Key Features Document

Transcription

1 Key Features Document App: El Edekhar Lel Zawag - Marriage Savings Plan Quick Facts Introduction Product Name: El Edekhar Lel Zawag - Marriage Savings Plan Name of Product provider: (Allianz) Life Assurance Company-Egypt Frequency of Payment: Monthly Quarterly Half-Yearly Yearly Policy Currency: EGP USD Basic Insurance Cover: Loss of life Optional Insurance covers: Total Permanent Disability Marriage Savings Plan is a long-term Savings product that is designed to help you secure your children s future marriage expenses. Additionally, the product will provide you with a waiver of premium benefit, where in the unfortunate event of loss of life (God forbid) Allianz Egypt will pay the remaining premiums on your behalf until the maturity date so that your children can enjoy the benefits. Before applying, you should consider the following: What is your savings goal for your children s wedding expenses? How long do you plan to save for? Whether you are ready to hold this plan for a medium to long term? You have adequate liquid cash for emergencies? What we recommend is: To seek ongoing financial advice especially before making changes to your plan and whenever your circumstances change. To ensure that you are satisfied and understand all of the important aspects of your plan, especially the risks and charges associated with your plan. Policy Benefits Savings Benefit: When the policy matures, Allianz Egypt will pay you the value of the investment account at the date of maturity. Payment can be made as a lump sum amount or on annuity basis. Your investment account value depends on how much you save, how long you save, the annual profit participation declared by Allianz Egypt, and the charges applied to the policy. Basic Sum assured: In case of the loss of life (natural or accidental) of the insured, God forbid, and as long as the policy is still in force, Allianz Egypt will pay the premiums on behalf of the insured until the maturity date. Your plan will continue to receive the profit participation declared by Allianz Egypt during the period of premium waiver. You can choose to add the following optional covers to your plan: Optional Covers Benefit Maximum Entry Age Maximum Cover Age Total Permanent Disability Waiver of premium till policy maturity For more clarifications on the scope and exclusion of each cover please refer to the policy

2 Age Eligibility Criteria The minimum eligible age to apply for a policy is 21 years. The maximum eligible age to apply for the Basic Waiver of Premium Cover is 60 years. This cover can insure you up to the age of 65 years. The maximum eligible age to apply for the Total Permanent Disability Cover is 55 years. This cover can insure you up to the age of 60 years. The minimum plan term is five years. The maximum child age at the date of receiving the policy benefits is 27 years. Policy Premium Policy Mechanism The policy becomes in force after the first premium payment is received by Allianz Egypt and upon policy issuance. The minimum premium that you can contribute is EGP 250 or USD 50 on a monthly basis. Commitment benefit: Upon choosing the suitable premium amount and frequency, the premium will be automatically debited from your bank account in accordance with your direct debit instructions kept with the bank. This service is free of charge. Upon receipt of each premium payment Allianz Egypt will perform the following: 1- Deduct the Cost of insurance: This cost covers the waiver of premium benefit that will be triggered in case of an insured event taking place. 2- Deduct Allianz Egypt administrative fees, which includes commission paid to the introducing bank for arranging this product for you. 3- The remaining part of the premium is allocated to a Transition Account = Premium Cost of Insurance Allianz Egypt administrative fees. 4- The money in the Transition Account will then be directed to an Investment Account where on annual basis Allianz Egypt announces the profit participation, which is then reflected on your policy investment account. 5- Profit participation is the annual rate of return declared by Allianz Egypt. 6- Upon profit declaration, Allianz Egypt will calculate your plan s profit based on your daily investment account balance. This value will then be credited to your investment account. 7- Annual Investment Letter: Allianz Egypt will send you an annual letter with the investment account value and the profit participation declared by Allianz Egypt. The chart below is for illustrative purposes only. It shows the performance of an Marriage Savings plan over a 20 year term, and demonstrates the customer s contributions and the potential Investment account value based on assumed rates of returns. Value of investment (EGP) Investment account Breakeven Point Surrender Value is less than total premium paid Total Premium paid Policy Period (Years)

3 Risk Factors Surrender You may get back less the amount shown to you on the quotation offer illustration due to the following risk factors: Return Risk: The value of your plan can be less than illustrated if the actual profit participation declared is lower than illustrated. The returns also depend on any increases to charges and stamps fees other than those illustrated and/or any Automatic Contribution Loans taken effect to finance any unpaid premiums. For more details on Automatic Contribution Loan please refer to the section below. Inflation Risk: You must consider the effect that inflation may have on the real value of your investment and potential returns. Cancelation Risk: If you cancel your plan, subject to a written notice to Allianz Egypt, within the first two years, you will not have any surrender value. For further details on these risk factors and other applicable risk factors, please refer to Allianz Egypt Insurance Specialist. You may decide to surrender the policy at anytime once it has acquired a surrender value subject to a written notice to Allianz Egypt. The value of the investment account will be paid as a lump sum which may be less than the total premiums contributed. Policy Term Surrender value 0-2 years No surrender value available years Surrender value will be 95% of the investment account value at the surrender date. After 10 years Note on Investment Account Value Surrender value will be 100% of the investment account value at the surrender date. It is the premium paid minus the cost of insurance, policy administrative fees and the bank commission after adding the declared annual profit participation. The policy surrender value may be less than the total premiums paid We highly recommend that you review the quotation offer to understand the value of your savings for each year. Cancelling Policy Prior To Receiving Contract Failure To Pay and Automatic Contribution If you notify us in writing that you would like to cancel the policy before receiving the contract and during the first 2 months from the policy issuance date, you will be entitled for a full refund for the premiums paid after deducting a fee of (EGP 85 or USD 25) and the cost of medical exams, if any. After the two month period, the surrender rules of the policy will apply. Failure to pay the premiums to Allianz Egypt will result in the policy lapsing. Please see details below as well as the policy documents for full details. If Allianz Egypt does not receive the policy premiums on the due date, you will have a grace period of 45 days from the scheduled payment date. If no premium payments are received within this period, the following procedures will take place: If the policy has no surrender value: The policy will lapse and you will no longer be insured. Allianz Egypt will provide you with an additional 45 days grace period to settle the due premiums. If no premiums are received by Allianz Egypt during this additional period, the policy will be cancelled with no refund. If the policy has a surrender value: If you do not pay your premium, Allianz Egypt will automatically lend you the money to pay your premium. The loan will be deposited by Allianz Egypt into your transition account and will be treated as a regular premium. The rate of interest on this loan will vary from time to time but you can find out the current rate of interest at any given time by contacting the call center number written below. This process will be repeated in case future premiums are not paid on their due dates as per the policy premium schedule. If the policy encashment value becomes equal to the loan booked plus interest charged, no further Automatic Contribution Loans will be booked and the policy will be cancelled. Once the policy is cancelled Allianz Egypt will use the policy encashment value to settle the loan amount. A notification letter will be sent to you 15 days prior to the Automatic Contribution Loan being initiated asking you to pay the due premiums within 15 days. Another notification letter will be sent to you once an automatic contribution loan is initiated. The Automatic Contribution Loan and interest charged can be repaid back to Allianz Egypt at any time. The Automatic Contribution Loan feature is not an optional feature of the policy. The Automatic Contribution Loan Feature has been explained to me. Customer signature (...)

4 Reactivation If the policy is cancelled for non-payment of premiums, the policy can be reinstated within 12 months of cancellation, after paying all outstanding premiums and fulfilling all requirements and subject to acceptance by Allianz. The policy will then be reinstated with the original terms and conditions. With Profit Fund The plan directs the money in the Investment Account to a With Profit Fund available in EGP and USD. The fund is solely managed by Allianz Egypt. This is a Capital Guaranteed fund, with no minimum guaranteed annual rate of return. Policy Options Variation Option: It is an optional feature where you can choose to increase the premium or the premium and cover automatically with a certain percentage on annual basis. The rate of increase can be chosen from 1% to 7%. Changes To Contract Policy Charges You can perform the following changes to the policy: 1. Technical Endorsement: subject to Allianz Egypt approval, you can request to change the policy premium, wedding fees, add additional cover, change the premium payment frequency or policy term by submitting a written request two months prior to the policy anniversary date. Technical endorsements can be only executed on the anniversary date of the policy. 2. Non-Technical Endorsement: Subject to Allianz Egypt approval,you can change the mailing address, contact details, assigned beneficiaries at any time during the policy term by submitting a written request to Allianz Egypt. Egyptian Regulatory Charges, Proportional stamp & Supervisory fees: an additional 0.75% is charged to the policy premiums. Egyptian Regulatory Dimensional stamp: One-time fee of EGP 5.5 or USD 1.4. Allianz Egypt Issuance fees: Total of EGP 120 paid over 5 years (EGP 24 per year) or USD 30 paid over 5 years (USD 6 per year). Automatic contribution loan: Allianz will charge an annual interest rate calculated based on the average interest charged by three Egyptian commercial banks. To know the current interest rate charged please contact Allianz Egypt call center number stated below. Technical endorsement fees: EGP 24 or USD 6 in addition to dimensional stamp fee of EGP 1.5 or USD Allianz Egypt administrative fees: includes commission paid to the bank for arranging this policy on your behalf. Other Documents Policy Wording: Provides you with the full product features in addition to the contractual terms and conditions. Quotation offer: Provides you with your tailored plan offer (N.B the offer is subject to change during the policy underwriting process). Contacts, Complaints Or Claims. You may visit us in person at our Head Office: Allianz Egypt Customer Service Centre, 92 Tahrir Street, Sarridar building, 10 th floor, Dokki, Giza- Egypt. Call Us: From inside Egypt, please call our short number at If you are calling from outside Egypt, please call us on (+202) Us: For general enquires, we also invite you to us at info@allianz.com.eg How to Make a Claim: The customer or assigned beneficiaries must visit Allianz Egypt (headquarters) upon the occurrence of any of the insured events in order to receive the policy benefits. Allianz requires specific documents when applying for a claim including, but not limited to all documents listed in the policy wording. For more clarifications on the documents required please review the policy wording section 8.7.

5 Important Notes The product application form will be assessed by Allianz Egypt where additional documents or medical checks may be requested. Refusing or delaying in performing the requirements may lead to policy issuance delay or rejection. We strongly recommend that you answer all the questions on your application fully, truthfully and accurately to avoid any dispute in claim payment. You will be requested to deposit the first premium payment at the time of signing the application. If the application is rejected by Allianz Egypt, the premium will be refunded. If the application was rejected due to non-disclosure then the medical exam costs, if any, will be deducted from the refunded amount. The application form represents a key part of the policy contract. We urge you to ensure all your contact information details are correct. Once the policy contract is issued you will receive an SMS from Allianz Egypt notifying you that the policy is issued and became in force. Policy contract delivery is conducted by a courier company. The courier company will call you first to arrange a time for delivering the contract. Receiving the policy contract is the final part of the policy purchasing process. Allianz Life Assurance Company Egypt is an Egyptian Joint Stock Company established according to provisions of law no. 10 of 1981 and its amendments under license no. (15) from the Egyptian Financial Supervisory Authority.