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: [email protected] 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: [email protected] 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: [email protected] 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
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