Heritage Group Plan Contribution Period by dffhrtcv3


									Heritage Plan:
Contribution Period
Heritage Education Funds
     Module Outline

• Objectives
• Concepts
• Heritage plan specifics – through the
  contribution period
• Points to remember

• Educate new representatives about the
  Heritage International Scholarship Trust Plan
  • Plan overview
  • Contribution options
  • Termination rules

• Scholarship plan
  • Group Education Savings Plan (ESP)
• Pooled funds
• More investment options
     Investment Policy

• Guaranteed investment certificates
• Government bonds
• Mortgages
• Corporate debt securities
  • No more than 20% of income earned
  • No more than 10% of above in one corporation
      What is a Unit?

• Measure of investor’s interest in underlying
  investment pool
• Cost varies by age & contribution schedule
• Generates equal amount of investment income
  by maturity
     Getting Started

• Subscriber can be anyone
  • Non-parent subscribers
• Beneficiary must be under 14 years old
• Two distinct periods
  • Contribution period
  • Pay-out period
• Maturity date
     Courtesy Dating

• Back-dating contract effective date
• Take advantage of lower cost per unit
• Conditions
  • No more than 60 months
  • Not more than 11 months before beneficiary’s birth
• Make up interest
     Contribution Period

• Defined by contribution schedule selected by
  • Per unit contribution schedule available in
• Six (6) contribution methods
  • Single       5-yr Annual
  • Annual        5-yr Monthly
  • Monthly      10-yr monthly
     Contribution Period

• Payable to Heritage International Scholarship
  Trust Foundation
• Changing the contribution schedule
  • Subscriber may change at any time
  • May require adjustment in contributions and interest
     • Ensures equal amount of interest earned over life of Plan

• Subscriber Fees
  • Membership fee
  • Depository charges
• Plan Expenses
  • Administration fee
  • Trustee Fee
  • Portfolio Management fee
     Review Questions

• Refer to the course book for review questions
      Termination – In First 60 days

• Begins later of contract date or first payment
• Return of all contributions
  • Including membership fees
     Termination – After 60 Days

• Principal only returned
• Income earned remains in the Plan
  • Becomes part of enhancement fund
• Commission charge back if outstanding
  membership fees
  • Pro-rated – e.g. if 20% of membership fee is unpaid,
    20% of commission will be charged back
      Notification of Termination

• Written request from all subscribers
  • Copy of signed, government ID

• Conditions
  • Under 14 years of age; OR
  • Within 6 months of inactivation, if over 14
• Reactivation options
  • Pay missed contributions and interest
  • Restructure Plan
     Adding Units

• Beneficiary must be under 14 years of age
• Cost based on current rates for attained age
     Reducing Units

• Within 60 days
  • Entitled to return of membership fees
• After 60 days
  • Membership fees not refunded or applied to
    remaining units
  • If reactivated later, paid fees applied to reactivated
     Review Questions

• Refer to the course book for review questions
      Points to Remember

• Heritage Group Plan is a pooled fund
• Sold in units
  • Subscribers share in underlying investment pool
• 6 contribution methods
  • Single, Annual, Monthly, 5-yr Annual, 5-yr Monthly
    and 10-yr Monthly
     Points to Remember

• Termination
  • Within 60 days – refund of all contributions
  • After 60 days – refund of principal only
     • Contributions less membership fees and depository charges
  • Reactivated if conditions are met
     Points to Remember

• Reactivation conditions
  • Beneficiary under 14 years of age; OR
  • If over 14, within 6 months of inactivation
     • prior to maturity date
Thank You


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