EFU Retirement Plan

Retirement is not an end, it is the beginning of the golden years of life. You worked hard in your life, now is the time to sit back and do all those activities that you have missed, whether it is a dream vacation trip with friends and family, or exploring new arts and skills with the EFU Retirement plan which is an investment-linked insurance product, you can spend your golden years in style. This plan ensures that you get desirable funds along with the insurance coverage after a lifetime of work.

Opportunity for Growth:

Every premium paid towards the plan will be invested in one or two of the internal investment funds of EFU Life. It is completely your decision to choose the internal fund based on your investment objectives. You can select from the following unit funds mentioned below:

EFU Managed Growth Fund:

Fund Categorization: Balanced, Risk Profile: Medium

An investment fund with a balanced investment strategy. It aims to achieve reasonable capital growth and steady returns with investment in government securities, carefully selected blue chip equities, and other fixed income securities and cash.

EFU Guaranteed Growth Fund*:

Fund Categorization: Money Market Fund, Risk Profile: Low

An investment fund providing steady returns with a guarantee that the bid price of the fund will never fall. It aims to achieve stable growth through investment in short term debt securities.

EFU Income Growth Fund

Fund Categorization: Income Fund, Risk Profile: Low

Investment fund providing steady returns. It aims to achieve consistent capital growth with investment in government securities and high-quality corporate debt.

EFU Aggressive Fund:

Fund Categorization: Aggressive, Risk Profile: High

An investment fund with the aim of investing in equities providing a higher rate of return. It aims to maximize capital growth by using investments with an aggressive market outlook.

Multiple Fund Option:

Under this option you have a facility to select a mix of two unit linked funds of the plan. Fund mix can be selected in multiples of 10%. It means that the funds split can be of 90/10, 80/20, 70/30, 60/40 or 50/50.

* EFU Guaranteed Growth Fund to be selected by default

Free Look Period/Cancellation/Surrender/Partial Surrender:

You have the right to cancel your insurance plan due to whatsoever reason. If you cancel your policy within 14 days from the date of the policy documents receipt, you are entitled for a full refund of premium less any medical or clinical examination expenses, if any, incurred by EFU Life for applying your Banca plan. Policy cannot be cancelled/ surrendered after completion of 14 days free look period and before payment of two annual premiums. Insurance policy can be surrendered after payment of atleast two annual premiums and you will be paid current cash value of underlying units in the policy (after deduction of applicable charges) which may be less than the total premium paid by you. You also have the facility of partial withdrawals that may be exercised by leaving a minimum balance (residual value) in the cash value.

Disclosure of Product

This is a life insurance product which has two distinct elements i.e., Insurance Protection and Investment. The Investment Component is linked to the performance of underlying assets under unit linked fund(s).

Benefits:

Retirement option:

The plan allows one to choose from a whole range of options. During the plan term, one may select to withdraw the full or partial fund value. At retirement age of 60 and onwards, there is an option to select a pension option from the options given below (provided the policy had been in force for at least five policy years):

In case funds are also needed at retirement, 25% of the retirement fund value can be withdrawn as lumpsum amount, and the remaining 75% can be used to provide pension under any of the options selected.

Death Benefit:

The moment one starts saving with the Retirement Plan he will enjoy life assurance protection. This cover means that in case of death the dependents will receive;

     AND

Maturity Benefit:

he amount payable at maturity is equal to the cash value of the Fund at the time of maturity. This amount can be utilized to purchase pension as mentioned in the section “Retirement Option”.

Pilgrimage Benefit:

During the Plan term, if the life assured travels for religious pilgrimage, EFU Life offers coverage on death due to an accident while performing pilgrimage (Hajj, Umrah or Ziarat- religious journey etc.) The coverage under this built-in accidental benefit will be 100% of the Main Plan Sum Assured, subject to a maximum limit of PKR 100,000. This feature will be applicable for an additional period of 13 months from the date of maturity or from the date of full surrender.

Guaranteed Loyalty Bonus:

TThe longer the plan is continued, the higher the rewards. The plan offers generous loyalty bonuses in the form of extra units in the Fund, if it is continued without any breaks beyond a period of 10 years. The bonus is allocated to the plan every 5 years and will increase the underlying accumulated fund value rapidly.

Built-in Accidental Death and Disability Benefit:

The plan provides immediate funds in case the assured parent dies due to accidental cause or suffers a disability. The amount of payout is up to 10 times the basic annual premium with a maximum payout limited to Rs. 5 million.

Optional Benefits:

Additional Term Assurance:

This rider increases the level of life cover by providing an additional amount in the range of 50% to 200% of the Main Plan Sum Assured, in case of death of the Life Assured.

Waiver of Premium:

In case the life assured is unable to follow any occupation due to the sickness or accident, the premium would be paid by EFU Life.

Family Income Benefit:

This benefit ensures that a monthly income is paid to the family in case of an unfortunate death of the policy holder (insured person) during the plan term.

Lifecare Enhanced Benefit:

This rider provides a flexible benefit ranging from Rs. 50,000 to sum equivalent to main plan sum assured subject to a maximum of Rs.1.5 million, upon the diagnosis or the occurrence of any 20 covered critical illnesses.

Hospital Care Plus:

This rider will provide a daily benefit for each day of confinement in a hospital as a result of accident or sickness.

Return of Premium:

The 'Return of Premium' rider is a unique benefit offered to prospective EFU Life customers. This rider enhances your coverage by giving you an extra benefit. In an unforeseen event of death of the life assured, the beneficiary will not only receive the death benefit, but will also be able to receive the total amount of paid premium excluding the premium paid for the ROP rider.

Unit Allocation:

TThe proportion of basic plan premium allocated to investment is as shown in table:

* First year allocation is valid from 1st July 2023 to 30th June 2024.

*An allocation charges will be deducted from the Paid Premium every year as per the above table and the remainder will be allocated to the account value.

Loyalty Bonus:

A Loyalty Bonus unit allocation applies every 5 years, starting from the 11th policy year. The bonus allocation is a percentage of the average Basic Plan premium paid up to the policy year immediately prior to the year in which Loyalty Bonus is to be allocated. The extra unit allocation, in addition to the Basic Plan contribution is as follows:

Sum Assured:

This is the guaranteed amount payable on death. The sum assured may be selected from a range depending on the age at entry. The sum assured is determined as the Basic plan annual premium multiplied by the “Protection Multiple” which can be selected from the following table:

Extended Term Assurance (ETA):

One of the most flexible features which allows the Policyholder to pay Premium for a predetermined ETA term and stop premiums for the remaining policy term. This is particularly useful if the policyholder is unable to continue with the premiums but requires the coverage. The ETA option can be availed after payment of 10 full years’ Regular Premium, by giving 30 days’ notice before a renewal date. Riders (If any) will be discontinued once ETA is selected.

Fund Acceleration Premium (FAP):

This is a regular premium but also gives the flexibility to top-up the savings by depositing surplus funds as lump sum premium in the plan. These lump sum premiums, called Fund Acceleration Premium (FAP) payment can be made at any time during the policy term.

Indexation:

With indexation benefit, you will have security and peace of mind knowing that the benefits provided by the plan will automatically update every year in line with inflation. Under this option, the Premium will increase by the 5% of the previous year's Premium. Similarly, the Sum Assured of Main Plan and additional rider, if any, will increase in the same proportion. However, one may opt to increase only the Premium while keeping the Sum Assured at initial level. Sum Assured and premium indexation is only available until age 55, provided you were accepted on standard terms initially.

Claim:

In case of an unfortunate event, you may file your claim intimation through your BOP branch walk in, visiting the EFU Head Office or by visiting any of the EFU branches in the country. For a swift speedy process you may also call at EFU call center (021- 111-338-111) or simply visit EFU website, fill in the intimation form and email it at cod@efulife.com Thereafter, you will be contacted for next steps.

Complaint:

In case of any grievance/ complaint related to this policy, you may contact your BOP branch, BOP helpline 111-267-200 or EFU Life at csd@efulife.com or at 111-338-111.

FAQs:

Who can apply and what are the limits of plan?

Minimum savings term is 10 years and maximum is 45 years. This plan is available for all individuals aged between 18 and 65 years on next birthday. subject to a maximum age of 75 years.

What is the minimum Premium requirements?

Minimum annual basic plan premium is Rs.20,000/-

What are the charges?

The following charges apply on the plan:

• Administration charge: Rs.75 per month.
• Bid/Offer Spread: 5% of the net regular Premium.
• Investment management Charge: 0.125% of the fund value per month.
• Mortality Charge (Cost of Insurance): An age-based mortality charge applies for the life insurance risk each year and is dependent on the sum at risk. No mortality charges applies in years where the cash value exceeds the sum assured.
• Fund Switching Fee: PKR 500.
• Surrender Processing Fee: PKR 500.
• Surrender Charge: 100% for the first year.
• Allocation charges: As per the above Unit Allocation table.

Disclaimer

• This product is underwritten by EFU Life Assurance Ltd. It is not guaranteed or insured by Bank of Punjab or its affiliates and is not a Bank of Punjab product.
• Bank of Punjab is acting as a distributor/corporate insurance agent of this product to its valued customers and is not and shall not be held responsible in any manner whatsoever to any person, including but not limited to the insured customer(s), beneficiary (ies) or any third party.
• Growth in the value of your premiums will depend on the performance of the selected Fund in which the premiums are invested.
• All investments made in the selected Fund are subject to market risks. The investment risk of the selected fund will be borne by the policy holder.
• The past performance of the fund is not necessarily a guide to future performance. Any forecast made is not necessarily indicative of future or likely performance of the Fund and neither EFU Life Assurance Ltd. nor Bank of Punjab will incur any liability for the same.
• A personalized illustration of benefits will be provided to you by our sales representative. A description of how the contract works is given in the policy provisions and conditions. This webpage content only gives a general outline of the product features and benefits.
• Taxes will be applicable as per the taxation laws as stipulated by the relevant authorities.