1. What are the characteristics of investment-linked insurance products?

Characteristics of insurance products belonging to investment-linked operations as prescribed in Article 101 of the LawDecree 46/2023/ND-CP has the following specific characteristics:

- Separation of benefits: Benefits of investment-linked insurance contracts are clearly divided between risk insurance benefits and investment benefits. This brings transparency and fairness to both insurance buyers and service providers.

- Flexible choice: The insurance buyer is not simply a participant in investment benefits, but also has the ability to flexibly choose to participate in risk insurance benefits. This facilitates customers to best monitor and manage their personal needs.

- Management of insurance premiums and insurance amounts: The insurance buyer has the privilege of flexibility in determining insurance premiums and insurance levels as agreed in the insurance contract. This creates a positive environment where customers can adjust these factors to more accurately reflect their financial situation and risk level.

- The insurance fee structure is organized clearly and in detail, especially in the separation between investment fees and initial fees as prescribed in Point a, Clause 1, Article 99 of Decree 46/2023/ ND-CP. Below is a detailed description of the fees charged to policyholders:

The initial fee is not simply an expense, but also an important source of funding, designed to cope with the costs associated with operating insurance contracts and capital costs of insurance businesses. . The initial fee will be deducted based on a percentage (%) from the total insurance premium paid by the insurance buyer. After deducting the initial fee, the remaining fee is considered an investment fee. The investment fee will then be allocated to the investment-linked fund (for investment-linked insurance contracts) or voluntary pension fund (for pension insurance contracts). The allocation period does not exceed 30 days from the date the insurance enterprise receives the insurance premium, creating favorable conditions for flexibility and efficiency in financial management and investment of the insurance buyer.

- The insurance buyer not only enjoys the full investment results from the investment fee, but also especially applies extremely transparent and fair deduction regulations at points b, c, and d, Clause 1, Article 99 of Decree 46/2023/ND-CP. Below are details of fees applicable to insurance buyers:

+ Contract management fee: Contract management fee is designed to offset costs related to maintaining insurance contracts and providing contract-related information to insurance buyers. The contract management fee is deducted directly from the policyholder's account value, creating favorable conditions for transparency and efficiency in contract management.

+ Risk fee: Risk fee is used to pay risk insurance benefits as committed in the insurance contract. Similarly, risk fees are also deducted from the insurance buyer's account value, helping to ensure fairness and safety in the risk management process.

+ Fund management fee: Fund management fee is used to pay for investment activities, asset valuation, fund supervision and management. The fund management fee is deducted before determining the fund's investment results, enabling the insurance buyer to fully benefit from the investment results.

2. What are the benefits of an investment-linked insurance contract?

According to the provisions of Article 102 of Decree 46/2023/ND-CP, investment-linked insurance contracts have the following specific benefits:

- Investment-linked insurance contract benefits are designed in a unique and multi-dimensional way, including important incentives as follows:

+ Risk insurance benefit: This benefit sets out specific regulations on the payment of benefits when risks occur, creating a strong layer of protection for the insurance buyer. This not only protects their accounts against unwanted risks but also ensures safety and stability for their personal financial situation.

+ Investment benefits: This benefit determines the incentives that insurance buyers gain from investing, creating conditions for them to benefit from the development of the financial market. The buyer is not only protected but also proactive in optimizing profits from investment decisions.

+ Other bonus benefits (if any): This benefit includes different bonuses to promote and increase account value in the investment-linked insurance contract. This flexibility not only encourages insurance buyers to actively participate but also increases their account value and creates motivation in the process of maintaining and developing the contract.

- Risk insurance benefits are comprehensively designed, providing the insured with special incentives and meeting the minimum level according to the following detailed regulations:

+ Death and total permanent disability benefit: This benefit not only includes payment when the insured person dies in an accident but also provides permanent total disability benefit in difficult cases. towel. This brings peace of mind to the insured person and their family, protecting them against all health and financial risks.

+ Meet the minimum level: Risk insurance benefits must meet the prescribed minimum levels to ensure transparency and fairness in the payment of benefits. For one-time basic premium insurance contracts: VND 50,000,000 or 125% of the basic premium amount, whichever is greater. For periodic basic premium insurance contracts: 50,000,000 VND or 5 times the annual basic premium, whichever is greater. This minimum level ensures that the insured will receive a reasonable level of payment, commensurate with the contract's commitment.

+ Flexibility for target groups: Insurers can be flexible in providing death benefits with amounts lower than the minimum for special target groups, such as people aged 60 and over. The insurance amount can be adjusted but not lower than 50,000,000 VND, creating favorable conditions and realizing benefits for each specific group of subjects.

- Investment benefits: Investment benefits are not simply the result of investing insurance premiums but are also the extension of the understanding and flexibility in financial management of the insurance buyer. dangerous. All investment results from investment fees will be calculated after deducting the fund management fee as agreed in the insurance contract, creating an opportunity for the insurance buyer to enjoy comprehensively and proactively. from investment benefits.

- Long-term commitment until 2025: Within 02 years from the effective date of this Decree, insurance enterprises not only commit to maintaining but also expanding the provision of excellent benefits of insurance contracts. investment association, according to special regulations and product terms approved by the Ministry of Finance before the effective date of this Decree. This action is not only a short-term commitment but also a long-term commitment, setting high standards of stability and quality in meeting the increasingly diverse needs of customers in the insurance market. investment-linked insurance.

3. Minimum term of the basic premium investment-linked insurance contract

In Clause 3 of Article 101 of Decree 46/2023/ND-CP, regulations on the term of investment-linked insurance contracts are adjusted to ensure stability and maximum benefits for the insurance buyer. . According to details:

- Minimum period of periodic basic premium payment: The minimum term of an investment-linked insurance contract with periodic basic premium payment is specified as 10 years. This term is not just a simple period but also a commitment to a long-term journey, optimizing investment benefits and financial protection for the insurance buyer.

- Minimum term for one-time basic premium payment: An investment-linked insurance contract with one-time basic premium payment must maintain a minimum term of 5 years. This term mainly emphasizes stability and long-term commitment, creating conditions for insurance buyers to enjoy all investment benefits and risks for a period of time long enough for them to maximize benefits. from your investment strategy.