MARKETING Marketing Name Plan Abbreviation Distribution Channel : i-great Amal : T AMAL : Agency PLAN DESCRIPTION Product Design (a) This product is a regular contribution term takaful plan. (b) Term of coverage is 50 years or until maximum age of 70. (c) Contributions paid are channelled to the Participant s Individual Account (PIA). (d) This plan is applicable for Muslim participants/ person covered only. BENEFITS Death Upon death of the Person Covered, the following will be payable: Basic Sum Covered (BSC) from Tabarru Fund; plus Amount in PIA in one lump sum. In the event of death occurring before age of 5 years next birthday, amount left in PIA 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 Note: Full cover will be given from age 5 next birthday. TPD Upon TPD prior to the certificate anniversary on which the Person Covered attains age 70 years next birthday, the following will be payable: (a) The BSC not exceeding RM2,000,000 under this certificates and all certificates and riders on the same person shall be paid in 3 annual installments 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 installments of maximum RM500,000 each from Tabarru Fund. (b) amount left in PIA is payable in one lump sum. The maximum TPD Benefit payable under this and all certificates and riders on the same person payable by 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 the Takaful Operator under this and all certificates and riders on the same person. Example on TPD claims payment: 1 of 9
Hajj/Umrah Benefits Death Benefit (Double Indemnity) Upon death of the Person Covered while performing Hajj/ Umrah, additional Basic Sum Covered (BSC) from Tabarru Fund is payable. TPD Benefit (Double Indemnity) Upon TPD of the Person Covered while performing Hajj/ Umrah, additional Basic Sum Covered (BSC) from Tabarru Fund is payable. 01/05/2010 01/10/2010 Terms & Condition Upon death or TPD during Hajj or Umrah, the beneficiary is entitled for double the basic sum covered subject to conditions below:- a) Before the person covered attain age 60. b) The person covered will need to notify GETSB by filling up a new form 30 days (minimum) prior to go for Hajj/Umrah. c) Coverage provided only for two times Hajj or two times Umrah or one-time Hajj and one-time Umrah during the certificate term. d) The coverage commences from the date of direct departure from Malaysia to Saudi Arabia until the date of arrival to Malaysia from Saudi Arabia. (notwithstanding item (f)). e) If there is any flight transit in between Malaysia and Saudi Arabia, then the transit should not be more than 8 hours. (subject to case by case basis, i.e flight delayed) f) Cover period is maximum of 45 days for Hajj or maximum of 15 days for Umrah or whichever the shorter period during the trip is. (subject to case by case basis). g) Reduction of Sum Covered will reduce the double indemnity immediately. h) The following documents are required to claim for double indemnity:- i) Claim Form ii) Medical Report (if any) iii) Original Certificate Document iv) Copy of Death Certificate v) Copy of NRIC of deceased vi) Copy of NRIC of Claimant vii) Other documents as deemed necessary to support the claim. viii) Letter of Administration / Grant of Probate (if applicable) 2 of 9
ix) Sijil Faraid (if applicable) x) Copy of Passport of deceased Cash for Performing Hajj/Umrah Benefit RM 800 will be given to the Person Covered before performing Hajj/Umrah. It will be given once in a certificate lifetime only. Or lump sum of RM 2,000 upon maturity if not utilised during the certificate lifetime. The payment of this savings will be from Operator s fund. Terms & Conditions:- i) All contributions due are up-to-date. ii) The certificate has to be inforce at least 5 years. iii) Will only payable in the event of performing Hajj/Umrah or Death, TPD or Maturity. (This benefit will still be payable if Death/ TPD happen before the 5 th certificate year). iv) Upon death before the Cash for Performing Hajj/ Umrah Benefit is paid out, the benefit will be payable to trustee/nominee(s). v) Upon TPD before the Cash for Performing Hajj/ Umrah Benefit is paid out, the benefit will be payable to the Participant together with the Basic Sum Covered. vi) Late claim for this benefit can be made within one (1) month after returning from Hajj/ Umrah. vii) Limited to RM1,600 or 2 certificates only for multiple certificates. Badal Hajj Benefit (Hajj by Proxy) In the event of Death, a sum of RM3,000 (or depending on the inflation rate) shall be deducted from the benefit payable to the Nominee for payment of Hajj by Proxy to any organization appointed by Takaful Operator. OR In the event of TPD, a sum of RM3,000 shall be deducted from the benefit payable to the Person Covered for payment of Hajj by Proxy to any organization appointed by Takaful Operator. Terms& Condition: i) Applicable to Person Covered age 16 ANB and above only ii) Badal Hajj is defaulted at NB. iii) Subsequent withdrawal of Cash for Performing Hajj/ Umrah Benefit under CS for Hajj/Umrah does not change the Badal Hajj indicator. iv) At Death/TPD claim, there is no indicator required for Badal Hajj under Claim UI for Claim User to select; system should automatically: (a) Include Cash for Performing Hajj/ Umrah Benefits amount of RM3,000.00 if it was never withdrawn during CS. Payable to Rightful Claimant. (b) Deduct Badal Hajj amount of RM3,000.00 even if Person Covered has performed Hajj/Umrah earlier. Payable to any organization appointed by Takaful Operator. iv) Special scenarios: (a) If the total claim amount < RM 3,000, the claim amount will be paid to beneficiary. Cheque will be issued based on the actual amount. (b) If the total claim amount RM 3,000, pay RM 3,000 to Proxy and the balance (if any) to the beneficiary. 3 of 9
Adha Benefit At the end of 10 th certificate year, participant can choose to do Qurban on their own (RM 500 will be credited in PIA at the end of 10 th certificate year) or let GETSB to perform Qurban, in a quantity of one (1) part of sacrifice animal on behalf of the Participant. The monetary amount which is equivalent to one (1) part of qurban animal will be paid to the body that is responsible in performing Qurban on Participant s behalf. The amount of Adha Benefit will be derived from Takaful Operator s Fund. Terms & Conditions:- i) All contributions due are up-to-date. ii) The certificate has to be inforced. iii) if the charge of performing Qurban are more than RM500, Takaful Operator will allocate that RM500 into PIA and will not performing Qurban on Participant s behalf. Compassionate Benefit Upon death of the Person Covered due to any cause, a lump sum in an amount of RM2,000 per person will be payable from Tabarru Fund. (a) This benefit is payable upfront as long as the claimant submits the death certificate and/or other evidence satisfactory to the Takaful Operator without a need to process the death claim first. (b) This benefit will be payable to immediate family member only. The admittance of this benefit does not guarantee that death benefit will be payable. This means the Takaful Operator still have the right to repudiate the death claim. Maturity Benefit Upon maturity, the followings are payable:- (+) RM 2,000 of Cash for Performing Hajj/ Umrah Benefit if it is not utilized during the certificate lifetime (+) amount left in PIA. CHARGES 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 Upfront Charge is 100% minus the contribution allocation rates. Please refer to the section on Contribution Allocation for the respective contribution allocation rates. The Upfront Charge will be at the following rates: Contribution Term Year 10 11 12 13 14 15 16 17 18 19 >=20 1 70.0% 70.0% 70.0% 70.0% 70.0% 75.0% 75.0% 75.0% 75.0% 80.0% 80.0% 2 45.0% 45.0% 45.0% 50.0% 55.0% 65.0% 65.0% 65.0% 65.0% 70.0% 70.0% 3 39.0% 39.0% 39.0% 39.0% 45.0% 45.0% 50.0% 50.0% 50.0% 60.0% 60.0% 4 29.0% 29.0% 29.0% 34.0% 34.0% 44.0% 44.0% 44.0% 44.0% 44.0% 50.0% 5 18.0% 18.0% 18.0% 18.0% 23.0% 23.0% 23.0% 23.0% 28.0% 28.0% 33.0% 6 18.0% 18.0% 18.0% 18.0% 18.0% 23.0% 23.0% 23.0% 23.0% 23.0% 28.0% 7 7.0% 12.0% 12.0% 12.0% 12.0% 12.0% 17.0% 17.0% 17.0% 17.0% 22.0% 8 7.0% 7.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 17.0% 9 6.0% 6.0% 6.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 16.0% 4 of 9
10 6.0% 6.0% 6.0% 6.0% 6.0% 11.0% 11.0% 11.0% 11.0% 11.0% 16.0% 11 6.0% 6.0% 6.0% 6.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 12 6.0% 6.0% 6.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 13 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 11.0% 14 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 11.0% 15 6.0% 6.0% 6.0% 6.0% 6.0% 11.0% 16 5.0% 5.0% 5.0% 5.0% 5.0% 17 5.0% 5.0% 5.0% 5.0% 18 5.0% 5.0% 5.0% 19 5.0% 5.0% >=20 5.0% Tabarru (a) Tabarru rates vary by the attained age next birthday, gender and smoking status of the Person Covered. (b) Tabarru is deducted monthly at the beginning of each certificate month. CONTRIBUTION i. Contribution Minimum Maximum : RM600 Annually : Subject to Underwriting ii. iii. Contribution payment mode Contribution can be made via annually, half-yearly, quarterly or monthly contribution instalments. Contribution mode factors (Frequency of Contribution Payments) Modal contribution is determined before annual contribution if the annual contribution is M times of the modal contribution. Mode of Modal Contribution M Annually 1 Half-yearly 2 Quarterly 4 Monthly 12 iii. iv. Contribution payment method (a) GIRO/Autodebit and credit card are allowed for all modes of contribution payments. (b) Cheque and cash are allowed for yearly mode ONLY. (However, in cases e.g. credit card deduction cannot be done due to any reasons etc, customers can walk in to HQ or branches and make the payments in cash but to ensure the subsequent payment to go through the auto billing.) (c) Biro Angkasa is allowed for monthly mode 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 (GETSB Own Agent) 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. 5 of 9
v. Large Sum Covered Discount Not Applicable. vi. Contribution Allocation The Takaful Contributions are allocated based on this prescribed Allocation Rate: Contribution Year Term 10 11 12 13 14 15 16 17 18 19 >=20 1 30.0% 30.0% 30.0% 30.0% 30.0% 25.0% 25.0% 25.0% 25.0% 20.0% 20.0% 2 55.0% 55.0% 55.0% 50.0% 45.0% 35.0% 35.0% 35.0% 35.0% 30.0% 30.0% 3 61.0% 61.0% 61.0% 61.0% 55.0% 55.0% 50.0% 50.0% 50.0% 40.0% 40.0% 4 71.0% 71.0% 71.0% 66.0% 66.0% 56.0% 56.0% 56.0% 56.0% 56.0% 50.0% 5 82.0% 82.0% 82.0% 82.0% 77.0% 77.0% 77.0% 77.0% 72.0% 72.0% 67.0% 6 82.0% 82.0% 82.0% 82.0% 82.0% 77.0% 77.0% 77.0% 77.0% 77.0% 72.0% 7 93.0% 88.0% 88.0% 88.0% 88.0% 88.0% 83.0% 83.0% 83.0% 83.0% 78.0% 8 93.0% 93.0% 88.0% 88.0% 88.0% 88.0% 88.0% 88.0% 88.0% 88.0% 83.0% 9 94.0% 94.0% 94.0% 89.0% 89.0% 89.0% 89.0% 89.0% 89.0% 89.0% 84.0% 10 94.0% 94.0% 94.0% 94.0% 94.0% 89.0% 89.0% 89.0% 89.0% 89.0% 84.0% 11 94.0% 94.0% 94.0% 94.0% 89.0% 89.0% 89.0% 89.0% 89.0% 89.0% 12 94.0% 94.0% 94.0% 89.0% 89.0% 89.0% 89.0% 89.0% 89.0% 13 94.0% 94.0% 94.0% 94.0% 94.0% 94.0% 94.0% 89.0% 14 94.0% 94.0% 94.0% 94.0% 94.0% 94.0% 89.0% 15 94.0% 94.0% 94.0% 94.0% 94.0% 89.0% 16 95.0% 95.0% 95.0% 95.0% 95.0% 17 95.0% 95.0% 95.0% 95.0% 18 95.0% 95.0% 95.0% 19 95.0% 95.0% >=20 95.0% UNDERWRITING i. Age at Entry Minimum Maximum ii. Benefit Term Minimum Maximum : 30 days : 60 years age next birthday : 10 years : 50 years or upon reaching age 70 ANB (whichever comes first). iii. Sum Covered Minimum : RM 10,000.00 Maximum : RM 9,999,999.00 and subject to Underwriting iv. Non-Medical Limits The proposal will be underwritten based on the combined Sum Covered of basic plan and riders/supplementary benefits (where applicable). The non-medical limits are based on current Internal Underwriting Guidelines / Field Underwriting Manual. 6 of 9
v. Underwriting for Substandard Person The treatment for underwriting substandard lives owing to health condition will be to impose a percentage extra loading on contribution and the Tabarru rates. In cases of temporary health extra, the imposition will be on per mille per annum basis (i.e. at the rate of per 1000 sum covered per annum). As for hazardous occupation or avocation and foreign residence, the approach of imposing the extra charges will be on per mille per annum basis. Health condition 1.percentage extra loading (EM%) AND/OR 2.per mille per annum basis Hazardous occupation/avocation/foreign residence 1.per mille per annum basis ONLY RIDERS / SUPPLEMENTARY BENEFITS Term Riders available: - a) i-contributor Benefit Plus Term Rider (J5) b) i-critical Illness Benefit Term Rider (J6) Please refer to the product write-up for the above riders for details. OTHER PRODUCT FEATURES i. Increase in Sum Covered (a) Allowed up to the maximum sum covered but may require underwriting and at least 30 days notification is given prior to the certificate month of increment to take effect. (Within first certificate year). (b) Backdating is allowed. ii. iii. iv. Decrease in Sum Covered (a) Participant may voluntarily reduce the sum covered, subject to the minimum sum covered limits. (b) Backdating is not allowed. Cash Surrender Value Amount left in PIA Trustee/Nomination Allowed. v. Third Party Certificate Allowed. vi. Free Look Period Participants are allowed to cancel the certificate within 15 days from the receipt date of the certificate. Under such circumstances, total contribution paid minus the expenses incurred for medical examination (if any) will be refunded and commissions will be clawed back. vii. Reinstatement Allowed within 3 years from the date of lapsing, standard reinstatement conditions apply. viii. Backdating Not Allowed. 7 of 9
ix. Paid-up Values / Extended Term Takaful / Certificate Loans / Bonus Rate / Option to Participate In New Certificate Not applicable. Note: 6% Service Tax is applicable to all contributions including paid by business organisation as third parties. x. Replacement of Certificate (ROC) Subject to ROC guidelines. For replacement of conventional plan to takaful plan under Great Eastern, the agents will be penalized if the replacement of certificates occurs. AGENCY COMPENSATION The commissions are paid as a percentage of contribution paid as detailed below. 1) Basic Commission Contribution Year Term 10 11 12 13 14 15 16 17 18 19 >=20 1 17.50% 19.30% 21.00% 22.80% 24.50% 26.30% 28.00% 29.80% 31.50% 33.30% 35.00% 2 12.50% 13.80% 15.00% 16.30% 17.50% 18.80% 20.00% 21.30% 22.50% 23.80% 25.00% 3 7.50% 8.20% 9.00% 9.70% 10.50% 11.20% 12.00% 12.70% 13.50% 14.20% 15.00% 4 7.50% 8.20% 9.00% 9.70% 10.50% 11.20% 12.00% 12.70% 13.50% 14.20% 15.00% 5 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% 6 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% >=7 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2) Overriding Commission Contribution Term Year 10 11 12 13 14 15 16 17 18 19 >=20 1 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00% 2 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% 3 3.00% 3.30% 3.60% 3.90% 4.20% 4.50% 4.80% 5.10% 5.40% 5.70% 6.00% 4 2.50% 2.80% 3.00% 3.30% 3.50% 3.80% 4.00% 4.30% 4.50% 4.80% 5.00% 5 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% >=7 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 8 of 9
3) Production, Persistency & ARE Certificate Year Term 1 2 3 4 5 6 and Total onwards Production 10.00% 10.00% Persistency 5.00% 5.00% 10.00% ARE 2.27% 3.00% 3.00% 3.00% 3.00% 3.00% - 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 Family Takaful certificates. Note: The leader must also pass the TBE to be eligible for overriding commission. 9 of 9