1. Insurance Application Set includes the application form, statement and any other related information in writing which is signed and submitted by or on behalf of the Policy Owner to Dai-ichi Life Vietnam, in connection with the application for this Policy.
2. Policy: means the written contract between Dai-ichi Life Vietnam and the Policy Owner comprising the Application form; Policy Certificate; Policy Provisions of basic products; Policy Provisions of attached riders and any other written agreements (if any) mutually agreed by the two parties during the time that the policy takes effect and is executed.
3. Policy Certificate: means the document that sets out the details of the Policy and is the evidence of a binding insurance contract.
4. Basic Insurance Benefits: mean the benefits that are written in the Policy Certificate or in other written agreements (if any), and include insurance benefits of the Basic product stipulated in the Policy contract.
5. Supplementary insurance benefits (Riders) mean the benefits that are written in the Policy Certificate or in other written agreements (if any), and include insurance benefits of supplementary product(s) in accordance with the provisions of supplementary product(s) attached in the Insurance Policy.
6. Insurance Age: means the entry age of the Life Insured at his/her last birthday. “Insurance Age” is the age used for the calculation of premiums, payment of insurance benefits, and is applied for all other relevant terms and conditions of this Policy. All the words “age” in this Policy will mean “Insurance Age”.
7. Sum Insured: means the amount of insurance covered by Dai-ichi Life Vietnam under this Policy in respect of the relevant benefits as specified in the Policy Schedule or other written agreements (if any).
8. Dept: means any amount including Policy loan, the Loan fee in arrears, premium debt and any amount payable by the Policy Owner to Dai-ichi Life Vietnam as defined under the Provisions of this policy.
9. Universal Life Fund: or “Fund” means the fund that is built up from the premium resources of Universal Life insurance policies.
10. Policy Fund Value: is the total value of all funds which have the units of policy after deducting annual charges and debts (if any).
11. Risk Commencing Date : means the date Dai-ichi Life Vietnam decides to accept the insurance application and is shown in the Policy Certificate with the condition that the Policy Owner and the Life Insured remain alive or legally operating (if Policy Owner is an organization) when the Policy Certificate is issued by Dai-ichi Life Vietnam.
12. Premium Due Date: the dates on which the premium is due to be paid in accordance with premium frequency as specified in the Policy Certificate and other policy endorsements (if any).
13. Premium payment ending date: means the date from which onwards the Policy Owner needs not make premium payment in accordance with the Policy provisions specified in the Policy Certificate.
14. Benefit commencing date: lmeans the date the corresponding insurance benefits which are specified in the Policy Certificate take effect.
15. Policy Anniversary Date: means the day in each calendar year that corresponds to the Risk Commencing Date. If this date is not available in a certain year, the corresponding month-end date is the Policy Anniversary Date.
16. Policy Monthiversary Date:means the day in each month that corresponds to the Risk Commencing Date. If this date is not available in a certain month, the month-end date is the Policy Monthiversary Date.
17. Policy Maturity Date: means the last date of the insurance term as specified in the Policy Schedule, if the Policy is still in force at that time.
18. Maturity Benefit Date: means the date Dai-ichi Life Vietnam settles the policy benefits when maturity occurs according to the policy provisions specified in the Policy Certificate.
19. Policy Year:lis the duration of one calendar year from the Risk Commencing Date to the first Annual Policy Anniversary Date or any year starting from the latest Annual Policy Anniversary Date to the next Annual Policy Anniversary Date.
20. Current Policy Year: means the Policy Year that an insurable event or transaction is taken place under the Provisions of this Policy.
21. Premium Year: means the year in which Target Premium has been fully paid.
22. Premium: means the amount the Policy Owner will pay for Dai-ichi Life Vietnam at the premium due date in accordance with the premium term, premium frequency as specified in the Policy Schedule and other Policy Endorsements (if any).
23. Reduction of Investment Return : means the reduced amount of investment return arising from a policy loan or premium in arrears. The Reduction of Investment Return is calculated as a certain percentage of the policy loan or premium in arrears, and is determined by Dai-ichi Life Vietnam from time to time.
24. Fund Management Fee: means the amount of money used for the management of the Universal Life Fund.
25. Target Premium: means the amount payable by the Policy Owner for a certain Premium Year. Target Premium is determined depending on the Sum Insured, policy term, age, gender of the Life Insured.
26. Excess Premium (Top-Up): Beside the target premium, Policy owner may pay additional premium to allocate to Policy account value as an Excess premium.
27. Allocation Charge: means the total amount of money deducted annually and at rates determined by Dai-ichi Life Vietnam before Target Premium and Excess Premium being allocated into the Universal Life Fund.
28. Allocated Premium: means the amount of premium allocated into the Funds to buy Fund Units after the Allocation Charge has been deducted.
29. Cost of Insurance: means the amount deducted on a monthly basis to cover insurance benefits of this product as defined under the provisions of this Policy. The Cost of Insurance rate is determined on the basis of risks pertaining to Death and Total and Permanent Disability, which depend on the Life Insured’s age, gender, health condition and occupation. The Cost of Insurance is adjusted in accordance with the Life Insured’s attained age and the Sum Insured.
30. Policy Admin Fee: lmeans the amount deducted monthly by Dai-ichi Life Vietnam in order to cover the cost of policy administration and maintenance as well as providing policy-related information to the Policy Owner.
31. Surrender Charge: means the charge incurred when the Policy Owner decides to surrender his/her Policy.
32. Withdrawal Charge means the charge incurred when the Policy Owner withdraws money from the Policy Fund Value.
33. Monthly Charge: means the amount deducted from the Policy Account Value on a monthly basis by Dai-ichi Life Vietnam including the Cost of Insurance and Policy Administration Fee.
34. Policy Advance: means the decrease in the investment return as a result of cash advance from the surrender value of the Policy. Interest shall be determined in the percentages to the cash advances from the surrender value as stipulated by Dai-ichi Life Vietnam at each time.
35. Periodic Cash Coupon: means the cash benefit which is calculated as a percentage of the Sum Insured and is to be paid by Dai-ichi Life Vietnam according to the periods as specified in the Policy Provision.
36. Annual bonus: after the Policy has been in-force for two (02) consecutive years with complete payment for two (02) premium years, the Policy Owner shall be paid annual bonus taken from the profits that Dai-ichi Life Vietnam earns from this insurance product. Annual bonus (if any) is to be calculated by Dai-ichi Life Vietnam in accordance with the regulations of the Ministry of Finance at each time and be notified in writing to the Policy owner. This bonus shall become guaranteed income, and shall be allowed an interest rate specified by Dai-ichi Life Vietnam at each time if not withdrawed.
37. Incremental bonus: means the sum of annual bonuses left at Dai-ichi Life Vietnam’s account and other arising interests. The Policy Owner shall be entitled to withdraw either all or part of the incremental bonus or use this bonus to settle other insurance costs and debts (if any).
38. Cash and bonus account: means the account specified in the Insurance Policy which is created to record annual guaranteed bonuses and cash payments in relation to the insurance benefit for periodic cash coupon. This account shall be allowed an interest rate imposed by Dai-ichi Life Vietnam at each time.
39. Declared investment Rate: means the proportion of Allocated Premium invested into Fund less Fund management fee as requested in written agreement of Policy Owner. Investment Rate is to be not lower than the minimum interest rate committed by Dai-ichi Life Vietnam at each time specified in the Policy Provisions.
40. Surrender Value: means the amount which the Policy Owner is entitled to receive in case the Policy Owner chooses to cancel the insurance policy while the Policy is in force (exclusive of the case of death or Policy maturiry). Surrender Value is calculated at Dai-ichi Life Vietnam’s discretion in each period of time (and shall not include account balance of incremental interest of the Insurance Policy). The illustration of Surrender Value is to be attached in the Policy at the commencing date of the Policy.
41. Cash value: lmeans the amount of money equal to the Surrender value added by the Incremental bonus account balance specified in the Insurance Policy.
42. Net Cash Value: means the amount of money equal to the Surrender Value less Debts (if any), which is paid to the Policy Owner at the time the Policy Owner chooses to terminate the Insurance Policy (exclusive of the case of death or Policy maturity).
43. Insurable event: means the objective event which occurs to the Life Insured as a result of an arising risk specified in the insurance policy. In such event, the Life Insured shall be paid the amount of insurance benefit as stipulated in the Insurance Policy.
44. Accident: means one or a series of objective events which occur(s) as a result of an external object or an external force that bring(s) about death or injury to the Life Insured. Such events will only be defined as “accident” in this Policy if they meet all the following requirements:
- They must be unexpected and unintentional by the Life Insured;
- They must be the sole and direct cause to the death or injury of the Life Insured;
- There must not be any bodily injury caused by sickness or disease, bacterial or viral infection.
45. Total and Permanent Disability: The disability of the Life Insured caused by accident or disease, resulting in complete loss or permanent paralysis and functionally irrecoverable of:
- Both arms; or
- Both legs; or
- One arm and one leg; or
- Both eyes; or
- One arm and the sight of one eye; or
- one leg and sight of one eye.
The condition of paralysis must be above 80% according to the Disability Standards issued by the competence authority and remains effective at the occurrence of the insurable event.
46. Late stage critical illness/Terminal illness: is defined by medical specialists and recognized by the Dai-ichi Life Vietnam medical representatives as a medical condition that is expected to result in the death of the Life Insured within 6 months. This illness is neither medically able to be cured nor adequately treated. Suffering patient can only be alleviated in symptoms and improved in physical condition by use of supportive therapy.