Flex Plan: Benefits

Lump sum or pension on retirement or on maturity of the Plan.

The accumulated capital on retirement or on maturity of the Plan 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). This pension may be payable for life, guaranteed for a period of years, payable for a certain number of years, payable to the individual followed by a contingent pension to a selected dependent or payable in such a way as agreed by Nordben.

Optional Risk Benefits

These benefits will not be of interest if the Plan is used as a Savings or Investment Plan.

The Flex Plan offers optional benefits on death and disability. The cost of the optional benefits are determined on a recurring single premium basis and are deducted from the Flex Plan premium.

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.

Disability Pension

The typical Disability pension is 50% - 60% of salary. Disability pension becomes payable after ninety days incapacitation and thereafter. It 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 payable on death. The lump sum on death is paid to a nominated designated beneficiary or beneficiaries.

Survivor’s Pension

This is paid on death 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 death 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 at any time for a cash sum that will be determined as follows: