refer to the policy and complete terms and conditions of the cover. We would like to remind you to review the relevant product materials provided to you and seek independent professional advice if necessary.provided to you and seek independent professional advice if necessary.Bonus ConceptThis is a participating insurance plan designed to be held long term. Your premiums will be invested in a variety of assets according to our investment strategy, with the cost of policy benefits and expenses deducted as appropriate from premiums or assets. Your policy can share the divisible surplus (if any) from related policy groups determined by us. We aim to ensure a fair sharing of profits between policyowners and shareholders, and among different groups of policyowners.Future investment performance is unpredictable. Through our smoothing process, we aim to deliver more stable dividends payments by spreading out the gains and losses over a longer period of time. We will review and determine the dividend amounts to be payable to policyowners at least once per year. The actual dividends declared may be different from those illustrated in any product information provided (e.g. benefit illustrations). If there are any changes in the actual dividends against the illustration or in the projected future dividends, such changes

A committee has been set up to provide independent advice on the determination of the dividend amounts to the Board of Directors of the Company. The committee is comprised of members from different departments within the organisation. Each member of the committee will exercise due care, diligence and skill in the performance of his or her duties as a member. The committee will utilise the knowledge, experience, and perspectives of each individual member to assist the Board of Directors in the discharge of its duty to make independent decision and to manage the risk of policyowners and shareholders, and among different groups of policyowners. The actual dividends, which are recommended by the Appointed Actuary, will be decided upon the deliberation of the Company, including one or more Independent Non-Executive Directors.To determine the dividends of the policy, we consider both past experiences and the future outlook of all the factors including, but not limited to, the following:Investment returns: include interest earnings, dividends and any changes in the market value of the product’s backing assets. Depending on the asset combination adopted for the in interest income (both interest earnings and the outlook for interest rates) and various market risks, including credit spread

against the policy currency.

Remarks Current Sum Assured means the initial Sum Assured of this Plan as stated on your Policy Data page together with any increase and decrease of Sum Assured being allowed by TPLHK.Terminal Bonus is a one-off non-guaranteed bonus. The values are determined and calculated based on TPLHK’s exper iences and current project ions of Surrender Benefits and bonus scales in relation to a number of factors including, but not limited to claims, persistency and investment experience and / or assumptions. These values are not guaranteed and are subject to review and adjustment at TPLHK’s absolute discretion from time to time.

Subject to all the terms of this Policy and whilst this Policy is in force, TPLHK shall upon receipt and approval of due

TPLHK will deduct from those proceeds any unpaid balance of the Premiums outstanding or due for the full Policy Year in which that claim occurs.Prepay PremiumAny premium(s) paid to us but not yet due (“Prepaid Premium”) shall, subject to any maximum amount as determined by us from time to time, accumulate interest at the Prepayment Interest Rate for any Prepaid Premium. The Prepayment Interest Rate is not guaranteed.Where the Premium for the remaining years are paid in

Important Information

1.

2.

3.

4.

accumulate for the Prepaid Premium. The amount of the Prepaid Premium for the remaining years is equal to the amount of the Premium before special discount (if any) of the first year times the number of the remaining years. If there is an adjustment in the Premium in the remaining years subject to the “CHANGE OF PREMIUM” Provision (if any), the amount of the Prepaid Premium

additional Premium would be payable by the Owner.The Prepayment Interest Rate of this product is not applicable to any other products unless otherwise stated. You may withdraw the Prepaid Premium and / or any interest thereon in accordance with our procedures. Any interest earned but not withdrawn will be non-interest bearing for the remaining term of the Policy. The balance of any Prepaid Premium and / or interest thereon that is not withdrawn shall be automatically used to offset any premium due and payable which is not paid within the Grace Period.The Insured’s age is calculated based on the age of the previous birthday.The coverage for certain Disease Conditions is subject to age limit.Waiting Period If the Insured is diagnosed by a Specialist with a Critical Illness Condition, or the insured has shown signs or symptoms of any illness, disease or physical condition which may be the cause or triggering condition of a Critical Illness within 90 days from the effective date of this Plan, or in case of reinstatement, from the effective date of such reinstatement, we will not pay any Major Critical Illness

5.

6.

7.

Claims:

Surrenders: include policy surrenders, partial surrenders and policy lapses; and the corresponding impact on the investments backing the product(s).Expenses: include both expenses directly related to the policy (e.g. commission, underwriting, issue and premium collection expenses) and indirect expenses allocated to the policy group (e.g. general administrative costs).You may browse the Company’s website (http://tplhk.cntaiping.com/en/info) to understand the Company’s historical bonus an indicator of future performance of the participating products.

Investment Philosophy and StrategyOur investment philosophy is to achieve sustainable and stable returns on investments whilst maintaining moderate investment risk levels in the long term. We strive to reward our policyholders with investment returns and protect their interests and reasonable expectations. Through active portfolio management, we will invest in multiple asset classes to diversify investment risks and secure potential and stable returns under different economic conditions. In general, it is expected that we will, through this product, invest in a variety of asset classes, including but not limited to stocks, real estates, government bonds, corporate bonds, funds, alternative investments and cash. If needed, we may also utilize derivatives to manage our risk exposures, such as currency risk exposures.In terms of our geographic allocation of investments, we are inclined towards allocating our assets in various geographic regions and our major investment areas are Asia, North America and Pan-European regions currently. Our present currency exposures are mainly in USD and HKD and if we invest in assets in other currencies, we will hedge the foreign exchange risk with the use of FX derivatives.The asset allocation under our long-term investment strategy for this product is as follows:

Our investment strategy will be constantly adjusted according to changes in the investment market and economic conditions. We will review our long-term investment targets on a regular basis to ensure that they are in line with our business and financial goals. If there is material change in our investment strategy, we will inform the policyholder of the details of the change, the reasons for the change as well as the impact it may have on the relevant policy.

Asset Category Long-Term Target Allocation (%)

Fixed Income and Alternative Investment 60% to 100%

Equity and Fund 0% to 40%

1. Exchange Rate RiskThe application of this insurance product with the policy currency denominated in a foreign currency is subject to that foreign currency’s exchange rate and currency risk. The foreign currency may be subject to the relevant regulatory bodies’ control (for example, exchange restrictions). If your home currency is different from the policy currency, please note that any exchange rate fluctuation between your home currency and the policy currency of this insurance product will have a direct impact on the amount of premium required and the

currency of the insurance product depreciates substantially against your home currency, the potential loss arising from such exchange rate movement may have a negative impact on

(http://tplhk.cntaiping.com/) to find out the latest prevailing exchange rate for reference.

2. Early Surrender RiskThe Plan is designed for persons looking for critical illness and life protection as their goal. If you terminate the Policy prior to claims, a loss of all premium paid may take effect as a result. While the Policy is in force, the policyholder may terminate the Policy by sending a written termination request. If the Policy is terminated or surrendered before claims of the Policy, the Surrender Value received by the policyholder may be less than the Total Premiums Paid.

3. Premium Adjustment RiskPremiums may vary. We reserve the right to review the premium rates annually on each policy anniversary and adjust the premium rates accordingly across a particular risk class (including but not limited to age, gender, smoking status, premium term, nationality and currency) but not to any particular individual, based on the claim record of the class, to maintain the financial performance of the class within the Company’s expected range.

4. Premium Term RiskThe minimum premium term of this policy is the Premium

of premium within the Premium Term may result in loss of

5. Prepaid Premium Clawback ChargePrepaid Premium clawback is permitted for the Prepaid Premium, subject to a clawback charge of USD 260, or 3.5% of claw back amount, whichever is higher. The values in the column(s) relevant to “Major Critical Illness Benefit” do not include Clawback Charge. No interest would be accrued to the policyholder if the Prepaid Premium is clawed back. Partial clawback is not permitted. We reserves the right to review and adjust the clawback charge and from time to time.

6. Termination ConditionsThis Policy will automatically terminate upon the following whichever is the earliest:(i)(ii)(iii)(iv)

(v)

(vi)

Termination of your Policy under the circumstances stated

termination unless otherwise stated.

7. Automatic Premium Loan RiskThe premium of the Policy should be paid in full for the whole payment term. If you fail to pay the Premium due at the end of the Grace Period, the Automatic Premium Loan Option will be automatically exercised. Any Premium remaining unpaid at the end of the Grace Period will be paid by way of an automatic premium loan (“Automatic Premium Loan”) provided that the Guaranteed Cash Value is then equal to or greater than the amount of that unpaid Premium. If the Guaranteed Cash Value is insufficient to the cover the full amount of the premium in default plus any money due by you to us, no Automatic Premium Loan will be extended and the Policy will lapse, and we will refund to you the balance of any remaining Guaranteed Cash Value and the cash value of Terminal Bonus (if any). You may browse our official website (http://tplhk.cntaiping.com/) to find out the relevant Automatic Premium Loan Rate for reference.

8. Credit Risk of IssuerThe Plan is issued and underwritten by TPLHK. Your Policy is subject to the credit risk of TPLHK. In the worst case scenario,

Living costs are expected to increase in the future due to inf lation, meaning that the current protection may have different purchasing power then.

10. Key Exclusion

whether sane or insane, within one (1) year after whichever is the later of (i) the Issue Date; (ii) the Effective Date as indicated in the relevant Endorsement or Supplementary Contract and (iii) the Reinstatement Date, the Company’s liability under this Policy will be limited to a refund of the Basic Plan Premiums paid, without interest and after deducting any indebtedness to the Company under this Policy. In the case of reinstatement, the refund of the Basic Plan Premiums will be calculated from the Reinstatement Date.

(i)

(ii)

(iii)

(iv)

11. Further AssessmentIssuance of the Policy, the proposed Sum Assured and risk class are subject to underwriting approval and are not

Key Product Risks“Crisis Care – Prime Whole Life Plan” is issued and underwritten by TPLHK. Please note the following Key Product Risks.

upon the death of the Insured; orupon surrender of the Policy; orat the maturity date of the Policy; ortotal amount of Early Stage Critical Illness Benefit and

reaches 100% of the current Sum Assured of this Policyif you fail to pay your Total Modal Premium within the grace period of one calendar month from its due date; orif the amount of the outstanding indebtedness under this Policy exceeds 90% of the Guaranteed Cash Value of

paid.

the Critical Illness existed before the effective date of this Policy, or in case of reinstatement, before the effective date of such reinstatement, whichever the later; or the Insured suffers from any pre-existing condition, or shows any signs or symptoms of any pre-existing condit ion, which may be the cause or tr iggering condition to a Critical Illness before the effective date of this Policy, or in case of reinstatement, before the effective date of such reinstatement, whichever the later; or the Insured is diagnosed by a Registered Specialist with a Critical Illness, or the Insured has shown signs or symptoms of any illness, disease or physical condition which may be the cause or triggering condition of a Critical Illness within 90 days from the effective date of this Policy, or in case of reinstatement, from the effective date of such reinstatement (except that this exclusion does not apply if the Critical Illness is caused by an Accident and the Insured is diagnosed as having the Critical Illness within 90 days of the Accident); orthe Critical Illness is a direct or indirect result of: a)

b)

c)

d)

the Insured’s attempted suicide or self-inflicted injuries while sane or insane; or Acquired Immune Deficiency Syndrome (AIDS), AIDS-related complex or infection by Human

to blood transfusion or occupationally acquired HIV; ora ny c o n g e n i t a l o r i n h e r i t e d d i s o r d e r o r developmental conditions of the Insured; or narcotics used by the Insured unless taken as prescribed by a Registered Doctor, or the Insured’s abuse of drugs and / or alcohol.

Cancellation RightYou have the right to cancel the policy and obtain a refund of any premiums (less any withdrawals, if applicable) and any levy paid by giving written notice to us within the cooling-off period, i.e. 21 calendar days immediately following the day of the delivery of (i) the policy; or (ii) the cooling-off notice to you or your nominated representative, whichever is earlier. No refund can be made prior to your request for cancellation. The premium will be refunded in the currency of premium payment at the time of application for this policy. If the currency of premium payment is not the same as the plan currency, the refundable premium amount in plan currency under this policy will be converted to the currency of premium payment at the prevailing currency exchange rate as determined by TPLHK in its absolute discretion from time to time upon payment. After the cooling-off period expires, if a customer cancels the policy

substantially less than the total amount of premiums paid.

Important Notes•

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•

“Crisis Care – Prime Whole Life Plan” (the “Plan”) is underwrit ten by China Taiping Life Insurance (Hong Kong) Company Limited (“TPLHK” or the “the Company”).TPLHK is authorized and regulated by Insurance Authority (“IA”) to carry on long-term business in the Hong Kong Special Administrative Region of the People's Republic of China (“HKSAR”).The offer of this Plan is limited and subject to availability. TPLHK reserves the right to decide at its sole discretion whether to accept or decline any application for the Plan.The Plan is a product of TPLHK and it is intended only for sale in the HKSAR.This promotional material is for reference only. Details of the coverage of the Plan are subject to the terms and conditions stipulated in the policy by TPLHK. Chinese version of this Policy is provided for reference only. In case of discrepancies between the Chinese and English versions of this Policy, the English version shall prevail.

About TPLHKChina Taiping Insurance Group Ltd (abbreviated as “China Taiping”) is a Chinese state-owned financial and insurance group whose management headquarters is located in Hong Kong. China Taiping Life Insurance (Hong Kong) Company Limited (abbreviated as “TPLHK”) is a wholly-owned life insurance subsidiary of China Taiping Insurance Holdings Company Limited under the China Taiping (abbreviated as “China Taiping Holdings”, HK00966), which is responsible for life insurance business in Hong Kong.

Need more details? Get in touch with usPlease contact your consultant or call our

Customer Service Hotline at (852) 800 961 589 Or

visit our website at http://tplhk.cntaiping.com

for more details.

12. Investment RisksOur investments are based on policy details. Professional and licensed asset management company has been appointed to manage duration, currency exposure and the return according to the characteristics of the insurance products. We have long term strategic asset allocation (SAA) and short-mid term tactical asset allocation (TAA). Portfolio manager will follow the TAA range to optimize investment return. The portfolios are built up and aimed at attaining a balanced portfolio to

alternative debt investments, bank deposit. Meanwhile, a minority allocation to public equity, private equity and fund investments will also be considered.

(i)Market Risk and Price RiskMarket risk is the possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets in which he is involved. Market risk, also called “systematic risk”, Sources of market risk include recessions, political turmoil, changes in interest rates, natural disasters and terrorist attacks.Price risk is the risk of a decline in the value of a security or a portfolio.

(ii)Interest Rate Risk and Credit risk The investments in debt and debt-related securities are subject to interest rate risk and credit risk. Interest rate fluctuations will affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall and vice versa. Interest rate risk is the chance that such movements in interest rates will negatively affect the value of a security. Securities with greater interest rate sensitivity and longer maturities tend to produce higher yields, but are subject

of the borrower (bond issuer) to meet its obligations (pay the interest on a bond and return the capital on redemption date). Changes in the financial condition of an issuer, changes in economic and political conditions in general, or changes in economic and political conditions specific to an issuer, are all factors that may have an adverse impact on an issuer’s credit quality and security values. The credit worthiness of each issuer will be considered carefully and certain level of

(iii)Liquidity risk This product is a long term insurance policy. This policy of long term insurance will be made for certain determined term of years starting from the policy effective date to the policy maturity date. The policy contains value and, if you surrender your policy in the early policy years or before its maturity date, the amount you get back may be considerably less than the total premium you have paid. Application of the Plan may constitute the liquidity risk to your financial condition. You need to bear the liquidity risk associated with the Plan. Our investment manager will close monitor the duration gap between investment and insurance liabilities and will ensure

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