Zenith

Technical guide

XIM7/TG

Product description Death benefit Zenith is a single premium, unit-linked international whole of Zenith has a death benefit that will pay 101% of the surrender life assurance policy. value of your plan. Friends Provident International Limited (Friends Provident International) will deduct any money owing to us before we pay the death benefit. Policies Zenith can be issued as a cluster of 10 policies up to a Lives Assured maximum of 100 identical policies. The maximum number of Lives Assured is four. If there is Splitting your investment into a number of policies at the more than one Life Assured then the death benefit will be outset does not affect performance in any way but gives you paid on a ‘last survivor’ basis. greater flexibility if you want to take money out in the future. To find out how, please read the Offshore Investment Bonds – Policy Segmentation document, a copy of which can be Currencies obtained from your financial adviser. You can invest in Zenith using US Dollars, Sterling, Euro or HK Dollars. Once the plan has been issued the plan currency A cluster of 10 policies is automatically provided when the cannot be altered. However the valuation currency can be plan is set up. However, you can indicate the number of changed at any time. policies you wish to have in the special instructions section when completing the application form. Once this is set up Payments of benefits or withdrawals will normally be made the number of polices cannot be altered. in the selected plan currency. Alternatively, you can ask for benefits to be paid in any freely convertible currency Eligibility worldwide. When withdrawals are taken in a currency other than the selected plan currency there may be a difference Zenith is available to anyone aged 18 and over who is able to between the amount requested and the amount received in apply for an international investment. value due to currency conversion. However, please satisfy yourself that, under any taxation, exchange control or legislation which exists in your Premium payment current country of residence, you are able to affect the plan. Zenith is a lump sum product. The minimum premium It is also wise to consult your financial adviser before entering amounts are: into an investment of this nature. There is no minimum age restriction for a life assured, Minimum Premium however at least one of the lives must be 79 years of age or Currency Premium younger at outset. USD 15,000 GBP 10,000 Plan term EUR 15,000 Whole of life HKD 120,000 Zenith

Minimum additional single premium Withdrawals You can pay additional premiums into your Zenith whenever Withdrawals from your Zenith plan can be taken on a regular you like. or one-off basis. 10% (cumulative) of the initial premium can be taken during the first 5 years with no penalty. For withdrawals over this amount, the early cash-in charge will Minimum additional premium apply (see the Summary of Charges on page 3). The value of Currency Premium the plan must not fall below the minimum plan value. USD 10,000 Regular withdrawals are allowed at the following frequencies: GBP 6,667 EUR 10,000 Monthly, Quarterly, Termly (meaning every 4 months), Half‑yearly, Yearly HKD 80,000

Units Minimum withdrawal Currency Amount Each of the Friends Provident International mirror funds is divided into ‘units’. The premium paid will be used to USD 750 purchase units in the mirror funds chosen, on the next GBP 500 dealing day following receipt of cleared payment. EUR 750 HKD 6,000 Allocation rate Premium Percentage allocated to units. Surrenders

Up to USD37,499 100% You can surrender the whole of your Zenith at any time for its current bid value less an early cash-in charge and outstanding Up to GBP24,999 establishment charges in the first five years. You will be Up to EUR37,499 required to complete the surrender request form and return it to Friends Provident International together with the policy Up to HKD299,999 documents and all the relevant paperwork. The relevant USD37,500 to USD74,999 101% paperwork should be determined with your financial adviser. GBP25,000 to GBP49,999 Minimum plan value EUR37,500 to EUR74,999 The value of your Zenith must not fall below the minimum HKD300,000 to HKD599,999 total plan value as a result of a withdrawal. USD75,000 to USD149,999 102% GBP50,000 to GBP99,999 Minimum plan value EUR75,000 to EUR149,999 Currency Amount USD 7,500 HKD600,000 to HKD1,199,999 GBP 5,000 USD150,000 to USD299,999 103% EUR 7,500 GBP100,000 to GBP199,999 HKD 60,000 EUR150,000 to EUR299,999 HKD1,200,000 to HKD2,399,999 Where a plan is still inside the establishment charge period this amount will be increased to allow for all outstanding USD300,000+ 104% establishment charges. GBP200,000 + EUR300,000+ HKD2,400,000+

2 Funds Surrender and tax treatment Because Zenith is an international offshore life assurance Available funds policy, the taxation of the benefits will depend on your Friends Provident International provides access to a wide country of residence at the time they are taken. Benefits are range of mirror funds managed by some of the world’s payable without deduction of tax in the . leading fund managers. This guide must be read in conjunction with the current Zenith brochure, a copy of which can be obtained from your Maximum funds financial adviser. Zenith can invest in up to a total of 10 different funds at anytime. Payment of proceeds We expect to make the proceeds of any plan available Fund Centre – your online resource for our normally within 10 working days following receipt of all mirror funds necessary documentation, except where the circumstances are beyond our control. We must reserve the right to delay Fund Centre provides you with all the information you require, payment of surrender where this could result in the need such as fund prices, performance data and risk ratings, in an to sell assets which may not be readily realisable. However, easy to use format. With a sophisticated range of tools you we would invoke this retribution only in the most extreme are able to focus your research and analysis on only the funds circumstances. No interest will be payable in respect of any that interest you. delay in payment of the death benefit, surrender value or You can access the Fund Centre by visiting withdrawal sum under any circumstances. www.fpinternational.com/fundcentre. Tax treatment Switching Friends Provident International is not liable to income tax, Units can be switched between our full range of mirror funds capital gains tax or corporation tax on its policyholders’ funds. at any time. Some dividends may be received net of withholding tax, deducted at source in the country of origin, but once inside Currently no charge is imposed for switching between any of the funds within our mirror fund range. Although we do reserve your plan they can accumulate free of tax. the right to impose a charge of up to 1% of the amount involved The personal tax consequences of investing in the plan or USD15, GBP10, EUR15 or HKD150, if greater. will depend on many factors. You may have a personal tax liability in respect of the proceeds of the plan. This will Summary of charges largely depend on your country of residence. It is therefore We take an establishment charge of 1.6% of the premium per important that professional guidance is sought before annum for five years only. This is taken as a quarterly amount proceeding with an investment. of 0.4% deducted from units. Additional premiums receive Important note for proposed policyholders who are their own establishment charges. planning to become resident in the UK. An administration charge is taken of 1.2% per year of the bid Friends Provident International is under a statutory obligation value of each mirror fund on each valuation day. to report to HM Revenue & Customs certain events where An early cash-in charge applies for the first five years only: benefits are received from the plan by a UK resident 5.0% of the cash-in value, in excess of the 10% allowance, in individual, company or trust. For further information, please year one, reducing by 1.0% each year to nil. contact your financial adviser.

Underlying fund charges The underlying asset which the mirror fund invests deducts an annual management charge. Details of this charge are available on our fund factsheets, please visit www.fpinternational.com/fundcentre. This charge is reflected in the value of the mirror fund as part of the valuation process.

3 How to apply Investment involves risk and each class of investment will involve its own individual level of risk. We recommend Simply complete the application form, a copy of which can that you discuss specific risks associated with individual be obtained from your financial adviser, and return it to your investments with your financial adviser before making any financial adviser together with full details of the proposed investment decisions. investment selection for the plan. Mirror fund prices may go up and down depending upon the You should also include any other relevant supplementary forms, underlying investment performance or, where investments which should be determined with your financial adviser, as well held within a mirror fund are not denominated in the currency as documentary proof of identity and address such as a certified of that mirror fund, simply because of movements in copy of a current valid passport and a utilities bill. currency exchange rates. Your policy documents will be sent to you as soon as your plan The value of your investment cannot be guaranteed and you has been established. Then, at least once a year, we will send may get back less than you paid in. you a statement confirming your current investment holding. All policyholders will receive the protection of the Life Important Information Assurance (Compensation of Policyholders) Regulations 1991 of the Isle of Man, wherever their place of residence. The information given in this document is based on Friends Provident International’s understanding of the current law Investors should be aware that specific investor protection and taxation practice as at March 2013, which may change in and compensation schemes that may exist in relation to the future. No liability can be accepted for any personal tax collective investments and deposits accounts are unlikely to consequences of this scheme or for the effect of future tax or apply in the event of failure of such an investment held within legislative changes. insurance contracts. A copy of the relevant policy document may be obtained from Some telephone communications with the Company are Friends Provident International on request. recorded and may be randomly monitored or interrupted. Friends Provident International does not provide legal, Copyright © 2013 Friends Provident International. taxation or investment advice. You should obtain advice that All rights reserved. is independent and directly relevant to the specific legislation within your country of residence. If you do not have a financial or legal adviser, then we strongly recommend that you appoint one.

Friends Provident International Limited Registered & Head Office: Royal Court, Castletown, Isle of Man, British Isles, IM9 1RA Telephone: +44(0) 1624 821212 Fax: +44(0) 1624 824405 Website: www.fpinternational.com Incorporated company limited by shares Registered in the Isle of Man No. 11494 Authorised by the Isle of Man Insurance & Authority Provider of life assurance and investment products Authorised by the Office of the Commissioner of Insurance to conduct long-term insurance business in Registered in the United Arab Emirates as an insurance company (Registration No.76) and as a foreign company (Registration No. 2013) Authorised by the United Arab Emirates Insurance Authority to conduct and savings business Registered in No. F06835G Registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore

XIM7/TG 03.13