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International Journal of Banking and Finance

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PRODUCT WRITE-UP PLAN NAME: PLAN CODE: LAUNCH DATE: Great Treasure Wonder (EDM-GTW) 0405 2 May 2012

Offer Period: 2 months, from 2 May 2012 to 2 July 2012 (based on proposal submission date and both dates inclusive), or until sales amount reach RM100 million, whichever occurs first.

PLAN DESCRIPTIONS 1. This is a limited pay Endowment plan with participation in profits. st 2. Survival Benefits are payable every 6 months starting from the end of the 1 policy year. 3. Term of Assurance and Premium Payment Term offered. Term of Assurance 20 years 25 years Premium Payment Term 5 years

PLAN BENEFITS 1. Death Benefit Upon death of the Life Assured, the Company will pay (a) sum assured at time of death; (b) accumulated survival benefit (if any); (c) any cash bonus (including accumulated cash bonus, if any); and (d) terminal bonus on death (if any); in one lump sum. In the event of death of the Life Assured occurring before age 5 years next birthday, a child lien as follows shall apply: Age Next Birthday on Policy Sum Assured at Time of Death Anniversary Preceding Death 1 20% of sum assured 2 40% of sum assured 3 60% of sum assured 4 80% of sum assured Note: Sum assured is defined as basic sum assured + additional sum assured (if any) 2. Additional Sum Assured An additional sum assured will be payable upon occurrence of the following event: (a) Death of the Life Assured; or (b) TPD of the Life Assured prior to the age of 65 years next birthday; or (c) Maturity of the policy; whichever occurs first. Additional Sum Assured Policy Year (as a % of the Basic Sum Assured) st 1 Policy Year Nil nd 2 Policy Year 12.5% rd 3 Policy Year 25.0% th 4 Policy Year 37.5% th 5 Policy Year 50.0% th 6 Policy Year until maturity 60.0% CFE/Agent Manual/Great Treasure Wonder (0405)/02052012 Page 1 of 10

3. Accidental Death Benefit Upon accidental death of the Life Assured within the policy term and before age 65 years next birthday, the Company will pay an additional amount of 100% of the total of basic sum assured and additional sum assured (if any), up to a maximum of RM500,000 under this plan. This payment is further subject to an overall limit of: (a) RM1,500,000 (inclusive of purchasable accidental rider) which provides similar benefits for any one life or (b) RM2,000,000 (inclusive of purchasable accidental rider) if the Life Assured is also covered under the following plans; as well as future similar products as specified there and then. i. Great MultiCash (Plan Code: 0273), ii. Elite Builder (Plan Code: 0291), iii. Great Cash Wonder (Plan Code: 0295), iv. Great Cash Gain (Plan Code: 0404), and/or v. Great Income Plus (Plan Code: 0409). 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. In the event of accidental death of the Life Assured that underwritten accepted under the “LIEN without TPD” category, the death claim is not subject to Substandard Life Lien Table. 4. Total & Permanent Disability (TPD) Benefit Upon TPD of the Life Assured within the policy term, between age 5 and 65 years next birthday, the company will advance the death benefit, subject to the following conditions: (a) All future premiums will be waived up to a maximum basic sum assured of RM 2,000,000; and (b) The basic sum assured not exceeding RM 1,000,000 will be advanced in one lump sum; and (c) The basic sum assured exceeding RM 1,000,000*, if any, but not exceeding RM 2,000,000*, will be payable in two equal annual payments. Note: *Applicable on this policy and other policies (if any) on the same life within the Agency distribution channel. In addition, accumulated survival benefit (if any) and cash bonus (if any) will be payable in one lump sum whereas additional sum assured and terminal bonus on TPD (if any) shall be advanced in the same manner, interval and duration as the basic sum assured. The maximum TPD Benefit payable under this and all policies and riders on the same life is RM2,000,000 per life. This limit shall exclude the TPD benefit payable under the Mortgage Decreasing Term Policy without Profits (with TPD Benefit), Enhanced TPD Rider, Term Policy (without Profits) with TPD Benefits and any future coverage by any other name or description, which will be introduced by the Company from time to time. An overall TPD limit of RM 3,500,000 (including additional sum assured) shall apply on any one life across all distribution channels. Upon TPD of Life Assured below age 5 years next birthday, the child lien (as per Death Benefit) shall apply. Under such circumstance, the aggregate amount of basic sum assured payable shall not exceed RM 500,000 (including additional sum assured) for any one life across all distribution channels.

5. Survival Benefit CFE/Agent Manual/Great Treasure Wonder (0405)/02052012 Page 2 of 10

Upon survival of the Life Assured, a percentage (%) of the basic sum assured will be payable, first st payment starting from the end of the 1 policy year, follow by every 6 months until death, TPD, surrender or maturity of the policy, whichever occurs first. Note: The Survival Benefit is payable provided that the premium is paid. The survival benefit rates are shown as follows: st 1 5 years = 5% at the end of first policy year, 2.5% every half yearly ; the balance is 3% every half yearly until maturity. Survival Benefits (% of the basic sum assured) Policy Term 20 years 25 years 5.0% 5.0% 2.5% every 6 months 2.5% every 6 months 3.0% every 6 months 3.0% every 6 months 115% 145%

Policy Year 1 2-5 6 - Maturity Total

Summary of Survival Benefit Illustration:
2.5% every half yearly 3.0% every half yearly

5%

0

5

Maturity

Pay premium for 5 policy years

*Note: SB is payable as a percentage of original basic sum assured.

Three options pertaining Survival Benefit are available: Option 1 : To receive each survival benefit / cash bonus, if any, when it is payable, with authority to the Company to first utilise the survival benefits to pay any Automatic Premium Loan and/or Cash Loan before paying the remaining balance, if any, to You. Option 2 : To apply the survival benefits / cash bonuses, if any, when it is payable, to pay any Automatic Premium Loan, Cash Loan and/or any premium due until all the survival benefits / cash bonuses, if any, are exhausted. Any balance remaining will be left on deposit with the Company. Option 3 : To leave all survival benefits / cash bonuses, if any, on deposit with the Company. However, if the Total Indebtedness exceeds the surrender value (excluding bonuses, if any) of the policy at any time, this option shall automatically be changed to Option 2. Note: (a) Total Indebtedness means the total amount of any Automatic Premium Loan, Cash Loan, all overdue interests and/or premium due. CFE/Agent Manual/Great Treasure Wonder (0405)/02052012 Page 3 of 10

(b) There is no illustration available for Option 2 in Great Eastern Life Sales Illustration System (GELSIS) (c) If Option 2 is to be selected at proposal, upon policy in force, GELSIS will print Option 1 for illustration purpose 6. Maturity Benefit Upon survival of the Life Assured to the maturity date of policy, the Company will pay: (a) 160% of the basic sum assured; (b) survival benefit (if any); (c) cash bonus (if any); and (d) terminal bonus on maturity (if any) in one lump sum. 7. Cash Bonus (Non-guaranteed) The cash bonus that would be declared may be more or less, depending on the operating and investment results experienced by the Company. Any cash bonus declared for the first and second policy years shall vest and be payable only after the policy has been in-force for 2 full years. Starting from the end of policy year 1, cash bonus is payable yearly throughout the policy term and the rates are shown as follows: Policy Year 1-5 6 onwards Cash Bonus (as a % of Basic Sum Assured) @ Scenario A @ Scenario B 1.0% 0.5% 5.0% 2.5%

Three options pertaining Cash Bonus are available: Option 1 : To receive each survival benefit / cash bonus, if any, when it is payable, with authority to the Company to first utilise the survival benefits to pay any Automatic Premium Loan and/or Cash Loan before paying the remaining balance, if any, to You. Option 2 : To apply the survival benefits / cash bonuses, if any, when it is payable, to pay any Automatic Premium Loan, Cash Loan and/or any premium due until all the survival benefits / cash bonuses, if any, are exhausted. Any balance remaining will be left on deposit with the Company. Option 3 : To leave all survival benefits / cash bonuses, if any, on deposit with the Company. However, if the Total Indebtedness exceeds the surrender value (excluding bonuses, if any) of the policy at any time, this option shall automatically be changed to Option 2. Note: (a) Total Indebtedness means the total amount of any Automatic Premium Loan, Cash Loan, all overdue interests and/or premium due. (b) There is no illustration available for Option 2 in Great Eastern Life Sales Illustration System (GELSIS) (c) If Option 2 is to be selected at proposal, upon policy in force, GELSIS will print Option 1 for illustration purpose 8. Terminal Bonus (Non-guaranteed) The terminal bonuses are non-guaranteed. It will be payable upon one of the following conditions: (a) Death or TPD (b) Surrender (c) Maturity

PREMIUM

CFE/Agent Manual/Great Treasure Wonder (0405)/02052012

Page 4 of 10

1. Premium Rates Premium rates are guaranteed, and vary by policy term. 2. Premium Payment Modes and Modal Factors This is an annual premium plan but it can also be purchased with half-yearly, quarterly or monthly premium instalments. In cases where premium payments are made other than annual premium, the following factors are to be applied to the annual premium to arrive at the instalment premium: Mode of premium payments Half-yearly Quarterly Monthly Factors 0.5100 0.2575 0.0875

3. Premium Payment Method Cash, GIRO, Banker’s Order, cheque and credit card are allowed for all modes of premium payments. However, cash and cheque are not allowed for monthly mode of payment. 4. Premium Payment Term Term of Assurance 20 years 25 years 5. Backdating Not Allowed 6. 1 set of premium rate Same premium rates are available for Female and Male with smoker or non smoker status 7. Advanced Premium Allowed 8. Large Sum Assured Discount / Non-smoker Discount / Female Discount Not applicable Premium Payment Term 5 years

UNDERWRITING 1. Entry Age Minimum : 30 days attained age Maximum : 55 years next birthday Policy Term 20 years 25 years 2. Policy Term Term of Assurance 20 years 25 years Premium Payment Term 5 years Premium Payment Term 5 years Maximum Expiry Age 75 years old 80 years old

CFE/Agent Manual/Great Treasure Wonder (0405)/02052012

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3. Sum Assured (count per life for this product only) Sum Assured in RM 30 days attained age – 50 years 51 – 55 years old next birthday old next birthday 20,000 200,000 100,000

Entry Age Minimum Maximum (per life)

Note: This product’s sum assured is not aggregated with other policies of the same life assured. 4. Underwriting Requirement Medical Extra Mortality Range +0 -+100 +125 - +200 > +200 Underwriting Decision Standard Risk LIEN Without TPD* Decline Risk

Note: LIEN without TPD*: Substandard life Lien is imposed on the sum assured for death occurs in the first 4 policy years. In the event of TPD of the Substandard Life Assured, no benefit will be payable by the company. Substandard Life Lien Table Policy Year 1 2 3 4 Sum Assured at Time of Death 20% of sum assured 40% of sum assured 60% of sum assured 80% of sum assured

Notes: (a) As this product is subject to simplified assessment, please use “Proposal For Assurance (Simplified Assessment) (NBZ-FPROS-V00-042012)” at E-Submission V2.20 (b) Sum assured is defined as basic sum assured + additional sum assured (if any) (c) Accidental death not subject to Substandard Life Lien Table (d) For life that claim prior to age 5 is subject to child lien, which the sum assured will apply for substandard life lien prior to child lien Examples of Claim Assessment Example (1): Life Assured : Male, Non-Smoker, Age 45 years next birthday, Occ Class 1 Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 20 years Basic Sum Assured : RM100K In force policy with LIEN without TPD Death of Life Assured : policy year 3 Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 25% = RM25K Total Sum Assured : RM125K Because the death occurs in policy year 3, paying 60% of the sum assured Death Benefit Payable : RM75,000 + survival benefit (if any) + cash bonus (if any) + CFE/Agent Manual/Great Treasure Wonder (0405)/02052012 Page 6 of 10

terminal bonus on death (if any) Example (2): Life Assured : Male, Non-Smoker, Age 45 years next birthday, Occ Class 1 Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 20 years Basic Sum Assured : RM100K In force policy with LIEN without TPD Death of Life Assured : policy year 3, accidental death Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 25% = RM25K Total Sum Assured : RM125K Because accidental death occurs, paying double of the sum assured regardless of which policy year it happen (not subject to substandard life lien). Death Benefit Payable : RM250,000 + survival benefit (if any) + cash bonus (if any) + terminal bonus on death (if any) Example (3): Life Assured : Female, Non-Smoker, Age 30 years next birthday, Occ Class 1 Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 25 years Basic Sum Assured : RM100K In force policy with LIEN without TPD TPD of Life Assured : policy year 3 Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 25% = RM25K Total Sum Assured : RM125K Because the policy inforce as substandard life, the company offer LIEN without TPD, thus no payment regardless of the type of TPD happens. Total Sum Assured Paid : RM 0 Example (4): Life Assured : Female, Non-Smoker, Age 1 year next birthday, Occ Class 2 Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 20 years Basic Sum Assured : RM100K In force policy with LIEN without TPD Death of Life Assured : policy year 2 Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 12.5% = RM12.5K Total Sum Assured : RM112.5K Because the death occurs in policy year 2, paying 40% of the sum assured due to substandard life lien, further subject to child lien 40% (RM112.5K x 40% x 40%) Death Benefit Payable : RM18,000 + survival benefit (if any) + cash bonus (if any) + terminal bonus on death (if any) Example (5): Life Assured

:

Female, Non-Smoker, Age 1 year next birthday, Occ Class 2 Page 7 of 10

CFE/Agent Manual/Great Treasure Wonder (0405)/02052012

Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 20 years Basic Sum Assured : RM100K In force policy with LIEN without TPD Death of Life Assured : policy year 2, accidental death Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 12.5% = RM12.5K Total Sum Assured : RM112.5K Because the accidental death occurs in policy year 2, paying double of 40% of the sum assured (subject to child lien 40%, not subject to substandard life lien) Death Benefit Payable : RM90,000 + survival benefit (if any) + cash bonus (if any) + terminal bonus on death (if any) Example (6): Life Assured : Female, Non-Smoker, Age 1 year next birthday, Occ Class 2 Plan type : Great Treasure Wonder Premium Payment Term : 5 years Policy Term : 20 years Basic Sum Assured : RM100K In force policy with LIEN without TPD TPD of Life Assured : policy year 2, accidental TPD Assessment: Basic Sum Assured : RM100K Additional Sum Assured : RM100K x 12.5% = RM12.5K Total Sum Assured : RM112.5K Because the policy inforce as substandard life, the company offer LIEN without TPD, thus no payment regardless of the type of TPD happens. Total Sum Assured Paid : RM 0

CHANGES IN SUM ASSURED 1. Increase Sum Assured An increase in Sum Assured is allowed only within the first policy year. However, it is subject to underwriting. The maximum of the increase in Sum Assured is 100% of the current basic SA. Increase in Sum Assured can take effect only from inception where the difference in premiums paid with interest is called. 2. Decrease Sum Assured Policyholder may decrease the Sum Assured at anytime, subject to the minimum Sum Assured limits. Decrease in Sum Assured can only take effect from next premium due date.

ATTACHABLE RIDERS AND SUPPLEMENTARY BENEFITS Not allowed

EXTRA PRIVILEGES 1. Option to Purchase New Policy at Maturity (Standard child life only) Within 30 days before or after the maturity date and provided that the attained age of the Life Assured is at least 18 years next birthday but not more than 25 years next birthday, an option will be given to purchase a new ordinary level annual premium Whole Life or Endowment policy on the same Life CFE/Agent Manual/Great Treasure Wonder (0405)/02052012 Page 8 of 10

Assured sold by the Company at the option date for an amount of assurance up to the Basic Sum Assured. The premium for this new policy will be at the same class of rating as this Policy based on the attained age of the Life Assured as at the option date, without further evidence of assurability of the Life Assured. The total Sum Assured purchased by the Life Assured for this or similar options on all policies must not be more than RM200,000. The Life Assured is not allowed to purchase a Living Assurance policy or any other product similar to a Living Assurance policy under this option. In addition, the inclusion of Total and Permanent Disability Benefits, riders or Supplementary Contracts may be allowed for the new policy subject to evidence of assurability satisfactory to the Company is furnished at the time this option is exercised. However, the inclusion of these benefits is at the absolute discretion of the Company. 2. Conversion Privilege Not applicable

OTHER FEATURES 1. Surrender Values Due to the requirement to pay Surrender Value = Asset Share of the policy, terminal bonus on surrender may be payable immediately from the point of inception if the Asset Share calculations warrants it. Surrender value is only payable in the first policy year if the SV is at least RM100. From the second policy year onwards, surrender value is payable regardless of the amount calculated. 2. Partial Surrender Allowed 3. Policy Loan Up to 92% of the policy loan cash surrender value; where the latter is defined as the total cash surrender values for this plan excluding terminal bonus. Note that cash surrender values for attaching riders (if any) will also not be taken into account in determining the policy loan cash value. 4. Automatic Premium Loan After the policy has acquired surrender values, the policy shall not become void for non-payment of renewal premium within the 30 days grace period so long as the surrender values are sufficient to advance the premium due. 5. Extended Term Assurance After the policy has acquired surrender values, the policy may be converted to a non-participating Extended Term Assurance for a reduced policy term with the same basic sum assured payable in the event of death of the Life Assured during the term covered. If the surrender values are more than sufficient to provide coverage to the maturity of the original term, the excess amount (if any) shall be refunded in cash at the date of conversion. TPD benefit, additional sum assured, accidental death benefit, survival benefit and maturity benefit shall cease upon conversion to Extended Term Assurance. Similarly, all attaching riders (if any) shall be terminated. 6. Paid-Up Assurance After the policy has acquired surrender values, the policy may be converted to a non-participating Paid-Up Assurance with a reduced sum assured payable in the event of death of the Life Assured. TPD benefit, additional sum assured, accidental death benefit and survival benefit shall cease upon conversion to Paid-up Assurance. Similarly, all attaching riders (if any) shall be terminated.

CFE/Agent Manual/Great Treasure Wonder (0405)/02052012

Page 9 of 10

7. Free-Look Period Policyholder is allowed to cancel the policy within 15 days. Under such circumstance, total premium paid minus the expenses incurred for medical examination (if any) will be refunded and commissions will be clawed back accordingly. 8. Assignment / Nomination Allowed 9. 3 Party Policy Allowed 10. Reinstatement Allowed, Endowment policies may only be reinstated within 3 years from the lapsed date. 11. Special Revival / Study Loan Not allowed EXCLUSIONS No payment of benefits will be payable for any of the following: 1. Death during the first policy year as a result of suicide. The Company shall refund the premium paid without interest in the event of death, which resulted from commits suicide within one (1) year from the Risk Commencement Date or from the date of any reinstatement, whichever is the later, while sane or insane; 2. Total and Permanent Disability caused directly or indirectly by self-inflicted injuries, while sane or insane; 3. Total and Permanent Disability caused by bodily 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. Total and Permanent Disability existed prior to or on the Risk Commencement Date or on the date of any reinstatement, whichever is later. 5. Accidental death benefit is not payable if the death of the Life Assured not occurs within ninety (90) days from the date of accident. Note: The exclusion list may not be exhaustive .For full list of the exclusions, please refer to the policy contract. ANNUAL PREMIUM RATES PER RM1,000 BASIC SUM ASSURED Plan 5 pay 20 years 5 pay 25 years Premium 535 560 rd -End-

CFE/Agent Manual/Great Treasure Wonder (0405)/02052012

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