Efu Saving Plan

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Savings Plan Illustration of Benefits Projected Future Cash Values for Your Savings Plan Age at Commencement of Plan 35 years Gross Annual Premium Rs. 30,000 Life Insurance Cover Rs. 600,000 Term 20 Years Assumptions 8% p.a 10% p.a 12% p.a At the end of Year rate of return rate of return rate of return 5 141,063 148,804 156,908 10 363,366 404,518 450,553 15 675,927 798,459 944,864 20 1,107,536 1,392,996 1,760,511 This brochure gives a general outline of ‘Savings Plan’. The contract will be governed by the detailed conditions set out in the policy Provisions and Conditions. EFU Life is registered and supervised by the Securities and Exchange Commission of Pakistan. As per the directive of SECP, the values given above are based at assumed rates of return of 8%, 10% and 12% per annum. However, the actual values will depend upon the performance of the underlying investments in the EFU Growth Funds and can be higher or lower than the ones illustrated above. Certain charges apply on the plan as described in the sections on ‘Unit Allocation’ and ‘Charges’. The values illustrated are net of all charges. A description of how the contract works is given in the policy Provisions and Conditions. Please contact our Head Office or Sales Consultant for a personalized illustration of benefits. Call Centre: (021) 111-EFU-CSD (111-338-273) ISO 9001 2008 Certified UAN:

Transcript of Efu Saving Plan

Page 1: Efu Saving Plan

Savings PlanIllustration of Benefits

Projected Future Cash Values for Your Savings Plan

Age at Commencement of Plan 35 years

Gross Annual Premium Rs. 30,000

Life Insurance Cover Rs. 600,000

Term 20 Years

Assumptions

8% p.a 10% p.a 12% p.aAt the end of Year rate of return rate of return rate of return

5 141,063 148,804 156,908

10 363,366 404,518 450,553

15 675,927 798,459 944,864

20 1,107,536 1,392,996 1,760,511

This brochure gives a general outline of ‘Savings Plan’. The contract will be governed by the detailedconditions set out in the policy Provisions and Conditions. EFU Life is registered and supervised by theSecurities and Exchange Commission of Pakistan.

As per the directive of SECP, the values given above are based at assumedrates of return of 8%, 10% and 12% per annum. However, the actual values willdepend upon the performance of the underlying investments in the EFUGrowth Funds and can be higher or lower than the ones illustrated above.

Certain charges apply on the plan as described in the sections on‘Unit Allocation’ and ‘Charges’. The values illustrated are net of all charges.

A description of how the contract works is given in the policy Provisions andConditions.

Please contact our Head Office or Sales Consultant for a personalized illustrationof benefits.

Call Centre: (021) 111-EFU-CSD (111-338-273)

ISO 9001 2008 Certified

UAN:

Page 2: Efu Saving Plan

Savings for the futureEFU Savings Plan is a high value savingsand investment vehicle which alsoprovides valuable life insurancecoverage. The large funds accumulatedduring the savings term can be utilizedfor higher education or marriage ofchildren, buying a house, providingregular income after retirement and anyother purposes. The plan is highlyflexible and responds to an individual’sneeds.

Plan FeaturesEFU Savings Plan is a unit-linked lifeinsurance savings plan. The Plan isavailable to you as an employee of anorganization where you intend to paythe contribution through permanentwithdrawals from your provident fundbalances or where your employerswishes to make contributions for theemployees as an added remunerationbenefit. The Plan aims to accumulatethese contributions and provide a largesum at the end of the savings term. Inaddition it provides valuable lifeinsurance coverage during the entiresavings period.

Fund Selection OptionThe contributions to the Plan will beutilized to purchase units in the Fundselected by the policy holder.

Under this option you have the flexibilityto select from one of the following unitsaving funds based on your risk appetiteand investment objective at the inceptionof the policy:

• EFU Managed Growth Fund - Aninvestment fund with a balancedinvestment strategy. It aims toachieve reasonable capital growthand steady returns with investmentsin government securities, carefullyselected blue chip equities, and otherfixed income securities and cash.

each covered employee would need togive a written authorization to the trusteesof the Provident Fund to makepermanent withdrawals and pay thepremium to EFU Life.

The trustees, on an annual basis, wouldmake the necessary deductions fromthe employees’ Provident Fund balanceand make the payment of premiumto EFU Life. If the employer is makingthe withdrawal on behalf of theemployee, the policy can be assignedto the employer. The minimum annualcontribution for the Basic Plan isRs. 12,000.

Inflation ProtectionThis option gives you the security andpeace of mind of knowing that thebenefits provided by your Plan will beautomatically updated every yearregardless of your health.

Once you select this option, thecontribution will increase every yearby 7% of the initial contribution with anappropriate increase in benefits.

This benefit is available until age 55 andprovided you were accepted onstandard terms initially. You maysubsequently waive your rights tothis “guaranteed insurability” butsubsequent reinstatement will be subjectto medical evidence.

Other Important DetailsApplicable entry ages and savingstermsAll employees aged 18 to 60 years nextbirthday are eligible to enter the Plan.The Plan is available for savings termsof 10 to 40 years.

The savings term should be selected insuch a way that at the end of the term,the age does not exceed 70 years.

• EFU Guaranteed Growth Fund -An investment fund providing steadyreturns with a guarantee that the bidprice of the fund would never fall. Itaims to achieve stable growth withinvestments in short term debtsecurities.

The funds are managed by investmentexperts who adjust the mix of theunderlying investments in light ofeconomic conditions and investmentopportunities.

Access to SavingsThe Plan provides complete access toyour accumulated savings. The totalunits accumulated in the Plan can bewithdrawn for their Bid Value any timeafter the second policy year. Further thePlan also provides you a facility for partialwithdrawals whereby you may withdrawa certain portion of your accumulatedunits depending on your needs.

Payment of ContributionsThe Plan will be funded by contributionsfrom the employees’ provident fundbalance, or from contributions made bythe employer. In case of Provident Fund,

Additional Benefit RidersTo supplement the benefits of the MainPlan, additional benefit riders may beadded. The additional benefit ridersavailable with the EFU Savings Plan areas follows:

Accidental Death and DisabilityBenefitThis rider provides an additional lumpsum benefit (up to 100% of the MainPlan sum assured on accidental death.It also provides additional benefits onaccidental disability.

Accidental Death and DisabilityBenefit PlusIn addition to the benefits of theAccidental Death and Disability Benefitrider, this rider also provides the sumassured if an individual becomespermanently and totally disabled.

Additional Term AssuranceThis rider increases the level of life coverby providing an additional amount from50% to 100% of the sum assured of theMain Plan.

Waiver of Premium:In case an individual is unable to followhis occupation due to sickness oraccident, the contribution of the Planwould be made by EFU Life.

This benefit provides that if you areunable to follow any occupation forat least six months due to sickness oraccident, the present contribution to thePlan will be paid in full by EFU Life fromthe next due date. The benefit willcontinue until you return to work or your60th birthday, whichever comes earlier.This means that whether or not youcontinue to enjoy good health, yourfinancial planning will succeed.

Family Income BenefitIn case of death of the individual duringthe term of this rider, a monthly incomeof 1% or 2% of the Basic Sum assuredis paid for the remaining term.

Life Care BenefitThe rider provides prepayment of theBasic Sum assured if an individual isdiagnosed with a critical illness.

Life Care Benefit PlusOn the diagnosis of a critical illness, thisrider provides an additional amountequal to the basic sum assured. Thebasic policy continues after thispayment.

These riders may be attached to theSavings Plan by payment of additionalpremium applicable to the rider.

*if Basic Plan contribution is over Rs. 20,000

Year50%90%

100%103%105%

12

3 onwards6 to 10*

11 onwards*

% allocation

Unit AllocationThe proportion of Basic Plan contributionallocated to investment is as follows:

ChargesThe following charges apply on the Plan:

Investment Management Charge:0.125% of the value of the fund valueper month; Bid/Offer spread: 5% of thenet contribution; Administration Charge:Rs. 165 per annum (if Basic Plan annualpremium is less than Rs. 25,000).

An age based mortality charge appliesfor the life insurance risk each year andis dependent on the sum at risk. Nomortality charge applies in years wherethe cash value exceeds the sumassured.

Death BenefitsIn case of death, EFU Life would payan amount which would be greaterof the Sum Assured or the Cash Valueof the Plan.

Maturity BenefitsAt the end of the savings term, EFU Lifewould pay an amount which would begreater of the Basic Sum Assured or theCash Value of the plan.

Retirement IncomeAt the end of the savings term, theaccumulated fund value may be utilizedto provide a pension. The pension wouldbe paid monthly and would depend onthe investment climate prevalent at thattime, maturity value of the plan, yourage and the guaranteed pensionpayment period.