How To Get A Pension Plan From Aib Life Insurance

Transcription

1 Protection AIB Pension Life Insurance Tax efficient life insurance This product is provided by Irish Life Assurance plc.

2 AIB has chosen Irish Life, Ireland s leading life and pensions provider, to provide its customers with a range of pension, protection, investments and savings products. Irish Life is part of the Great- West Lifeco group of companies, one of the world s leading life assurance organisations. As well as offering advice when you take out a plan, AIB will also help you with any questions about your plans and offer you a financial review every year in return for the fee AIB receive from Irish Life. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc, for life and pensions business. This means that although AIB are distributing this product, the product information in this booklet has been written by Irish Life as product provider. If you choose this product, it will be provided by Irish Life. So, any reference to we or us refers to Irish Life. If you have any questions, your AIB Financial Adviser will be happy to help. AIB Portfolio Invest Aim Cost of Cover Time Period Jargon Free To help protect your family s standard of living if you die before you retire. The cost of your cover will stay the same throughout the term of your plan (unless you choose indexation, see page 18). At least five years and no more than 40 years. You cannot be older than 65 to take out AIB Executive Pension Life Insurance (company pensions) and 70 for AIB Pension Life Insurance (personal pensions). Yes All information including the Terms and Conditions of your plan will be provided in English. The information in this booklet was correct as at September 2013 but may change. 175

3 Contents 02 Introduction 05 AIB Pension Life Insurance 09 Eligibility for AIB Pension Life Insurance 12 Tax advantages of AIB Pension Life Insurance 17 Extra benefits 22 A guide to making a claim

4 Introduction This booklet will give you details of the benefits of AIB Pension Life Insurance. It is designed as a guide that allows us to explain the product to you in simple terms. There will be more specific details and rules in your Terms and Conditions booklet which you should read carefully. Putting you first We are committed to providing excellent customer service to you at all times, from the moment you apply for cover right throughout the life of your plan. When you ring us, you will get straight through to our award winning service team, based in Ireland, who ll be ready to listen to your queries and help you when you are looking for answers. Below is just a sample of the services we offer Keeping it simple clear communication Because financial products can be complicated and difficult to understand, we are committed to using clear and straightforward language in all our communications to you. As a result, we work with Plain English Campaign to make sure all our customer communications meet the highest standards of clarity, openness and honesty. Keeping you up to date We are committed to keeping you informed about your plan. Because of this, every year we will send you a statement to tell you what your protection benefits are. You can change your mind We want to make sure that you are happy with your decision to take out AIB Pension Life Insurance. If after taking out this plan you feel it is not suitable, you have 30 days to cancel the plan. If you decide to do this, we guarantee to refund any payments you have made within the first 30 days of sending you details of your plan. The 30-day period starts from the day we send you your AIB Pension Life Insurance welcome pack. 2

5 European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 If a financial service or product is provided on a distance basis (in other words, with no face-to-face contact) we have to give you certain information. We have included this information under various headings in this booklet, in the Terms and Conditions booklet and in your terms of business letter. All information (including the terms and conditions of your plan) will be in English. Online services We have a range of online services available for you. You can check the details of your plan by visiting and clicking into My Online Services. You will need a PIN, which you would have received when you started your plan. If you have lost your PIN or need a new one, contact our AIB service team on How to contact us If you want to talk to us, just phone our AIB service team on They can answer questions about your plan. Our lines are open: 8am to 8pm Monday to Thursday 10am to 6pm Friday 9am to 1pm Saturday. In the interest of customer service, we will record and monitor calls. You can also contact us in the following ways: aibserviceteam@irishlife.ie Fax: Write to: AIB service team, Irish Life, Lower Abbey Street, Dublin 1. 3

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7 AIB Pension Life Insurance About AIB Pension Life Insurance AIB Pension Life Insurance is a life insurance plan that you can take out before you retire. It pays your family a guaranteed lump sum if you die during the term of the plan. They can use this as they want, to pay bills, loans whatever matters most. It gives you peace of mind in knowing that if you die during the term of your plan, your family could be protected financially. Your AIB Financial Adviser can help you decide how much cover you need. The advantage of AIB Pension Life Insurance over other life Insurance plans is that it could cost you less. This is because, if you are eligible, you can claim income tax relief on your payments. How AIB Pension Life Insurance works You pay a regular amount of money into your plan. You can make your payment by direct debit every month, three months, six months or every year. Your payment provides the level of life insurance you choose until the date you have chosen for your cover to end. When the plan ends, your cover will automatically end, unless you chose the option to continue cover when you took out the plan. See page 20 for more details on this guaranteed cover again option. Once you stop making regular payments, the plan will end and you will not receive any refund or benefit from the plan. The cost of your AIB Pension Life Insurance plan is guaranteed not to increase before the date you choose for your cover to end, giving you added security. If you want to increase your cover every year to take account of inflation, you can choose the inflation protection option (see page 19). This option is important as, without it, your cover cannot increase unless you start a new plan. How much will it cost? The cost of life Insurance depends on the following: The amount of cover you need. Your age and whether or not you smoke. Your state of health. Whether you choose the inflation protection option (see page 19 for details). 5

8 Whether you want your cover to be able to continue after you retire (using the guaranteed cover again option. See page 20 for details). The age at which you want your cover to end. If you are interested in AIB Pension Life Insurance, your AIB Financial Adviser will be able to give you a quotation. Terms and conditions apply. We will include the following charges in your payments: The cost of setting up and managing the plan, including sales and commission costs. The cost of the life Insurance benefit. Family law and pensions If you go through a separation or divorce, a court application for a pension adjustment order for the death benefits due under this plan may be made. You can get more information from the Pensions Board at the address given on page 24. 6

9 Suitability snapshot Below we have set out some important points for you to consider to help you decide if this plan is suitable for you. If you are in any doubt, you should contact your AIB Financial Adviser. AIB Pension Life Insurance might suit you if you: want to leave your dependants a guaranteed lump sum if you die during the term of your plan; are able to claim income tax relief on your contributions; want security in knowing that your regular payments are guaranteed to stay the same throughout the term of the plan (unless you choose the indexation option); are self-employed or in employment and are not a member of a pension scheme (for AIB Pension Life Insurance for personal pensions); or your employer wants to take out a life Insurance plan for you and pay on your behalf (AIB Executive Pension Life Insurance for company pensions). AIB Pension Life Insurance might not suit you if you: are looking for an income in retirement; need it as security for a loan; want to take out a plan in two names (although two people can take out one each, if they both qualify); need cover with a cash-in value; or are currently not working. 7

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11 Eligibility for AIB Pension Life Insurance You need to meet certain criteria to be eligible to take out AIB Pension Life Insurance, a special form of life Insurance with added income tax benefits. These include the following: Your age AIB Pension Life Insurance (personal pensions) Normally you must be aged between 20 and 70 to take out this cover and you cannot have cover under this plan beyond age 75. You must take out cover for at least five years. The maximum amount of time we will provide cover for is 40 years. If you have an AIB Pension Life Insurance (personal pensions) plan, you own the plan. If a claim is made, we will pay your benefits to your personal representatives. AIB Executive Pension Life Insurance (company pensions) Normally you must be aged between 20 and 65 to take out this cover. If you qualify for a company pension plan, the expiry date of your AIB Executive Pension Life Insurance plan cannot go beyond your normal retirement age of your company pension plan. This age will be between 60 and 70. You must take out cover for at least five years. The maximum amount of time we will provide cover for is 40 years and you cannot have cover under this plan beyond age 70. If you have an AIB Executive Pension Life Insurance plan, the trustee (normally your employer) owns the plan. If a claim is made, we will pay the benefits to the trustee. (See page 22 for details on how to make a claim). Your tax situation Before taking out AIB Pension Life Insurance: you must be living in Ireland for income tax purposes; and your income must be from paid work. You cannot take out a plan 9

12 if your income is from, for example, renting out property, dividend payments or interest on investments. This is because these forms of income will probably continue after your death. How income tax relief will work for you depends on whether you would qualify for a personal pension or company pension plan. We summarise this on page 15. You can only take out AIB Pension Life Insurance on your own life (single cover) as it is your income that this plan aims to protect. You cannot take it out on your partner s life or take out joint life Insurance. 10

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14 Tax advantages of AIB Pension Life Insurance Your payments to your AIB Pension Life Insurance plan qualify for income tax relief up to certain limits. This means that the cost of your life insurance will be greatly reduced. Exactly how the income tax relief works depends on whether you qualify to take out a personal pension or join a company pension arrangement. To check which applies to you, look at page 15. Your AIB Financial Adviser will be able to talk you through the option that applies to you and how it will work in your case. AIB Pension Life Insurance (personal pensions) income tax advantages This will apply to you if you are self-employed or an employee who does not have a company pension scheme. If you are eligible to take out a personal pension plan, you can claim income tax relief on your payments up to a certain percentage of your net relevant earnings in any one year. Net relevant earnings means your income during a tax year, less allowances, losses and certain charges and deductions, such as mortgage interest for which you can claim income tax relief (if this applies to you). The maximum contribution you can claim income tax relief on depends on your age and this is outlined in the table below. Maximum payment you can claim income tax relief on If you re under 30 If you re 30 to 39 If you re 40 to 49 If you re 50 to 54 If you re 55 to 59 If you re 60 and over Up to 15% of your net relevant earnings Up to 20% of your net relevant earnings Up to 25% of your net relevant earnings Up to 30% of your net relevant earnings Up to 35% of your net relevant earnings Up to 40% of your net relevant earnings 12

15 These percentages are capped at an earnings limit of 115,000 (current at September 2013). They include pension contributions to other approved pension arrangements. The Government may change this limit in the future. Also, if you are in a certain occupation, you may get income tax relief of 30% of earnings, no matter how old you are. In general, these tend to be professional sportspeople who earn their income from a particular occupation such as athletes, boxers, footballers, golfers, jockeys and so on. If you are an employee and your contributions are taken from your bank account you can apply to your local Inspector of Taxes to have your tax credits adjusted to reflect your pension contribution. If you are self employed, you must include your pension contributions in your self assessment tax returns in order to get income tax relief. So, a 45-year-old with net relevant earnings of 30,000 can get tax relief on total payments of up to 7,500 a year (25% of net relevant earnings) towards a pension or an AIB Pension Life Insurance plan (or a combination of both). Examples of the income tax advantages available with AIB Pension Life Insurance John pays income tax at the higher rate of 41%: John s story John pays income tax at the higher rate (currently 41% in September 2013). A contribution of 100 to an AIB Pension Life Insurance plan could cost him 59 after income tax relief. AIB Pension Life Insurance contribution of 100 Emma pays income tax at the lower rate of 20%: Emma s story Income tax relief of 41% Cost to John 59 Emma pays income tax at the lower rate (currently 20% in September 2013). A contribution of 100 could cost her 80 after income tax relief. AIB Pension Life Insurance contribution of 100 If you leave your job: Income tax relief of 20% Cost to Emma 80 With Pension Life Insurance for personal pensions, you could become ineligible for the income tax relief on your plan if you no longer have an income from being self-employed or from non-pensionable employment. If this happens, you can continue to pay your plan contributions but you cannot claim income tax relief. Your plan will not stop if you continue to pay contributions. AIB Executive Pension Life Insurance-tax advantages This will apply if your company will contribute to the cost. To take out AIB Executive Pension Life Insurance, your employer must pay 13

16 at least one-tenth of the contribution. However, they can pay any amount up to the full contribution. Your employers contribution Employers receive Corporation Tax Relief on any contribution they pay into the plan on your behalf. Employer payments are not considered benefit in kind (BIK), so you do not have to pay income tax on these payments. Your contribution You can get income tax relief on your payments up to a certain percentage of your net relevant earning, depending on your age. See the table on page 12 to get your maximum contribution level that qualifies for income tax relief. This limit applies to your contribution to this plan and any pension plan you have. Your employer may take your contributions from your salary before you are taxed. You immediately get income tax relief on this. If you pay 100 each month towards your AIB Executive Pension Life Insurance plan and pay income tax at 41%, you could get back 41 in income tax relief. If you pay income tax at 20%, the cost after income tax relief would be 80 and the taxman would pay the other 20. How AIB Executive Pension Life Insurance contributions are taxed Your contribution gets income tax relief Your employers contribution gets Corporation Tax relief. No liability as a result of benefit in kind If you leave your job With AIB Executive Pension Life Insurance, if you leave your job, the contributions must end. You or your employer should let us know if this happens. The cover can only continue if your new employer is willing to take it over and make at least the minimum contribution. 14

17 How AIB Pension Life Insurance works depending on the type of pension plan: Your personal circumstances: Who pays payments to the plan? Eligible to take out a personal pension plan You are self-employed (paying income tax under schedule D Case I or II); or You are in non-pensionable employment. This means that you are an employee who pays income tax under the PAYE system, are not in a company pension plan and your employer will not contribute to this plan. Eligible to take out a company pension plan You are an employee and your employer will pay at least 1/10 of the payment to your AIB Executive Pension Life Insurance plan. You. Your employer must pay at least 1/10. You must pay the remaining payment (if any). What income tax relief is available? What is the maximum amount of life Insurance I can have? What is the maximum I can pay into this plan? You will get income tax relief on your payment with the limits outlined on page 12. There is no limit on the amount of cover you can have. There is no limit, but income tax relief is only available up to the limits set out on page 12. You will get income tax relief on your payment within the limits outlined on page 12. The maximum life Insurance you can have is four times your salary, plus allowances for a spouse, or registered civil partner s pension. Your AIB Financial Adviser can tell you how much this will be in your case. This limit on life Insurance includes the value of your main pension from employer contributions and any life Insurance you have through your pension. Your employer must pay at least 1/10 of the total payments towards your retirement benefits. Your employer must not pay more than the amount needed to pay for maximum benefits you can receive. Your payments towards life Insurance and pensions (through both your main company pension plan and any AVC plan) cannot total more than the limit for your age set out on page

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19 Extra Benefits There is a wide range of added benefits with no extra cost and optional benefits with an extra cost that are available with AIB Pension Life Insurance, we have explained them in this section. Added benefits You pay no extra charge for the added benefits listed below. Protection flexibility We know that when you take out one of our plans, sometimes your needs and circumstances can change. So, up to the fifth plan anniversary, we have introduced a flexibility option into the AIB Pension Life Insurance plans. This allows you to make significant changes to your level of benefits or the term of your benefits without going through the hassle of cancelling your existing plan and taking out a new one. This flexibility option is available at no extra charge. However, when you change your benefits or plan term we will work out a new plan premium at that time. This means the cost and payments on your plan go up or down. With this flexibility option you can: Reduce or increase the term of your plan; and Reduce or increase your existing cover. The main rules that apply to the flexibility option are as follows: You can only change the term if the original term you chose was more than 10 years. To increase benefit or extend the term: you must be aged under 50; your current life Insurance must not be more than 500,000. You cannot increase your benefit by more than 20% of the current benefit. You cannot extend the term by more than five years. 17

20 You can only increase a benefit, or extend its term, or a combination of both, once. There are detailed rules, restrictions and requirements related to this functionality set out in your terms and conditions. them your member number, which is the same as your AIB Pension Life Insurance plan number. This will be on your welcome pack. NurseAssist 24/7 is a confidential advisory service. It is not designed to replace your doctor. The team of nurses will not have access to your plan details or application form. Guaranteed insurability If you take out AIB Pension Life Insurance and before the age of 55 you then get married, become a registered civil partner, have a child, take out a new or increase your existing mortgage or get an increase in salary, you can ask us to set up a new life Insurance plan for: 125,000; half of your current benefit; or half of your original benefit; whichever is lower. You won t have to provide any information about your health. This option is only available twice. Please see your Terms and Conditions booklet for detailed information. Health Lines NurseAssist 24/7 This confidential service allows you to phone a team of trained nurses who can help you with a full range of questions or concerns you might have about your family s health. You can call NurseAssist 24/7 on at any time, day or night. You will need to give Women s Health Centre The Women s Health Centre is a confidential help-line so that you can speak directly to a team of experienced and professionally trained midwives and nurses about any number of female health queries like: Menstruation and fertility Pregnancy Cancer prevention STI s Osteoporosis and menopause Call the Women s Health Centre on You will need to give them your member number (which is the same as your Income Insurance plan number). This will be on your welcome pack. The nurses will not have access to your plan details or application form. The Women s Health Centre is an advisory service. It is not designed to replace your doctor. 18

21 Counselling service If you or your family have to make a claim, to help you during this difficult period, we offer you up to three counselling sessions, at no extra charge with the Clanwilliam Institute. The Clanwilliam Institute is a registered Irish Charity that was established in The Institute provides counselling and psychotherapy services for individuals, couples and families who are going through difficulties such as serious illness and bereavement. For more information visit If you would like to use this service, please contact the Clanwilliam Institute to arrange an appointment on or Any counselling sessions you have with the Clanwilliam Institute will be strictly confidential. The Clanwilliam Institute has offices in Dublin, Portlaoise, Kilkenny, Wexford, Dundalk, Wicklow, Roscommon, Galway, Sligo, Nenagh, Roscrea, Limerick, Cork and Dungarvan. Optional benefits You will have to pay an extra charge for the optional benefits listed below. Inflation protection (indexation) This option allows you to increase your cover every year (to keep in line with the cost of living). And, you do not have to provide evidence of your health. This is often called indexation. Why do I need inflation protection? This option protects the real value of your cover as time passes. If you do not take this option, your cover will stay the same throughout the term of your plan. How inflation protection works You will have to pay an extra charge for this benefit. This extra charge will depend on your age and the term of your plan. It will be included in the contribution if you have chosen this option. At the moment, the amount you are covered for will increase by 3% a year to protect against the effects of inflation. Your payment will go up by 5% each year to reflect the extra cover and the fact that you are older. If you refuse this option two years in a row, we will not offer you any further increases. 19

22 Guaranteed cover again (conversion option) Guaranteed cover again, also known as a conversion option allows you to convert your cover to another plan at any stage throughout the term of your plan. If you wish to avail of this option, you must take it at the start of your plan. Then you will not have to provide any new evidence of health for your new plan. You can avail of this option more than once. The payments you make will reflect this. This option is especially useful on AIB Pension Life Insurance if, at a later date, you want to extend your cover beyond retirement. You must be aged between 20 and 60 to take it out. Why do I need guaranteed cover again? In future years you can get cover without providing evidence of your health. How guaranteed cover again works If you want to convert your cover, you can take out a new plan with guaranteed regular payments. The option to convert cover does not include any inflation protection on the extended cover. The payments you make will reflect this. You will have the option to add guaranteed cover again to the new plan you convert into, once you are aged between 20 and 60 at the time of setting up the plan you are converting into. The option will apply to a life cover sum assured of no more than 5,000,000. This limit applies to the total cover extended across all the policies you have with us. The payments you make will reflect this. 20

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24 A guide to making a claim In the unfortunate event that you or your family have to make a claim, this section shows you the best way to go about it. AIB Pension Life Insurance (personal pensions) claims process If you have taken out an AIB Pension Life Insurance (personal pensions) plan, and you die before this plan ends, your family should contact your AIB Financial Adviser or phone the AIB service team. We will send them a claim form and tell them what they need to do. They must fill in the claim form and send it to us with the plan schedule and the original death certificate. If you leave a will, we may also need a certified copy of it and a grant of probate. If you do not leave a will, we may need letters of administration. It is our policy to start paying interest on any claim from two months after the date of death. This is in line with industry standards. When we receive all the documents and information we need, we will normally make a payment within five days. If our payment is delayed, as a gesture of goodwill we will pay interest from the date of death rather than from two months after the date of death. AIB Executive Pension Life Insurance (company pensions) claims process If you have taken out an AIB Executive Pension Life Insurance (company pensions) plan, and if you die before this plan ends, the trustee (normally your employer) will make a claim on behalf of your beneficiaries under the plan. The beneficiaries are usually your family. We will send them a claim form and tell them what they need to do. They must fill in the claim form and send it to us with the plan schedule and the original death certificate. We will also need proof from the trustee that they have the right to act as trustee. It is our policy to start paying interest on any claim from two months after the date of death. This is in line with industry standards. When we receive all the documents and information we need, we will normally make a payment within five days. If our payment is delayed, as a gesture of goodwill we will pay interest from the date of death rather than from two months after the date of death. Tax on benefits Inheritance tax does not have to be paid on life Insurance benefits paid to your spouse or registered civil partner. However, in some other circumstances, tax may have to be paid on the life Insurance benefits. 22

25 For example, if you die within the term of the plan and your life insurance is paid to your estate, your beneficiaries may have to pay inheritance tax on the proceeds from the plan. If a pension is provided for your spouse, registered civil partner or dependants, the pension income is treated as income so they will have to pay income tax on it and any other taxes due at that time. You should ask your tax adviser or your accountant to tell you about the tax situation. Situations where we will not pay a benefit We have listed a summary of these situations below: Any problems? We monitor our complaint process to make sure it is of the highest standards. We hope you never have to complain. However, if for any reason you do, we want to hear from you. AIB Pension Life Insurance (personal pensions) complaints We hope you do not experience any problems but if you do, please call your AIB Financial Adviser or contact the AIB service team. If, having contacted the AIB service team, you feel we have not dealt fairly with your complaint, you can contact: We may refuse to pay a claim if you have given incorrect information or did not tell us something that would have affected our assessment of your application when you first took out the plan. On the application form, you must tell us everything relevant about your health, occupation and hobbies. If you do not and you make a claim, we may not pay your benefit. We will send you a summary of the medical information you gave us in your application form. You should check this to make sure that you have answered all the health questions accurately. We will not pay life insurance benefit if your death is caused by suicide or execution within a year of the plan starting. The Financial Services Ombudsman 3rd Floor Lincoln House Lincoln Place Dublin 2. Lo-call: enquiries@financialombudsman.ie Fax:

26 AIB Executive Pension Life Insurance (company pensions) complaints If you have a company pension plan, you can also contact the trustee of the scheme (usually your employer). If, having contacted the AIB service team, you feel we have not dealt fairly with your complaint, you can contact the Pensions Board. The Pensions Board The Government set up the Pensions Board under the Pensions Act 1990 as amended. The Pensions Board s main job is to make sure that company and AVC pension schemes are run in line with the act. Their address is: The Pensions Board Verschoyle House Lower Mount Street Dublin 2. Phone: Fax:

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28 Plain English Campaign s Crystal Mark does not apply to this Customer Information Notice Customer Information Notice CONTENTS INTRODUCTION A. INFORMATION ABOUT THE POLICY 1. Make sure the policy meets your needs! 2. What happens if you want to cash in the policy early or stop paying premiums? 3. What are the projected benefits under the policy? 4. What intermediary/sales remuneration is payable? 5. Are returns guaranteed and can the premium be reviewed? 6. Can the policy be cancelled or amended by the insurer? 7. Information on taxation issues 8. Additional information in relation to your policy What are the benefits and options under this plan? What is the term of the contract? Are there any circumstances under which the plan may be ended? How are the payments invested? Is there an opportunity to change your mind? Law applicable to your plan What to do if you are not happy or have any questions? B. INFORMATION ON SERVICE FEE. C. INFORMATION ABOUT THE INSURER/INSURANCE INTERMEDIARY/SALES EMPLOYEE. D. INFORMATION TO BE SUPPLIED TO THE POLICYHOLDER DURING THE TERM OF THE INSURANCE CONTRACT. 26

29 Introduction This notice is designed to highlight some important details about the plan and, along with the AIB Life Long Insurance booklet, is a guide to help you understand your plan. Full details on the specific benefits and options that apply to you will be contained in your plan schedule, Terms and Conditions booklet and personalised customer information notice which you will receive when the contract is in place. You should read these carefully when you receive them as certain exclusions and conditions may apply to the benefits and options you have selected. Any Questions? If you have any questions on the information included in this customer information notice you should contact your AIB Financial Adviser or your insurer Irish Life, who will deal with your enquiry at our AIB service team, Irish Life, Lower Abbey Street, Dublin 1. A. INFORMATION ABOUT THE POLICY 1. MAKE SURE THE POLICY MEETS YOUR NEEDS! The AIB Life Long Insurance plan is a regular payment whole of life assurance plan. The plan provides life cover only. If you opt for the indexation option the level of benefits will automatically increase each year. The payment you make will also increase each year. Currently, the rate of increase for benefits is 5% each year and the rate of increase for the payment is 8% each year. If chosen, indexation will stop at age 75, or in the case of a joint/dual life case when the oldest life reaches age 75. You are entering into a commitment to make a regular payment over a relatively long term. Unless you are fully satisfied as to the nature of this commitment having regard to your needs, resources and circumstances, you should not enter into this commitment. Your AIB Financial Adviser must indicate whether paragraph a) or paragraph b) below applies. a) This plan replaces in whole or in part an existing plan with Irish Life, or with another insurer. Your AIB Financial Adviser will advise you as to the financial consequences of such replacement and of possible financial loss as a result. You will be asked at the beginning of your application form to confirm this in writing. Please ensure that you have completed this section of the form and that you are satisfied with the explanations provided by your AIB Financial Adviser before you complete the rest of the application form. 27

30 b) This plan does not replace in whole or in part an existing plan with Irish Life or with any other insurer. 2. WHAT HAPPENS IF YOU WANT TO CASH IN THE POLICY EARLY OR STOP PAYING PREMIUMS? The plan does not acquire a cash or surrender value at any stage. If you stop making payments, all cover under the plan will end and we will not refund any of your payments. 3. WHAT ARE THE PROJECTED BENEFITS UNDER THE POLICY? The following payment and benefit details are for a typical AIB Life Long Insurance plan. The figures will obviously vary based on each individual s personal details. The payment quoted below is correct as at September Figures for your specific plan details will be shown in your customer information notice in your welcome pack. The figures below are based on the following details: Protection Benefits: Lives Covered: Life cover of 80,000 Cover is on a dual life basis. Male non-smoker aged 57 next birthday. Female non-smoker aged 55 next birthday. Payments: per month payable by direct debit. No indexation option has been selected. Term: This is a whole of life plan. All figures are exclusive of the 1% government levy. The plan provides protection benefits for the remainder of your lifetime as long as you continue to make payments. The plan does not acquire a cash or surrender value at any stage. 28

31 ILLUSTRATIVE TABLE OF PROJECTED BENEFITS AND CHARGES A B C D E = A + B C D Year Total amount of premiums paid into the policy to date Projected investment growth to date Projected expenses and charges to date Taxation to date Projected policy value after payment of taxation 1 2, , , , , ,346 1, , ,679 2, , ,940 2, , ,118 3, , ,233 4, , ,250 5, , ,176 6, , ,981 7, , ,653 8, , ,164 10, , ,510 12, , ,635 13, , ,552 15, , ,241 18, , ,588 20, , ,645 23, , ,645 26, , ,645 29,630 0 The payment made throughout the term of the plan includes the cost of the protection benefits, and all charges, expenses, intermediary remuneration and sales remuneration associated with your plan. The charges shown in column C include the cost of intermediary/ sales remuneration incurred by Irish Life, as described in section 4. The payments shown exclude any taxes or government levies that may be payable. 29

32 ILLUSTRATIVE TABLE OF INTERMEDIARY/SALES REMUNERATION Year Premium payable in that year Projected total intermediary/ sales remuneration payable in that year The projected intermediary/sales remuneration shown above includes the costs incurred by Irish Life in relation to the provision of sales advice, service and support for the plan. These costs are included in the plan charges set out in column C of the illustrative table of projected benefits and charges in section ARE RETURNS GUARANTEED AND CAN THE PREMIUM BE REVIEWED? The payment is guaranteed to provide protection cover for the remainder of your lifetime, assuming no changes to your payment or benefits (other than indexation increases if selected). 6. CAN THE POLICY BE CANCELLED OR AMENDED BY THE INSURER? We may cancel your plan if you stop making payments. You must provide any information or evidence which we need to administer the plan. If we receive evidence that your date of birth as shown on your application form is incorrect, we will adjust the benefits appropriately or we may end your cover and refuse to pay any claim. We may end your cover and refuse to pay a claim if you do not give us information (or if you give us incorrect information) regarding an illness or condition that will affect our assessment of your application for this plan. If that information is not true and complete or if we do not receive all relevant information, we may end your cover and refuse to pay any claim. If this happens you will lose all rights under the plan and we will not refund your payments. Relevant information includes anything that a reputable insurer might regard as likely to influence the assessment and acceptance of your application. We will provide a copy of the information you gave us in your application or any other forms that you have filled in for us if you ask. 30

33 7. INFORMATION ON TAXATION ISSUES Under current Irish law (September 2013) tax does not usually have to be paid on life cover, but in some circumstances tax may be due. For example, if the life cover is paid to your estate, your beneficiaries may have to pay inheritance tax (there is no inheritance tax due on an inheritance between a married couple or registered civil partners). Any taxes or levies imposed by the government will be collected by Irish Life and passed directly to the revenue commissioners. Where the plan is owned by a company or where payments are made by anyone other than the legal owner of the plan, for example from a company or business account, there may be tax implications. In these circumstances we recommend that a financial advisor be consulted regarding any possible taxation implications. If you wish, you can apply to have this plan effected and approved by the Revenue Commissioners under Section 72 of the Capital Acquisitions Tax (CAT) Consolidation Act If the plan is approved by the Revenue Commissioners it is intended to pay certain inheritance tax arising when the last remaining life covered dies without any additional inheritance tax arising on the proceeds of the plan. If approved under Section 72, Inheritance Tax will not be payable on the benefit to the extent that the proceeds are used to pay allowable inheritance tax. If any of the benefit is not used to pay allowable inheritance tax then the beneficiaries may have to pay inheritance tax on that amount of the death benefit. There is no inheritance due on an inheritance between a married couple or registered civil partners. To avail of this relief, the plan must be approved by the Revenue Commissioners at the outset. It is not possible to gain Section 72 status for your plan at a later date. Please contact your AIB Financial Adviser or Irish Life if you do not fully understand the likely tax treatment of any benefits payable in connection with your AIB Life Long Insurance plan. Loss of Section 72 status The exemption from inheritance tax outlined will only apply if the plan continues to qualify as a Section 72 plan. The plan could lose its Section 72 status in certain circumstances. These are outlined in the Terms and Conditions booklet. If Section 72 status is lost it cannot be reinstated. Please contact your AIB Financial Adviser or Irish Life if you do not fully understand the likely tax treatment of any benefits payable in connection with your AIB Life Long Insurance plan, or if you are unsure if any changes you wish to make to the plan might jeopardise its Section 72 status. However, we recommend that you seek independent tax advice in respect of your own specific circumstances. 8. ADDITIONAL INFORMATION IN RELATION TO YOUR POLICY What are the benefits and options provided under this plan? Life cover If there is one life covered named on the plan schedule (single life basis), we will pay the life cover shown on the plan schedule plus any increase due to indexation when the life covered dies. The plan will then end. Where there are two lives covered named on the plan schedule the plan will have been sold on either a dual life, joint life first death or joint life second death basis. The plan schedule will specify the basis the plan has been written under. 31

34 If the plan has been sold on a dual life basis, we will pay the life cover shown for each life on the plan schedule plus any increase due to indexation when each of the lives covered die. The plan will not end until both lives have died and a death benefit has been paid on each death. When a life covered dies, payments must continue until the death of the remaining life covered. If the plan has been sold on a joint life first death basis, we will pay the life cover shown on the plan schedule plus any increase due to indexation when the first death of the lives covered occurs. The plan will then end even though one life is still alive. If the plan has been sold on a joint life second death basis, we will pay the life cover shown on the plan schedule plus any increase due to indexation when the second death of the lives covered occurs. After the first death of the two lives covered, payments must continue, and we will not pay any benefit. If, at any stage, you choose to reduce your life cover and payment, the amount we pay on death will be reduced accordingly. If you have taken out this plan for the purposes of paying inheritance tax due on the death of the life covered or on the event of the second death if taken out on a joint life second death basis, and this plan has been approved by the Revenue Commissioners under Section 72 of CAT Consolidation Act 2003 then it is not possible to reduce your benefit amounts or payments at any stage. Reducing your benefits could result in your eligibility for relief your Section 72 being lost. Accidental Death Benefit We will pay the death benefit (to a maximum of 150,000) on accidental death between the time the application is received by Irish Life (together with a completed direct debit) and the earlier of the following: the day of the final underwriting decision if terms are being offered the day of the underwriting decision if we are declining or postponing cover 30 days from the date we receive the application For this benefit, Accidental Death means death caused solely and directly as a result of an accident caused by violent, visible and external means and independently of any other cause. There are the following restrictions: The benefit payable is subject to the lower of the life sum assured or 150,000 The benefit is subject to a maximum entry age of 64 Exclusions apply around the nature of the death e.g. suicide or intentional self- inflicted injuries causing death are excluded. There are further details of the exclusions in the Terms and Conditions booklet. Guaranteed Insurability Guaranteed Insurability is an option we offer on all AIB Life long Insurance plans and is a way of increasing your life cover without having to provide evidence of health. This is an automatic additional benefit. If cover has not ended, you can ask us to set up a new plan 32

35 for the lesser of: 50% of the original benefit amount at the start date of your plan or 100,000 without having to provide evidence of health, within three months of one of the life events described below occurring. This option can be exercised after any of the following life events: Marriage or entering into a registered civil partnership Increase in CAT liability Birth (or adoption) of a child. The maximum number of times you may exercise this option is twice. The cost of the new plan will be based on the terms applying at that time. You will need to provide independent proof of the increase in CAT liability, marriage, registered civil partnership or birth before we can set up the new plan. You must ask for a new plan under this option within three months of the marriage, registering of the civil partnership, birth or date of the increase in the CAT liability. Exclusions apply to this option which you should be aware of. There are further details of these exclusions in the Terms and Conditions booklet. What is the term of the contract? The plan provides protection benefits for the remainder of your lifetime as long as you continue to make payments. Are there any circumstances under which the plan may be ended? We may cancel your plan if you stop making payments. Is there an opportunity to change your mind? You have an opportunity to cancel this plan if you are not satisfied that the benefits meet your needs.you may do this by writing to the AIB service team at Irish Life within 30 days of the date we send you the details of your plan. On cancellation all benefits will end and Irish Life will refund your payments. Law applicable to your plan Irish Law governs the plan and the Irish Courts are the only courts that are entitled to settle disputes. What to do if you are not happy or have any questions? If for any reason you feel that this plan is not right for you, or if you have any questions, you should contact AIB service team, Irish Life, Lower Abbey Street, Dublin 1 who will deal with your enquiry. Our AIB service team also operate an internal complaints procedure and any complaints you may have will, in the first instance, be fully reviewed by them. If you feel we have not dealt fairly with your complaint, you should contact the Financial Services Ombudsman at 3rd Floor, Lincoln House, Lincoln Place, Dublin 2. B. INFORMATION ON SERVICE FEE There are no charges payable to Irish Life other than those set out in your table of benefits and charges and in your Terms and Conditions booklet. 33

36 C. INFORMATION ABOUT THE INSURER/INSURANCE INTERMEDIARY/SALES EMPLOYEE Insurer Your AIB Portfolio Invest plan is provided by Irish Life Assurance plc, a company authorised in Ireland. Irish Life Assurance plc is regulated by the Central Bank of Ireland. You can contact us at AIB service team, Irish Life, Lower Abbey Street, Dublin 1, by telephone at , by fax at , or by at aibserviceteam@irishlife.ie. In the interest of Customer Service we will record and monitor calls. Insurance Intermediary D. INFORMATION TO BE SUPPLIED TO THE POLICYHOLDER DURING THE TERM OF THE INSURANCE CONTRACT We at Irish Life are obliged by law to tell you if any of the following events occurs during the term of your contract: we change our name; our legal status changes; our head office address changes; an alteration is made to any term of the contract which results in a change to the information given in paragraph A(8) of this document. The AIB Financial Adviser should insert details of their name, legal status, their address for correspondence and a contact telephone number/fax number or address and where relevant, the companies with whom agencies are held. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc for life and pensions business. Allied Irish Banks, p.l.c. and Irish Life Assurance plc are regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c., Bankcentre, Ballsbridge, Dublin 4. Telephone: aibserviceteam@irishlife.ie No delegated or binding authority is granted by Irish Life to your AIB Financial Adviser in relation to underwriting, claims handling or claims settlement. 34

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40 At AIB we are taking steps to reduce our impact on the environment. Small changes, taken together, add up to a greener world. Find out more at: How to get in touch Call us Call into any branch Click on aib.ie If you have any questions, just ask. Terms and conditions apply. If you have any questions, please contact your AIB Financial Adviser in your local branch or call the AIB service team at Irish Life on In the interest of customer service, Irish Life will record and monitor calls. Irish Life Assurance plc, Registered in Ireland number , Vat number 9F55923G. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc, for life and pensions business. Allied Irish Banks, p.l.c. and Irish Life Assurance plc are regulated by the Central Bank of Ireland. ILA 9272 (REV 10-13)