Glossary

We have created this page to help explain some of the key terms related to your insurance policies, making it easier to navigate and understand the terms of the industry better.

Please note that this glossary has been created for informational purposes and should not be considered as legal or financial advice. Contractual terms and conditions will prevail should any of the content in this glossary conflict with your policy documents.

Automatic fund rebalancing

Automatic fund rebalancing allows you to keep your portfolio holdings in line with your investment strategy. When this option is selected, the existing fund holdings will be readjusted at each policy anniversary to achieve the fund split in accordance with the premium allocation.

Automatic Premium Loan (APL)

The insurer will pay the overdue premium amount by deducting the amount from the cash value of the policy. This feature allows you to stay covered even if you have missed a premium payment.

Coupons

Depending on the features of your policy, cash coupons may be paid out at regular intervals during the policy term, provided that the policy is in force. These coupons are automatically accumulated in your policy. You may request to change your coupon option to either withdraw (payout) or accumulate them within your policy. Refer to your contract for exact terms and conditions.

Guaranteed Cash Benefit (GCB)

Depending on the features of your policy, cash benefits may be paid out at regular intervals during the policy term, provided that the policy is in force. You may request to withdraw the cash benefits (payout), accumulate them within your policy, or use them to pay for premiums that are due. Refer to your contract for exact terms and conditions.

Maturity date

This is the pre-agreed date on which a policy ends. A policy is no longer effective after its maturity date.

Minimum Investment Period (MIP)

The period from policy inception during which a premium shortfall charge, partial withdrawal charge, or surrender charge may be applied. Refer to your contract for exact terms and conditions.

Partial withdrawal charge

For some policies with cash values, you may request a partial withdrawal. A partial withdrawal charge may be applied if the withdrawal is made within a certain period. Refer to your policy contract for exact terms and conditions.

Payout

Payout includes both guaranteed and non-guaranteed amounts. The frequency of the policy payout is based on your selected schedule or the default option of the plan.

Premium shortfall charge

If you miss a regular basic premium payment for your investment-linked policy, a premium shortfall charge may be applied for the period during which premiums are missed. Refer to your policy contract for exact terms and conditions.

Surrender charge

For some policies, there may be a charge imposed upon the full surrender of the policy. This charge will be deducted from the total account value of the policy to determine the surrender value of the policy. Refer to your policy contract for exact terms and conditions.

Surrender value/Net surrender value

The amount payable after deducting any surrender charge and/or outstanding loans (if applicable). For investment-linked policies, the actual surrender value depends on the applicable unit price at the time the fund(s) are sold.

Total account value

The value of your investment in any or all the funds you own. This is equal to the number of units you own multiplied by the unit price of the fund.

As such, the total account value is the gross total value computed by summing all the respective fund units multiplied by the latest fund price.

Total available loan

The maximum amount that can be borrowed from the policy, using the policy's cash value as collateral.

Total premium paid to date

This reflects the total premium paid, including waived premiums, premium offset by Guaranteed Cash Benefit (GCB), policy discounts, top-ups, and Automatic Premium Loan (APL) since policy inception.