Guardian Investor Plus

Transcription

1 Guardian Investor Plus Guardian Investor Plus is a guaranteed issue, equity-linked universal life insurance plan available to individuals up to age 75. By offering flexibility in meeting an individual s financial goals while also providing life insurance coverage, the plan serves as a suitable alternative for customers who may opt not to have an underwritten insurance plan. Purpose This investment plan may be used to help investors achieve their goals of either: Education Deposit on a home Retirement Final Expenses Premiums The total premium payable comprises: 1) A fixed basic premium of $5000 per month 2) A regular additional investment premium, minimum $1000 per month Additionally, ad-hoc investment premiums may be made to the Guardian Investor Plus at such frequency and levels as the owner may desire. Mortality charges will not be deducted from the funds over the life of the policy. In addition, there is no policy fee attached to this plan. Allocation of Premiums The plan will facilitate mandatory investment in one or more of six Guardian Life funds. A percentage of the basic premiums will be allocated to purchase units. This percentage varies by policy year, as follows: Policy Year(s) % % % % 13 onwards 90% Percentage of Premiums Invested Also, 95% of regular additional investment premiums and any ad-hoc investment premiums will be invested in the funds. Issue Ages The allowable issues ages are 0 to 75 inclusive. The plan will be issued on an age-nearest birthday basis. Policy Size Policy size is a fixed amount that is banded by issue age as follows: Issue Age Sum Insured 0-10 $250, $500, $1,000, $500, $100,000

2 Death Benefit The payment made upon death is a graduated benefit which depends upon the policy year at the time of death, specified as follows: Death Within: Year 1 Year 2 Year 3 onwards Death Benefit 40% of the Sum of the Basic Minimum Premiums paid plus the value of units in the funds 50% of the Sum Insured plus the value of units in the funds 100% of the Sum Insured plus the value of units in the funds Notwithstanding the above, if death is by accident, 100% of the Basic Sum Assured plus the value of the units in the funds as at the relevant date is payable. If death is by suicide within two years of the commencement date of the policy, the death benefit will be limited to the surrender benefit. Maturity Benefit The value of the units attributed to the policy, as determined by the bid price prevailing on the maturity date, will be payable upon the Life Insured attaining age 100. Surrender Benefit The amount payable upon surrender is the value of the units allocated to the policy, based on the bid price prevailing on the date of surrender, less a surrender charge. There is no surrender charge after the ninth year. Encashment of Units At any time a portion of the policy may be encashed upon the receipt by the Company of a written request from the Insured Person in the form prescribed by the Company. The Company will cancel some of the units of the funds allocated to the policy and make a cash payment to the Insured Person. The value of the units cancelled in each fund shall be in the same proportion as the value of the units allocated to the policy in each fund. Each encashment of units will attract a charge. The number of units cancelled in respect of the funds will be calculated as the cash payment to the Insured Person plus the encashment charge divided by the prevailing bid price of the fund units at the date on which the Company receives the Insured Person s written request for encashment of units. Such encashments: (a) must not be less than the current minimum encashment allowed, and (b) are subject to the condition that the value of the units of the funds remaining allocated to the policy, after the cash payment to the Insured Person and the payment of the encashment charge, is positive and exceeds the current minimum value of units in the fund. Choice of Funds The available investment funds under the Guardian Investor Plus plan are: 1. Guardian Long Term Growth Fund 2. Guardian Equity Fund 3. Guardian Money Market Fund 4. Guardian Stabilization Fund 5. Guardian Foreign Currency Indexed Fund 6. Guardian Capital Growth Fund

3 The Guardian Life funds, which are separately identifiable funds, are: 1) Guardian Long Term Growth Fund which is invested primarily in real estate, equities, reverse repurchase agreements and may include deposits and cash. The Company may vary the constituent 2) Guardian Equity Fund which is invested primarily in ordinary shares and common stocks quoted on recognized stock exchanges, and may include deposits and cash. The Company may vary the constituent 3) Guardian Money Market Fund which is invested primarily in securities issued by the Bank of Jamaica or Government of Jamaica, deposits of selected commercial banks, money market mutual funds and reverse repurchase agreements and may include deposits and cash. The Company may vary the constituent 4) Guardian Stabilization Fund which is invested primarily in securities issued by the Bank of Jamaica or Government of Jamaica, deposits of selected commercial banks, and reverse repurchase agreements and may include deposits and cash. The Company may vary the constituent investments and the proportions in which they are maintained. The value of the holdings will vary from 5) Guardian Foreign Currency Indexed Fund which is primarily invested in securities issued by the Bank of Jamaica or Government of Jamaica denominated in or linked to currencies other than Jamaican dollars and may include deposits and cash. The Company may vary the constituent investments and the proportions in which they are maintained. The value of the holdings will vary from 6) Guardian Capital Growth Fund which is primarily invested in a diverse mix of blue chip stocks listed on recognized stock exchanges. In addition, a fixed income portfolio comprising Bank of Jamaica and Government of Jamaica fixed rate, variable rate and inflation-indexed bonds is maintained to create a balance in the fund's overall composition. The fund also holds short-term liquidity in the form of reverse repurchase agreements. The Company may vary the constituent investments and the proportions in which they are maintained. The value of the holdings will vary from Valuation of Funds The value of each fund will be: a) The market value of the assets in the fund at valuation, plus b) Any accrued income not yet credited to the assets of the fund, less c) Any amounts borrowed by the fund with interest, less d) Accrued charges and transfers The following will be deducted from the funds in determining the unit prices: a) Taxes due and payable in respect of the assets of the funds. b) Transfer costs, brokers' fees, valuation costs and other expenses associated with the purchase, maintenance and sale of assets. c) Interest due on amounts borrowed by the funds. d) A management fee. e) In respect of the Guardian Capital Growth Fund, the difference between the bid and offer prices.

4 The value of each unit will be determined by dividing the fund value by the number of units in the fund at the valuation date. The value of these funds is not guaranteed but will fluctuate with the market value of the assets supporting the funds. The value of Equity Fund units and the value of Foreign Currency Indexed Fund units will be determined on each working day. The value of Money Market Fund and Long-Term Growth Fund units will be determined on Monday of each week. The value of Stabilization Fund units and Capital Growth Fund units will be determined at the end of each month. However, the Company reserves the right to value the units in any of the funds at intervals which are more or less frequent than those stated above. Administrative Costs At the beginning of every month, the Company will deduct an administrative charge from the funds. Paid-Up The Insured Person may make the policy Paid-Up, at which time the value of the units will be reduced to the surrender value. The death and surrender benefits shall thereafter be the value of the units allocated to the policy. Non-Payment of Premiums A period of thirty days, commencing on the premium due date, is allowed for payment of any premium. If a premium is not paid within the thirty day period, the policy will be deemed to have been made Paid-Up. Re-allocation of Investment Premiums The Insured Person will be required to state how the investment premiums should be allocated to the funds. The Insured Person may elect to reallocate investments among the available funds from A re-allocation fee will be charged for each such change. Transfer of Funds The Insured Person may at any time transfer all or a portion of the value of a fund to another fund or funds subject to applicable charges. The first transfer in any policy year will not attract a charge. However, a charge will be levied for all subsequent transfers. Annual Statement At the policy s anniversary, the Company shall furnish the Insured Person with a statement showing: The amount allocated to purchase units in the funds during the preceding twelve (12) months. The number of units reflecting encashments made over the previous twelve (12) months, together with their value at the bid prices on the date of encashment. Charges to the fund during the preceding twelve (12) months. The number of units in the funds allocated to the policy, together with their value, calculated at the bid prices at the end of the period to which the statement relates. The value of the surrender benefit of the policy at the end of the period to which the statement relates.

5 COUPON I confirm that I have received, read and understood the brochure describing the Guardian Investor Plus and that the applicable charges and features of the product were explained to me by the Sales Representative. I understand that the projections in the sales illustration are not guaranteed and that the values of the investments associated with the policy may rise or fall. I further confirm that I understand and accept all the terms and conditions of the policy, including the termination provisions. I have applied for a policy with monthly, quarterly, half-yearly or yearly premiums as under: Basic Premium $ Regular Additional Investment Premium (minimum of $1,000 per month) $ Ad-Hoc Investment Premium $ Total Premium Payable $ Name of Insured Person: Signature: Date: Branch: Name of Sales Representative: Signature of Sales Representative: Date: