Zurich Vista Understanding your clients
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The document provides a detailed benefits illustration for Zurich International Life's Vista insurance product, outlining potential investment outcomes, costs, and terms associated with the policy. It emphasizes understanding the projected returns, premium costs, and the impact of various fees on the policy's value over time. Additionally, it highlights the importance of consulting a financial adviser for personalized insights regarding the investment performance of the policy.
Zurich Vista Understanding your clients
- 1. Understanding your client’s benefit illustration Vista This illustration shows how your client’s investment may look over a period and explains the terminology used in the Zurich International Life illustration system. Name of product Vista Need for savings Name of insurance company Saving Zurich International Life Limited Introduction This information forms part of your benefits illustration. Zurich International Life Limited believes it is important that you fully appreciate all the benefits under your policy, and that you also understand how the cost of the insurance protection, distribution, administration, investment and other costs affect these benefits. The benefits illustration includes a schedule that shows how the value of your policy changes over time. The computation and methods used to calculate this schedule follow guidelines, which have been established by the life insurance industry to ensure that a fair and consistent approach is used in preparing this illustration. This important information is set out below. If you need clarification, please do not hesitate to ask your adviser. Life insured details Name Date of birth A Client 01/01/1966 Sex Male Smoker Country of residence Non-smoker Singapore Policy details Regular premium Annual escalation rate SGD1,000 0% Premium frequency Initial contribution period Monthly 18 months Total policy lump sum --- Contract term 20 years Policy basis SL Policy start date 01/10/2012 Death/Critical illness basis Death benefit --Not covered Hospitalisation (weekly) Dismemberment Not covered Not covered Critical illness benefit Not covered Spouse's income p.a. Not covered Waiver of premium Permanent total disability Not covered Not covered Spouse's age --Spouse's income escalation --- Benefits Initial contribution period (ICP) An ICP applies if your client pays regular premiums, and is a fixed period of up to 18 months from the start of a new policy. Initial bonus We recognise that clients investing larger regular amounts expect greater rewards. A charge of 4% each year, known as the expense recoupment charge, is then taken from the value of the units purchased during this period. This charge is deducted on a monthly basis; please see the ‘Vista – Summary of fees and charges’ leaflet for further information. • Your client’s premiums in the first year x the bonus allocation % x the policy term. Zurich International Life will pay a client bonus as follows: • This additional allocation is made on the regular premiums they make for the first year after qualifying for the bonus. • The bonus allocation is dependent on premium, and is one of three different levels – bronze (0.5%), silver (1.5%) or gold (2.5%). Signature of applicant Day Month Year Signature of introducer Day Month Year Zurich International Life
- 2. Your illustrative policy benefits End of policy year Annualised premiums Total premiums outlay Total distribution cost Non-guaranteed surrender values Effect of deductions 4% 8% 1 2 3 4 5 6 7 8 9 10 11 12 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 24,000 36,000 48,000 60,000 72,000 84,000 96,000 108,000 120,000 132,000 144,000 10,200 10,298 10,460 10,688 10,988 11,364 11,819 12,360 12,991 13,717 14,544 15,479 N/A 9,344 21,730 34,394 47,345 60,588 74,131 87,980 102,143 116,997 131,788 146,913 N/A 9,659 22,757 36,671 51,454 67,161 83,848 101,579 120,418 140,962 162,223 184,811 12,514 16,370 17,868 19,718 21,960 24,640 27,811 31,527 35,850 40,321 46,077 52,667 13 14 15 12,000 12,000 12,000 156,000 168,000 180,000 16,527 17,697 18,994 162,378 178,193 194,854 208,809 234,305 262,232 60,181 68,718 77,546 16 17 18 12,000 12,000 12,000 192,000 204,000 216,000 20,427 22,005 23,734 211,309 228,132 245,329 290,901 321,346 353,677 88,574 101,000 114,971 19 20 12,000 12,000 228,000 240,000 25,626 27,690 262,909 282,481 388,011 426,074 130,643 146,586 What is the significance of the Projected Investment Rate of Return? The illustrations are based on projected investment returns of 4% p.a. and 8% p.a. The two rates of return used are before deducting the annual management charge of the funds. They are purely for illustrative purposes and do not represent upper or lower limits on the investment performance. They also do not reflect potential volatility over the short-term resulting in potential sharp movements, up or down, of the underlying assets of the funds. The actual benefits payable will depend on the actual performance of the underlying assets of the funds. The performance of the funds is not guaranteed and the cash value may be less than the capital invested. Please note that if you select a money market fund or a fixed income fund, then returns of 4% to 8% could be considered high in many cases and unlikely to be achieved if the current low interest rate environment persists. You are strongly recommended to speak to your financial adviser who would be able to provide further information on these funds - both Non-guaranteed surrender values* Total your initial fundcost for distribution selection and subsequently. This is illustration assumes an annual fund management charge of 1%. This column represents the projected amount your client The an ‘average’ cost and covers the distribution and would get back (at the illustrative rates) if the policy is promotion of the product. This includes average surrendered early. commission paid over the life of the policy for initial and ongoing financial advice and promotion of the product by us to relevant financial professionals. These costs are covered by the product charges and are not in addition to the charges detailed in the product brochures. The total distribution cost is not an additional cost to your clients; it has already been allowed for in calculating their premium. A full schedule of fees and charges can be found in the ‘Vista – Summary of fees and charges’ leaflet, a copy of which is available on request. * ista is a unit-linked regular premium policy; as such, the value of units purchased can fall as well as rise over time. For illustrative purposes V only, the Monetary Authority of Singapores require all unit-linked investment providers such as Zurich International Life, to provide illustrations on a mandated rate of return of 4% and 8%. It should be remembered that these might differ from the actual gains made. Signature of applicant Day Month Year Signature of introducer Day Month Year Zurich International Life Limited (Singapore branch) is registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance and Pensions 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. Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore 048623. Telephone +65 6876 6750 Telefax +65 6876 6751. Registered in Singapore No. T05FC6754E. www.zurichinternational.com. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training and quality purposes. 11/09/2012 13:47 E.&O.E. V1.66.00 Z0002538/9999999/F/F/BPN/SING_SIV3S Page 2 of 4 2
- 3. Policy benefits End of policy year Total distribution cost Guaranteed sum assured Death benefit total (including non-guaranteed surrender values) Effect of deductions 1 10,200 Death benefit 0 Critical illness 0 4% 11,736 8% 11,978 12,514 2 3 4 5 6 7 10,298 10,460 10,688 10,988 11,364 11,819 0 0 0 0 0 0 0 0 0 0 0 0 23,322 35,125 47,200 59,552 72,188 85,114 24,256 37,218 50,959 65,527 80,971 97,345 16,370 17,868 19,718 21,960 24,640 27,811 8 9 10 12,360 12,991 13,717 0 0 0 0 0 0 98,335 111,858 125,689 114,707 133,115 152,634 31,527 35,850 40,321 11 12 13 14,544 15,479 16,527 0 0 0 0 0 0 139,835 154,303 169,100 173,331 195,279 218,553 46,077 52,667 60,181 14 15 16 17 18 19 17,697 18,994 20,427 22,005 23,734 25,626 0 0 0 0 0 0 0 0 0 0 0 0 184,231 199,706 215,530 231,712 248,260 265,180 243,234 269,409 297,168 326,609 357,833 390,949 68,718 77,546 88,574 101,000 114,971 130,643 20 27,690 0 0 282,481 426,074 146,586 Total distribution cost Guaranteed sum assured costs that Zurich International Life mayDeath to incur. These costs include cash payments in the form This section shows the total expect benefit total of commission, Zurich benefits and Life to comply with total distribution cost is an The MASexpectedcosts ofInternational services paidThe totala require costs, but with no interest added. to the distribution channel. Thean additional cost to you; it accumulation of each (including non-guaranteed surrender value) year's distribution cost is not has already been allowed layout of an illustration. Certain products sold mandated for in calculating your premium. This column represents the current value of the policy, as in Singapore, such as participating endowment policies well as the amount your client would get back on death Projected investment rate of return The investment rate of return that is actually achieved have historically had a guaranteed sum assured as aby Zurich International Life will depend on the investment returns it has earned or maturity if the 4% and 8% growth rates were from investing its life insurance fund. In preparing this benefit illustration, it is assumed that the projected investment rate of return product feature. As Vistawill an able to earn throughout the term of your policy exactly paying any costsremembered that the p.a. is be investment-linked product achieved (before – it should be of investing) will be 8% Zurich International Life The projected investment benefit, then this column will with no guaranteed deathrate of return is not guaranteed. The policy benefits are made might that they are consistent with the actual gains calculated so differ. projected investment rate of return assumption. always be zero as mandated by the MAS. This is applicable Reduction in yield even if your client has chosen benefits such as life cover. This benefits illustration shows that over the full term of the policy, the effect of the total deductions could amount to SGD146,586. The total deductions would have the effect of reducing the projected investment rate of return upon maturity from 8% to 5.40% p.a. The level of risk between the projected investmentdiffers return of 8% p.a. and the rate of return you will receive (based on this The difference and investment performance rate of benefits on the funds chosen. You should note dependingillustration) is called the reduction in yield. that Effect of deductions past performance is not a guide to future performance. The deductions relate to all charges taken out from the policy. These include distribution costs, expenses, mortality and morbidity The value of any investment and the incomeshareholders and expected tax payments. The figures illustrated relate to the effect of costs, surrender penalty, expected transfers to from it can falldeductions basedas athe projected investment currency as well as rise on result of market and rate of return of 8% p.a. The effect of deductions column in the benefits illustration shows the difference between the accumulation of the premiums paid (accumulated at the projected investment rate of return) and fluctuations and your client mayprojected maturity value. the total cash surrender value or not get back the amount originallyto indicate the costs you might incur with this policy. This is done by comparing these projected values to the This is intended invested. amounts you would receive if you were able to invest all your premiums (incurring no costs) in a hypothetical investment plan that pays a rate of interest equal to the projected investment rate of return. Reduction in yield (RIY) This figure represents all charges taken from the policy as an annual percentage, assuming the assets held within the fund(s) of the policy grow consistently at 8% each year. This figure also includes the annual management charge (AMC) Signature of applicant for the fund(s) that your client has selected, which is taken from the fund(s) before they are priced. Signature of introducer Effect of deductions The effect of deductions is the difference between what your client would get back if their premiums were to be accumulated at the relevant gross rate of return (8% per annum) with no deductions or charges at all, and what the Day Month Year surrender value is projected to be allowing for all charges (product charges and fund AMCs). However, this is not an Day Month Year amount directly deducted from the policy or paid by the client. Zurich International Life Limited (Singapore branch) is registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance and Pensions 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. Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore 048623. Telephone +65 6876 6750 Telefax +65 6876 6751. Registered in Singapore No. T05FC6754E. www.zurichinternational.com. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training and quality purposes. 11/09/2012 13:47 E.&O.E. V1.66.00 Z0002538/9999999/F/F/BPN/SING_SIV3S Page 3 of 4 For further information on Vista please refer to the product brochure and policy terms and conditions, copies of which are available on request. 3
- 4. 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 Government Insurance and Pensions Authority which ensures that the company has sound and professional management and provision has been made to protect policy owners. 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 policy owners, up to 90% of the liability to the protected policy owners 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 policy. Not for sale to residents or nationals of the United States including any United States federally controlled territory. Zurich International Life Limited (Singapore branch) is registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Financial Dispute Resolution Scheme. MSP11359 (122524A04) (10/12) RRD Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training and quality purposes. Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance and Pensions 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 Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore 048623. Telephone +65 6876 6750 Telefax +65 6876 6751. Registered in Singapore No. T05FC6754E. www.zurichinternational.com