Global Choice. Key features

Transcription

1 Global Choice Key features HELPING YOU DECIDE This is an important document which gives you a summary of the Global Choice plan. Please read this with your illustration before you buy this plan and keep it for future reference. Zurich International Life

2 Contents This document provides important information to help you decide whether our Global Choice plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. This plan has been designed to meet legal and regulatory requirements for customers resident in the country in which the plan was purchased. Should the planholder or life/lives insured move to another country during the term of the plan, it may no longer be suitable. Laws and regulations in a different country may affect the Company s ability to continue to service the plan in accordance with these terms and conditions and the Company may no longer be able to provide all the benefits under the plan. The Company may, for example, be unable to process switch instructions in connection with the plan or accept future contributions. The planholder must advise the Company of any change to country of residence during the term of the plan prior to such change becoming effective. In these circumstances, and subject to the planholder s consent, the Company may provide contact details to another company within the Zurich Insurance Group in order to check whether there is an alternative product suited to the new situation and country of residence. The Company does not offer tax advice and recommends that independent advice is obtained in respect of any tax consequences which may arise from a change in country of residence. Its aims... 3 Your commitment... 3 Risk factors... 4 Other documents you should consider reading... 4 Questions and answers Before you invest Is Global Choice right for me?...5 Who can invest?...5 How and where will my payments be invested?...5 What are the charges?...6 What about tax?...6 While you are invested How flexible is it?...7 Can I take money out?...7 How will I know how my Global Choice is doing?...8 Closing your Global Choice What you might get back?...8 What happens to my Global Choice if I die?...8 Cancelling your Global Choice Can I change my mind and cancel?...8 Other information... 9 How to contact us Any assignment of the plan to a person resident in a different country from the planholder may be subject to the above provisions. 2 Key features of Global Choice

3 The Global Choice plan Global Choice is a unit-linked investment plan that enables you to choose from a wide range of funds with the aim of increasing the value of the money you invest while providing a high level of flexibility. It is available as a life insurance plan with no fixed term. Your financial professional will help you decide if this plan is right for you and the funds to invest in. Its aims What this plan is designed to do: Allow you to make single contributions towards your investment goals e.g. retirement, funding your children s education. Increase the value of the money you invest over the medium to long term in a tax-efficient manner. Allow you to take an income as regular or occasional withdrawals if you choose. Pay a cash sum on the death of the last life insured. Provide a high level of flexibility and range of funds to match your investment objectives. Your commitment What we ask you to do: A minimum of GBP40,000/USD60,000/EUR60,000 (or currency equivalent) is required. Invest over the medium to long term. The plan has no fixed term and you can cash it in at any time. Seek ongoing financial advice. You should seek advice before you make changes to your plan and whenever your circumstances change. Ensure you are satisfied that you understand the important aspects of your plan and the funds you choose, especially the associated risks and charges. Choose either the establishment charge or the initial charge option. Please read the summary of fees and charges for details on charges. Key features of Global Choice 3

4 Risk factors What you need to be aware of: The value of your plan can go down and you may get back less than you invested depending on investment performance. You may get back less than the amount shown on the illustration if: investment growth is lower than illustrated charges increase above those illustrated you take more money out of your plan than illustrated. The level of risk and potential investment performance depend on the funds chosen. The value of your plan will be subject to currency fluctuations if you are paying contributions in one currency, but selecting to invest in funds based in another currency. Please be mindful that movements between two currencies can be significant. Buying a Global Choice is a medium to long term commitment. An early termination of the plan within the first five years of any contribution may involve a cash-in charge (if you have selected the establishment charge option) and the value payable may be less than the total contributions paid. If you cancel your plan within 30 days and its investment value has fallen, you will get back your original payment less any fall in value. Your returns may be affected by changes in currency exchange rates. Other documents you should consider reading This document gives you key information about the plan. If you want more detail on specific points, please read the following documents. We have highlighted where they are relevant throughout this document. Global Choice plan terms and conditions Provides the full terms and conditions for Global Choice. Summary of fees and charges Details all the fees and charges applicable to the plan. Guide to your investments Outlines fund choices and the fund manager contact details. They are all available from your relevant financial professional or direct from us. Our contact details are on page Key features of Global Choice

5 Questions and answers Before you invest Is Global Choice right for me? Who can invest? It may be right if you: are looking for a flexible way of investing want access to a wide range of funds are looking for potentially higher investment returns than a typical bank or building society account over the medium to long term understand and accept the risks of this type of investment can invest for the medium to long term. Individuals, trusts or companies can invest in Global Choice. You can own the plan yourself or jointly with someone else, with up to two planholders. Anyone age 18 or over can apply for Global Choice there is no maximum age. You can insure the life of anyone aged two or over there is no maximum age. You may insure the lives of up to five people. You do not have to be one of the lives insured. The plan is a whole of life plan issued on either a single life, joint life second death or multiple life last death basis. How and where will my payments be invested? Your money will buy units, which are like shares, in your chosen funds. The value of the units will increase or decrease depending on the investment performance of the funds. The value of your plan, at any time, will be the current value of the units in the funds you have chosen less any charges. A wide range of funds is available with a comprehensive range of investment styles, asset types and risk levels from some of the most popular and highly regarded fund management companies around the world. Some fund managers take a charge before investing your payment and all take an annual management charge. These will be reflected in the fund prices. Otherwise all your payment is invested in the funds you choose. Most of the funds we offer are managed by companies outside the Zurich Insurance Group. You can switch your investment between funds at any time. You can make up to 25 switches a year free of charge; we will charge for the 26th switch onwards in any plan year. If a fund charges an initial charge, this would be applicable on switching into the new fund. You can make additional single contributions at any time. Please read the guide to your investments for fund choices, charges and contact details. Please see your personal illustration for details. Key features of Global Choice 5

6 What are the charges? Your personal illustration shows the charges we apply for managing the plan, including the amount of the establishment charge or initial charge (depending on which option is selected), the yearly management charge, the yearly plan charge, the cash-in charge (only applies if the establishment charge option is selected), the trail charge (if applicable), the fund investment adviser charge (if applicable) and the investment fund charges. The yearly management and yearly plan charges reduce as the value of the plan increases. We take these charges at the beginning of each month by cancelling units in your funds. Please read your personal illustration and summary of fees and charges for details on charges and commission. If you are paying non-product fees such as a trust charge or a valuation charge in addition to your investment, these will not be included in your personal illustration. The fund managers may make extra charges such as an initial charge and an annual management charge. These charges will be taken in a way chosen by the fund management company. They could do this by reducing the number of the units bought, reducing the price of the units or by some other method. Please read your personal illustration and guide to your investments brochure. What about tax? If you switch between funds in different currencies we charge 0.175% of the net amount moved between each pair of different currencies, to cover the cost of exchange. Please note that while Zurich make no charge for the first 25 switches within each plan year, some of the funds within Global Choice may carry a small discounted initial charge. When you switch into a fund with an initial charge, this percentage charge will be deducted from the amount being switched into the fund by way of cancellation of units. If you make a withdrawal within six months of moving to a lower charge, we reserve the right to change you back to the band that matches your lower contribution level. We invest your contribution in funds that pay virtually no tax on their investments. Your Global Choice will grow virtually tax-free although you may be taxed if you take withdrawals or cash in your plan. If you decide to invest in funds which have an element of income, the fund manager may have to pay tax on this income that you will not be able to reclaim at a later date. The tax treatment of any benefits taken from your plan will depend on where you live and other personal circumstances. If you are in doubt over your circumstances you should consult your relevant financial professional. 6 Key features of Global Choice

7 While you are invested How flexible is it? Can I take money out? You can add additional single contributions of GBP5,000/USD7,500/ EUR7,500 (or currency equivalent) or more at any time. You can cash in all or part of your plan at any time but we will make a deduction from the plan s value (the cash-in charge) if you do this within the first five years of any contribution and you have selected the establishment charge option. You can take money out regularly or make one-off withdrawals at any time but we may apply the cash-in charge. Yes, you can choose to take money out regularly or take one-off withdrawals. Withdrawals can be taken by cashing in all or part of the plan. Any cash-in must be in accordance with the plan terms and conditions and we shall require you to complete a claim form and return this to us together with additional documentation that we may ask for at the time of your request. Regular withdrawals can also be taken from the plan, in accordance with the plan terms and conditions. There will be a charge for cashing in all of your plan if you have selected the establishment charge option. There are no charges for partially cashing in your plan. However if you partially cash-in your plan and the remaining plan value is less than GBP10,000/USD15,000/EUR15,000 or twice the outstanding cash-in charge (whichever is greater) then we will fully cash-in the plan, deduct any outstanding cash-in charge and pay you the balance. How will I know how my Global Choice is doing? Your plan information will be available through Zurich International online (ZIO). You can access ZIO by logging on to the Zurich website and registering on ZIO. You will be able to view your: current fund holding current fund and surrender value contribution status investment strategy current withdrawal arrangement and history personal contact details Please read your plan schedules, plan terms and conditions and your personal illustration for details about the cash-in charges. You can also ask your relevant financial professional for an up-to-date valuation at any time or call Please refer to How to contact us on page 10. Key features of Global Choice 7

8 Closing your Global Choice What you might get back? Your illustration shows how much you might get back based on assumed growth rates. What you get back depends on the plan value less any reduction for cashing in early. There is no guaranteed amount. The plan value depends on: how much you invest how long your money is invested how well your investment performs how much money you take out charges. What happens to my Global Choice if I die? Cancelling your Global Choice On the death of the last surviving life insured the amount paid out will be 101% of the plan s cash-in value on the day we receive satisfactory notification of death to your beneficiaries. If the plan covers more than one life, we will pay out when we receive satisfactory notification of the deaths of all the lives insured. If the plan is in trust, we will pay out the cash-in value to the trustees or according to their instructions. Can I change my mind and cancel? Yes you can. You can change your mind within 30 days of receiving your plan documents and we ll give you your money back. If the value of the plan has fallen, you will get back the original payment less any fall in the investment value in this period. 8 Key features of Global Choice

9 Other information How to complain If you ever need to complain about your plan, please contact us in the first instance, using the address or the contact numbers in the How to contact us section on page 10. Details of our complaint handling process are available on request. If you are not satisfied with our response, you may also have the right to refer your complaint to the regulator below. United Arab Emirates regulator: Insurance Authority, P.O. Box , Abu Dhabi, United Arab Emirates. Telephone: Website: All plan owners also have the option to ask the local Isle of Man Financial Services Ombudsman (the FSO) to formally review their case. The contact details are: The Isle of Man Financial Services Ombudsman (FSO) Scheme, Isle of Man Office of Fair Trading, Government Building, Lord Street, Douglas, Isle of Man, IM1 1LE, British Isles. Plan terms and conditions This key features document gives a summary of Global Choice. It does not include all the definitions, exclusions, terms and conditions. We ll send you a copy of the plan terms and conditions with your plan documents. If you d like a copy before then, please contact us direct or ask your relevant financial professional. We ll let you know if there are any material changes to the terms and conditions affecting your plan. Compensation Your relevant financial professional should recommend products that are suitable for you. You have a legal right to compensation if an authority decides that a recommendation was unsuitable when it was made. The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 cover your plan. This means that if we become insolvent, you will be covered for up to 90% of the value of your plan. This protection does not extend to protecting the value of the assets held within any unit-linked funds linked to your plan. If you would like more information about compensation, please contact us. For full details please refer to the plan terms and conditions. Or you can telephone on: , or ombudsman@iomoft.gov.im Website: Complaining to the Ombudsman will not affect your legal rights. You should note that companies and trusts are not eligible to refer a complaint to the Isle of Man Ombudsman. Key features of Global Choice 9

10 How to contact us Remember your relevant financial professional will normally be your first point of contact. If you wish to contact us, you can phone us, send a fax, or write to us: Phone: Monday to Friday between 9am and 5pm. Fax: helppoint.iom@zurich.com Write to: Zurich International Life Zurich HelpPoint Athol Street Douglas Isle of Man IM99 1EF British Isles. If you are based in the UAE Phone: Sunday to Thursday between 9am and 5pm. helppoint.uae@zurich.com Write to: Zurich International Life Zurich HelpPoint P.O. Box Level 4, Building 3, Emaar Square Dubai, United Arab Emirates. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training, administrative and quality purposes. 10 Key features of Global Choice

11 Key features of Global Choice 11

12 Important information Zurich International Life is a business name of Zurich International Life Limited. Zurich International Life Limited is fully authorised under the Isle of Man Insurance Act 2008 and is regulated by the Isle of Man Government Insurance and Pensions Authority which ensures that the Company has sound and professional management and provision has been made to protect planholders. For life assurance companies authorised in the Isle of Man, the Isle of Man s Life Assurance (Compensation of Policyholders) Regulations 1991, ensure that in the event of a life assurance company being unable to meet its liabilities to its planholders, up to 90% of the liability to the protected planholder will be met. The protection only applies to the solvency of Zurich International Life Limited and does not extend to protecting the value of the assets held within any unit-linked funds linked to your plan. Zurich International Life Limited is registered (Registration No.63) under UAE Federal Law No.6 of 2007 and its activities in the UAE are governed by such law. Not for sale to residents or nationals of the United States including any United States federally controlled territory. MSP10043 (132826A05) (04/15) RRD Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance and Pensions Authority. Registered in the Isle of Man number 20126C. Registered office: Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone Telefax