Document ID: chunk:federal_register_of_legislation:F2023L00208:reg:1
Version: federal_register_of_legislation:F2023L00208
Segment Type: reg
Provision Reference: reg 1
Character Range: 35506–38346

1      Family income         A policy under which:                                                                                                                                                                    1.1 The minimum paid-up value is:

                                 (a)           an amount is payable (the basic sum insured) on the death of the life insured; and                                                                                     where:

                                 (b)           an additional amount of life insurance benefits (the additional benefits) is payable if the death of the life insured occurs within the term specified in the policy.      (a)  PUVB is the amount of the paid‑up policy in respect of the basic sum insured;

                                                                                                                                                                                                                          (b)  PUVA is the amount of the paid‑up policy in respect of the additional benefits calculated according to Attachments 1 and 2 of this Prudential Standard, as if, for the purposes of those attachments, the additional benefits were a policy that will not participate in future profits; and

                                                                                                                                                                                                                          (c)   ADJ is calculated according to the following formula:

                                                                                                                                                                                                                          where:

                                                                                                                                                                                                                      (i)      AA is the present value, as at the attained age, of $1 of sum insured according to the contingencies upon which the additional benefits are payable; and
                                                                                                                                                                                                                             (ii)    AB is the present value, as at the attained age, of $1 of sum insured according to the contingencies upon which the basic sum insured is payable.

                                                                                                                                                                                                                      1.2  The minimum termination value is calculated according to Attachment 2.