International Wealth Account

Transcription

1 International Wealth Account Key features HELPING YOU DECIDE This is an important document which gives you a summary of the International Wealth Account. Please read this with your illustration before you buy this plan and keep it for future reference. Zurich International Life

2 Contents This document provides important information to help you decide whether our International Wealth Account is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. Its aims... 3 Your commitment... 3 Risk factors... 4 Other documents you should consider reading... 4 Questions and answers... 5 Before you invest Is the IWA right for me?... 5 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 Planholder 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 the Company s ability to continue to service the Plan in accordance with these terms and conditions and the Company may no longer be able to provide all the benefits under the Plan. The Company may, for example, be unable to process switch instructions in connection with the Plan or accept future contributions. The Planholder must advise the Company 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 Planholder s consent, the Company 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. The Company 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. Who can invest?... 5 How and where will my payments be invested?... 5 What are the charges?... 6 What about tax?... 7 While you are invested How flexible is it?... 8 Can I take money out?... 8 How will I know how my IWA is doing?... 9 Closing your International Wealth Account What might I get back?... 9 What happens to my IWA if I die?... 9 Cancelling your International Wealth Account Can I change my mind and cancel? Other information How to contact us Any assignment of the Plan to a person resident in a different country from the Planholder may be subject to the above provisions. 2

3 The International Wealth Account The Zurich International Life International Wealth Account (IWA) is a unit linked investment plan that enables you to choose from a wide range of funds with the aim of increasing the value of the money you invest while providing a high level of flexibility. It is available as a life insurance plan with no fixed term and as a capital redemption plan with a fixed term. Its aims What this plan is designed to do Increase the value of the money you invest over the medium- to long-term in a tax-efficient manner. Issued as 100 separate policies to make it more flexible for tax planning. Allow you to take an income as regular or occasional withdrawals if you choose. The life insurance version, if chosen, would pay a cash sum on the death of the last life insured. Provide a high level of flexibility and wide range of funds to match your investment objectives. Your commitment What we ask you to do Invest a single payment of at least USD30,000 (plan currency equivalents: GBP20,000/EUR30,000/ JPY4,000,000/SGD50,000/AUD50,000/CHF50,000/ HKD240,000). Invest over the medium- to long-term. The life insurance version has no fixed term but the capital redemption * version has a term of 99 years. You can cash in both at any time (although there is a cash-in charge if within the first five years of the contribution). Seek ongoing financial advice. You should seek advice before you make changes to your plan and whenever your circumstances change. Ensure you are satisfied that you understand the important aspects of your plan and the funds you choose, especially the associated risks and charges. * The capital redemption plan is not available in Bahrain or the United Arab Emirates. 3

4 Risk factors What you need to be aware of The value of your plan can go down and you may get back less than you invested depending on investment performance. You may get back less than the amount shown on the illustration if: investment growth is lower than illustrated charges increase above those illustrated you take more money out of your plan than illustrated. The level of risk and potential investment performance depend on the funds chosen. If you cash in your plan in the first five years following any contribution we will apply a cash-in charge (sometimes referred to as a surrender penalty). This will reduce the amount you get back. If you cash in individual policies within the first five years following a contribution we will apply the cash-in charge (surrender penalty) proportionately according to the number of policies you cash in. This will reduce the amount you get back. The cash-in charge applies for the first five years after a contribution is paid. If you cancel your plan within 30 days and it s investment value has fallen, you will get back your original payment less any fall in value. Your returns may be affected by changes in currency exchange rates. Other documents you should consider reading This document gives you key information about the plan. If you want more detail on specific points please read the following documents. We have highlighted when they are relevant throughout this document. IWA life insurance plan terms and conditions Provides the full terms and conditions for the IWA life insurance plan IWA capital redemption plan terms and conditions Provides the full terms and conditions for the IWA capital redemption plan IWA global investment choice brochure Explains how the plan works Guide to your investments brochure Outlines the fund choices available They are all available from your relevant financial adviser or direct from us. Our contact details are on page 11. 4

5 Questions and answers Before you invest Is the International Wealth Account right for me? Who can invest? It may be right if you: are looking for a flexible way of investing want access to a wide range of funds are looking for potentially higher investment returns than a typical bank or building society account over the medium to long term understand and accept the risks of this type of investment can invest for at least five to ten years. Individuals, trusts or companies can invest in the IWA subject to our business acceptance rules. You can take out either the life insurance or capital redemption version of the plan. You can own the plan yourself or jointly with someone else, with up to five planholders. Anyone age 18 or over can apply for an IWA. There is no maximum age for planholders. You can insure the life of anyone aged two or over there is no maximum age. You may insure the lives of up to five people. You do not have to be one of the lives insured. Life insurance version The plan is a whole of life plan issued on either a single life, joint life second death or multiple life last death basis. Capital redemption version * This version does not allow any lives insured, only planholders. *The capital redemption version is not available in Bahrain or the United Arab Emirates. How and where will my payments be invested? The plan is initially issued as 100 separate policies. Your money will buy units, which are like shares, in your chosen funds. The value of the units will increase or decrease depending on the investment performance of the funds. The value of your plan, at any time, will be the current value of the units in the funds you have chosen less any charges. Your cash-in value will be the current value less any outstanding charges. Please read the guide to your investments for fund choices, charges and contact details. You may invest in up to 30 funds at any one time. 5

6 Some fund managers take a charge before investing your payment and all take a yearly management charge. These will be reflected in the fund prices. Otherwise all your payment is invested in the funds you choose. Please see your personal illustration for details. What are the charges? The funds we offer are managed by firms outside of the Zurich Insurance Group. You can invest in a small number of Zurich International Life money funds managed by our fund adviser, Threadneedle. Threadneedle also offer some of their own funds. You can switch your investment between funds at any time. You can make up to 25 switches a year free of charge; we will charge from the 26th switch onwards in any plan year. If a fund charges an initial charge this would be applicable on switching into the new funds. Your personal illustration shows the charges we apply for managing the plan including the amount of the establishment charge, the yearly management charge, the yearly plan charge, the fund investment advice charge (if this applies) and the investment fund charges. The yearly management and yearly plan charges reduce as the value of the plan increases*. We take these charges at the beginning of each month by cancelling units in your funds. Please read your personal illustration and the IWA brochure for details on charges and commission. If you are paying non-product fees such as a trust charge, in addition to your investment, these will not be included in your personal illustration. The fund managers may make extra charges such as an initial charge and a regular charge. These charges will be taken in a way chosen by the fund management company. They could do this by reducing the number of the units bought, reducing the price of the units or by some other method. If you switch between funds in different currencies we charge 0.175% of the amount switched, to cover the cost of exchange. Please read your personal illustration and guide to your investments brochure. After 25 switches Zurich will charge 1% of the switch value or USD75, (or currency equivalent), whichever is greater. Please note that while Zurich International Life make no charge for the first 25 switches within each plan year, some of the funds within the IWA may carry a small discounted initial charge. When you switch into a fund with an initial charge, this percentage change will be deducted from the amount being switched into the fund by way of cancellation of units. If you fully or partially cash in your plan in the first five years, or within five years of an increase to your investment we will apply a charge. *If you make a withdrawal within six months of moving to a lower charge, we reserve the right to change you back to the band that matches your lower contribution level. Please read your personal illustration. 6

7 What about tax? Company taxation Zurich International Life is incorporated in the Isle of Man and does not pay tax in the Isle of Man on capital gains and income attributable to planholder investments. There may, however, be an element of withholding tax deducted from some income and dividends which cannot be reclaimed. This means that your investment can grow year to year virtually tax free. Planholder 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 relevant financial professional if you are in any doubt as to the extent to which you may be liable to tax under this plan. Tax planning, and international tax planning in particular, is a complex area and we recommend that you seek professional financial advice. The tax and legislative information contained in this document is based on our understanding as of August 2013 and may change in the future. Zurich is unable to provide individual tax guidance and recommends that you always seek professional tax advice. While you are invested How flexible is it? You can increase your investments by USD7,500 (or currency equivalent) or more at any time. You can cash in all or part of your plan at any time but we will make a deduction from the plan s value (the cash-in charge) if you do this within the first five years, or within five years of an increase to your investment. You can take money out regularly or make one-off withdrawals at any time but we may apply the cash-in charge. 7

8 Can I take money out? Yes, you can choose to take money out regularly or by taking one-off withdrawals. Regular withdrawals You can choose to take regular withdrawals when you set up your plan or at anytime during the life of your plan. Regular withdrawals can be paid monthly, quarterly, half-yearly or yearly. We will pay these directly into your bank or building society account. If the plan is held by a trust or company, we may make payments into the trustees bank or building society account. You can choose from the following: a fixed cash amount; or a percentage of up to 10% each year of the initial single payment; or a percentage of up to 10% of the value of your plan when withdrawals are made. The current minimum for each regular withdrawal payment is GBP150 for each payment made by electronic transfer direct to a UK bank account and GBP400/USD600 for other types of payment (such as cheque). We will notify you if we increase these minimum amounts. One-off withdrawal If you make a withdrawal, you must have at least USD15,000 (or currency equivalent) or twice the current cash-in charge, whichever is greater, remaining. If you don t we will apply the cash-in charge, return any remaining value to you and cancel the plan. Please read your personal illustration for more details. Please read your personal illustration for more details. How will I know how my International Wealth Account is doing? You can keep up-to-date with your plan details online through Zurich International online (ZIO) once your plan is issued. To register, please visit and click on your region, then click on the ZIO tab. Please refer to how to contact us on page 11. You can also ask your relevant financial professional for an up-to-date valuation or call

9 Closing your International Wealth Account What might I get back? Your illustration shows how much you might get back based on assumed growth rates. What you get back depends on the plan value less any reduction for cashing in early. There is no guaranteed amount. The plan value depends on: how much you invest how long your money is invested how well your investment performs how much money you take out charges. The capital redemption version has a fixed term*. At the end of the 99-year term, we will return at least twice the value of your initial contribution provided there have been no withdrawals. If there have been any withdrawals, these will be deducted from your initial contribution and then we will pay twice that figure or the value of the contract on the maturity date, whichever is the greater. What happens to my International Wealth Account if I die? Life insurance version On the death of the last surviving life insured we will pay out 101% of the plan s cash-in value on the day we receive satisfactory notification of death to your beneficiaries. If the plan covers more than one life, we will pay out when we receive satisfactory notification of the deaths of all the lives insured. If the plan is in trust, we will pay out the cash-in value to the trustees or according to their instructions. Capital redemption version* There are no lives insured and the plan will continue until it is fully cashed in, or until it matures at the end of the 99-year term. Ownership passes either to your personal representatives or, in the case of a joint plan, to the surviving planholder. *The capital redemption version is not available in Bahrain or the United Arab Emirates. Cancelling your International Wealth Account Can I change my mind and cancel? Yes you can. You can change your mind within 30 days of your plan documents being issued and we ll give you your money back. If the value of the plan has fallen, you will get back the original payment less any fall in the investment value in this period. 9

10 Other information How to complain If you ever need to complain about your plan, please contact us in the first instance, using the address or the contact numbers in How to contact us on page 11. Details of our complaint handling process are available on request. If you are not satisfied with our responses, you may also have the right to refer your complaint to the regulators below. In the case of Bahrain, please be aware that there is a time limit to contact the Central Bank of Bahrain of 30 days from receipt of our response. Bahrain regulator: The Compliance Directorate, The Central Bank of Bahrain, P.O. Box 27, Manama, Bahrain. Telephone on: compliance@cbb.gov.bh Website: United Arab Emirates regulator: Insurance Authority P.O. Box , Abu Dhabi, United Arab Emirates. Telephone: All planholders also have the option to ask the local Isle of Man Financial Services Ombudsman (the FSO) to formally review their case. The contact details are: The Isle of Man Financial Services Ombudsman (FSO) Scheme, Isle of Man Office of Fair Trading, Government Building, 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. Plan terms and conditions This key features document gives a summary of the IWA. It does not include all the definitions, exclusions, terms and conditions. We ll send you a copy of the plan terms and conditions with your plan documents. If you d like a copy before then, please contact us direct or ask your relevant financial professional. We ll let you know if there are any changes to the terms and conditions. Compensation Your relevant financial professional should recommend products that are suitable for you. You have a legal 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 plan. This means that if we become insolvent, you will be covered for up to 90% of our liability to you. If you would like more information about compensation, please contact us. For full details please refer to the plan terms and conditions. 10

11 How to contact us Remember your relevant financial professional will normally be your first point of contact. To make an additional payment, one-off withdrawal, fund switch or cash in, or if you need to contact us to obtain the value of your plan, you can phone us, send a fax or write to us using the details below. You can also view your plan details online at any time via Zurich International online. For Bahrain customers Phone: Sunday to Thursday between 9am and 5pm. helppoint.bh@zurich.com Write to: Zurich International Life P.O. Box th Floor Almoayyed Tower Seef District Kingdom of Bahrain. For all other customers Phone: Monday to Friday between 9am and 5pm. helppoint.iom@zurich.com Write to: Zurich International Athol Street Douglas Isle of Man IM99 1EF British Isles. For United Arab Emirates customers Phone: Sunday to Thursday between 9am and 5pm. helppoint.uae@zurich.com Write to: Zurich International Life P.O. Box Level 4, Building 3 Emaar Square Dubai United Arab Emirates. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training, administrative and quality purposes. 11

12 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 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 plan. Threadneedle is the brand name for Threadneedle Asset Management Limited. Threadneedle Asset Management Limited is a fund adviser to Zurich International Life Limited. Threadneedle Asset Management Limited is authorised and regulated by the Financial Services Authority. Not for sale to residents or nationals of the United States including any United States federally controlled territory. Zurich International Life Limited is registered in Bahrain under Commercial Registration No Zurich International Life Limited is registered (Registration No. 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law. MSP10342 ( ) (09/13) 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