Global Choice. Product Summary Valid from February 2014

Transcription

1 Global Choice Product Summary Valid from February 2014 This document contains important information regarding the main features, benefits and risks of Global Choice which will help you decide whether a Global Choice plan is right for you. This summary contains information at a product level only; please ensure that you read this in conjunction with the relevant Zurich International Life investment-linked policy (ILP) sub-fund factsheet(s), which contain information at an ILP sub-fund level. You should read this document carefully so that you understand what you are buying and then keep it safe for future reference. If you want any further information about Global Choice, please speak to your financial adviser. They will give you advice and answer any questions you may have. Full details of the terms and conditions that apply can be found in the Global Choice plan terms and conditions document, which is available from your financial adviser or direct from us. Description of your plan Global Choice is a single contribution, whole of life plan, which also allows you to save regularly into a wide range of unit linked ILP sub-funds. You should regard your investment as a medium to long-term investment. Global Choice is an investment-linked life insurance plan. The benefits payable from the plan are directly linked to the performance of the ILP sub-funds you choose from the wide range of ILP sub-funds we offer, less the charges made for managing your plan and investments. Your contribution(s) buy units in ILP sub-funds you choose from the ILP sub-fund range available. The value of these units will reflect the overall value of your plan at any given time during the time you hold the plan. Global Choice has no maturity date, it is a whole of life plan. It becomes payable on the death of the life insured, or for multiple life plans, on the death of the last life insured to die. You can choose to make a partial cash-in or fully cash-in the plan at any time, although the amount available for cash-in may be reduced by a cash-in charge (see Fees and charges section for full details). Zurich International Life

2 Plan owner Individual investors, trustees and companies can own Global Choice. Life insured The plan can be written on the following bases single life or multiple life last death, own life or life of another. This means that on the death of the life insured (or for multiple life plans on the death of the last life insured to die) the plan ends and we will pay the plan value at the date of death plus any additional death benefit. Joint ownership will be on a joint tenancy basis. The plan is automatically transferred to the surviving owner and passes to the estate of the last owner upon his/her death. The plan owner and life/lives insured do not need to be the same person, but where they are different there needs to be evidence of an insurable interest between them. Age limit For plan owners, the minimum age is 18 when the plan starts. The maximum age is 80. For life/lives insured the minimum age is 18 when the plan starts. The maximum age is 80. Life cover Where the plan ends on the death of the life insured, or for multiple life plans on the death of the last life insured to die, we will add an additional 1% to the plan s cash-in value. This means that the amount payable on death is 101% of the plan cash-in value. The life cover is provided entirely free of any charge. Plan currency Global Choice can be denominated in one of eight plan currencies SGD, AUD, USD, HKD, JPY, GBP, EUR and CHF. You choose the plan currency at the outset and this is used for all plan transactions, and plan valuations. We will apply all contributions to the plan in the plan currency, but investments held within the plan may be held in a different currency to the plan currency. Payment frequency You can start your plan with a single contribution, or a single and regular contribution at the same time. You cannot start a Global Choice plan with regular contributions only. Once the plan has started you can add or change regular contributions and also add additional single contributions at any time. Payment methods You can pay single contributions and/or regular contributions using the following methods: Cheque Singapore GIRO Credit card (1% charge is applied by us) Bank standing order Telegraphic transfer ( single contributions only) UK BACS/Direct debit Hong Kong Autopay Regular contribution loyalty bonus A loyalty bonus of 1% of the regular contribution amount will be applied to all regular contributions made to your plan after completing the qualifying period of three years worth of regular contributions. This will increase to 2% after you have paid ten years worth of regular contributions. If you stop paying your contributions at any time and then restart, the bonus will still apply to the 37th month s worth of contributions onwards. If you increase the amount of regular contribution you are paying, the bonus applies to the increase only after 36 months worth of the increase have been paid. You must choose either the establishment charge or the initial charge option. Where a plan consists of single and regular contributions, the charge options can differ, however the charge option on a regular contribution cannot be altered once selected. Death Benefit On the death of the last surviving life insured, 101% of the plan s cash-in value is payable. How the plan ends Your plan will automatically be terminated when: the cash-in value, plus any death benefit if applicable, is paid on the death of the relevant life insured; or your plan is fully cashed in; or your plan cannot sustain the charges. How to apply You should fill out and sign an application form stating your chosen ILP sub-funds and the percentages to be invested in the selected ILP sub-funds. The application form and the initial payment instruction should be forwarded to us via your financial adviser. 2

3 Exclusions In the unlikely event that we apply any specific exclusion clauses to your plan, these will be shown in your plan schedule. However, you need to complete the application form and any supplementary documentation fully and truthfully, as the failure to disclose a material fact may invalidate the contract resulting in the loss of any benefits. A material fact is one that any reasonable person would consider might influence Zurich s decision whether to accept your application. Available ILP sub-funds Global Choice provides you with access to a wide range of externally managed ILP sub-funds and you can choose to invest in any combination, up to a maximum of 30 at any one time. The current range of available ILP sub-funds is shown in the Guide to your investments brochure. For detailed information on the ILP sub-fund manager, objectives, composition, structure and performance of each ILP sub-fund, please refer to each relevant ILP subfund factsheet and the ILP sub-funds underlying fund prospectus. These documents provide detailed information on each ILP sub-fund manager and details relating to the underlying funds, such as: Structure Investment objectives, focus and approach Risks Fees and charges payable through deduction from asset value of the ILP sub-fund Past performance of the ILP sub-fund (where applicable) Performance of the manager or ILP sub-fund manager Other parties involved Performance of benchmark (where applicable) Expense ratio and turnover ratio Soft dollar commissions or arrangements Conflicts of interest You can obtain copies of the latest versions of the prospectus, semi-annual and annual reports of sub-funds and ILP sub-fund factsheets from our website Risks Buying an investment-linked life insurance plan is a medium to long-term commitment. Early termination of the plan will usually involve high costs and the cash-in value payable, if any, may be less than the total contributions paid. What you get back will depend on the performance of the ILP sub-funds you choose to invest in less our charges. There is no guaranteed value. The value of an ILP sub-fund is directly linked to the performance of the assets in which the ILP sub-fund invests, after allowing for charges on the ILP sub-fund. The value can go down as well as up and the investment performance may not be sufficient to outweigh the effect of our charges. You may not get back as much as you pay in. Your liability is limited to the value of your investment in the ILP sub-funds. The value of your plan may rise and fall as a result of currency movements where investments are not held in the same currency as the plan or where individual ILP sub-funds invest in foreign currencies. Any investment and the income from it can fall as well as rise as a result of market fluctuations. You may not get back the amount originally invested. Taking regular or one-off partial cash-ins may reduce the value of your plan to below the amount of your contributions. Early termination of the plan may involve high costs and the cash-in value payable, may be less than the total contributions made. If you don t answer all the questions on your application fully, truthfully and accurately, we may not pay an additional benefit claim. Information on the specific risks associated with investing in a particular ILP sub-fund can be obtained from the relevant individual ILP sub-fund factsheet and the underlying fund prospectus, all of which are available from our website Purchase of a unit in the money market ILP sub-funds is not the same as placing funds on deposit with a bank or deposit-taking financial institution. Although the ILP subfund manager may seek to maintain or preserve the value of the principal of the money market ILP sub-fund, there can be no assurance that the ILP sub-fund shall be able to meet this objective. The money market ILP sub-fund is not a guaranteed fund, in that there is no guarantee as to the amount of capital invested or return received. The provider(s) of the underlying funds or the institutions which hold, manage or safeguard the underlying assets could fail, become insolvent or breach their obligations, and in these circumstances your investment would be at risk and you could lose some or all of your investment. 3

4 You need to be aware that any investor protection or compensation schemes that may exist in relation to investors investing in the underlying fund may not apply in full in the event of the failure of the underlying fund, its custodian or management company for investors investing in an ILP sub-fund. Although we may seek recourse for investors in ILP sub-funds in the event of any such failure, any compensation received is not guaranteed and may be less than had the investor been directly invested in the underlying fund. Plan charges will be in accordance with the Fees and charges section on pages 4 to 7, but may be subject to variation with prior notification from us. We will give you at least one month s notice in writing of any increase in the plan charges unless it is not reasonably possible in the circumstances. If you are in any doubt as to the suitability of this investment given your personal circumstances, please seek advice from your financial adviser. Fees and charges We charge for managing your plan and its investments. Charges may be deducted by cancelling units in your plan, deducted in addition to or from your contributions or partial cash-ins or may be reflected in the ILP sub-fund prices. Plan charges You can choose from two charging options at the outset the establishment charge or the initial charge. This plan is designed for use in Singapore. If you move out of Singapore, you may not be able to continue paying contributions or make any changes to your plan. Charge option Contribution allocation rate Details Establishment charge 100% Establishment charges are calculated as a percentage of the contribution. The charge will be deducted monthly by cancellation of units on the first day of the month during the first five years across all ILP sub-funds. The maximum charges are shown below. Establishment charge (% of contribution) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6+ 2% 2% 1% 1% 1% 0% If you choose this option, please note that a cash-in charge on each contribution paid may be deducted if you cash-in during the first five years of the contribution. Initial charge Minimum is 93% Maximum is 100% No establishment charge or cash-in charge will be applied to the contribution if this option is selected. (This means that there is a charge applied by us of up to 7% from your contribution) 4

5 The following additional charges apply to both charge options: Yearly management charge Yearly management charges are payable as a percentage of the investment account value. The charge will be deducted monthly throughout the life of the plan, in advance, across all ILP sub-funds by cancelling units. The percentage charge payable depends on the total amount of contribution invested. Total contribution level Currency 0.5% 0.35% 0.25% 0.2% SGD/AUD/CHF 100, , , , ,000 1,249,999 1,250,000+ USD/EUR 60, , , , , , ,000+ GBP 40, , , , , , ,000+ HKD 500,000 1,799,999 1,800,000 2,999,999 3,000,000 5,999,999 6,000,000+ JPY 8,000,000 29,999,999 30,000,000 49,999,999 50,000,000 99,999, ,000,000+ Where any additional contribution takes the total contribution invested into a higher tier, a lower yearly management charge will apply to the whole plan from then on. Yearly plan charge Cash-in charge The yearly plan charge is a fixed amount of SGD/AUD/CHF225, USD/EUR150, GBP100, HKD1,250 or JPY20,000 that is deducted at the start of each month for the life of your plan by cancelling units across all ILP sub-funds. A cash-in charge only applies if you have selected the establishment charge option on your application form. The cash-in charge is deducted from the plan proceeds before payment is made to the planholder. Regular contributions For regular contributions only, the cash-in charge will apply during the cash-in charge qualifying period. The cash-in charge qualifying period is specified in your Plan Schedule, but will be no more than 5 years from the receipt of each separate contribution. After the qualifying period, new regular contributions will not be subject to any cash-in charge. There are no charges for partially cashing in your plan. However, if you partially cash-in your plan and the remaining plan value is less than SGD/AUD/CHF22,500, USD/EUR15,000, GBP10,000, HKD120,000, JPY2,000,000 or twice the outstanding cash-in charge (whichever is greater), then we will fully cash-in the plan, deduct any outstanding cash-in charge and pay you the balance. Single and additional single contributions The cash-in charge will be deducted from each and every contribution, should you choose to fully cash-in your plan within the first five years of each and every contribution. The table below shows the cash-in charges (based on the maximum establishment charge taken) that will be applied to each contribution over the maximum of five years*. * For more details about the cash-in charges, please refer to your plan schedule and the plan terms and conditions. Maximum cash-in charges (applicable to each contribution) Year 1 Year 2 Year 3 Year 4 Year 5 Year % 6% 4% 2% 1% 0% 5

6 Conditional and transaction charges ILP sub-fund based trail charge If applicable, an ILP sub-fund based trail payment will be made to your financial adviser. This will be deducted from your plan across all ILP sub-funds by cancelling units each quarter in arrears, from the end of the third month following the plan commencement date. The amount of the charge will be equivalent to the amount of ILP sub-fund based trail payable, subject to a maximum of 1% of your plan value each plan year. The amount of any applicable ILP sub-fund based trail charge will be shown in the plan schedule. ILP sub-fund investment advice charge If applicable, the fund investment advice charge will be charged at either: a fixed amount (maximum of 1% of the plan contribution each year; or up to 1% of the plan value each year. We will deduct the charge at the start of each month, by cancelling units across all ILP sub-funds. Plan valuation charge We make every effort to provide you with access to the value of your plan by sending you a free annual valuation statement each plan year. We can also provide up to 12 additional valuation statements each year free of charge and you can view your plan details online at any time. However, we will make a charge of SGD/AUD/CHF70, USD/EUR45, GBP30, HKD360, JPY6,000 for the 13th and any subsequent valuation statements provided to you in any one plan year. This charge is deducted across all ILP sub-funds by cancelling units and will be deducted at the time we send the valuation statement to you. Credit card charge For all contributions paid by credit card, we will make a charge of 1% of the contribution amount. We take this charge by increasing the amount collected from the credit card each time a contribution is paid by this method. For example, if your regular contribution is SGD5,000 per month, paid by credit card, we will deduct SGD5,050 from the credit card account each month. SGD5,000 will be added to your plan and SGD50 will be paid to us. Currency exchange charge A currency exchange charge (currently 1% over the Bloomberg mid-rate) will be made when the currency of the contributions received into or amounts withdrawn from the plan differ from the plan currency. The currency exchange charge is made by changing the currency exchange rate used in any conversion. Currency switch charge When units are switched into or from ILP sub-funds where the currency of each ILP sub-fund is different, a charge will be made. The currency switch charge of 0.175% will be made on the net amount moved between each different currency during the switch transaction. ILP sub fund switching charge Levy under Isle of Man Life Assurance (Compensation of Planholders) Switches between ILP sub-funds are allowed, and the first 25 switches in a plan year are free of charge. We do not impose a processing fee for ILP sub-fund switches, but a bid-offer spread or an initial charge at the ILP sub-fund level may apply. Switches involving more than two ILP sub-funds are classed as a single switch if all ILP sub-funds are covered by a single instruction. If more than 25 switches are made, a charge of the greater of 1% of the value of the switch or SGD/AUD/CHF115, USD/ EUR75, GBP50, HKD600, JPY10,000 will be applied across all ILP sub-funds by cancelling units. We may deduct from the plan such an amount not exceeding in aggregate 2% of the cash-in value at the time of the deduction across all ILP sub-funds by cancelling units, in respect of any liability or levy that may be made on Zurich International Life Limited as a result of the Isle of Man (Compensation of Policyholders) Regulations 1991 made under the Financial Supervision Act Zurich International Life reserves the right to amend the plan charges from time to time by giving you one month s prior notice in writing. 6

7 ILP sub-fund charges You should refer to the underlying fund prospectus and the relevant ILP sub-fund factsheet for specific information on ILP sub-fund charges. These are available via our website Individual ILP sub-fund charges Each ILP sub-fund has an annual management charge, which is taken by the underlying fund manager. The ILP sub-fund manager may also deduct other charges from the ILP sub-fund. There may also be a bid/offer spread on some ILP sub-funds. For further details of these charges, please refer to the Guide to your investments and the ILP sub-fund factsheets for your chosen ILP sub-funds or speak to your financial adviser. Subscription of units Global Choice minimum contribution amounts The table below shows the minimum contribution amounts that can be paid. You must start your Global Choice with a single contribution you can then start saving regularly at any time. Minimum contributions Single SGD/AUD/CHF USD/EUR GBP HKD JPY Single 100,000 60,000 40, ,000 8,000,000 Additional 12,500 7,500 5,000 60,000 1,000,000 Regular Monthly 4,500 3,000 2,000 24, ,000 Quarterly 13,500 9,000 6,000 72,000 1,350,000 Half-yearly 27,000 18,000 12, ,000 2,700,000 Yearly 45,000 30,000 20, ,000 4,500,000 Regular contributions can be increased or decreased at any time subject to the following minimums. Please note that increasing or decreasing your contributions will have an effect on your loyalty bonus and your cash-in charge (if applicable). Please refer to the plan terms and conditions for further details. Frequency and minimum increase/decrease amounts SGD/AUD/CHF USD/EUR GBP HKD JPY Monthly ,000 15,000 Quarterly ,000 45,000 Half-yearly 1, ,000 90,000 Yearly 2,000 1, , ,000 7

8 How units are purchased and paid for, dealing deadline and pricing basis We use your contributions (after adding any applicable extra allocation and/or deducting any applicable initial charge) to invest in the ILP sub-funds according to your instructions. You can choose up to a maximum of 30 different ILP sub-funds within your plan. The minimum amount that can be invested in any single ILP sub-fund is therefore the minimum contribution amount (see Subscription of units section) divided by the number of ILP sub-funds in which the contribution is to be split. Prices for all units are determined on a forward pricing basis. Some ILP sub-funds may have an offer price and a bid price, other ILP sub-funds may have an initial charge, which if applicable, would be in addition to the Global Choice initial charge outlined in the Fees and Charges section. Details of any of the ILP sub-fund specific charges are explained in the ILP sub-fund factsheet(s). The offer price is always greater than or equal to the bid price. Units are always bought at the offer price and sold at the bid price. With all Global Choice ILP sub-funds, there are no additional subscription or realisation fees charged by Zurich in addition to the unit price. Units will be allocated to your selected ILP sub-funds using the prices set at the relevant valuation point. Full details of which charges apply to the ILP sub-funds can be found in the Guide to your investments and the ILP sub-fund factsheet for each ILP sub-fund. With regards to contribution payments, if we receive your contribution and all required documentation on or before 10am (United Kingdom time), units will be allocated using the prices set on the next Valuation Point. If we receive your contribution and all documentation after 10am (United Kingdom time), units will be allocated using the prices set on the subsequent Valuation Point. With regards to requests for ILP sub-fund switches, if we receive your written request on or before 10am (United Kingdom time), the transaction will take place using the prices set on the next Valuation Point. If we receive your written request after 10am (United Kingdom time), the transaction will take place using the prices set on the subsequent Valuation Point. If where we are unable to complete your dealing instruction, if, for example, an ILP sub-fund has closed to new contributions or dealing in that ILP sub-fund is suspended or deferred, we will seek alternative instructions from you. An example of how units are allocated The number of units allocated to each Global Choice plan will depend on whether the establishment charge or initial charge option has been selected. The following example is based on the minimum initial contribution payable to the Global Choice plan of SGD1,000. Establishment charge Allocation rate 100% Amount of contribution used SGD1,000 to purchase units ILP sub-fund offer price SGD0.80 Number of units allocated 1250 Initial charge Allocation rate 93% Amount of contribution used SGD930 to purchase units ILP sub-fund offer price SGD0.80 Number of units allocated Unless stated otherwise in the Fees and charges section, all plan charges are deducted across all ILP sub-funds by cancelling units. Charges imposed by the underlying fund manager are accounted for in the ILP sub-fund unit price. Please note that SGD1,000 is being used for example purposes only. Please refer to the Subscription of units section on page 7 for the actual minimum contribution levels. 8

9 Redemption of units Global Choice offers you the flexibility of regular and/or one-off partial cash-ins. Units can be sold by instructing Zurich International Life in writing of the value required from the plan in the plan currency, subject to the minimum partial cash-in amounts detailed below. Currency Minimum partial cash-in amount automated method Minimum partial cash-in amount all other payment methods SGD 500 1,000 AUD/CHF Not available 1,000 USD/EUR Not available 600 GBP HKD 2,000 4,800 JPY Not available 80,000 Payments will be made in your plan currency. We can pay proceeds in any other readily convertible currency, however, this will be converted by us at the prevailing exchange rate available at the time. If we receive your instruction before 10am (United Kingdom time), units will be cancelled at the prices set on that Isle of Man working day. If we receive your instructions after 10am (United Kingdom time), units will be cancelled at the prices set on the next available Isle of Man working day. The pricing is executed on a forward basis. On the redemption of units we will pay the proceeds to you within 7 Isle of Man working days. Example of unit cancellation Using the examples above, the effect of cancelling 1,000 units is as follows: Establishment charge Unit allocation at plan commencement 1,250 ILP sub-fund bid price at date of cancelling units SGD0.97 Monetary amount of cash-in = 1,000 units x SGD0.97 unit price = SGD970 Balance of units remaining 250 Initial charge Unit allocation at plan commencement 1,162.5 ILP sub-fund bid price at date of cancelling units SGD0.97 Monetary amount of cash-in = 1,000 units x SGD0.97 unit price = SGD970 Balance of units remaining Note: these examples do not take into account any reduction in the unit holding due to plan charges. Where the cash-in amount is payable in a different currency to the ILP sub-fund currency, a currency conversion will occur before the proceeds are released. There are no charges for partially cashing in your plan. However, please be aware that if you partially cash-in your plan and the remaining plan value is less than SGD/AUD/CHF22,500, USD/EUR15,000, GBP10,000, HKD120,000, JPY2,000,000 or twice the outstanding cash-in charge (whichever is greater), then we will fully cash-in the plan, deduct any outstanding cash-in charge and pay you the balance. Switching of units If the ILP sub-funds have a bid price and an offer price, switching is always performed on a bid-to-offer basis. This means that units are sold from the ILP sub-funds being switched out of at bid price and their value (less the switch charge, if applicable) buys units in the ILP sub-funds being switched into at offer price. If the ILP sub-funds being switched into have an initial charge, then the price will be subject to the initial charge, which is included within the offer price. Any ILP sub-fund specific initial charge, if applicable, would be in addition to the Global Choice initial charge outlined in the Fees and charges section. Details of the ILP sub fund specific charges are explained in the ILP sub-fund factsheet(s). You may switch between ILP sub-funds at any time by instructing us in writing. If we receive instructions before 10am (United Kingdom time), switches will be allocated at the prices set at the next valuation point. If we receive instructions after 10am (United Kingdom time), switches will be allocated at the prices set at the subsequent valuation point. The pricing is executed on a forward basis. We reserve the right to charge for switches under certain conditions. Please refer to our plan terms and conditions for further details. Minimum switching amount For Global Choice there is no minimum amount for switching. The first 25 ILP sub-fund switches in each plan year are free of charge. If you switch from or to ILP sub-funds in different currencies a currency switch charge will apply as detailed in the Fees and charges section. 9

10 Obtaining prices of units The ILP sub-funds value and deal daily on every business day in the country where the underlying fund is domiciled and in the Isle of Man. You may obtain unit prices from our website at Suspension of dealings We reserve the right to defer the cancellation of units. Deferral can occur if we are unable to accurately value or deal in the underlying assets within the ILP sub-fund due to circumstances which may be beyond our control, such as where an ILP sub-fund has closed. Or any instance of force majeure. Investors should refer to the underlying fund prospectus for any exceptional circumstances under which the subscription or redemption of units may be suspended or deferred. Any decision to suspend unit pricing will be communicated to you as appropriate, however, we may not be able to provide any advance communication of deferral of cancellation of units or suspension of dealing. In the event of suspension or deferral of dealing, units will receive the unit price on the next available dealing date. Deferral of plan payments and ILP sub-fund switching We reserve the right to defer the payment of plan benefits and to defer the purchase of units when switching between ILP sub-funds when the ILP sub-fund manager defers payment to us for any reason. We will make payments to you when the full amount is received from the ILP sub-fund manager but there will be no interest payable. Past performance of ILP sub-funds Please refer to individual ILP sub-fund factsheet for more information. Soft dollar commissions or arrangements Please refer to individual ILP sub-fund factsheet for more information Conflicts of interest Please refer to individual ILP sub-fund factsheet for more information Reports The financial year end of the Global Choice ILP sub-funds is 31 May of every year. Zurich will make semi-annual unaudited and annual audited reports for the Global Choice ILP sub-funds available within two and three months respectively of the relevant reporting periods. These will be available on our website The financial reports for the ILP sub-funds will also be available on the website as they become available from the ILP sub-fund managers. Specialised ILP sub funds Please refer to the relevant ILP sub-fund factsheet and the underlying fund(s) prospectus for important disclosures. Other material information Investors should refer to the underlying fund prospectus for other material information specific to that ILP sub-fund. The ILP sub-funds are not offered as collective investment schemes under the Singapore Securities and Futures Act. Before proceeding with an investment, you should read and understand this product summary, the ILP sub-fund factsheets and the underlying fund prospectuses. Any underlying fund prospectus sent to you by Zurich International Life is not to be construed as an offer to directly sell or distribute the ILP sub-fund to which the underlying fund prospectus relates. Please note that the prospectus is given to you only for information about the ILP sub-funds available through the Zurich International Life Global Choice. This plan has been designed to meet legal and regulatory requirements for customers resident in the country in which the plan was purchased. Should the plan owner or life/lives insured move to another country during the term of the plan, it may no longer be suitable. Laws and regulations in a different country may affect Zurich International Life s (Zurich s) ability to continue to service the plan in accordance with these terms and conditions and Zurich may no longer be able to provide all the benefits under the plan. Zurich may, for example, be unable to process switch instructions in connection with the plan or accept future contributions. The plan owner must advise Zurich of any change to country of residence during the term of the plan prior to such change becoming effective. In these circumstances, and subject to the plan owner s consent, Zurich may provide contact details to another company within the Zurich Insurance Group in order to check whether there is an alternative product suited to the new situation and country of residence. Zurich does not offer tax advice and recommends that independent advice is obtained in respect of any tax consequences which may arise from a change in country of residence. Any assignment of the plan to a person resident in a different country from the plan owner may be subject to the provisions mentioned above. Relationship between the product provider and the financial adviser In order to promote our products, a financial adviser must have entered into terms of business with us. This is a contractual arrangement whereby we remunerate the adviser for any product sales. We do not offer financial advice; this is the role of the financial adviser. 10

11 Compensation Your financial adviser will recommend products that are suitable for you. You may have a right to compensation if an authority decides that a recommendation was unsuitable when it was made. The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 cover your policy. This means that if we become insolvent, you will be protected for up to 90% of our liability to you. Cooling off period (free look) Within thirty days of issue of the plan, you may write to us to cancel your plan. We will refund the contributions you have paid after deducting the following: Any expenses incurred in issuing the plan; and Any amount which we will determine at our discretion to represent any decline in market value. If there has been an increase in market value, we do not have to pay you any gains accrued to the ILP sub-funds. The contract The product summary, together with applicable ILP sub-fund factsheet(s), underlying fund prospectus(s) and product highlights sheet(s), provides you with an overview of Global Choice. The entire Global Choice contract consists of: The application form The Plan Schedule The Plan terms and conditions Any endorsement Appendix A: Company funds Appendix B: Externally managed funds Point-of-sale documents A copy of the following documents are given at the pointof-sale: Global Choice product summary Global Choice policy terms and conditions Applicable ILP sub-fund factsheet Underlying fund prospectus Applicable product highlights sheet(s) Guide to your investments Fact find (as provided by your financial adviser) Your guide to life insurance How to contact us Your financial adviser will normally be your first point of contact. Alternatively you can contact us: Call us on Monday to Friday between 9am and 5.30pm (Singapore time). Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training, administrative and quality purposes. Fax us on us at helppoint.singapore@zurich.com Write to us at Singapore Land Tower #29-05, 50 Raffles Place, Singapore Complaints If you ever need to complain about your plan, please contact us in the first instance, using the address or the contact numbers in the How to contact us section. Details of our complaint handling process are available on request. If you are not satisfied with our response, you may also have the right to refer your complaint to: Financial Industry Disputes Resolution Centre Ltd. (FIDReC) 112 Robinson Road #08-01 Singapore All plan owners also have the option to ask the local Isle of Man Financial Services Ombudsman Scheme (FSOS) to formally review their case. The contact details are: The Isle of Man Financial Services Ombudsman Scheme, Isle of Man Office of Fair Trading, Government Buildings, Lord Street, Douglas, Isle of Man, IM1 1LE, British Isles. Or you can telephone on: , or ombudsman@iomoft.gov.im Website: Complaining to the Ombudsman will not affect your legal rights. You should note that companies and trusts are not eligible to refer a complaint to the Isle of Man Ombudsman. Zurich International Life Zurich International Life is part of Zurich, a leading multi-line insurance provider with a global network of subsidiaries and offices. With about 60,000 employees, we deliver a wide range of general insurance and life insurance products and services for individuals, small businesses, and mid-sized and large companies, including multinational corporations, in more than 170 countries. Committed to the international investor At Zurich International Life we are committed to the international investor and strive to be an outstanding provider of international savings and investment products and to offer excellent service and value. We are a major player in the world of international products and are well known and trusted in the marketplace. 11

12 The Isle of Man As a base for your investments, the Isle of Man offers distinct benefits. The island is a thriving financial centre with stringent legislation under the Isle of Man Insurance Act and the Isle of Man s Life Assurance (Compensation of Policyholders) Regulations to protect plan owners authorised companies must demonstrate the soundness and expertise of their management. The parliament in the Isle of Man is one of the longest standing in the world, and the island has enjoyed the stability of its own government for more than 1,000 years. As an independent jurisdiction, no matter where you live in the world (subject to our current business acceptance rules), your investments in the Isle of Man will grow tax-efficiently. Taxation Any valid plan claim will be paid by us to the claimant without any deduction of tax. The tax treatment of any benefits taken from this plan will depend on the personal circumstances of the claimant, including their country of residence. Please consult your financial adviser if you are in any doubt as to the extent to which you may be liable to tax under this plan. The information contained in this document is based on Zurich International Life s understanding of relevant legislation, regulation and taxation issues as at 2013 and may change in the future. Zurich International Life is unable to provide individual tax guidance and recommends that you always seek professional tax advice. We do not pay capital gains tax or income tax on investments held on behalf of our investors. You should note that the value of tax benefits depends on your individual circumstances and can change. Glossary of words and terms used in this document Cash-in value Forward basis ILP sub-fund Insurable interest Life of another policies Single dealing price Switch Total plan value The value that can be withdrawn from the plan. The cash-in value is calculated as the total plan value (the value of all units) less any applicable cash-in charge. The method used by ILP sub-fund managers for pricing units in a fund after all instructions to buy or sell are received by a particular time in their business day. A unitised portfolio of investments. Where a plan owner is financially dependent on the life insured, for example a spouse or partner, or a company and a key employee. A policy owned by a person who is not the life insured shown on the policy schedule. The price, determined by an ILP sub-fund manager and used when units in an ILP sub-fund are bought and/or sold. When some or all of the units in the policy are cancelled and the value is subsequently reinvested in units in different ILP sub-funds. The value of all units held within the plan. Underlying fund Unit A single collective investment scheme into which an ILP sub-fund invests. The equal portions into which an ILP sub-fund is divided. 12

13 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 planholders. 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 planholders, up to 90% of the liability to the protected planholder will be met. The protection 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 ILP sub-funds linked to your plan. 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 authorised 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. MSP10283 (128468A09) (03/14) RRD 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: Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone Telefax Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore Telephone Telefax Registered in Singapore No. T05FC6754E