Zurich Futura policy is a robust financial product that blends life insurance coverage with investment opportunities. However, grasping the associated charges is crucial to make informed decisions. This guide from Life Insurance Bazaar which offers the best life insurance in UAE aims to provide a comprehensive breakdown of the various charges within a Zurich Futura policy, enabling policyholders to navigate this financial tool effectively.
Policy Charges:
Regular Premium Charge:
During the initial two years of your policy, half of your premiums are utilized to cover the policy setup fees. From the third to the fifth year, a 7% charge is deducted from all your regular premiums, and from the sixth year onward, a 2% charge is deducted from all your regular premiums. Any rate of increase in premiums will follow a comparable allocation pattern from the increase date.
Single Premium Charges:
Single premiums are allocated at 92%, indicating that an 8% charge is applied to all single premiums. This charge is subtracted from your premium before it is included in your policy.
Benefit charges:
The expense of offering benefits is based on the age, sex, smoking status, and other individual particulars of the insured life or lives, along with the necessary coverage levels. These charges for benefits will rise annually. However, they are taken out on the initial day of each month by redeeming units in your funds.
Policy Administration Charge:
A fee for administration charge is subtracted from your monthly policy by redeeming units in your funds.
Fund Charges:
Ongoing Charges Figure:
The fund manager would subtract a sum of amount from the Continuous Charges Figure (OCF) from every fund before calculating the unit price. It encompasses fees and costs imposed by fund managers to manage the funds.
Fund Investment Adviser Charge:
- If you designate a certified fund investment advisor upon policy initiation to direct us to your funds and consent to pay a fee for their service, this fee will apply.
- The fee will adhere to the arrangement between you and your fund investment advisor, up to 1% annually of the unit value.
- It will be deducted monthly by redeeming units on the first day of each month while the agreement between you and your fund investment advisor remains valid.
Transactional charges:
Currency Switch Charge:
0.175% of the amount transferred between currencies is subject to a fee. If you exchange funds between two different currencies, we initiate a fee according to the amount transferred between currencies.
Currency Exchange Charge:
We will impose a currency exchange fee if:
- Premiums are received in a currency other than the policy currency or
- Units in a fund(s) are bought or sold in a currency other than the policy currency or
- Payments from the policy (including claims) are made in a currency other than the policy currency.
A currency exchange fee isn’t a distinct policy deduction; it’s included within the currency exchange rates utilized for every transaction.
Claiming Process:
The initial contact for filing a claim should be with Zurich. Your financial advisor can also assist.
If a claim is made under the policy, we may require access to the insured individual’s medical records. For a waiver of premium claim, the insured may need to undergo a medical examination or testing. You will need to provide this information at your own cost. Complete instructions on submitting a claim can be found in the Policy Terms and Conditions.
Conditions When A Claim Not Paid:
The following is not the complete list about the claim not being paid to the insurer but still you should understand the standard conditions why a claim is not paid.
- The policy expired, or the benefit expired or terminated before the claim event occurred.
- The claim event fails to satisfy the benefit definition or happened before the risk start date, before policy reinstatement, or before completing a qualifying period relevant to the claimed benefit.
- The insured individual either knowingly or inadvertently fails to disclose or intentionally misrepresents any fact related to the policy, and such non-disclosure or misrepresentation would lead us to deny benefits either partially or entirely.
- The insured individual commits suicide within the initial year of the policy or attempts suicide and deliberately inflicts self-harm.
- The claim is caused by addiction to, misuse of, or abuse of alcohol or prescribed or non-prescribed drugs.
- The claim arises from a criminal act committed by the insured individual, policyholder, or beneficiary against the insured individual.
Note: Kindly consult the Policy Terms and Conditions to view a comprehensive list of reasons a claim might not receive payment; distinct exclusions apply to each benefit.
Understanding the charges associated with a Zurich Futura policy is essential for making informed decisions about your investment plans in Dubai. This comprehensive guide provides a detailed breakdown of the various charges involved. Additionally, it has shed light on the claiming process and conditions under which a claim might not be paid. By familiarizing yourself with these details, you can navigate your Zurich Futura policy effectively and maximize its benefits while making prudent financial choices for yourself and your loved ones. Remember, a well-informed policyholder is better equipped to secure their financial well-being in the long run.
