Zurich International Life Application process guide Zurich Business Protect With so many business owners lacking adequate insurance, the opportunities in the business protection market are significant. Advisers who understand this important aspect of financial planning can tap into these opportunities and grow their own businesses, while adding significant value to their customers. Business protection is designed to protect a business from the financial losses incurred if a key person or owner of a business dies or suffers a critical illness or permanent disability. Business protection is often seen as a complicated process, and that s why we have created this simple guide to give you a clear understanding of the concepts of business protection and the related application requirements. Below are the key items to consider before starting the business protection application process: 1. Difference between business protection and individual protection 2. Structures of a business protection policy 3. Application requirements For relevant financial professional use only
1. Difference between business protection and individual protection To determine if a business protection policy is right for your customer, there are two questions to consider Individual or Family protection Who is the ultimate beneficiary? The family of the life insured What needs to be protected? The financial future of loved ones Mortgage or personal loans Business protection The company or partners of the business Key person: recruitment and training costs of a replacement Partners: business profits and continuity of the business Business loans: cash flow to repay the loans Possible solutions: International Term Assurance (ITA) our level-term life insurance policy, or Futura/Lifelong our whole of life protection policy, or International Decreasing Term Assurance (IDTA) our decreasing life cover term assurance policy While the solutions may be the same for an individual or a business, there are key differences between an individual protection policy and a business protection policy. Let s take a closer look at these: Individual protection policy Business protection policy Ownership Self-owned Policy owner is the company Life insured Self or family members with an insurable interest Key person, partner or business owner Payor Self or acceptable third party payors Company Beneficiary Family members or related individuals Company or partners Benefits All benefits available on a product Only life cover, critical illness, permanent total disability and waiver of premium Claim Paid to the family or nominated beneficiaries Paid to the company or remaining partners Changes to policy Application documents Only individual owner can make changes to the policy Individual product application form and personal identification documents required to process the application Only the authorised signatories of the company can make changes to the policy Zurich Business Protect product application form and documents related to the company and key persons/partners are required to process the application (refer to page 4 for application requirements when company is the policy owner) To read more on Zurich Business Protect, log on to advisersuite.zurich.com or scan here 2
2. Structures of a business protection policy It s easy to set-up the structure of a business protection policy. Here are a few suitable structure options based on customer needs. Key person protection Partnership protection Business loan protection Need Policy roles To provide the company with the funds for profit replacement, should the key person die or become critically ill. To provide the remaining partners with the funds to buy the shares of a co-partner should they die or become critically ill. To repay a loan on the death of a business owner, partner or key person. For bank loans, a conditional assignment will be required by the bank. Policy owner Company Company Company Life insured Key person Partner Partner Payor Company Company Company Beneficiary Company Partners or Company Bank Company Insurance policy claim The company can use the cash sum for recruitment and training of the key person s replacement and to compensate for any lost profits. The cash sum can be used by the remaining partners to buy the shares of the deceased partner. A Double Option Agreement should be considered by your customers by taking appropriate legal advice. The bank will use the cash sum to clear any outstanding loans, and then allow any remaining funds to be paid to the company or remaining partners. Note: For a sole-ownership business (including a partnership with a local sponsor), the owner can apply for an individual protection policy. The policy does not need to be held in the company s name. The cash sum can be used by the family to sustain the business, or repay any bank loans. The beneficiary can be the family or an individual. A conditional assignment will be required as collateral for bank loans. 3
3. Application requirements for Zurich Business Protect (ZBP) Please refer to the below application requirements when applying for a business protection policy in a company s name. Sum assured Application requirements Up to Application USD1,000,000 Zurich Business Protect product application form for International Term Assurance, International Decreasing Term Assurance or Futura/Lifelong Personalised illustration Business Manager You may also require: Additional lives insured form Health and lifestyle questionnaire for additional lives insured Appointment of beneficiary form Conditional assignment request (for bank loans) Identification documents Copy of certificate of incorporation, or an equivalent document* Copy of the memorandum and articles of association of the company, or a letter confirming names of all directors, partners or shareholders. Share certificates can also be provided, if available Letter confirming list of authorised signatories, their specimen signatures and the required number of signatories who can sign on behalf of the company at any one time Copy of proof of identity and proof of residential address of at least two directors, including an executive director of the company Copy of a proof of identity and proof of residential address of all shareholders/partners holding >25% shares. If none of the shareholders/partners hold >25% shares then the majority shareholder needs to provide these A full company structure chart, if available Health and lifestyle details Health and lifestyle questionnaire for all the lives insured Medical tests required as per the illustration Additional tests or questionnaires may be requested based on the profile and medical history of the life insured Method of payment Copy of method of payment or bank standing instruction Unit linked policies Internal Revenue Service form or IRS W8-BENE-E form (www.irs.gov) High risk business (USD 100,000 annual regular or USD 1,000,000 lump sum premium) A set of the latest audited annual report and financial accounts of the company Copies of a proof of identity and proof of residential address of all shareholders holding >10% shares Additional financial documents based on the sum assured Between USD1,000,001 Copy of the latest audited annual report and financial accounts of the company for the last two years or and USD2,000,000 Loan offer letter (only for business loan protection) USD2,000,001 and above Copy of the latest audited annual report and financial accounts of the company for the last two years and Loan offer letter (only for business loan protection) Important notes: All copy documents must be certified by a suitable certifier. *Certificate of incorporation: registration proof of the company will be required if the certificate of incorporation does not state the validity, registered office and registration number of the company. All letters are required to be on company headed stationery and should be signed by an authorised official(s), as per the signing mandate. The requirements in the above table are for guidance only, based on the jurisdiction of the company additional documents may be required. For more information on the application requirements please speak to your dedicated Zurich Account Manager. 4
Making life easier with Zurich Business Protect Know your proposition Educate yourself and be confident on details and structure of the propositions available. Leverage the resources available, including: Bespoke training and support from your dedicated Zurich Account Manager Key product information, key features document, policy terms and conditions other marketing material Expert advice and masterclasses from underwriting and insurance specialists. Have a checklist Start with a check list of the documentation and requirements needed for the application process. Organise a medical Depending on the details and level of cover a medical may be required. Our first-to-market Office and Home Medical Service offers customers the choice of having their life insurance medical examination either at home or at work. This convenient service means customers save time as they no longer have to go to a doctor or clinic for this examination. Strengths of Zurich Award-winning products and services You can count on us to provide excellent service and support while protecting your business. Our customers have trusted us to protect them for almost 30 years in the Middle East, and that s why we have won many industry awards over the years, including most recently: MENA Insurance Review Awards (2015 and 2016): Life Insurer of the Year International Adviser Life Awards (2015 and 2016): Reader s Choice Award Best overall product range Best Protection Product Get the right information Meet with the customer to: 1. Get the required personal and financial information, and 2. Complete and sign the application forms and relevant questionnaires. Understand who we are, what we do, how we do it and the strengths of the Zurich brand. Strong claims record Zurich is the only insurance provider to publish claims statistics specific to the Middle East, which means your clients can rest assured that we have a strong track record of being there when it matters the most. Our claims process is quick, efficient and effortless. In the unfortunate event that a claim needs to be made, Zurich will be right by your side giving you our support, and making sure that all valid claims are paid quickly and easily. Our Middle East claims record is proof of this: USD67 million paid out in protection benefits in the Middle East (Jan 2013-Dec 2015). USD34 million paid out in death claims in the Middle East. USD33 million paid out in critical illness claims in the Middle East. Financial stability Our strong financial ratings mean you can feel confident that we ll be able to meet our financial commitments to you and your business. Agency Rating Outlook Standard & Poor s AA- Stable Moody s Aa3 Stable A.M. Best A+ Stable Our experience and expertise We understand that you are trusting us to deliver an excellent service to your clients and that you may also need our expert support. At Zurich, we can provide you with: a thorough knowledge of the financial underwriting process and reassurers requirements, with over 120 years experience within the team one-to-one advice and mentoring on what it takes to place large cases. 5
Service Supporting you and your clients during the lifetime of their policy with a superior service from Zurich: Easy and convenient policy access Zurich International Online (ZIO) offers quick, simple and convenient access to your client s policy information. Claims management Our quick, efficient and effortless claims process means your clients can rest assured that Zurich will be by their side making sure all valid claims are paid quickly and easily. Bespoke services Our Privilege Service offers business protection customers with a range of hassle free, priority services, including complimentary limousine transfers for medical check-ups, and prioritised medical appointments and processing of applications. Ongoing review Schedule in regular reviews to insure your recommendation and advice is still relevant to helping your clients achieve their financial and business goals. Zurich contact details In case you need clarification please either call our Zurich helpdesk or contact your dedicated Zurich Account Manager. Middle East Customer website: www.zurich.ae Adviser website: advisersuite.zurich.com United Arab Emirates Bahrain Qatar Telephone: +971 4 363 4567 Email: helppoint.uae@zurich.com Telephone: +973 1756 3321/2 Email: helppoint.bh@zurich.com Telephone: +974 4496 7555 Email: helppoint.qa@zurich.com To find out how Zurich can help your clients to protect their key assets, speak to your dedicated Zurich Account Manager, or visit advisersuite.zurich.com 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 Financial Services Authority which ensures that the company has sound and professional management and provision has been made to protect plan holders. 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 plan holders, up to 90% of the liability to the protected plan holders 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. Not for sale to residents or nationals of the United States including any United States federally controlled territory. Zurich International Life Limited is registered in Bahrain under Commercial Registration No. 17444 and is licensed as an Overseas Insurance Firm Life Insurance by the Central Bank of Bahrain. Zurich International Life Limited is authorised by the Qatar Financial Centre Regulatory Authority. Zurich International Life Limited is registered (Registration No. 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training, administrative and quality purposes. Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Financial Services Authority. Registered in the Isle of Man number 20126C. Registered office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone +44 1624 662266 Telefax +44 1624 662038 www.zurichinternational.com MSP13725 (719574001) (10/16) RRD