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Policy Benefit Illustration Guide for Universal Life Products

(Goal Access, Integrated Protection Plus, Salary Savings Protection Plan)

This document serves to guide the policyholders (“You”) to understand the general

components of your Policy Benefit Illustration.

In order to better manage customer expectation, HSBC Life (International) Limited (“the Company”) will

provide policyholder a Policy Benefit Illustration on every policy anniversary, which will be attached to the

Annual Statement sent to you by mail. The Policy Benefit Illustration will be based on the policy’s updated

inforce status (e.g. attained age, current sum insured, etc.). The re-projection will start from the policy year in

which the re-projection is performed and is based on the updated assumptions derived from the company’s

current view of the market outlook.

Please be aware that the illustrative figures shown in the Policy Benefit Illustration are not guaranteed and they

are for illustrative purposes only. The actual return may be lower than or higher than the current projected

figures.

Contents of the Policy Benefit Illustration

Policy Summary

Benefit Summary

Summary Illustrations

Explanatory Notes

Crediting Interest Rate History (if applicable)

Summary Illustration with Alternative Crediting Interest

Rate (if applicable)

Insurance Terminology Glossary (if applicable)

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1. Policy Summary

Section 1 provides a summary of your policy details and personal information.

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

A This section shows some basic information of the Life Insured, the Policy Number and the Policy

Effective Date.

B This section shows the Account Value as of re-projection date.

Account Value is the accumulation of premiums paid, with interest added less any Charges, and less

any previously withdrawn amounts in accordance with the terms and conditions of the policy.

C

This section shows the Print Date of the Policy Benefit Illustration for possible future reference. Please

note that we may not be able to show the policy change requests that are under processing as of the

Print Date.

A

B

XXXXXXXXXXXXX XXXXXXXXXXXXX

C

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2. Benefit Summary

Section 2 shows the current status, i.e. current sum insured, current premium amount, premium payment

term, benefit term and current extra rating of your policy, including Basic Plan and Supplementary benefits

(if any).

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

A This section shows the current premium amount of each Benefit as of the Print Date.

B This section shows the total current premium as of the Print Date.

C

This section shows all extra adjustment to the standard premium of your policy (if any). It can be either

in percentage or amount term. Your current premium amount mentioned in A and B will already take into

account this extra rating.

A

B

C

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3. Basic Plan and Supplementary Benefit Summary Illustration

Section 3 shows an updated illustration summary of Account Value, Cash/ Surrender Value and Death

Benefit of your policy at the end of different policy years/ at different ages, projected from current policy

anniversary to maturity. The calculation is based on your Basic Plan including any supplementary benefits

(if applicable).

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

A

B1

C

D

E

B2

B

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A Description of the illustration.

B

The illustration shows the policy year in terms of “end of policy year” (B1) and “at age” (B2). When

the age of the Life Insured at the end of policy year shown in that row in B1 is the same as that of the

row in B2, the respective values under different columns for these two rows will be identical.

C

The projected Account Value, Cash/Surrender Value and Death Benefit under Guaranteed Basis and

Current Assumed Basis (non-guaranteed) are shown in different columns.

Cash/Surrender Value is the net Account Value of the policy after deduction of any Surrender Charges.

D Figures under the Guaranteed Basis are calculated using Guaranteed Minimum Crediting Interest

Rate and maximum scale of charges.

E Figures under Current Assumed Basis (non-guaranteed) are calculated using current forecast

Crediting Interest Rate and current scale of charges (which may be subjected to changes), and therefore

are not guaranteed.

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4. Basic Plan Summary Illustration (if applicable)

For policies with Supplementary Benefit selected, an additional illustration summary will be provided. This

section shows an updated illustration summary of Account Value, Cash/ Surrender Value and Death

Benefit of your policy at the end of different policy years/ at different ages, projected from current policy

anniversary to maturity. The calculation is based on your Basic Plan only excluding any supplementary

benefits (if applicable).

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

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5. Explantory Notes

To enhance information transparency, Section 5 provides you with the explanatory notes which cover all

the key assumptions used to prepare the benefit illustration. It also includes a number of risk warnings on

non-guaranteed benefits, inflation and currency to remind you to be aware of these key product risks.

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

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6. Crediting Interest Rate History (if applicable)

Section 6 shows the website of the Company’s Crediting Interest Rate history for your reference. However,

please note that the past performance or current performance of the Company’s business may not be a

guide for future performance.

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

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7. Appendix I – Basic Plan and Supplementary Benefits (if any) Summary

Illustration with Alternative Crediting Interest Rate (if applicable)

Upon your request, this section will be provided which shows the projected values using a specified

Alternative Crediting Interest Rate. This illustration summary is prepared based on the latest policy status,

assumptions and options as at the re-projection date with assumptions that there are no policy changes in

the future and all premiums, including Supplementary Benefit Premiums (if any) are paid in full as planned.

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

The Alternative Crediting Interest Rate option provides you an opportunity to obtain the projected values

based on an alternative specified crediting interest rate.

The rate should not be higher than the crediting interest rate under current assumed basis (non-

guaranteed), but higher than the guaranteed minimum crediting interest rate.

It can also provide you a projection of policy values due to the changes in the crediting interest rate for

your reference.

A

B

C

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A The projected Account Value, Cash/Surrender Value and Death Benefit under Current Assumed Basis

(non-guaranteed) and Alternative Crediting Interest Rate Basis (non-guaranteed) are shown in different

columns.

B

Figures under Current Assumed Basis (non-guaranteed) are calculated using current forecast

Crediting Interest Rate and current scale of charges (which may be subjected to changes), and therefore

are not guaranteed.

C

Figures under Alternative Crediting Interest Rate Basis (non-guaranteed) are calculated using

alternative crediting interest rate and current scale of charges (which may be subjected to changes), and

therefore are not guaranteed.

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8. Insurance Terminology Glossary

Section 8 shows a list of new insurance terminologies to be used for the purpose of reading the policy

provisions and related policy documents and their general meanings. This section is only applicable to the

inforce policies with insurance proposal date before 1 July 2017.

IMPORTANT:

THE FOLLOWING INFORMATION IS A SAMPLE ONLY, CUSTOMER SHOULD REFER

TO HIS/HER OWN POLICY BENEFIT ILLUSTRATION DOCUMENT FOR THE RELEVANT

INFORMATION.

Issued by HSBC Life (International) Limited Incorporated in Bermuda with limited liability