Flex Plan: Benefits

Lump Sum or Pension on Retirement or on maturity of the Plan

The accumulated capital on retirement will depend upon the following factors:

• premiums paid
• bonuses declared
• optional benefits selected
• charges deducted

The accumulated capital can be used in part or in full to secure a pension (or annuity).  The pension may be payable for life, guaranteed for a period of years, payable for a certain number of years, payable to the employee followed by a contingent pension to a selected dependent or payable in such a way as agreed by Nordben.

Optional Risk Benefits

The Flex Plan offers optional benefits on death and disability. The cost of the optional benefits are determined on a recurring single premium basis. That is, the cost for the risk in the particular year is deducted from the Flex Plan premium. For example, life cover costs will increase as the employee (or accompanying spouse) gets older, reflecting the increased probability of death.

The cost of insuring the disability and death benefits may be altered by Nordben. Furthermore, the cost of insuring the disability and death benefits will vary, not only because of age and sex but as a result of other risk factors such as occupation, residence and pastimes, period of assignment.

The insurance of the death and disability benefits will depend on Nordben accepting appropriate medical and financial information regarding the amounts to be insured.

The optional benefits can be amended on a premium due date and must be amended prior to the settlement of any invoices due on that date. An increase in the optional benefits may require additional information before we can accept an increase in the underwritten risk but usually increases as a result of salary adjustment will be accepted without further medical evidence.

Disability Pension

The typical disability pension is 50% - 60% of salary.  The disability pension is paid when the employee is incapacitated. The disability pension becomes payable after ninety days and increases each year whilst in payment.  The full terms can be found in the General Conditions.

Waiver of Plan Premiums

The Flex Plan premium is paid by Nordben during incapacitation so that the retirement benefit continues to build up. The waiver of plan premiums comes into effect from the first premium due after ninety days. This benefit does not increase whilst in payment.

Lump Sum on Death

The need for life coverage depends upon family considerations and whether or not a Survivor’s Pension or Children’s Pension benefits are being provided.

Increases or decreases in coverage, in response to changes in circumstances, are possible with the Flex Plan

The retirement account is also payable on death. The lump sum on death is paid to the employee’s nominated designated beneficiary or beneficiaries.

Survivor’s Pension

This is paid on the death of the employee to a nominated dependant. The pension is paid for life and increases whilst in payment. A typical Survivor’s Pension would be 30% of salary.

Children’s Pension

This is paid on the death of the employee and to each child nominated in the Plan. The pension is paid until a specified age (max. 25 years of age) and increases whilst in payment.

A typical Children’s Pension would be 10% of salary.

Surrender value

The contract can be surrendered with the agreement of employer and employee. The surrender value, paid to the employee, is determined by Nordben as follows:

 Policy Year      Proportion of the Accumulated Account
                           (incl. declared bonus)

     2                    90%
     3                    92.5%
     4                    95%
     5                    97.5%
     6 onwards   100%

Please note that surrender is not allowed in the first year.