After decades of working hard to take care of your responsibilities, you deserve to enjoy your golden years by pursuing your hobbies that you never had time for, make up for lost holidays, share memories with family or take pride in remaining independent you can find your savings scarce and leave you financially dependent on others. To protect you from such situations, EFU Savings and Retirement plan helps you to save regularly to build your savings that you can look forward to at the time of retirement.
EFU Life Assurance brings for you Savings and Retirement Plan, which is an investment-linked insurance product with guaranteed level of insurance protection and flexible options to customize the benefits according to your needs. This plan could help you to save your money on regular basis and could also help you fulfill your financial needs. There is additional unit allocation at the end of the maturity in the form of maturity bonus to boost your savings at maximum level. With Savings and Retirement 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 free look period of 14 days from the date of the documents receipt, you are entitled for a full refund of premium less any expenses incurred by EFU Life in connection with our medical or clinical examinations.
Opportunity for Growth and Savings: Your premiums to the plan will be utilized to purchase units of one of the mentioned below funds. These funds are managed by investments experts who adjust the mix of underlying investments in the 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 and 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 a facility to select a mix of two unit linked funds of the plan. Fund mix can be selected in multiples of 10%. It means that the funds split can be of 90/10, 80/20, 70/30, 60/40 or 50/50.
*EFU Guaranteed Growth Fund to be selected by default
Unit allocation:
The proportion of premium for investment in units varies by policy year and is as follows:
| 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% |
*An allocation charges will be deducted from the Paid Premium every year as per the above table and the remainder will be allocated to the account value.
Sum Assured: This is the amount payable on the unfortunate event of death of the policy holder/life assured. This is equal to the Regular Basic Plan Premium times the protection multiple selected by the policy holder. The Protection Multiple is subject to limits dependent on the age at commencement. Refer to the table below for further details:
| 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 |
Access to your Savings: The plan provides complete access to accumulated fund value during the policy term. Total units accumulated can be withdrawn after the second year’s regular premium payment. A facility for partial withdrawals is also available subject to Rs. 20,000 remaining in the fund. Please note that in case of surrender in early policy years may result in low cash values.
Fund Acceleration Premium (FAP) If you have surplus cash available at any point of time during the plan term, it can be invested in the plan to enhance your cash values. These additional payments in the plan are called Fund Acceleration Premium payments. You can make these payments at any time while the policy is in force. The minimum FAP payment is Rs. 24,000. 100% of FAP payments are allocated to purchase units in the selected fund.
Maturity Bonus The plan provides valuable maturity bonuses at the end of plan’s term to boost the fund accumulation. The bonus is allocated, as a percentage of the average Basic Annual Premium Plan paid. The extra units will be allocated at maturity depending on the maturity year, as mentioned below: The extra unit allocation is as follows:
| Year | Unit Allocation % |
| 11 – 15 | 10% |
| 16 – 20 | 20% |
| 21 – 25 | 50% |
Death Benefit: The moment you start saving with this Plan, you will have a guaranteed level of life insurance protection. After the death of the policy holder, the beneficiary will be receiving: 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 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 at a constant level.
Retirement Option: At the age of 60 years, you have the option to avail one the following retirement benefits from your fund value:
- A guaranteed pension payable for 10 years and for life of the Life Assured thereafter
- Upon death of the Life Assured 50% of the retirement income payable to the spouse.
Who can apply and what is the term of plan?
This plan is available for all individuals aged between 18 and 65 years on next birthday. The coverage term is from 10 to 25 years and maturity is subject to a maximum age of 75 years.
What is the minimum/maximum Premium I have to pay?
Minimum annual basic plan premium is Rs. 24,000/- per annum. The mode-wise minimum premium is as follows:
| Mode | Minimum Modal Premium |
| Annual | 24,000 |
| Half Yearly | 12,000 |
| Quarterly | 6,000 |
| Monthly | 2,000 |
Charges
| Charges | 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 (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 applies in years where the cash value exceeds 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 |
Claim:
In case of an unfortunate event, you may file your claim intimation through any Allied Bank Branch walk in, visiting the EFU Head Office or by visiting any of the EFU branches in the country. For a swift speedy process you may also call us at our call center (021- 111-338-111) or simply visit our website, fill in the intimation form and email it to us at [email protected]. Thereafter, you will be contacted for 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 Allied Bank product. Allied Bank is just a promoter and distributor of this product to its valued customers.
- Growth in the value of your premiums will depend on the performance of the selected Fund in which the premiums are invested.
- All investments made in the selected Fund are subject to market risks. The investment risk of the selected fund will be borne by the policy holder.
- The past performance of the fund is not necessarily a guide to future performance. Any forecast made is not necessarily indicative of future or likely performance of the Fund and neither EFU Life Assurance Ltd. nor Allied Bank will incur any liability for the same.
- A personalized illustration of benefits will be provided to you 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 as stipulated by the relevant authorities.
- A description of how the contract works is given in the policy provisions and conditions. This product brochure only gives 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