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FINANCIAL PROSPERITY

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When will my next premium be due?You can easily determine the ‘Next Due Date’ of your policy with the help of Commencement Date and mode of premium mentioned on your Policy Schedule.

LetLet us explain: For example, if your policy commences on a Yearly basis on 01/07/2013, the next premium due date of the policy would be 01/07/2014. Similarly, if the policy commences on a Half-Yearly basis on 01/07/2013, the next premium due date of the policy would be 01/01/2014 and so on.

WeWe would be happy to help you remember the Renewal Date of your policy by sending a Renewal Notice, a Reminder Notice and an SMS at each policy anniversary. We would also assist you by ensuring that the premium payment is collected on or about the Policy Renewal due date. However, please note that whilst we try our best to assist you for payment of the renewal premium, the ultimateultimate responsibility to remember to pay the same lies with the client.

Your Premium Details are also available online at all times. You can easily view them at your convenience via e-Services.

In case you wish to know further details of the due premium or are unsure of the exact premium amount, please feel free to call us on the number (021) 111-EFU-111 (021-111-338-111). We would be glad to help you in explaining the details.

I want to send my Renewal Premium. What should I do?

Renewal Premium can be sent through multiple ways such as:

•• Send your premium Cheque / Demand Draft through Courier/ Mail Service to the Client Services Department of the Head Office. Please remember to write your correct Policy Number at the back of the Cheque / Demand Draft.

•• Drop your premium Cheque / Demand Draft at the Drop-Box located in a TCS branch near you. Please enclose your premium Cheque / Demand Draft in the EFU Prepaid Enve-lope attached with the renewal notice sent to you.

These drop-boxes are cleared everyday (except for national holidays and Sundays) and are received at the Head Office the very next working day. In case you wish to pay renewal premium and the Renewal Notice along with the Drop-Box Envelope has not reached you, please call us at (021) 111-EFU-111 (021-111-338-111) and we will immediately send you the same.

• Pay your renewal premium at any EFU Life Branch near you. A list of all our branches is available on our website www.efulife.com. You could pay through Cheque, Demand Draft, Cash or Credit Card at any of our branches and collect the provisional receipt. The final receipt will be issued and sent to you from the Head Office within few days of premium payment.

• Contact your EFU Life Consultant who would personally visit you to collect the Premium.

• Pay your renewal premium through credit card by logging-in for e-Services on our official website, www.efulife.com.

Can I pay Renewal Premium through Credit Card?Yes,Yes, Credit Card payments are surely accepted. The only condition is that the credit card must belong to you i.e. premium payment through third-partycredit card is not accepted.

I am residing abroad. Is there any way through which I can pay my Renewal Premium?Sure,Sure, you can send us the Renewal Premium through any of the multiple ways such as Cheque, Demand Draft and Pay Order via Telegraphic Transfer at the following address:

MCB Bank LimitedNursery Branch (042)Fortune CentreShahrah-e-Faisal Karachi – PakistanKarachi – Pakistan

Swift Address: MUCBPKKAAAccount Code: 1204-1Title of Account: EFU Life Assurance Ltd.

You can also pay the renewal premium using your credit card via our online payment facility.

HowHow do I get confirmation of renewal premium after I send the payment?Once the total premium under your policy is received by us during the Grace Period, an SMS would be sent to you acknowl-edging that your premium has been received. However, the ‘Re-ceipt’ and ‘Confirmation Letter’ will be mailed to you shortly.

Soon after your Policy Renewal, a ‘Renewal Confirmation Letter’ along with the Receipt will be sent at your correspon-dence address. This letter and receipt confirms that the policy premium is received and benefits are in-force till the next Pre-mium Due Date. You should receivethe confirmation letter within one week of sending the premium.

If your policy incorporates ‘Inflation Protection Benefit’, you would also receive an ‘Amended Schedule’ along with the Con-firmation Letter and Receipt. This Amended Schedule is a part of the Policy Documents and should be kept in a safe place.

What if I am unable to pay the premium by the due date?For your convenience, your policy provides for a 30 days Grace Period (starting from Premium Due Date) during which the policy will remain in-force even without the receipt of the premium.

Suppose,Suppose, the next Premium Due Date of your policy is 01/06/2013. The 30 days Grace Period will end on 30/06/2013.

The Grace Period of my Policy has elapsed? How do I put my Policy back ‘In-force’? In case your premium does not reach us within the Grace Period of 30 days, your policy will lapse. ‘Lapse Notice’ will be sent to you in order to intimate you about your policy status.

Once the policy has Once the policy has lapsed, it must be ‘Reinstated’ to put it back ‘In-force’. Reinstatement is the process by which the Company puts back into force a life insurance force a life insurance policy that has been terminated because of non-payment of renewal premium.

I want to Re-instate my Policy? Do I have to submit any documentary requirements with the Premium? Are there any late payment charges? TheThe good news is that there are no penalties on reinstatement. Should you wish to reinstate your policy, you are required to send us all the past due premiums along with an Application for Reinstatement & Health Declaration Form duly filled and signed by you. You will find this form attached with the Lapse Notice sent by us.

InIn case you wish to get your policy reinstated and the lapse notice along with the Reinstatement Application Form has not reached you, please call us on the number (021) 111-EFU-111 (021-111-338-111) and we would send you the same. The Reinstatement Application Form is also available in the Downloads section of our website.

IfIf your policy has been lapsed for more than three months or a year, we would require an Application for Reinstatement & Special Health Declaration Form duly filled and signed by you. The form is available in the Downloads section of our website. Moreover, some additional requirements may also be called that would be determined after the underwriting process.

InIn case your policy is lapsed and you are interested in getting it reinstated, please call us on the number mentioned above and we would be happy to guide you about the reinstatement process.

What if I want to pay the Premium in advance?Sure, you could pay your premium in advance so that by the time next Premium Due Date arrives, the premium is already there in your policy.

PleasePlease do remember that the premium paid in advance remains un-allocated and lies in your policy as credit balance. Premium is utilized only once the renewal due date arrives.

How is my premium utilized?The fundamental purpose of life insurance is to provide money to The fundamental purpose of life insurance is to provide money to meet financial losses caused by death, disability, or illnesses. However, unit-linked life insurance policies also provide investment benefits – that is, money payable on survival of the life assured rather than only on death.

Your premium is distributed in three elements.

PP = Protection = The cost of the insurance cover or ‘risk’. This cost is known as ‘Mortality Charge’.

I = Investment = The amount being invested in any of the EFU investment funds. This is also called as the ‘Allocable Amount’.

E = Expenses = The expenses of the Company such as Bid/ Offer spread, Administrative Charges etc.

TheThe proportion of each element of the ‘PIE’ varies according to the type of policy which is described on the Policy Schedule included in your Policy Documents.

What is Unit Linking?‘The element of investment is offered in Unit-linked Policies ‘The element of investment is offered in Unit-linked Policies only. Unit-linking is comparatively a new concept to Pakistan but is a long established one in countries like UK where the ma-jority of the very substantial individual life business written is on a unit-linked basis.

Under unit-linking system, insurance companies utilize a certain percentage of premium to buy units in an investment fund. The units of a fund are just like shares of any company but carry no dividends as such. These funds are managed by the experts who utilize their profound knowledge of financial markets to reap the maximum investment benefit for our clients. Of course, the per-formance of the fund is subject to economic conditions of the market and thereby the unit price of any fund varies due to premarket and thereby the unit price of any fund varies due to pre-vailing market scenario.

As the funds are judiciously managed by investment experts, normally the trend of unit prices on a longer term remains up-sloping. From the investment point of view, the growth and return attainable from the fund is usually favorable. A typical composite fund managed by the life company invests in:

• Equity• Mutual Funds• Government Securities• Other Fixed Income Securities

I wish to know the Fund my Policy is linked to?Please note that EFU Life Assurance Ltd administers many funds including the following:

• EFU Managed Growth Fund.• EFU Capital Growth Fund.• EFU Aitemad Growth Fund.•• EFU Guaranteed Growth Fund.• EFU Pension Growth Fund.

Should you wish to know the name of the fund your policy is linked to, please refer to the Policy Schedule included in your Policy Documents. The name of the Fund is mentioned under the section ‘Special Condition’ on your Policy Schedule.

What is the Bid Price? How is it calculated?Bid Price is the price on which units can be en-cashed in the policy. It is quoted daily after the valuation of fund. The Bid Prices are published in the newspapers and can also be viewed at our website.

I have paid my policy premium. When will units be allocated?If the policy renewal due date has arrived, policy will be renewed and units will be allocated on the offer price determined on the next valuation of fund. The ‘Renewal Confirmation Letter’ will state the number of units allocated in your policy.

What will be the final Cash Value of my Policy at its maturity?The cash value of the policy is dependent upon the performance of the underlying fund to which your policy is linked. Since the performance of fund is subject to economic conditions, it is not possible to quote the exact cash value of your policy in advance.

However,However, your policy documents do include an Illustration which depicts the projected cash value of your policy based on certain assumptions. As mentioned above, the actual value of the policy will depend upon the performance of the fund and the final value may be different to the one projected in the illustration.

What is Offer Price? How is it calculated?Offer Price is the price on which units are allocated in the policy. It is quoted daily after the valuation of fund. Offer Prices are also published in the newspapers and can be viewed at our website.

How can I measure the Investment in my Policy? What is Cash Value? You can measure the investment build-up by looking at the ‘Cash Value’ of your policy.

Cash Value of a policy is defined as the amount that has been accumulated in the underlying investment fund to which that investment fund to which that policy is linked.

How may I know the cash value of my Policy? YouYou can determine the cash value of your policy at any time by simply multiplying the number of units allocated in your policy to the Bid Price of the fund your policy is linked to.

Mathematically,

Cash Value = Number of units x Bid Price of the Fund.

LetLet us assume, the total number of units allocated in your policy are 985.12. At a particular point of time Bid Price of the fund is Rs. 997.85/-. Hence the cash value of the policy at that time would be:

Cash Value = 985.12 x 997.85 = Rs. 983,002/-

What is the difference between Offer and Bid price of a fund?Each unit of a fund has two prices at a time:

The Offer price at which the investor buys into the fund. The Bid price at which the investor sells out the fund.

TheThe difference between the Offer & Bid price is the spread which is charged by the Company on each basic premium. This Bid/Offer spread is normal and customary charge levied by all life insurance companies across the world, who market unit-linked policies.

How can I know the Unit Price of a fund? TheThe Unit Prices are published in the newspapers and can also be viewed on our website www.efulife.com. It is quoted daily (on all working days) after the valuation of fund.

How does Cash Value of my Policy develop?The quantum of investment in the basic premium varies from The quantum of investment in the basic premium varies from year-to-year. In initial years, the investment portion of the basic premium is lesser. This proportion subsequently grows to the stage where 100% or even more of the basic premium is invested in the fund.

In order to know the year wise investment proportion of your In order to know the year wise investment proportion of your policy, please refer to your Policy Schedule included in the Policy Documents. The percentage is mentioned in the section of ‘Special Conditions’ on your Policy Schedule. These proportions are dependant upon the type of plan and the amount of premium paid in the Policy.

Premium is invested after deducting the mortality charges, if Premium is invested after deducting the mortality charges, if applicable. Mortality charges are the cost of insurance cover and are dependent upon the age and gender of the life assured. Finally, units are allotted after deducting the applicable administrative charges.

I have gone through the Policy Documents. However, I have changed my mind and do not want this Policy. What should I do?InIn case you have changed your mind because some aspect of your policy is not clear and you wish to have it clarified, we would urge you to give us the opportunity to explain the policy details to you. You can call us at our Call Centre and we would be pleased to help.

IfIf you wish to cancel the policy because of some urgent pressing need, may we inform you that your Policy contains a ‘Free-Look’ period of ‘Fourteen (14) days’ from the date of Commencement. You could send us the cancellation request during this time and we will refund the full premium after deducting some allowable expenses incurred in connection with the issuance of policy.

What if I need cash before Policy matures? UponUpon written request, you can withdraw an amount from the policy through a process known as ‘Partial Surrender’. However, the amount to be withdrawn should be chosen from the accumulated cash value such that a residual value of the amount stated in the Provisions and Conditions remains in the policy after the withdrawal.

InIn order to partially surrender your policy, we need a ‘Surrender Form’ duly filled in and signed by you along with Zakat Declaration (if you wish to apply for Zakat Exemption). To get the Surrender Form’, please call us at our Call Centre.

OnceOnce all the above requirements (if any) have been fulfilled, policy is partially surrendered on the Bid Price determined on the next valuation of Fund. The Bid Price is unknown in advance. The final surrender value payable is calculated by multiplying the number of units surrendered with the Bid Price.

PleasePlease note that on Partial Surrender, the sum assured of a policy proportionally reduces (except for few plans). The good news is that you can request to restore the previous sum assured of your policy. In order for us to do the same, please send us a written request at our Head Office or call us at our Call Centre. II wish to cancel my Policy before Maturity. What should I do? Once the Free-look Period of a policy has elapsed, the only way to cancel the policy is to ‘Surrender’ it. Full surrender of the policy terminates the insurance contract and the Company’s liability to pay any claim, ceases. Please make a note that only Unit Linked policies can be surrendered.

MayMay we request you to refer your Policy’s Provisions and Conditions which highlights the Clause regarding Policy Surrender.

Generally,Generally, if a policy is surrendered prior to the payment of two full years' premiums after commencement, no amount is payable by the Company. In order to fully surrender your policy, we need a ‘Surrender Form’ duly filled in and signed by you along with the Original Policy Documents and Zakat Declaration (if you wish to apply for Zakat Exemption). To get the Surrender Form’, please call usus at our Call Centre. The amount on account of full surrender is paid after deducting the Surrender Charges of Rs. 500/-.

What Benefits will I receive on Maturity?TheThe amount payable on maturity varies from plan to plan. In order to specifically know the benefits of your policy at maturity, please refer to the Provisions & Conditions included in your policy documents. In case you wish to know the value at maturity in detail, or are unsure of the exact benefits provided by your policy etc please feel free to call us at our Call Centre.

II want to make changes in the Plan I bought. What should I do? YouYou could surely make changes in your policy. In fact we recommend that you revisit your insurance and savings needs every year so that your policy benefits keep abreast with your insurance/investment needs. One month before each policy anniversary, you could apply for changes in the plan. This could be a variation in the existing benefit structure or you may ask for additional benefits.

InIn order to understand your insurance and savings need, please talk to your EFU Life Consultant who will utilize his profound expertise to identify the policy benefit structure that best suits you.

In order to make changes in the policy, an ‘Alteration Form’ would be required duly filled and signed by you. Once a written requestyou. Once a written request is received and all the requirements have been furnished, policy can be alteredaltered as per your wish. Alteration Form is available in the Downloads section of our website. You could also get the same by calling us on the number (021) 111-EFU-111 (021-111-338-111). Our representative would be glad to guide you further in the Alteration Process.

What is Inflation Protection Benefit? How can I avail this option?Inflation Protection Benefit gives you the security and peace of Inflation Protection Benefit gives you the security and peace of mind of knowing that the benefits provided by your plan will be automatically enhanced every year.

Once you opt for this option, the premium increases every year. Once you opt for this option, the premium increases every year. This benefit protects you against the rising prices in the economy by proportionally increasing the sum assured of the policy along with the premium. It comes as a built-in feature in your policy and can be easily abandoned any time by simply paying the Premium amount paid in the previous year.

The amendments in the policy as a result of Inflation Protection The amendments in the policy as a result of Inflation Protection are reflected in the ‘Amended Schedule’ sent by us along with the Confirmation Letter and Receipt. Since an ‘Amended Schedule’ is a part of the Policy Document, we urge you to keep it in a safe place along with your other Policy Documents.

What happens at the time of Claim? How does one lodge a Claim?AA claim is a legal action to obtain benefits provided by your policy. It is necessary to be familiar with the benefits covered in your plan. These customized benefits are illustrated on your Policy Schedule included in the Policy Documents. The table also highlights the Sum Assured, Premium, and Term (Years) attached with those benefits.

The Provisions & Conditions of each benefit attached with of each benefit attached with your policy have been provided separately in the Policy Documents.

In order to submit a claim, please contact us at our Head Office. The details are mentioned in section-‘mentioned in section-‘Contact Us’.

You can reach us through any of the multiple ways that is convenient to you.

What is the procedure? What documents are generally required at the time of Claim? OnceOnce the claim is lodged, the claim is assessed by our Claims Examiner who utilizes his/her expertise of handling claims. In the light of legal and medical aspects involved in the contract, a Claims Examiner then determine the documents necessarily required to assess a claim. Upon furnishing the said documents, claim is settled as agreed in the Provisions and Conditions of the Policy andand the final decision is then taken by the Claims Committee.

May we mention here that theresponsibility to furnish the said requirements lies on the claimant, however our consultant would assist you in completing the said requirements and keeping you updated about the statusof claim. In the absence of complete requirements the assessment of claim becomes difficult and consequently affects the final decision.

TheThe documents generally required to assess the claim are dependent upon the nature of claim. Hence, in order to know the requirements please call us on the number (021)111-EFU-111 (021-111-338-111). Our representative would be glad to guide you further in the Claims process.

Who does one contact at the time of Claim?In order to submit a claim, please contact us at the Claims Department through any of the following multiple ways: You could write to us at the Head Office on the following postal address:

Claims Department Claims Department EFU Life Assurance Ltd 37-K Block 6, PECHS, Karachi- 75400 – Pakistan.

You could email us at cod@efulife.com which is a centralized email help desk located at Claims Department.

You could fax us at +92-21-34537519 and +92-21-34537512.

You could call at our No. (021) 111-EFU-111 You could call at our No. (021) 111-EFU-111 (021-111-338-111).