Savings Plan

Savings for the future

Choosing the Right Investment

• High value savings and investment plan

• Provides rapid accumulation of fund value for early years

• Accumulates your valuable contribution and provides you a large sum at the end of savings term

• Additionally you are provided valuable life insurance coverage during the entire savings period

Looking for a tax free investment?

EFU LIFE SAVINGS PLAN

Not only provides you valuable life insurance coverage but also works as a tax

savings investment vehicle.

Salient Features

Fund selection option

You have the flexibility to select from one of the following unit savings fund based on your risk appetite and investment objective.

• EFU Managed Growth Fund

• EFU Guaranteed Growth Fund

Access to your savings

If needed you can Encash your Plan after 2 years’ premium payment

Provides you a facility for partial withdrawals depending on your

needs

Retirement Income

At the end of the savings term, the accumulated fund value may be utilized to

provide a monthly pension.

Payment of Contribution

Employer sponsored mechanism providing savings and retirement benefits.

Monthly contribution – employee – employer.

Generally in the range of 8.33% of basic salary per month.

All Provident Funds sponsored by employers come under the purview of “Provident Fund Rules” of the Income Tax Ordinance 2001.

Provident Fund

Income Tax Rules 2002

Recognized Provident Funds

The Rules allow deduction from provident fund balance to pay premiums of life insurance policies.

Conditions for such withdrawals are:

1. Policy is to be assigned to the trustees of the provident fund (Rule 103 (1) h)

2. Premium payment receipt is to be handed over to the trustees for inspection (Rule 103 (1) h)

Provident Fund Rules

3. Each withdrawal cannot exceed 18 times monthly salary of the employee or the total accumulated provident fund balance, whichever is less (Rule 104 (1) d)

4. Amount withdrawn for premium payments does not have to be repaid to the trustees (Rule 106 (1))

Employee has to give a written request to the trustees for deduction of the amount of premium from the provident fund balance and pay to the insurer.

Income Tax Rules 2002

The plan also takes into account the effect of annual inflation

To retain the purchasing power of the Plan’s

benefits

Each year the contribution would increase by

7%of the initial contribution

Security and Peace of Mind

Maturity Benefit

Basic Cash Value of the units applicable to the basic plan premium

PlusCash value of the units applicable to FAP

Inflation Protection

The Plan also has the flexibility of paying level premiums

Other Important Details

Minimum Contribution

Rs. 12,000 per annum.

Any period between 10 and 40 years.

Age of Entry

Investment Management Charge

0.125% of the fund value per month.

Bid/Offer Spread

5% of the net contribution.

18 to 60 years next birthday

Administrative charges

Rs. 240 per annum.(if premium is less than Rs.25,000)

Term

Unit Allocation

Policy year Allocation percentage

1 50 %

2 90%

3 onwards 100%

6-10 103%*

11 onwards 105%*

*if Basic Plan contribution is over Rs.20,000; otherwise 100%

Additional Benefit Riders

This rider increases the level of life cover.

Additional Term Assurance

Accidental Death & Disability Benefit

Family Income Benefit

A fixed amount is monthly payable to help maintain your family’s standard of living.

In the unfortunate event of death or disability as a result of an accident, you

can be covered for an additional amount.

Accidental Death & Disability Benefit Plus

It provides the sum assured if an individual becomes permanently and totally disabled.

LifeCare Benefit Plus

On the diagnosis of a critical illness, this rider provides an additional amount equal to the basic sum assured.

Waiver Premium

The contribution of the plan will be taken care of by EFU Life in case you are unable to follow an occupation (and

your savings program continues).

LifeCare Benefit

This benefit provides a pre-payment of the Basic Sum assured if an individual is diagnosed with a critical illness.