Overview – Allied Accelerated Savings Plan
Fulfill your future dreams with this unique lump sum payment plan with no worries of regular payments that covers your investment needs with comprehensive life protection. EFU Life brings the Accelerated Savings Plan, which is designed to help you grow your wealth while you enjoy the security of life protection, so you and your loved ones can live a richer life in all the ways that count. You also get to reap potential returns over and above the premiums you pay, giving your investments a boost so you can do more with your wealth. You will be awarded additional bonus units to invest in a bonus account on top of your main account, which maximizes your investment returns.
With Accelerated Savings Plan:
Disclosure of Product
This is a life insurance product which has two distinct elements, i.e., Insurance Protection and Investment. The Investment Component is linked to the performance of underlying assets under unit-linked fund(s).
Free Look Period
If you cancel your policy within the free look period of 14 days from the date of receipt of the documents, you are entitled to a full refund of premium, less any expenses incurred by EFU Life in connection with your medical or clinical examinations.
Opportunity for Growth and Savings
Your premiums to the plan will be utilized to purchase units of one of the funds mentioned below. These funds are managed by investment experts who adjust the mix of underlying investments in light of economic conditions and investment opportunities. You can select from the following unit funds mentioned below:
EFU Managed Growth Fund
Fund Categorization: Balanced
Risk Profile: Medium
An investment fund with a balanced investment strategy. It aims to achieve reasonable capital growth and steady returns with investment in government securities, carefully selected blue-chip equities, other fixed income instruments, and cash.
EFU Guaranteed Growth Fund*
Fund Categorization: Money Market Fund
Risk Profile: Low
An investment fund providing steady returns with a guarantee that the bid price of the fund will never fall. It aims to achieve stable growth through investment in short-term debt securities.
EFU Income Growth Fund
Fund Categorization: Income Fund
Risk Profile: Low
An investment fund providing steady returns. It aims to achieve consistent capital growth with investment in government securities and high-quality corporate debt.
EFU Aggressive Fund
Fund Categorization: Aggressive Fund
Risk Profile: High
An investment fund with the aim of investing in equities providing a higher rate of return. It aims to maximize capital growth by using investments with an aggressive market outlook.
Multiple Fund Option
Under this option, you have the facility to select a mix of two unit-linked funds of the plan. The fund mix can be selected in multiples of 10%. This means that the funds split can be 90/10, 80/20, 70/30, 60/40, or 50/50.
EFU Guaranteed Growth Fund will be selected by default.
Year-wise allocation percentages of the policyholder’s premium are shown in the table below:
| Policy Year | Unit Allocation %* | Allocation Charges |
|---|---|---|
| 1 | 65.0% | 35.0% |
| 2 | 85% | 15% |
| 3 – 10 | 105% | 0% |
*Includes bonus unit allocations due to lump sum premium payments.
Allocation charges will be deducted from the paid premium every year as per the table above, and the remainder will be allocated to the account value.
Sum Assured is the guaranteed amount payable on the unfortunate event of death of the policyholder/life assured. This is equal to 10 times the Annual Basic Premium.
This plan provides complete peace of mind that you can get access to your accumulated fund value during the policy term. Total units accumulated can be withdrawn after the second year’s regular premium payment.
If the policy is surrendered before completion of 13 months, a surrender charge equal to the allocated portion of the first-year premium will be deducted from the cash value of the policy.
If you have surplus cash available at any point during the plan term, it can be invested in the plan to enhance your cash values. These additional payments are called Fund Acceleration Premium (FAP) payments.
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You can make these payments any time while the policy is in force.
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The minimum FAP payment is PKR 20,000.
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100% of FAP payments are allocated to purchase units in the selected fund.
Death Benefit
The moment you start saving with Accelerated Savings Plan, you will have a guaranteed level of life insurance protection. In the unfortunate event of the death of the policyholder, the beneficiary will receive:
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Sum Assured of the Main Plan
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Cash Value of the units applicable to the Regular Basic Plan Premium
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Plus: Cash Value of the units applicable to Fund Acceleration Premium (FAP)
Maturity Benefit
At the end of the policy term, while the policyholder is still alive:
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The maturity benefit payable will be the Cash Value applicable to the regular premium plan,
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Plus: the Cash Value applicable to FAP (if any)
Indexation Benefit
This option gives you the security and peace of mind of knowing that the benefits provided by your plan will increase in value every year regardless of your health.
Once you select this option, the premium and sum assured will increase every year by 5% of the prior year’s premium. You may, however, opt to increase only the premium while keeping the sum assured constant.
| Charges | Rate / PKR |
|---|---|
| Administration Charge | PKR 80 per month |
| Bid/Offer Spread | 5% of the net regular premium |
| Investment Management Charge | 0.125% of the fund value per month |
| Mortality Charge (Cost of Insurance) | An age-based mortality charge applies for the life insurance risk each year and is dependent on the sum at risk. No mortality charges apply in years where the cash value exceeds the sum assured. |
| Fund Switching Fee | PKR 500 |
| Surrender Processing Fee | PKR 500 |
| Surrender Charge | 100% for the first year |
| Allocation Charges | As per the above Unit Allocation table |
Q. Who can apply and what are the limits of the plan?
This plan is available for all individuals aged between 18 and 65 years (next birthday). The coverage term is 15 and 20 years, subject to a maximum age of 80 years at maturity.
Q. What is the type of the plan?
It is a lump sum regular premium plan in which 10 years’ premium has to be paid in lump sum at inception.
Q. What is the minimum/maximum premium I have to pay?
You have to pay a minimum annual basic plan premium of PKR 20,000 per annum.
In case of an unfortunate event, you may file your claim intimation by:
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Walking into any Allied Bank branch
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Visiting the EFU Head Office or any EFU branch nationwide
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Calling the EFU Call Center at (021-111-338-111)
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Visiting the EFU website, filling the intimation form, and emailing it to [email protected]
Thereafter, you will be contacted for the next steps.
This product is underwritten by EFU Life Assurance Ltd. It is not guaranteed or insured by Allied Bank or its affiliates and is not an Allied Bank product.
Allied Bank is just a promoter and distributor of this product to its valued customers.
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Growth in the value of your premiums depends on the performance of the selected Fund in which the premiums are invested.
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All investments are subject to market risks. The investment risk of the selected fund will be borne by the policyholder.
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The past performance of the fund is not necessarily a guide to future performance.
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Any forecast made is not necessarily indicative of future or likely performance, and neither EFU Life Assurance Ltd. nor Allied Bank will incur any liability for the same.
A personalized illustration of benefits will be provided by our sales representative. Please refer to the notes in the illustration for detailed understanding of the various Terms and Conditions.
Taxes will be applicable as per the taxation laws stipulated by the relevant authorities.
A description of how the contract works is given in the policy provisions and conditions. This product brochure only provides a general outline of the product features and benefits.
EFU LIFE ASSURANCE LTD.
EFU Life House: Plot No. 112, 8th East Street, Phase I, DHA, Karachi, Pakistan
Tel: (021) 111-EFU-111 (111-338-111)
Fax: (021) 34537519
Website: www.efulife.com