All parents dream of seeing their children flourish. To help them get a bachelor’s degree or study abroad is the key to enhancing their competitiveness. In view of the continuous increases in education expenses, MassMutual Asia’s Generations Saver can help you to ensure a brighter future for your children by planning ahead.
Bachelor’s Degree Program - Total Tuition Fees and Living Expenses (HK$)
Above figures are rounded up to the nearest thousand.
*Assumed average tuition fees inflation rate is 6% p.a. and average living expenses inflation rate is 4% p.a.
Source：Education Bureau, IDP Education, JUPAS, the eight universities in Hong Kong, and the Hok Yau Club (data downloaded in May 2018)
Generations Saver helps you to fund your children’s education and allows you to pass on wealth to next generations.
4 Major Highlights of the Plan
Stable Wealth Accumulation
- During the accumulation period, interest is credited at a compound rate, so that you can enjoy the power of “snowball effect” to compound your wealth in Account Value over time
- The plan also offers Guaranteed Special Bonus, Extra Bonus and long-term guaranteed interest1
* The current assumed crediting interest rate (including the current assumed base crediting interest rate and the current assumed retrospective additional interest rate) and Extra Bonus rates are quoted as of the print date of this pamphlet in July 2018, and are not guaranteed. The rates are subject to change.
Financial Flexibility
Flexible premium payment terms
The plan offers various premium-payment-term options, from 5 years up. A single-premium payment option is also available.
Flexible financials
When your policy has accumulated a Cash Value sufficient to cover the monthly charges, you may withdraw a portion of the Cash Value3, exercise the automatic periodic withdrawal option4 or temporarily skip premium payments5. The plan also offers you the flexibility to increase the Target Yearly Premium 6 to reach your targets earlier.
Flexible asset allocation
You may withdraw the entire Cash Value for the education fund, or withdraw part of the Cash Value for the education fund and leave the balance to accumulate in the policy for your descendants. You may also leave the entire Cash Value intact for your descendants.
Cash withdrawals or skipping premium payments will affect the accumulation of the Cash Value, while the monthly charges are still deductible. If the Cash Value is insufficient to cover the monthly charges, the policy will lapse with zero value.
Guaranteed Inheritance
- Changing the Insured will not affect the Cash Value of the policy
- The plan allows you to change the Insured7 and you can pass on the accumulated wealth to your descendants
Mr. Lee has mapped out the education funds for his descendants to a total of :
HK$7,318,389 (508% of the total premiums paid)
#The above figures are based on the example of a boy aged 0 insured with Generations Saver. The target premium is paid annually. The figures illustrated are based on the current assumed crediting interest rate of 4.5% p.a. (including the current assumed base crediting interest rate of 4% p.a. and the current assumed retrospective additional interest rate of 0.5% p.a.), Guaranteed Special Bonus, current assumed Extra Bonuses, premium paid in full during the Premium Payment Term, and current scale of charges for the plan. The current assumed crediting interest rates are not guaranteed and do not represent the upper or lower limits of the actual rate to be declared. The current assumed crediting interest rates are for references only.
Worry-free Protections
Supplementary “Payor’s Benefit” 8
- You can rest assured that the education fund will accumulate according to schedule by simply attaching a supplementary “Payor’s Benefit” to the Plan. In the unfortunate event of the policyowner’s death or total disability for over 6 consecutive months before age 65, we will pay all premiums for you until the insured child reaches age 259.
- The plan also offers your child a full spectrum of supplementary health and accident benefits8 at an additional premium.
Death Benefit – Guaranteeing Refund of Capital
- In the event of the death of the Insured, the total premiums paid for the basic plan10, or 101%10 of the Account Value, whichever is higher, will be paid to the policy beneficiary.
Terminal Illness Benefit
- On the first occasion that the Insured is diagnosed with a Terminal Illness11, an advance payment of the Death Benefit of the basic plan and of any supplementary benefits (if applicable) will be paid to the Insured to help relieve any financial burden.
1The Account Value (including the total interest, Extra Bonus and Guaranteed Special Bonus credited to the policy) is guaranteed to have accumulated to an amount at least as if the interest rate credited had been 3% p.a., provided that the policy has been in force for 15 years or more.
2For regular-premium policies, the Guaranteed Special Bonus will be credited for every increase in Target Yearly Premium of the Basic Plan at the end of the 10th and 15th year after the effective date of such increase, with an amount equal to 30% of the respective increase in Target Yearly Premium of the Basic Plan. If the Target Yearly Premium of the Basic Plan is reduced before the Guaranteed Special Bonus is credited, the Guaranteed Special Bonus will be reduced proportionally. For single-premium policies, Guaranteed Special Bonus will be credited for every payment of unscheduled premium at the end of the 10th year after the effective date of such unscheduled premium, with an amount equal to 5% of the respective unscheduled premium. If any cash withdrawal amount exceeds the encashment limit before the Guaranteed Special Bonus is credited, the Guaranteed Special Bonus will be reduced.
3For single-premium policies, the balance of the Account Value after withdrawal must not be less than US$5,000 or HK$/MOP40,000. If cash withdrawals do not exceed the encashment limit (i.e., the Account Value prior to the cash withdrawal minus 50% of the initial single premium and all unscheduled premiums paid within the past 60 months before the withdrawal is made), or the withdrawal is made 5 years after the last premium is paid, no surrender charge will be applied. “Cash Value” means the Account Value less the applicable surrender charge.
4Automatic periodic withdrawal option is only applicable if the policy has been in force for at least 10 years, and the withdrawal charge will be waived. Current requirement on minimum monthly withdrawal amount is US$500/HK$/MOP4,000, with minimum withdrawal period of one year; the minimum annual withdrawal amount is US$6,000/HK$/MOP48,000, with minimum withdrawal period of three years. For any change after the application has been confirmed, a nominal fee of US$25/HK$/MOP200 will be levied.
5Though this plan provides you with some flexibility in premium payment, you should have every intention of paying the premium for the whole of your chosen Premium Payment Term.
6The Target Yearly Premium of the Basic Plan may be increased provided the Premium Payment Term still has at least 5 years to run, or you may credit a lump-sum unscheduled premium to a single-premium policy.
7The Policy Owner may change the Insured after the 1st policy year. All supplementary benefit(s) (if applicable) will be terminated upon the effective date of the change of Insured. Please refer to the policy document for the relevant terms and conditions.
8Not applicable to single-premium policies.
9The “Payor’s Benefit” is valid until the insured child has reached age 25 or the policyowner has reached age 65, whichever is sooner. This supplementary benefit is not applicable to single-premium policies.
10The refund of total premiums paid for the basic plan will be net of any withdrawal amounts ever made. In addition, if the death of the Insured occurs after the end of the Premium Payment Term or after the 5th policy anniversary of a single-premium policy, a death benefit equal to 100% of the Account Value or total premiums paid for the basic plan (net of any cash withdrawal amount), whichever is higher, will be payable.
11Terminal Illness means a disease of the Insured, which in the opinion of our appointed medical consultant is likely to lead to death of the Insured within twelve months. Upon payment of the Terminal Illness Benefit, the related policies and all the supplementary benefit(s) attached will automatically be terminated. Please refer to the policy document for the relevant terms and conditions.
12The current assumed crediting interest rate (including a current assumed base crediting interest rate, a current assumed retrospective additional interest rate) and Extra Bonus rates are quoted as of the print date of this pamphlet in July 2018, and are not guaranteed. The rates are subject to change.
The above contains general information, is for reference only and does not form part of the policy. Please refer to the policy document for benefit coverage and exact terms and conditions. For enquiries, please contact our consultants, franchised agents or brokers, or call our Customer Service Hotline: Hong Kong (852) 2533 5555/Macau (853) 2832 2622.