Overview – Savings and Retirement Plan
After decades of working hard to take care of your responsibilities, you deserve to enjoy your golden years by pursuing hobbies you never had time for, making up for lost holidays, sharing memories with family, or taking pride in remaining independent. You may find your savings scarce, leaving you financially dependent on others. To protect you from such situations, the EFU Savings and Retirement Plan helps you save regularly to build your savings, which you can look forward to at the time of retirement.
EFU Life Assurance brings you the Savings and Retirement Plan, which is an investment-linked insurance product with a guaranteed level of insurance protection and flexible options to customize the benefits according to your needs. This plan helps you save money regularly and fulfill your financial needs. There is an additional unit allocation at the time of maturity in the form of a maturity bonus, designed to boost your savings to the maximum level.
With the Savings and Retirement Plan:
Disclosure of Product
This is a life insurance product with 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 medical or clinical examinations.
Opportunity for Growth and Savings
Your premiums under the plan will be used to purchase units of one of the funds listed below. These funds are managed by investment experts who adjust the mix of underlying investments in response to economic conditions and opportunities. You can select from the following unit funds:
EFU Managed Growth Fund
Fund Categorization: Balanced
Risk Profile: Medium
A balanced investment fund that aims to achieve reasonable capital growth and steady returns through investments in government securities, blue-chip equities, fixed income instruments, and cash.
EFU Guaranteed Growth Fund*
Fund Categorization: Money Market Fund
Risk Profile: Low
Provides steady returns with a guarantee that the bid price will never fall. Investments are made in short-term debt securities to achieve stable growth.
EFU Income Growth Fund
Fund Categorization: Income Fund
Risk Profile: Low
Offers consistent capital growth through investments in government securities and high-quality corporate debt.
EFU Aggressive Fund
Fund Categorization: Aggressive Fund
Risk Profile: High
Aims to provide a higher rate of return through investments in equities, with an aggressive market outlook.
Multiple Fund Option
You can select a mix of two unit-linked funds under the plan. The fund mix can be chosen in multiples of 10%, such as 90/10, 80/20, 70/30, 60/40, or 50/50.
EFU Guaranteed Growth Fund is selected by default.
The proportion of premium allocated for unit investment varies by policy year, as shown below:
| Policy Year | Unit Allocation % | Allocation Charges* |
|---|---|---|
| 1 | 60.0% | 40.0% |
| 2 | 80% | 20% |
| 3 | 90% | 10% |
| 4 | 100% | 0% |
| 5 – 10 | 103% | 0% |
| 11 – 20 | 105% | 0% |
| 21 onwards | 110% | 0% |
* Allocation charges will be deducted from the paid premium each year as per the table. The remainder is allocated to the account value.
This is the amount payable in the unfortunate event of the death of the policyholder/life assured. It is equal to the Regular Basic Plan Premium multiplied by the Protection Multiple selected by the policyholder. The multiple is subject to limits based on the age at commencement:
| Age | Protection Multiple |
|---|---|
| 18 to 35 | 5 to 75 |
| 36 to 40 | 5 to 50 |
| 41 to 49 | 5 to 35 |
| 50 to 60 | 5 to (70 – age) |
| 61 to 65 | 5 |
The plan provides full access to your accumulated fund value during the policy term. Total units accumulated can be withdrawn after the second year’s premium payment. Partial withdrawals are also allowed, provided PKR 20,000 remains in the fund.
Note: Early policy surrender may result in low cash values.
If you have surplus cash available during the plan term, it can be invested in the plan as a Fund Acceleration Premium (FAP) to increase your cash values.
-
FAP payments can be made anytime while the policy is active.
-
Minimum FAP payment: PKR 24,000
-
100% of FAP payments are allocated to purchase units in the selected fund.
The plan provides maturity bonuses at the end of the term to boost fund accumulation. The bonus is allocated as a percentage of the average Basic Annual Premium Plan paid.
| Year | Unit Allocation % |
|---|---|
| 11 – 15 | 10% |
| 16 – 20 | 20% |
| 21 – 25 | 50% |
Death Benefit
Once enrolled in the plan, you receive a guaranteed level of life insurance protection. Upon the death of the policyholder, the beneficiary will receive:
-
The greater of:
-
The Sum Assured of the Main Plan or
-
The Cash Value of the units applicable to the Regular Basic Plan Premium
-
-
Plus: Cash Value of the units applicable to Fund Acceleration Premium (FAP)
Indexation Benefit
This option ensures that the benefits of your plan increase each year, regardless of your health. With this feature:
-
Premium and Sum Assured increase by 5% each year
-
You may choose to increase only the premium, keeping the Sum Assured constant
Retirement Option
At the age of 60 years, you may avail one of the following retirement benefits from your fund value:
-
A guaranteed pension payable for 10 years, and for life thereafter
-
Upon the death of the Life Assured, 50% of the retirement income is payable to the spouse
| Charge | Rate / PKR |
|---|---|
| Administration Charge | PKR 105 per month |
| Bid/Offer Spread | 5% of the net regular premium |
| Investment Management Charge | 0.125% of the fund value per month |
| Mortality Charge | Age-based; applies yearly if Cash Value < Sum Assured |
| Fund Switching Fee | PKR 500 |
| Surrender Processing Fee | PKR 500 |
| Surrender Charge | 100% for the first year |
| Allocation Charges | As per Unit Allocation table above |
Q. Who can apply, and what is the term of the plan?
Available for individuals aged 18 to 65 years (next birthday).
- Policy term: 10 to 25 years
- Maturity age limit: 75 years
Q. What is the minimum/maximum premium I have to pay?
Minimum annual basic plan premium: PKR 24,000
Mode-wise minimum premium:
| Mode | Minimum Modal Premium (PKR) |
|---|---|
| Annual | 24,000 |
| Half Yearly | 12,000 |
| Quarterly | 6,000 |
| Monthly | 2,000 |
In case of an unfortunate event, you may file your claim intimation by:
-
Walking into any Allied Bank branch
-
Visiting the EFU Head Office or any EFU branch nationwide
-
Calling the EFU Call Center at (021-111-338-111)
-
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 it is not an Allied Bank product.
Allied Bank acts only as a promoter and distributor of this product.
-
Growth in premium value depends on the performance of the selected Fund
-
All investments are subject to market risks, and the investment risk is borne by the policyholder
-
Past performance is not a guide to future performance
-
Any forecast is not a guarantee of future results. EFU Life and Allied Bank bear no liability
-
A personalized benefit illustration will be provided by your sales representative
-
Taxes apply as per relevant taxation laws
-
Full terms and conditions are described in the policy provisions
-
This brochure provides a general overview of product features
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