Triple C 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 life assured 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 Triple C 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 Triple C 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.
Nordben retains the right to alter the premiums for the death and disability benefits during the term of the contract.
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. Increases given to disability pensions whilst in payment may be zero. The full terms can be found in Section 5 of the General Conditions.
Waiver of Plan Premiums
The Triple C 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.
The Triple C Plan gives the flexibility to increase or decrease the coverage according to changes in circumstances.
The lump sum on death is paid in addition to the accumulated account. The proceeds will be paid to a nominated designated beneficiary or beneficiaries, or to the estate of the deceased.
Survivor’s Pension
This is paid on life assured’s 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 the death of the life assured to each child specified in the Policy until a specified age or earlier death (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.
The surrender value is determined by Nordben having regard to the advice of the Actuary. The surrender value will depend on:
- Equity market returns
- Yields on fixed interest securities
- The size of the policyholder reserve fund.
These factors vary from currency to currency.
The surrender value, including interim bonus, since the launch of the product in 1998 has varied from 90% to 100% of the accumulated account.
From 1 October 2008 the amount payable of the retirement account (including interim bonus) at the date of surrender is:
NOK 97.5%
EUR 97.5%
CHF 95%
All other currencies 100%.
However, Nordben reserves the right to review these surrender terms from time to time.