Prosperity for Life

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Salient Features• Choose different levels of life insurance

protection for the same amount ofpremium.

• Change your level of life cover as yourcircumstances change.

• Accelerate the build-up of your fundsthrough Fund Acceleration Premiums.

• Participate in the returns of the EFUManaged Growth Fund.

• Benefit from the Plan’s high investmentallocation.

• Get loyal ty rewards throughGuaranteed Loyalty Bonus.

• Hedge against inflation through theInflation Protection Benefit.

• Cover yourself through Whole-of-lifeInsurance Protection.

• Access your savings when youneed them.

• Add supplementary benefits to tailorthe Plan to your needs.

Opportunity for GrowthYour contributions to the Plan will beutilized to purchase units of the EFUManaged Growth Fund. This is a unitl i nked Fund w i th a ba lancedinvestment strategy. The objective ofthe Fund is to maximize capital growthby investing in a balanced portfoliospread across a wide range of shares,government and other fixed interestsecurities and cash. The Fund ismanaged by investment exper tswho adjust the mix of the underlyinginvestments in the light of economicc o n d i t i o n s a n d i n v e s t m e n topportunities.

Prosperity for LifeYour life is a journey with many differentstages and each stage brings with itnew challenges. As you take each stepin life, your role and responsibilitieschange. Whether you are at thebeginning of your career, have juststarted a family, require funds for yourchildren’s education and marriage orwould like to plan for your retirement,you need to have a financial planningtool which can respond to your changingcircumstances and at the same timeprovide you sufficient funds to fulfill yourand your family’s needs.

EFU Life brings you “Prosperity for Life”–a flexible and high value savings andprotection plan that ensures that yourdreams become a reality at all stagesof life… throughout your life!

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Investment with a “Safety Net”The moment you start saving with“Prosperity for Life” you will enjoy aguaranteed level of life assuranceprotection. This cover means that shouldyou die, your dependants will receive;

• The greater of the sum assured or thecash value of the Plan at the dateof death,

AND

• Any cash value of the FAP payments.

Depending on the current stage of yourlife and your need for life assuranceprotection, the Plan offers you the facilityof selecting a low to high level of sumassured at inception with the flexibilityto alter this level as your circumstanceschange. This flexibility is availablethrough the “Protection Multiple” (seedetails later).

Illustration of BenefitsThe following table shows projectionsfor a Plan taken out by a male aged35 years with an annual premium ofRs. 75,000 and a guaranteed sumassured of Rs. 1,500,000.

Guaranteed Loyalty BonusThe longer you continue the Plan, thehigher the rewards. The Plan offersgenerous Loyalty Bonus in the form ofextra units in your Fund if you continuethe Plan without any breaks beyond aperiod of 10 years. The bonus isallocated to your Plan every 5 yearsand will increase your underlyingaccumulated fund value rapidly.

Access to your SavingsNobody can predict the future. If yourcircumstances change and you have aneed for cash, you can encash yourPlan for the full bid value of units withoutany surrender penalty after the secondannual premium has been paid. Pleaseremember that the value in early yearsis likely to be low as the Plan is designedfor long-term capital gains.

Alternatively, you may just want a smallproportion of the capital you have builtup. The Plan gives you the facility tomake partial withdrawals at any timewhilst continuing to make contributionsand keeping the Plan in force. This facilityis subject to at least Rs. 20,000remaining as cash value after suchwithdrawals.

Fund Acceleration PremiumsThis benefit acknowledges the fact thatyou may have surplus cash available atany point in your life. “Prosperity for Life”is a regular contribution plan but alsogives you the flexibility to top-up yoursavings by depositing your surplus fundsas lump sum contributions in the Plan.These lump sum payments, called “FundAcceleration Premium” (FAP) can bemade at policy commencement or atany policy anniversary. The FAPpayments will increase the cash valueof your Plan, but will not affect thesum assured.

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Important Notes:• The cash values given in the table are illustrated based on assumptions. The actual values

can be higher or lower than the ones illustrated above depending upon the performanceof the underlying investments in the EFU Managed Growth Fund.

• The above cash values are inclusive of the Loyalty Bonus in years 11 (30%), 16 (45%), 21(60%), 26 (75%) and 31 (90%).

• Under the Inflation Protection Benefit, the Basic regular premium will increase every yearby 5% of the prior year’s premium. The sum assured of the Main Plan will also increase inthe same manner. This benefit is available up to age 55.

• The death benefit and cash values can be further enhanced by payment of Fund AccelerationPremiums.

• Certain charges apply on the plan as described in the sections on “Unit Allocation” and“Charges”. The values illustrated above are net of all charges.

• A description of how the contract works is given in the policy Provisions and Conditions.

• Please contact our Head Office or Sales Consultant for a personalized illustration of benefits.

6% p.a. 8% p.a. 10% p.a.

Policy year Death Benefit Fund Value Death benefit Fund Value Death Benefit Fund Value

5 1,500,000 313,648 1,500,000 330,028 1,500,000 347,132

10 1,500,000 822,561 1,500,000 912,976 1,500,000 1,013,790

15 1,541,815 1,541,815 1,814,427 1,814,427 2,138,248 2,138,248

20 2,529,794 2,529,794 3,162,252 3,162,252 3,971,376 3,971,376

Inflation ProtectionThis option gives you the security and peaceof mind of knowing that the benefits providedby your Plan will be automatically updatedevery year regardless of your health.

Once you select this option, the contributionwill increase every year by 5% of the prioryear’s contribution. Similarly, the sumassured will increase in the same proportion.You may, however, opt to increase onlythe contribution while keeping the sumassured at the initial level, thus channelingthis increase in contribution to boost youraccumulation of capital only.

This benefit is available until age 55 andprovided you were accepted on standardterms initially. You may subsequently waiveyour rights to this “guaranteed insurability”but subsequent reinstatement will be subjectto medical evidence.

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Additional BenefitsVarious additional benefit riders are availablewhich may be attached to the basic plan toenhance your coverage level.

Additional Term AssuranceThe Plan has a built-in guaranteed levelof life cover. However, in manycircumstances, such as having familydependents or young children, you mayfeel that the Basic sum assured wouldnot provide sufficient financial protectionin the unfortunate event of your death.The Additional Term Assurance Benefitenables you to increase the level oflife cover by any amount betweenthe range of 50% to 200% of the Basicsum assured.

Accidental Death and DisabilityBenefitsIf death or disability occurs as a resultof an accident, you can be covered foran additional amount from 50% to 100%of the Basic sum assured underAccidental Death and Disability Benefit.

Accidental Death and Disability BenefitPlus provides you an extra layer ofprotection. In addition to the abovebenefits, if you suffer an accidental injuryleading to Permanent Total Disability,the total sum assured chosen under thisbenefit will be paid as a cash sum aftersix months. Permanent Total Disabilityin this context means an inability toengage in any occupation for which youare reasonably qualified by education,training or experience.

Family Income BenefitIn addition to the lump sum payable ondeath, your dependants may alsorequire a regular monthly income tomaintain a decent lifestyle.

This additional benefit will provide amonthly income of either 1% or 2% ofthe Basic sum assured payable for theremaining term of the Plan, subject to amaximum age of 70.

Lifecare Benefit PlusEFU Life has pioneered in Pakistancritical illness cover which providesa cash sum upon the diagnosisor occurrence of the following 15critical illnesses:

• Benign Brain Tumour• Blindness• Cancer• Coma• Coronary Artery/By-Pass Surgery• Deafness• Heart Attack• Kidney Failure• Loss of Limbs• Loss of Speech• Major Head Trauma• Major Organ Transplant• Multiple Sclerosis• Paralysis• Stroke

The cash sum provided by LifecareBenefit Plus can be used as youwish e.g., to pay for the specialized careor treatment, invested to provide aregular income, or to pay off a house orbusiness loan.

Under Lifecare Benefit Plus, the sumassured payable on diagnosis is anadditional payment. This means thatyour Basic policy continues even ifyou have been paid the cash sum underthis benefit. This benefit is available upto age 60 and for a maximum cover ofRs. 1.5 million.

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Waiver of PremiumThis benefit provides that if you areunable to follow any occupation for atleast six months due to sickness oraccident, the present contribution to thePlan will be paid in full by EFU Life fromthe next due date. The benefit willcontinue until you return to work or your60th birthday, whichever comes earlier.This means that whether or not youcontinue to enjoy good health, yourfinancial planning will succeed.

Hospital Care BenefitsOn being hospitalized as a result ofaccident or sickness can create aserious financial burden. Hospital CareBenefit provides a fixed daily cashamount which will be paid directly toyou (even if the medical expenses arecovered by an employer or anyone else).This benefit is payable from the firstday of hospitalization and continuesfor up to 365 days for each separateconfinement. If the confinement is dueto any of the conditions covered inLifecare Benefit Plus, the cash incomepayable will be doubled for the first 30days of confinement at no extra cost.

For a nominal extra contribution, thestandard Hospital Care Benefit can beextended to Hospital Care Plus Benefit.This provides the additional benefit ofcash payment during convalescencefollowing discharge from hospital, forthe same number of days as that paidfor the hospital confinement. The amountpayable for convalescence is 50% ofthat paid during hospitalization.

Medical Recovery BenefitThis innovative benefit is the first of itskind in Pakistan. It provides a lump sumpayment on diagnosis of any of thespecified 379 medical conditions. Pleaserefer to the separate brochure of thisbenefit for more details.

Important DetailsEligibilityThe minimum and maximum ages atentry are 18 and 60 years next birthdayrespectively.

TermThe Plan is whole-of-life and providesyou the benefits of life assuranceprotection and investment throughoutyour life. This “open-ended” nature ofthe Plan ensures that you have theflexibility of withdrawing your funds atany point in time based on your needsand circumstances.

ContributionThe minimum annual regular contributionfor Basic Plan is Rs. 15,000.

The regular annual contribution can bepaid half-yearly provided the minimumhalf-yearly contribution is at leastRs. 20,000.

For Fund Acceleration Premiumpayments – minimum contribution isRs. 15,000 – maximum contribution is 5times the current year’s annual regularcontribution.

Unit AllocationThe proportion of Basic Plan regularcontribution allocated to investment isas follows:

The contribution will be allocated tounits in the EFU Managed Growth Fundat the offer price. Units will be allocatedat the price ruling at the next valuationof the Fund following receipt ofcontribution at the Company’s MainOffice.

1

2

3

4 to 10

11 onwards

35%

80%

90%

100%

100% plus Loyalty Bonus Allocation

% AllocationYear

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This brochure gives a general outline of ‘Prosperity for Life’. The contract will be governed by the detailedconditions set out in the policy Provisions and Conditions. EFU Life is registered and supervised by theSecurities and Exchange Commission of Pakistan.

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30%45%60%75%90%

And so on in later years.

Extra Unit AllocationPolicy Year

Loyalty Bonus AllocationA Loyalty Bonus Unit Allocation appliesevery 5 years, starting from the 11thpolicy year. The bonus allocation is apercentage of the average Basic Plancontribution paid up to the policy yearimmediately prior to the year in whichLoyalty Bonus is to be allocated. Theextra unit allocation, in addition to theBasic Plan contribution is as follows:

totally (or partially) cash-in the Plan atany time for the full bid value of units,without any surrender penalty.

Sum AssuredThis is the guaranteed amount payableon death. The sum assured may beselected from a range depending onthe age at entry. The sum assured isdetermined as the Basic annual premiumtimes the “Protection Multiple” whichcan be selected from the following table:

Example – Suppose the age at entry is35 years, the Basic annual premium isRs. 50,000, and the Protection Multipleselected from the above table is 50,then the sum assured is Rs. 2,500,000.

Automatic Non-Forfeiture OptionIf premium payments are stopped dueto any reason after two full years’premiums have been paid, the Companywill keep the Basic policy in force for aperiod of one year from the date of firstunpaid premium. During this one yearperiod, the Company will cancel enoughunits to pay for the cost of maintainingthe cover and for administration. At theend of this period, if the policy has acash value, it will be converted to “Paid-up” policy. In such a case, no furtherpremiums would be payable and theamount payable on death or maturitywill be equal to the cash value ofthe policy. At each anniversary, theCompany will cancel enough units topay for the administration charge ofmaintaining the policy.

ChargesThe following charges apply on the Plan:

Investment Management Charge:0.125% of the value of the fund permonth; Bid/Offer spread: 5% of the netcontribution; Administration Charge:Rs. 360 per annum.

An age based mortality charge appliesfor the life insurance risk each yearand is dependent on the sum at risk.No mortality charge applies in yearswhere the cash value exceeds thesum assured.

Encashment“Prosperity for Life” is designed as along-term contract with the initial settingup charges being recovered over aperiod of time. Therefore, if the Plan isterminated after only one annualpremium, the cash value acquired inthe first year of the contract will be usedto offset the setting up costs and noamount will be payable. However, oncetwo premiums have been paid, you can

18 - 35

36 - 40

41 - 49

50 - 60

5 to 75

5 to 50

5 to 35

5 to (70 - age)

Protection MultipleAge

37-K, Block-6, PECHS, Karachi-75400UAN: (021) 111-EFU-111 (111-338-111) Fax: (021) 4535079

Toll Free No: 0800-33800Email: info@efulife.com Website: www.efulife.com

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