In the event of death occuring before age of 5 years next birthday, 100% of TAV and the following percentage of BSC are payable.

Transcription

1 MARKETING Marketing Name Plan Abbreviation Distribution Channel i-great Abadi IL ABADI Agency PLAN DESCRIPTION Product Design (a) This product is a regular contribution investment-linked Family Takaful plan with access to professionally managed unit fund(s). (b) This plan is an investment linked family takaful plan that matures at age 99. (c) Contributions paid are channeled to the Participant s Unit Account (PUA), in accordance with the prescribed contribution allocation rates for each contribution year. The contributions will be used to create unit fund(s) in the Takaful Fund of choice. The Total Account Value (TAV) of the PUA for this plan will vary based on the actual performance of the unit fund(s). (d) Upfront Charge (a.k.a. unallocated contributions) will be deducted from Total Contribution, and; (e) Charges to be deducted from the PUA consist of (i) Tabarru ; (ii) Service Charge; (iii) Fund Management Charge. Note Please refer to Section Charges for details. (f) Tabarru is deducted from the PUA and channeled to the Tabarru Fund (Risk Fund) where the claim amounts (the Basic Sum Covered portion) are paid from. Note The Tabarru Fund must be distinctly separate and tracked independently from the PUA. (g) Basic Investment Contribution = Takaful Contribution + Regular Top-Up Contribution (h) The 5-year projection rule will consider 95% of the Basic Investment Contribution in the calculation. (i) This product will employ a single-pricing basis, where all transactions will be based on one price only. This single price will now be known as the Net Asset Value (NAV). (j) The Investment Strategy is applicable for this product. (k) Only one certificate per Person Covered is allowed to participate in this product. BENEFITS i. Death Benefit Upon death of the Person Covered, the following will be payable (a) Basic Sum Covered (BSC) from Tabarru Fund; plus (b) TAV from PUA where TAV is calculated at NAV at the next Valuation Date, in one lump sum. In the event of death occuring before age of 5 years next birthday, 100% of TAV and the following percentage of BSC are payable. Age Next Birthday Basic Sum Covered after Lien 1 20% of the Basic Sum Covered 2 40% of the Basic Sum Covered 3 60% of the Basic Sum Covered 4 80% of the Basic Sum Covered Page 1 of 9

2 Note Full cover will be given from age 5 next birthday. Total and Permanent Disability (TPD) Benefit Upon TPD prior to the certificate anniversary on which the Person Covered attains age 70 years next birthday, the following will be payable (a) 100% TAV is payable in one lump sum (or be retained with the Takaful Operator as per (b) participant s choice to continue paying for riders) from PUA. The BSC not exceeding RM2,000,000 under this certificate and all certificates and riders on the same person shall be paid in 3 annual instalments with the first being a lump sum of the BSC or RM1,000,000 whichever is lesser, and the balance of the BSC (if any), will be payable in two equal, annual instalments of maximum RM500,000 each from Tabarru Fund. The maximum TPD Benefit payable under this and all certificates and riders on the same person payable by GE Takaful Takaful Operator, is RM 3,500,000 per person. However, if TPD occurs prior to the certificate anniversary on which the Person Covered attains age 5 years next birthday, a child lien as per Death Benefit shall apply on BSC, subject to a maximum amount of RM500,000 per person, payable by Great Eastern Takaful Sdn. Bhd. under this and all certificates and riders on the same person. i Accidental Death Benefit In the event of death due to accidental cause in the 1 st certificate year, the following will be payable from Takaful Operator s fund in one lump sum- Accidental Death Benefit = 10% of Minimum [(Total Contribution Paid* minus Partial Withdrawal (if any) made during the 1 st certificate year, RM1 million] Provided that- (a) Total Contribution Paid* minus Partial Withdrawal (if any) made during the 1 st certificate year must be at least RM20,000 or above; and (b) The Accidental Death Benefit payable shall be limited up to a maximum amount of RM100,000 *Total Contribution Paid is the payment made for Basic Investment Contribution and Single Contribution Top Up (if any) during the first certificate year. Note There is no additional tabarru for this benefit. Example 1 Annual Basic Investment Contribution paid at inception = RM10,000 Single Contribution Top-Up made in the 5 th month of the 1 st certificate year = RM50,000 Partial Withdrawal made in the 7 th month of the 1 st certificate year = RM20,000 Death occurs due to accidental cause in the 9 th month of the 1 st certificate year Accidental Death Benefit claimed at death = 10% [(RM10,000 + RM50,000 RM20,000), RM1 million] = RM4,000 Example 2 Annual Basic Investment Contribution paid at inception = RM20,000 Single Contribution Top-Up made in the 3 rd month of the 1 st certificate year = RM40,000 Partial Withdrawal made in the 6 th month of the 1 st certificate year = RM15,000 Death occurs due to accidental cause in the 5 th month of the 2 nd certificate year No Accidental Death Benefit will be payable since the accidental death occurs after certificate year 1. Page 2 of 9

3 Enhanced Allocation Additional 2% of Basic Investment Contribution allocation will be given from the Takaful Operator s fund for every 3 rd contribution payment year. Please see Contribution Allocation for further details. v. Maturity Benefit Upon maturity, 100% TAV (if any) of the PUA will be payable in one lump sum. CHARGES i. Upfront Charge Upfront Charge is the unallocated contributions which consist of agent s commission and distribution related expenses under the Takaful Operator s Fund. The Charge will be at the following rates Contribution Due and Paid Upfront Charge % 1 st and 2 nd years 5 3 rd year 3 4 th and 5 th years 5 6 th year 3 i Tabarru (a) Basic benefit of Tabarru varies by the attained age next birthday, gender and smoker status of the Person Covered. (b) The monthly Tabarru is calculated as the sum covered times one twelfth of the Tabarru rates corresponding to the attained age. (c) Tabarru is deducted monthly at the beginning of each certificate month by cancelling units already allocated to the certificate under the PUA to Tabarru Fund, at the NAV on the next Valuation Date following the due date of the Tabarru. Service Charge An administration charge of RM6 is deducted monthly at the beginning of each certificate month by cancelling units already allocated to the certificate from the PUA, at the NAV on the next Valuation Date. Fund Management Charge (a.k.a Fund Management Charge previously) (a) Fund Management Charge is deducted from PUA at each asset valuation before determining the NAV. Unit prices will reflect the deduction. (b) The Fund Management Charge to be deducted is t 250 K% Value of Fund where t = the number of business days from the preceding Valuation Date to the Current Valuation Date; K% = the percentage charge (subject to the Investment Committee s approval) for the appropriate fund Page 3 of 9

4 (c) Value of Fund refers to the value of the appropriate fund as determined by the Takaful Operator. NET ASSET VALUE (NAV) Fund Code Fund Name Fund Management Charge (K%) 01 Dana i-makmur Dana i-mekar Dana i-majmuk 1.25 i. NAV The price at which the participant buys the units in a fund and sells the units back to the fund. Determination of Price NAV of each fund are determined daily, after the valuation of the assets of that fund. CONTRIBUTION i. Contribution payment mode This is an annual contribution plan but it can also be participated with half-yearly, quarterly or monthly contribution installments. Contribution payment method (a) GIRO and credit card are allowed for all modes of contribution payments. (b) Cheque and cash is allowed for yearly modes ONLY. (c) Biro Angkasa is allowed for monthly modes ONLY. (d) Koperasi Angkatan Tentera (Unit Gaji Angkatan Tentera - UGAT billing) is allowed for monthly mode at new business stage ONLY. This payment method is allowed ONLY for GOA KAT Agent. Army number MUST provided during esub. (e) Salary Saving Scheme (SSS) is allowed for monthly mode ONLY. Female Rates / Non-smoker Discount Rates vary by gender and smoker status. v. Large Sum Covered Discount Not applicable. vi. Backdating Not applicable. CONTRIBUTION ALLOCATION Basic Investment Contribution = Takaful Contribution + Regular Top-Up Contribution i. Basic Investment Contribution (including Enhanced Allocation) The basic investment contributions are allocated to the unit fund(s) of the PUA at the following rates Page 4 of 9 Contribution Due and Paid Allocation Rate % 1 st and 2 nd years 95 3 rd year 97 4 th and 5 th years 95 6 th year 97

5 51 st year nd and 53 rd years th year th and 56 th years 100 Note Basic Investment Contribution will be allocated at 97% allocation rate for every 3 rd contribution payment year. Additional allocation rate of 5% will be given from 51 st contribution payment year onwards. Single Contribution Top-Up Allocation Rate 95% UNDERWRITING GUIDELINES i. Min/Max Age at Entry Minimum 30 days old attained age (19 years next birthday for certificate ownership) Maximum 70 years next birthday Minimum/Maximum Annual Contribution Note Annual Contribution = Basic Investment Contribution Mode of Payment Minimum Maximum (RM) (RM) Annually 6, ,996 Half-Yearly 3, ,000 Quarterly 1, ,000 Monthly ,333 Takaful Contribution is calculated as Basic Sum Covered / Sum Covered Multiple Rule per Table A below, subject to current rounding method (round to the next 5 cents) Table A Age at Entry Sum Covered Multiple Rule and above 60 Note The contribution amount in excess of the Takaful Contribution will be considered as Regular Top-Up Contribution. Example Age Next Birthday 30 (i.e. multiple is 60x) Annual Contribution = RM20,000 Takaful Contribution = RM10,000 / 60 = RM Page 5 of 9

6 Thus, Regular Top-Up Contribution = RM20,000 RM = RM19, i Sum Covered for Basic Benefit Fixed Sum Covered = RM10,000 Non-Medical Limits The proposal will be underwritten based on the combined Sum Covered of basic plan and riders/supplementary benefits (if applicable). The non-medical limits are based on current Internal Underwriting Guidelines / Field Underwriting Manual. v. Underwriting (a) Basic plan only - Simplified underwriting shall apply as per the table below. Extra Mortality Underwriting decision (EM) 0 <= EM <= 50 Accept Standard 50 < EM <= +200 Accept with Lien (to be imposed throughout the certificate term) - 50% of Basic Sum Covered* will be payable upon natural death or TPD % of Basic Sum Covered * will be payable upon accidental death and accidental TPD. *Subject to Child Lien, if applicable. EM > +200 Decline (Appeal is allowed, subject to the normal underwriting) (b) Basic plan + Provider / Contributor Rider - Normal underwriting shall apply. FLEXIBLE OPTIONS i. Single Contribution Top-Up A participant can make further single contribution as investment top-ups subject to the minimum of RM 1,000 each at any time provided the current year's and all previous years' Basic Investment Contribution have been fulfilled. i Contribution Increment A participant can increase the next Basic Investment Contribution due, subject to the following conditions Mode of Payment Minimum Increment (RM) Annually 240 Half-yearly 120 Quarterly 60 Monthly 20 Partial Withdrawal Monies can be withdrawn by selling some of the units at the NAV in one or more of the invested funds subject to the following conditions a) The minimum amount for partial withdrawal must equal to RM 1,000. b) The aggregate value of the remaining units in all funds must be at least RM 5,000. Page 6 of 9

7 Fund Switching A participant can create and cancel units in any one fund at the NAV, at any time after the certificate has turned inforce without any charge.the minimum amount canceled to create units another units in another unit fund must equal to RM1,000. More than one switch can be done at one time and this will be considered as a single switch. v. Changing Contribution Apportionment A participant can alter the contribution apportionment at any time. After the Takaful Operator receives the alteration request, the next and all future contributions will be apportioned to the unit funds in the new proportions subject to 5% of the Basic Investment Contribution listed in the table below Mode of Payment Minimum Amount Apportionable to Each Fund (RM) Annually 300 Half-Yearly 150 Quarterly 75 Monthly 25 vi. Changes in Sum Covered Not allowed. (a) Increase in Sum Covered Not allowed. (b) Decrease in Sum Covered Not allowed. FUND ASSET ALLOCATION Participant can choose to invest in one or more of the following funds Dana i-mekar A fund where 80% to 100% of investment are equities, which may be volatile in the short term. This fund seeks to achieve medium to long term capital appreciation. Although the fund is invested mainly in Malaysia (80% - 100%), it may partially be invested in Singapore (up to 25%) and Hong Kong (up to 25%), if and when necessary, to enhance the fund s returns. Dana i-mekar is only invested in Shariah Approved securities. Dana i-makmur A fund which is invested in fixed income securities, for example government and corporate bonds (ranging from 40% to 95%) with the balance invested in cash and cash equivalents. This fund seeks to provide consistent return at low levels of volatility. Dana i-makmur is only invested in Shariah Approved securities. Dana i-majmuk A fund which is invested in a mixture of equities, fixed income securities and money market instruments. There is flexibility in asset allocation as this fund may be invested solely in fixed income securities or equities. This fund seeks to provide medium to long-term capital appreciation, with a moderate level of volatility. Dana i-majmuk is only invested in Shariah Approved securities. Page 7 of 9

8 RIDERS / SUPPLEMENTARY BENEFITS Provider and Contributor Benefits a) i-provider on DD Rider (A403) b) i-provider on TPD Rider (A404) c) i-provider Plus Rider (A405) d) i-contributor Rider (A401) e) i-contributor Benefit Plus Rider (A402) Please refer to the product write-up for the above riders for details. OTHER PRODUCT FEATURES Surrender Values The cash value of the certificate is the total value of all the units in all the funds selected by the participant based on the NAV at the Next Valuation Date. Paid-up Values / Extended Term Takaful / Certificate Loans / Automatic Contribution Loan / Bonus Rate / Option to Participate New Certificate Not applicable. OTHER PRIVILEGES i. Assignment/ Nomination Allowed. Third Party Certificate Allowed. However, the minimum age at entry for participant should be 19 years next birthday. Note 6% Service Tax is applicable to all contributions including single contribution top-ups paid by business organisation as third parties. i Free-Look Period Participant is allowed to cancel the certificate within 15 days. Under such circumstances, the following will be payable (a) value of unit fund(s) that have been allocated to the certificate under the PUA; and (b) any Tabarru and Service Charge that have been deducted from the value of unit fund(s); and (c) Upfront Charge (a.k.a. unallocated contributions) Less medical expenses incurred, if any. Reinstatement (a) If the certificate is terminated as a result of non-payment of contributions following which the Total Account Value is less than or equal to zero, participate may reinstate it within three (3) years from the date of termination subject to the terms and conditions to be determined by the Takaful Operator. (b) Upon reinstatement, the outstanding contributions paid will first be used to offset the accumulated debts, if any. v. Replacement of Certificate (ROC) Subject to ROC guidelines, except for (a) replacement of i-great Abadi to i-great Abadi (b) replacement of Smart Invest to i-great Abadi or vice versa. Page 8 of 9

9 AGENCY COMPENSATION Basic Investment Contribution / Single Contribution Top-Up The commissions are paid as a percentage of contributions paid, as detailed below. Basic Commission Overriding Commission Year of Contribution Paid As a percentage of contributions paid 1 to % 1.0% Year of Contribution Paid Agency Related Expenses As a percentage of contributions paid All 0.75% AGENCY REQUIREMENT Only agents who have passed the Takaful Basic Exam (TBE) examination conducted by the Malaysian Takaful Association (MTA) jointly with Malaysian Insurance Institute (MII) or its equivalent are allowed to sell investment-linked family takaful certificates. Note The leader must also pass the TBE to be eligible for overriding commission. Page 9 of 9