CONDITIONS FOR GUIDING THE IMPLEMENTATION OF UNIVERSAL LIFE INSURANCE PRODUCTS
In accordance with the Circular No. 52/2016/TT-BTC dated March 21, 2016 guiding the implementation of universal life insurance products, when implementing the universal life insurance products, the insurers must meet the conditions such as the solvency of insurers is larger than the minimum solvency of 100 billion dong; have suitable information technology system for prudent and effective management and control of universal life fund…
The insurance benefits under the universal life insurance contract including the benefits of risk insurance and investment benefits. Benefits of risk insurance includes that he insurers and the insurance buyers shall make agreement on benefits of risk insurance but must ensure the minimum amount of insurance is not lower than 5 times of the periodical premium of the first year for the insurance contract with periodic payment of premium or not lower than 125% of premium for insurance contract with one-time payment of premium; the provisions on minimum benefits in case of death do not apply to the additional premiums; the insurers can provide the insurance products complementary to the universal life insurance products. The mode of payment of premium to the complementary insurance products shall be agreed by the parties when signing contract. The investment benefits: The insurance buyer shall receive the benefits from the investment result of universal life fund with the minimum investment rate specified in the insurance contract.
Also in accordance with this Circular, the insurers are only allowed to calculate the the initial fee; the fee of risk insurance; the fee of insurance contract management; the fee of fund management; the fee of insurance contract cancellation. Besides, in each contract year, the total additional premium must not exceed five (05) years of the premium of the first year for periodical premium payment contract.
This Circular takes effect from on June 01, 2016.
