Download Report

Global Choice
Customer product disclosure document
HELPING YOU DECIDE
This is an important document which gives you a summary of the Global Choice plan. Please read this with
your illustration, before you buy this plan and keep it for future reference.
Zurich International Life
Contents
The Qatar Financial Centre Regulatory
Authority is the independent financial
services regulator for the Qatar
Financial Centre. It requires us, Zurich
International Life Limited, to give you
this important information to help you
to decide whether this Global Choice
plan is right for you. This product
disclosure document explains the main
points about your Global Choice plan.
You should read this document carefully
and make sure you fully understand
what you are buying, and then keep
this document in a safe place.
Its aims�� 3
Your commitment�� 3
Risk factors�� 3
Other documents you should
consider reading�� 4
Questions and answers�� 5
What is Global Choice?�� 5
How will the money be invested?�� 5
What is the range of investment funds?�� 5
Can I make changes to my contributions?�� 5
Can withdrawals be taken from the plan?�� 6
What are the minimum contributions I can make?�� 6
What happens if circumstances change�� 6
Can the terms of the plan be changed?�� 6
Summary of charges�� 7
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 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.
How to contact us�� 10
Further information�� 11
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.
Any assignment of the plan to a person resident
in a different country from the planholder may be
subject to the above provisions.
2
Customer product disclosure document for Global Choice
The Global Choice plan
Global Choice 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. Your financial professional will help you decide if this plan is right
for you and the funds to invest in.
Its aims
Risk factors
What this plan is designed to do
What you need to be aware of
• To provide a medium to long term regular
and/or single contribution investment.
Your commitment
What we ask you to do
• To make contributions as outlined in your Global
Choice plan schedule.
• To provide instructions as to how contributions are
to be allocated within the plan.
• To invest for the medium to long term.
• Buying a Global Choice plan is a medium to long term
commitment. An early termination of the plan within
the first five years of any contribution may involve a
cash-in charge (if you have selected the establishment
charge option on your application form) and the value
payable may be less than the total contributions paid.
• If you pay regular contributions and your circumstances
change, you have the option to decrease or stop your
contributions without charge.
• After your application has been accepted, you will
receive a notice of your right to cancel. You will then
have 30 days in which you can change your mind.
Please note that if you are saving regularly, then this
notice will only be sent for the first contribution. If you
start your plan with a regular contribution, or add a
regular contribution to an existing single contribution
plan and exercise your right to cancel the plan during
the cancellation period, we will refund the regular
contribution paid. If you are paying a single or
additional single contribution and there has been a fall
in the value of your investment between the time you
invested and when we receive your request to cancel,
we will deduct this amount from any refund.
• Plan charges will be in accordance with the ‘Summary
of charges’ section on pages 8 to 9, but may be subject
to variation with prior notification from Zurich
International Life. We will give you at least three months
notice in writing of any increase in the charges unless
it is not reasonably possible in the circumstances.
• The value of any investment and the income from it can
fall as well as rise as a result of market fluctuations and
you may not get back the amount originally invested.
• The value of a 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
funds invest in foreign currencies.
Information on the specific risks associated with investing
in a particular fund can be obtained from the relevant
underlying fund prospectus or fund report and accounts,
both of which are available from Zurich’s website,
www.zurichinternational.com
Customer product disclosure document for Global Choice
3
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 where they are relevant throughout this document.
Global Choice plan terms and conditions
Provides the full terms and conditions
for Global Choice
Global Choice brochure
Explains how the plan works
Summary of charges
Details all the charges applicable to the plan
Guide to your investments brochure
Outlines fund choices
Loyalty bonus for clients
Explains how the bonus works
They are all available from your relevant financial professional or from us. Our contact details are on page 10.
4
Customer product disclosure document for Global Choice
Questions and answers
What is Global Choice?
Global Choice is an international, whole of life, investment linked plan.
• It allows you to make both regular and/or single contributions, by bank
transfer or cheque (single only).
• It is portable* between countries and offers the potential for good
investment growth.
• Although Global Choice is a medium to long term investment, the plan
is adaptable enough to change as your circumstances change.
• Global Choice is a whole of life plan so there is no contribution term and
there are no charges for stopping or decreasing regular contributions.
• It offers lower charges for higher total contributions see Summary of
charges section on pages 8 to 9.
• The plan will come to an end when either the plan is fully cashed in or
upon the death of the last of the lives insured, when 101% of the cash-in
value will be paid.
*Subject to our current business acceptance rules.
How will the money be invested?
• The allocation level of your contributions will be detailed in your
plan schedule.
• Your money will be used to 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 fund. 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.
What is the range of investment funds?
• A wide range of funds is available with a comprehensive range of
investment styles, asset types and risk levels from some of the most popular
and highly regarded fund management companies around the world.
Please read the guide
to your investments for
fund choices, charges
and contact details.
Can I make changes to my contributions?
• You can increase or decrease your contributions whenever you wish, subject
to the minimum level of contribution at the time.
• Please note that 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.
• Subject to the minimum level, you can also pay lump sum contributions
at any point.
• You can also start contributing regularly at any time if you have taken
out a single contribution plan.
Customer product disclosure document for Global Choice
5
How will I know how my plan 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
www.zurichinternational.com and click on your region (if needed), then click
on the ‘ZIO’ tab.
You can also ask your relevant financial professional for an up-to-date
valuation at any time or call +44 1624 691111.
Please refer to ‘How to
contact us’ on page 10.
Can withdrawals be taken from the plan?
• Withdrawals can be taken by cashing in all or part of the plan. Any cash in
must be in accordance with the plan terms and conditions and we shall
require you to complete a claim form and return this to us together with
additional documentation that we may ask for at the time of your request.
• Regular withdrawals can also be taken from the plan, in accordance with
the plan terms and conditions.
• There may be a charge for cashing in all of your plan – please refer to the
‘Summary of charges’ section on pages 8 to 9.
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 USD15,000/
GBP10,000/HKD120,000/EUR15,000/JPY2,000,000/SGD22,500/AUD22,500/
CHF22,500 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.
Please read your plan
schedules, plan terms
and conditions and your
personal illustration
for details about the
cash-in charges.
What are the minimum contributions I can make?
Currency
Minimum contributions
Single
Regular
Single
Additional
Monthly
Quarterly
Half-yearly
Yearly
USD
60,000
7,500
1,500
4,500
9,000
15,000
GBP
40,000
5,000
1,000
3,000
6,000
10,000
EUR
60,000
7,500
1,500
4,500
9,000
15,000
HKD
500,000
60,000
12,000
36,000
72,000
120,000
JPY
8,000,000
1,000,000
225,000
675,000
1,350,000
2,250,000
SGD
100,000
12,500
2,250
6,750
13,500
22,500
AUD
100,000
12,500
2,250
6,750
13,500
22,500
CHF
100,000
12,500
2,250
6,750
13,500
22,500
Please note that if you are paying a single contribution along with starting regular contributions at outset, then the
minimum ‘additional’ contributions will apply to the single contribution.
6
Customer product disclosure document for Global Choice
What happens if my circumstances change?
Global Choice is designed to be adaptable.
• You can increase or decrease your contributions at any time (subject
to minimum amounts applicable).
• Contributions can cease altogether for a period of time.
• You can invest in a wide range of funds within your plan.
Can the terms of the plan be changed?
For full details of Global
Choice, please see our
Global Choice brochure
and the plan terms
and conditions.
Yes. Due to the long term nature of the life insurance business, it is impossible
to cater for all eventualities now. Accordingly, it is part of our agreement that
we will be able to amend the terms or the nature of the service being provided
to cope with changed circumstances. This power would be exercised sparingly
and only where there is a need.
Summary of charges
Initial charge option
An initial charge may be applied to each contribution you
pay, where the allocation rate will be no less than 93%.
No establishment charge or cash-in charge will be applied
to the contribution.
The maximum charges will be as follows:
Year
1
2
3
4
5
Establishment charge
(% of contribution)
2
2
1
1
1
Establishment charge option*
Where the establishment charge option has been
selected, there will be a deduction taken at the start
of each month for the first five years following each
contribution payment. The contribution will be
allocated 100% into your chosen funds.
This charge is calculated as a percentage of the
contribution amount. Where a plan consists of regular
and single contributions, the charge options can differ,
however the charge option on a regular contribution
cannot be altered once selected.
*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 (see page nine for further details).
Please read your personal illustration
and summary of charges for details
on charges and commission.
Yearly management charge
A yearly management charge applies for the life of your
plan. This is a percentage charge and the rate payable
is based on the value of contributions made. It is taken
at the start of each month. The charge is tiered (see the
table below), so a higher total contribution will result in a
lower percentage charge. This means that if an additional
contribution places you in a higher total contribution
level, a lower yearly management charge will apply to
the whole plan from that point onwards.
Customer product disclosure document for Global Choice
Please note that if you make a withdrawal within six
months of making such an additional contribution, then
we reserve the right to change your yearly management
charge back into the band that corresponds to the lower
total contribution level.
7
CurrencyTotal contribution level
1%
0.5%
0.35%
0.25%
0.2%
USD/EUR
Up to 59,999
60,000 –
224,999
225,000 –
374,999
375,000 –
749,999
750,000+
GBP
Up to 39,999
40,000 –
149,999
150,000 –
249,999
250,000 –
499,999
500,000+
SGD/AUD/CHF
Up to 99,999
100,000 –
374,999
375,000 –
624,999
625,000 –
1,249,999
1,250,000+
HKD
Up to 499,999
500,000 –
1,799,999
1,800,000 –
2,999,999
3,000,000 –
5,999,999
6,000,000+
JPY
Up to 7,999,999
8,000,000 –
29,999,999
30,000,000 –
49,999,999
50,000,000 –
99,999,999
100,000,000+
Yearly plan charge
The yearly plan charge is a fixed amount that is deducted
in monthly instalments at the start of each month for the
life of your plan. This charge is tiered (see the table below),
so a higher total contribution will attract a lower charge.
USD/EUR
GBP
SGD/AUD/CHF
HKD
JPY
Total contribution level
Yearly charge
Up to 59,999
250
Up to 39,999
170
Up to 99,999
375
Up to 499,999
2,100
Up to 7,999,999
33,300
Total contribution level
Yearly charge
60,000+
150
40,000+
100
100,000+
225
500,000+
1,250
8,000,000+
20,000
Cash-in charge
After this qualifying period, new regular contributions
will not be subject to any cash-in charge.
A cash-in charge only applies if you have selected
the ‘establishment charge’ option, shown on your
plan schedule.
The cash-in charge will be deducted from each
contribution, should you choose to fully cash in your
plan within the first five years of each contribution.
For regular contributions only, the cash in charge will
apply during the cash-in charge qualifying period.
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.
Please refer to the plan terms and conditions
for full details on the qualifying period.
Maximum cash-in charge (% of contribution)
8
Year 1
Year 2
Year 3
Year 4
Year 5
8.25%
6%
4%
2%
1%
Customer product disclosure document for Global Choice
Fund investment adviser charge
Additional switch charge
If you wish to appoint your relevant financial professional
as a fund investment adviser, you may pay them for the
investment advice they give. This charge will be paid
direct from your plan each month and will be shown on
your statements as a ‘fund investment advice charge’.
• a fixed amount, or
You may switch up to 30 funds a maximum of 25 times
within a plan year for free. After 25 switches in a plan
year we will charge the greater of 1% of the value of the
switch or USD75/GBP50/HKD600/EUR75/JPY10,000/
SGD115/AUD115/CHF115. Please note that a switch is
defined as all deals executed under the same instruction.
For example, switching from ten funds to ten other funds
is counted as one switch.
• up to 1% of the actual value of the plan each year.
Credit card charge
Trail charge
If you elect to pay your regular contributions by credit
card, a charge of 1% of the contribution will be made.
This will increase the amount collected from your credit
card account.
The charge may be either:
You may also agree to pay your relevant financial
professional for their ongoing servicing of your plan.
This may be up to 1% of your plan value each year, and
will be paid direct from your plan each quarter and will
be shown on your statements as a ‘trail charge’.
Trust charge
If you place your plan in trust using the services of Zurich
Trust Limited, a yearly trust charge will be taken monthly
in advance. This charge will be USD375/GBP250/
HKD3,000/EUR375/JPY50,000/SGD575/AUD575/CHF575.
Zurich Trust Limited is regulated by the Jersey Financial
Services Commission for the conduct of trust company
business under the Financial Services (Jersey) Law 1998.
Fund charges
Each fund has an annual management charge, which is
taken by the fund management company. These charges
range from 0.5% – 2.25%. There may also be a bid/offer
spread on some funds.
For further details of these charges please speak to your
relevant financial professional.
Zurich reserves the right to vary all of the charges relating
to the plan, with the exception of the fund manager’s
own charges.
Registered office: 12 Castle Street, St Helier, Jersey,
JE2 3RT Channel Islands.
Additional valuation charge
We will automatically send you two valuation statements
each plan year. We will also provide you with up to 12
additional free valuations each plan year at your request.
However, we will make a valuation charge for the 13th
and each subsequent valuation each plan year. This
charge will be USD45/GBP30/HKD360/EUR45/JPY6,000/
SGD70/AUD70/CHF70.
Customer product disclosure document for Global Choice
Please read the guide to your
investments for fund choices,
charges and contact details.
9
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 write
to us, phone us, email us or send a fax:
Phone: +974 4496 7555
Sunday to Thursday between 9am and 5pm.
Calls may be recorded or monitored in order to offer additional security,
resolve complaints and for training, administrative and quality purposes.
Email: helppoint.qa@zurich.com
Write to:
Zurich International Life
Zurich HelpPoint team
P.O. Box 26777
404 Fourth Floor
Qatar Financial Centre Tower
West Bay
Doha
Qatar
10
Customer product disclosure document for Global Choice
Further information
Taxation
Company taxation
Zurich International Life Limited 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’s 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, taking advantage of an
effect known as gross roll-up.
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
maybe liable to tax under this plan.
How to cancel your plan
After your plan is issued you will receive a notice of your
right to cancel. You will then have 30 days from the date
to receive this to change your mind. If you do wish to
cancel your plan, please provide your notice in writing
to the address in the ‘How to contact us’ section. Your
premium will then be refunded to you.
How to complain
If you need to complain about your plan, please let us
know using the addresses or contact numbers in the
‘How to contact us’ section on page 10. Details of our
complaint handling process are available on request.
If you are not satisfied with our responses, you have
the option to refer your complaint to the Isle of
Man Ombudsman:
The Financial Services Ombudsman (FSO) Scheme
Isle of Man Office of Fair Trading
Government Buildings
Lord Street
Douglas
Isle of Man
IM1 1LE
British Isles
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.
You also have the option to contact the local
Qatar regulator:
Qatar Financial Centre Regulatory Authority (QFCRA)
The Customer Dispute Resolution Scheme
P.O. Box 22989
Doha
Qatar
Telephone: +974 495 6888
Email: compliance@cdrs.org.qa
Plan terms and conditions
This product disclosure document gives a summary of
Global Choice. 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 directly 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 will recommend
products that are suitable for you.
You may have a legal right to compensation if you have
bought a plan that was not suitable for your needs at
the time.
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. You will not be
protected by the United Kingdom Financial Services
Compensation Scheme.
If you would like more information about compensation
please contact us.
For full details please refer to the
plan terms and conditions.
Telephone: +44 1624 686500
Email: ombudsman@iomoft.gov.im
Website: www.gov.im/oft
Customer product disclosure document for Global Choice
11
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.
Not for sale to residents or nationals of the United States including any United States federally controlled territory.
MSP10837 (133782A03) (09/13) RRD
Zurich International Life Limited is authorised by the Qatar Financial Centre Regulatory Authority.
Zurich International Life Limited provides life assurance, investment and protection products
and is authorised by the Isle of Man Government Insurance and Pensions Authority.
Registered in the Isle of Man number 20126C.
Registered office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles.
Telephone +44 1624 662266 Telefax +44 1624 662038 www.zurichinternational.com