What is the Financial Protector benefit?
The main advantage of the Financial Protector being available on the same contract as the risk benefits is that you can draw on these savings in times of temporary financial difficulty to pay the contributions due on your contract. This reduces the risk of your contract lapsing and you losing your valuable risk protection benefits as a result of temporary financial difficulty.
The Financial Protector also provides you with the opportunity to add a cost-effective savings component to your risk benefits.
What type of cover does the Financial Protector benefit provide?
The Financial Protector protects you against the financial risk of being unable to pay your contributions provided that a positive value exists in this benefit. The Financial Protector is an investment that grows monthly with your contributions and investment returns.
Am I allowed to increase my contributions?
At inception of the contract you have the option to select the rate at which your contributions will increase annually. This rate of increase is independent of the automatic contribution increases selected on your risk benefits.
What amount of my contribution is paid into the investment account?
Your monthly or annual contribution less the guarantee and contribution charges is paid into your Investment Account. This amount is known as your allocation amount.
How does switching between different portfolios affect the guarantees on my investment?
If you switch out of a portfolio guaranteeing the return of the allocation amounts with no return to one guaranteeing a return of 3% p.a. on the allocation amounts, then the guaranteed maturity value at the maturity date will be the allocation amounts accumulated at 0% p.a. to the switch date, and at 3% p.a. from the switch date until the maturity date.
If you switch out of a portfolio offering a 3% p.a. guarantee on the allocation amounts to one guaranteeing a return of the allocation amounts, then the guaranteed maturity value at the maturity date will be the allocation amounts accumulated at 3% p.a. to the switch date, and at 0% p.a. from the switch date until the maturity date.
The same principle applies if the contract is extended after the original maturity date. The guarantees on the allocation amounts are applicable at 5-year intervals after the first Option Date. Therefore, the guarantee will apply at the end of the original benefit term, and every 5 years thereafter.