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VIP50 VIP 50 shines like a diamond ThatÕ s why it pays to save and invest with VIP 50, a packaged plan of Guaranteed Savings (VIP 50 PCI) plus Flexible Investment (VIP 50 Invest) for potential upside Ð all in one great plan. Important Notes VIP 50 • Mayban Life Assurance Berhad reserves the right to close VIP 50 without prior notice. • This brochure is for general information only. It is not a contract of insurance. The exact terms and conditions are governed by the wordings appearing in the policy contract issued. • For detailed illustration of product, please refer to sales illustration. • Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable 50%* 100% 50%* may be less than the total premium paid. • You should satisfy yourself that this plan will best serve your needs and that the premium payable under the policy is an amount you can afford. • This policy may qualify you for personal tax relief subject to the final decision of the Inland Revenue Board Malaysia. VIP 50 PCI VIP 50 PCI VIP 50 Invest • You are given a free-look/cooling-off period of fifteen (15) days from the date of delivery of the policy contract to review the suitability of your newly purchased insurance plan. If you return the VIP 50 PCI policy contract during this period, the Single Premium less any medical fees incurred will be Guaranteed Annual Cash payout of Flexible Investment to suit your lifestyle refunded to you. Automatically, the VIP 50 Invest policy shall be terminated as well. 3.8% p.a. Total of 19% Guaranteed Choice of 3 investment funds Ð Cash Payout over 5 years VIP 50 Invest Stable, Balanced, Growth • This is an insurance product that is tied to the performance of the underlying assets and is not a pure investment product such as unit trusts. • Investor’s benefits may fluctuate based on the underlying performance of the investment-linked fund. 100% Capital Guarantee at maturity Excellent track record of fund performance • The investment performance of the fund will be based on the actual performance of the fund and it is not guaranteed. Insurance protection up to 125% of • Investment risks under the plan will be borne solely by you and the benefits may be less than the total premiums contributed to the fund. Long term insurance coverage up to age of • You should understand the potential benefits and risks of the fund(s) offered. Past performance of a fund and back-testing may not be a reliable guide Single Premium for 5 years 85 years old to future performance. • You are given a free-look/cooling-off period of fifteen (15) days from the date of delivery of the policy contract to review the suitability of your newly No market risks purchased insurance plan. If you return the VIP 50 Invest policy contract during this period, the Account Value plus unallocated premium less any medical fee incurred will be refunded to you. Automatically, the VIP 50 PCI policy shall be terminated as well. *50% of the total Single Premium will be invested in VIP 50 PCI and the remaining 50% will be invested into VIP 50 Invest This plan is underwritten by Mayban Life Assurance Berhad (235175-H), a subsidiary of Malayan Banking Berhad (3813-K). Mayban Life Assurance Berhad is licensed under Insurance Act 1996 and regulated by Bank Negara Malaysia. Mayban Life Assurance Berhad is located on Level 19, Tower C, Dataran Maybank, No. 1 Jalan Maarof, 59000 Kuala Lumpur. This plan is distributed by Malayan Banking Berhad (3813-K) and is located at Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur. GUARANTEED SAVINGS FLEXIBLE INVESTMENT Choice of investing in one of the 3 different funds Guaranteed 3.8% annual cash payout for 5 years Flexible investment tenure up to 85 years old Make the most Capital Guaranteed when held until maturity Make the most Excellent track record of fund performance of your savings Absolutely no exposure to market risk of your investment Option to switch between the 3 designated funds with VIP 50 PCI Insurance coverage at no extra cost with VIP 50 Invest Option to reinvest cash payout and maturity amount Speedy benefit distribution from VIP 50 PCI into VIP 50 Invest Insurance coverage at no extra cost Features of VIP 50 PCI Sample illustration based on VIP 50 PCI Features of VIP 50 Invest VIP 50 Invest Year VIP 50 PCI Based on VIP 50 PCI Minimum Single Premium RM25,000 Annual Cash Payout 1 3.8% Investment of Minimum Top-up Premium RM1000 RM100,000.00 2 3.8% Year RM Premium Allocation Rate 95% of the Single / Top-up Premium 3 3.8% Eligibility 20 - 65 Years Annual Cash Payout 1 3,800 Tenure Up to 85 years old 4 3.8% 2 3,800 Funds Growth, Balanced, Stable Maturity Beneﬁt 5 103.8% Investment Allocation Rate 100% in any one fund 3 3,800 Total Cash Payout over Death/ Total and Permanent The Death or TPD benefit will be greater of: 119% 4 3,800 5 Years Plus Maturity Benefit DIsability (TPD) Benefit a) The value of the accumulated units at unit price; or b) 125% of the SIngle Premium plus Top-up Premiums less withdrawals Minimum Single Premium RM25,000 5 103,800.00 (Inclusive of Maturity Beneﬁt) c) RM5,000 per Policyholder Offer Period For Limited Time Only Total Cash Payout Surrender Benefit The value of the accumulated units at unit price at the surrender notification date Eligibility 20 Ð 65 Years over 5 Years Plus RM119,000.00 Maturity Benefit The value of the accumulated units at unit price at maturity date Tenure 5 Years Maturity Benefit Withdrawal Minimum of RM500 per withdrawal and subject to minimum account balance of RM1,000 after each withdrawal Death/Total and Permanent Entry Age 20 Ð 54 Note: Disability (TPD) Benefit 125% of Single Premium a) The annual cash payout is guaranteed and is payable to Switching Minimum of RM500 per switch investors upon survival at the end of the policy year. In Entry Age 55 and above order to fully receive the guaranteed returns, investors Note: a) This policy does not cover suicide within one (1) year from the Issue Date. For further details, kindly refer to the Policy Contract. 110% of Single Premium must fulfill the entire tenure of 5 years. b) For any Single Premium in excess of RM4,000,000 (inclusive of all other Single Premium policies on the same life with the Company), b) You also have the option to reinvest your cash payout the Sum Insured is 100% of the Single Premium. Note: c) The TPD coverage is up to age of 60 years and will be paid in one lump-sum. and maturity amount into the flexible investment every a) This policy does not cover suicide within one (1) year from the Issue policy year or upon maturity. Fund description Date. For further details, kindly refer to the Policy Contract. b) For any Single Premium in excess of RM4,000,000 (inclusive of all other Single Premium policies on the same life with the Company), GROWTH FUND BALANCED FUND STABLE FUND the Sum Insured is 100% of the Single Premium. c) The TPD coverage is up to 60 years and will be paid in two installments. To seek capital appreciation over a) To provide a balanced mixture of To provide a return higher than time and invests primarily in safety, income and capital appreciation. Fixed Deposits whilst not excessively Fund objective equities that show high potential b) To achieve moderate to fast returns assuming higher risk for investors. for growth. above fixed income. Structured for capital preservation. What happens if you withdraw before the end of the tenure? Invests in a combination of Invests in a combination of fixed Invests its funds into money market If you choose to surrender before the fifth year, you will receive the Cash Surrender Value of your policy. Sample illustration fixed-income and equities with a income and equities instruments. instruments and high quality bonds, below is based on RM100,000.00 Single Premium. Investment style higher weighting in equity as the as these investments yield relatively mechanism for growth. stable returns. Total Cash End of Annual Payout Guaranteed Surrender/Maturity Value Risk appetite High risk Medium risk Low risk Received Upon Surrender/Maturity* Policy Year (RM) (RM) (RM) Historical Performance* Yearly Return 1 3,800.00 80,000.00 83,800.00 Year 2009 26.4% 19.2% 10.7% 2 3,800.00 85,000.00 92,600.00 Year 2008 -17.4% -12.9% -1.8% Year 2007 24.6% 17.3% 7.2% 3 3,800.00 90,000.00 101,400.00 Year 2006 20.6% 13.8% 7.8% 4 3,800.00 92,000.00 107,200.00 Year 2005 -3.2% 1. 5% 1.4% 5 3,800.00 100,000.00 119,000.00 *Note: a) The yearly return is net of fund related expenses and tax. b) Past performance is not a guarantee, representation or indication of future performance. *This includes all accumulated annual payout at the end of the year. The policy matures at the end of 5 years. Commission that is borne by you is 0.75% of your Single Premium. Fees and charges Initial charge 5% of the Single / Top-up Premium (This charge covers all administration fees and commission payable to distributors) Commission 2.5% of the Single / Top-up Premium (This commission is part of the initial charge and is borne by the Policyholder through deduction from the Single / Top-up Premium) Fund Management fee a) Stable 1.00% p.a b) Balanced 1.25% p.a c) Growth 1.50% p.a Surrender / Withdrawal Charge Nil Switching Fee Free for first 2 switches per policy year. Subsequent switches chargeable at RM25 per switch. Switching of fund is subject to 100% of Account Value (VIP 50 Invest) Note: These charges are subject to changes at the discretion of the Company by giving three (3) months written notice. Be in the know Note to Investors What is VIP 50 plan? Risks of Investing in Investment-linked Funds VIP 50 is a packaged plan consists of 2 products, VIP 50 PCI and VIP 50 Invest. No venture into investment can be said to be of no risk at all c. Sector Risk is the danger that the stocks of many companies unless it is guaranteed. Since the value of a guarantee is only in one sector (natural resources) will fall in price at the same as good as its guarantor, the fixed term deposit is probably time because of an event that affects the entire industry. The Can I buy either VIP 50 PCI or VIP 50 Invest on its own? the safest on investment. However, a higher inflation rate than purchase of equities concentrating only on the natural resources No. This plan is specially designed to provide guaranteed annual cash payouts with potential upside return. interest rate causes money to decrease in value and shrinks sector represents a risk since the prices of stocks underlying the purchasing power, subjecting to possible risk and losses. the NAV of the fund will fluctuate in similar orientation in Generally, the type of investment risk will vary depending on response to the sector. the nature of the investment. The investment risk of VIP 50 PCI VIP 50 Invest Investment-linked Plan can be divided into 2 broad categories:- d. Inflation Risk represents the possibility that the value of assets or income will decrease as inflation shrinks the What is VIP 50 PCI? What is VIP 50 Invest? A. Market Risk purchasing power of a currency. Ideally, the purpose of any VIP 50 PCI is a secure savings and insurance plan designed VIP 50 Invest is a Single Premium Investment-inked plan which The market risk is the risks of financial losses arising from investment is to secure returns that are greater than the to offer guaranteed returns and capital protection at maturity, provides protection and investment benefit all in one plan up the reduction in the market value of assets due to exposures inflation rate. While a plan will constantly seek to maximize without being affected by the current economic uncertainties. to age 85 years old. With this plan, you will have the option to to equity, interest rate, sector and currency risks; these returns and exceed inflation rate, it may occasionally be With this plan, you will receive guaranteed annual cash top up or increase your investment at any time. exposures may be influenced by factors which include outpaced by inflation in the short term. payout with the assurance of knowing the exact amount regulatory changes, inflation movement, economic condition, at maturity. Where are the money invested to? financial market condition, political changes and others. e. Regulatory Risk is the possibility that the returns from the All the 3 funds (Stable, Balanced & Growth) are invested locally. Such movements in the underlying values of the shares of investment to which the plan is linked is adversely affected Can I get a loan with this plan? The assets allocation in each funds varies depending on their the investment portfolio will cause the prices of units to fall as a result of unfavourable changes in investment policies, You can use your policy as collateral against an overdraft individual investment style. as well as rise, and hence fluctuation in the produced income laws and regulations by the authorities. facility. Please check with our Financial Executive/ of the fund. Relationship Banker on the applicable margin of ﬁnance Can I get a loan with this plan? f. Event Risk is the possibility of the value of the investment-linked and interest charges. Not applicable. B. Operational Risk plan being adversely affected as a result of any catastrophic The operational risk is the risk of losses arising from or natural disaster. Are there any investment risks? Are there any investment risks? inadequate or failed internal processes, people and systems. Unlike many other products in the current market, you are Like other investment-linked products, VIP 50 Invest is exposed In addition, the performance of the terms and conditions of g. Liquidity Risk is arises when an investment cannot be the Fund’s investment depends upon the proper functioning converted into cash quickly without paying a significantly not exposed to any market risks such as stock market to investment risks. Please refer to Ô Note to InvestorsÕ section for further details. of the InsurerÕ s systems and processes both internal and penalty. Quantitative methods to measure this risk are performance or interest rate movement. With this factor, external. An unforeseen disruption of such systems and lacking and therefore common sense and qualitative due you can rest assured that your money is safe with us, processes, including that resulting from a market disruption diligence should be used to supplement the analysis. even in times of ﬁnancial turmoil. Any charges I should be aware of? Yes. Please refer to the Fees and charges table. or system interruption, may result in a delay in the performance of such terms. The Manager should also be Any charges I should be aware of? prepared for, and have the necessary resources to manage, Operational Risk There are no deductible costs like policy fee, initial When will I get my money back? The VIP 50 Invest gives you the flexibility to surrender any internal operational issues arising from this investment. charge or management fee. The charges applicable are The Fund depends on the smooth functioning of myriad a. Risk of Non-Compliance is the risk that the Manager and the policy at anytime. You will receive the value of the commission payable to distributor and the surrender charge, component parts. Any disruption to any of these parts, others associated with the Fund do not follow the rules set accumulated units at unit price if you wish to surrender at if you choose to terminate the plan anytime during the caused by, for example, market disruption or system out in the fundÕ s constitution, or the law that governs the fund, 5-year tenure. the end of 5th Policy Year or at anytime you wish to do so. interruption may cause delays in settlement beyond the or will fraudulently or dishonestly. Noncompliance may expose You may hold the policy up to maturity at the age of 85. control of the issuer. the Fund to higher risks which may result in a reduction in When will I get my money back? the value of the unit trust funds. You will receive the Single Premium invested in VIP 50 PCI Market Risk at the end of the 5th policy year. In addition, you will also b. ManagerÕ s Risk receive the annual cash payout at each policy anniversary. a. Interest Rate Risk is the risk that an investment value will There is the risk that the Manager may not adhere to the change due to a change in the absolute level of interest rates. investment mandate of the respective fund. Poor management As interest rate affects the value of stocks less directly than of the fund will jeopardize the investment of unit holders those of bonds, the interest rate here refers to the general through the loss of their capital invested in the scheme. interest rate of the country which may affect the valueof the investment as the fund does not invest in interest-bearing c. Legal Risk instruments. You should ensure that, in entering into this investment it is not in breach of any laws, regulations, contractual or other b. Volatility Risk Market volatility reflects the degree of instability legal limitations that may apply to You, or which may prevent and expected instability of the performance of the underlying ou from entering into this investment. The Fund is issued assets. The level of market volatility is not purely a subject to applicable laws, regulations and guidelines issued measurement of the actual volatility, but is largely determined or administered by the Securities Commission, Bank Negara by the prices of the underlying assets itself which are affected Malaysia and/or other relevant authorities. In the event of a by specific forces related to the underlying assets i.e supply change in such laws, regulations or guidelines, the Issuer and demand, macroeconomic factor and speculation. may be obliged to change some or all of the terms and conditions of the Fund, including the possibility of an early termination, while the amount repayable to you in such event shall be determined by the NAV of the Fund.
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