zurich vista understanding your clients

Zurich International Life

Understanding your client’sbenefit illustrationVista

This illustration shows how your client’s investment may look over a period and explains the terminology used in the Zurich International Life illustration system.

Initial contribution period (ICP)An ICP applies if your client pays regular premiums, and is a fixed period of up to 18 months from the start of a new policy.

A charge of 4% each year, known as the expense recoupment charge, is then taken from the value of the units purchased during this period. This charge is deducted on a monthly basis; please see the ‘Vista – Summary of fees and charges’ leaflet for further information.

Zurich International Life Limited (Singapore branch) is registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore.Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance andPensions Authority. Registered in the Isle of Man number 20126C.Registered office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone +44 1624 662266 Telefax +44 1624 662038.Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore 048623. Telephone +65 68766750 Telefax +65 6876 6751. Registered in Singapore No. T05FC6754E.www.zurichinternational.com. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training and quality purposes.11/09/2012 13:47 E.&O.E. V1.66.00 Z0002538/9999999/F/F/BPN/SING_SIV3S of 4

Signature of applicant Day Month Year

Signature of introducer Day Month Year

Name of product VistaNeed for savings SavingName of insurance company Zurich International Life Limited

IntroductionThis information forms part of your benefits illustration.Zurich International Life Limited believes it is important that you fully appreciate all the benefits under your policy, and that you alsounderstand how the cost of the insurance protection, distribution, administration, investment and other costs affect these benefits.The benefits illustration includes a schedule that shows how the value of your policy changes over time. The computation andmethods used to calculate this schedule follow guidelines, which have been established by the life insurance industry to ensurethat a fair and consistent approach is used in preparing this illustration.This important information is set out below. If you need clarification, please do not hesitate to ask your adviser.

Life insured details

Name A ClientDate of birth 01/01/1966

Sex MaleSmoker Non-smokerCountry of residence Singapore

Policy details

Regular premium SGD1,000 Premium frequency MonthlyAnnual escalation rate 0% Initial contribution period 18 monthsTotal policy lump sum --- Contract term 20 yearsPolicy basis SL Policy start date 01/10/2012

Benefits

Death/Critical illness basis --- Hospitalisation (weekly) Not coveredDeath benefit Not covered Dismemberment Not coveredCritical illness benefit Not covered Spouse's income p.a. Not coveredWaiver of premium Not covered Spouse's age ---Permanent total disability Not covered Spouse's income escalation ---

Initial bonus We recognise that clients investing larger regular amounts expect greater rewards.

Zurich International Life will pay a client bonus as follows:

• Your client’s premiums in the first year x the bonus allocation % x the policy term.

• This additional allocation is made on the regular premiums they make for the first year after qualifying for the bonus.

• The bonus allocation is dependent on premium, and is one of three different levels – bronze (0.5%), silver (1.5%) or gold (2.5%).

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Total distribution cost This is an ‘average’ cost and covers the distribution and promotion of the product. This includes average commission paid over the life of the policy for initial and ongoing financial advice and promotion of the product by us to relevant financial professionals. These costs are covered by the product charges and are not in addition to the charges detailed in the product brochures. The total distribution cost is not an additional cost to your clients; it has already been allowed for in calculating their premium. A full schedule of fees and charges can be found in the ‘Vista – Summary of fees and charges’ leaflet, a copy of which is available on request.

Non-guaranteed surrender values*This column represents the projected amount your client would get back (at the illustrative rates) if the policy is surrendered early.




Your illustrative policy benefitsEnd ofpolicy year

Annualisedpremiums

Total premiumsoutlay

Totaldistribution cost

4%

Non-guaranteed surrender values

8%

Effect ofdeductions

1 12,000 12,000 10,200 N/A N/A 12,5142 12,000 24,000 10,298 9,344 9,659 16,3703 12,000 36,000 10,460 21,730 22,757 17,8684 12,000 48,000 10,688 34,394 36,671 19,7185 12,000 60,000 10,988 47,345 51,454 21,9606 12,000 72,000 11,364 60,588 67,161 24,6407 12,000 84,000 11,819 74,131 83,848 27,8118 12,000 96,000 12,360 87,980 101,579 31,5279 12,000 108,000 12,991 102,143 120,418 35,85010 12,000 120,000 13,717 116,997 140,962 40,32111 12,000 132,000 14,544 131,788 162,223 46,07712 12,000 144,000 15,479 146,913 184,811 52,66713 12,000 156,000 16,527 162,378 208,809 60,18114 12,000 168,000 17,697 178,193 234,305 68,71815 12,000 180,000 18,994 194,854 262,232 77,54616 12,000 192,000 20,427 211,309 290,901 88,57417 12,000 204,000 22,005 228,132 321,346 101,00018 12,000 216,000 23,734 245,329 353,677 114,97119 12,000 228,000 25,626 262,909 388,011 130,64320 12,000 240,000 27,690 282,481 426,074 146,586

What is the significance of the Projected Investment Rate of Return?

The illustrations are based on projected investment returns of 4% p.a. and 8% p.a. The two rates of return used are beforededucting the annual management charge of the funds. They are purely for illustrative purposes and do not represent upper or lowerlimits on the investment performance. They also do not reflect potential volatility over the short-term resulting in potential sharpmovements, up or down, of the underlying assets of the funds. The actual benefits payable will depend on the actual performance ofthe underlying assets of the funds. The performance of the funds is not guaranteed and the cash value may be less than the capitalinvested.

Please note that if you select a money market fund or a fixed income fund, then returns of 4% to 8% could be consideredhigh in many cases and unlikely to be achieved if the current low interest rate environment persists. You are stronglyrecommended to speak to your financial adviser who would be able to provide further information on these funds - bothfor your initial fund selection and subsequently.

The illustration assumes an annual fund management charge of 1%.

* Vista is a unit-linked regular premium policy; as such, the value of units purchased can fall as well as rise over time. For illustrative purposes only, the Monetary Authority of Singapores require all unit-linked investment providers such as Zurich International Life, to provide illustrations on a mandated rate of return of 4% and 8%. It should be remembered that these might differ from the actual gains made.

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Guaranteed sum assuredThe MAS require Zurich International Life to comply with a mandated layout of an illustration. Certain products sold in Singapore, such as participating endowment policies have historically had a guaranteed sum assured as a product feature. As Vista is an investment-linked product with no guaranteed death benefit, then this column will always be zero as mandated by the MAS. This is applicable even if your client has chosen benefits such as life cover.

The level of risk and investment performance differs depending on the funds chosen. You should note that past performance is not a guide to future performance. The value of any investment and the income from it can fall as well as rise as a result of market and currency fluctuations and your client may not get back the amount originally invested.

Death benefit total (including non-guaranteed surrender value)

This column represents the current value of the policy, as well as the amount your client would get back on death or maturity if the 4% and 8% growth rates were achieved exactly – it should be remembered that the actual gains made might differ.




Policy benefitsEnd ofpolicy year

Totaldistributioncost

Death benefit

Guaranteed sum assured

Critical illness 4%

Death benefit total (includingnon-guaranteed surrender values)

8%

Effect ofdeductions

1 10,200 0 0 11,736 11,978 12,5142 10,298 0 0 23,322 24,256 16,3703 10,460 0 0 35,125 37,218 17,8684 10,688 0 0 47,200 50,959 19,7185 10,988 0 0 59,552 65,527 21,9606 11,364 0 0 72,188 80,971 24,6407 11,819 0 0 85,114 97,345 27,8118 12,360 0 0 98,335 114,707 31,5279 12,991 0 0 111,858 133,115 35,85010 13,717 0 0 125,689 152,634 40,32111 14,544 0 0 139,835 173,331 46,07712 15,479 0 0 154,303 195,279 52,66713 16,527 0 0 169,100 218,553 60,18114 17,697 0 0 184,231 243,234 68,71815 18,994 0 0 199,706 269,409 77,54616 20,427 0 0 215,530 297,168 88,57417 22,005 0 0 231,712 326,609 101,00018 23,734 0 0 248,260 357,833 114,97119 25,626 0 0 265,180 390,949 130,64320 27,690 0 0 282,481 426,074 146,586

Total distribution costThis section shows the total costs that Zurich International Life may expect to incur. These costs include cash payments in the formof commission, costs of benefits and services paid to the distribution channel. The total distribution cost is an accumulation of eachyear's expected costs, but with no interest added. The total distribution cost is not an additional cost to you; it has already beenallowed for in calculating your premium.

Projected investment rate of returnThe investment rate of return that is actually achieved by Zurich International Life will depend on the investment returns it has earnedfrom investing its life insurance fund. In preparing this benefit illustration, it is assumed that the projected investment rate of returnZurich International Life will be able to earn throughout the term of your policy (before paying any costs of investing) will be 8% p.a.The projected investment rate of return is not guaranteed. The policy benefits are calculated so that they are consistent with theprojected investment rate of return assumption.Reduction in yieldThis benefits illustration shows that over the full term of the policy, the effect of the total deductions could amount to SGD146,586.The total deductions would have the effect of reducing the projected investment rate of return upon maturity from 8% to 5.40% p.a.The difference between the projected investment rate of return of 8% p.a. and the rate of return you will receive (based on thisbenefits illustration) is called the reduction in yield.Effect of deductionsThe deductions relate to all charges taken out from the policy. These include distribution costs, expenses, mortality and morbiditycosts, surrender penalty, expected transfers to shareholders and expected tax payments. The figures illustrated relate to the effect ofdeductions based on the projected investment rate of return of 8% p.a. The effect of deductions column in the benefits illustrationshows the difference between the accumulation of the premiums paid (accumulated at the projected investment rate of return) andthe total cash surrender value or projected maturity value.This is intended to indicate the costs you might incur with this policy. This is done by comparing these projected values to theamounts you would receive if you were able to invest all your premiums (incurring no costs) in a hypothetical investment plan thatpays a rate of interest equal to the projected investment rate of return.

Reduction in yield (RIY)This figure represents all charges taken from the policy as an annual percentage, assuming the assets held within the fund(s) of the policy grow consistently at 8% each year. This figure also includes the annual management charge (AMC) for the fund(s) that your client has selected, which is taken from the fund(s) before they are priced.

Effect of deductions The effect of deductions is the difference between what your client would get back if their premiums were to be accumulated at the relevant gross rate of return (8% per annum) with no deductions or charges at all, and what the surrender value is projected to be allowing for all charges (product charges and fund AMCs). However, this is not an amount directly deducted from the policy or paid by the client.

For further information on Vista please refer to the product brochure and policy terms and conditions, copies of which are available on request.

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RD Zurich International Life Limited provides life assurance, investment and protection products

and is authorised by the Isle of Man Government Insurance and Pensions Authority.

Registered in the Isle of Man number 20126C. Registered office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone +44 1624 662266 Telefax +44 1624 662038

Zurich International Life Limited acting through its Singapore branch at Singapore Land Tower #29-05, 50 Raffles Place, Singapore 048623. Telephone +65 6876 6750 Telefax +65 6876 6751. Registered in Singapore No. T05FC6754E.

www.zurichinternational.com

Important informationZurich International Life is a business name of Zurich International Life Limited.

Zurich International Life Limited is fully authorised under the Isle of Man Insurance Act 2008 and is regulated by the Isle of Man Government Insurance and Pensions Authority which ensures that the company has sound and professional management and provision has been made to protect policy owners.

For life assurance companies authorised in the Isle of Man, the Isle of Man’s Life Assurance (Compensation of Policyholders) Regulations 1991, ensure that in the event of a life assurance company being unable to meet its liabilities to its policy owners, up to 90% of the liability to the protected policy owners will be met.

The protection only applies to the solvency of Zurich International Life Limited and does not extend to protecting the value of the assets held within any unit-linked funds linked to your policy.

Not for sale to residents or nationals of the United States including any United States federally controlled territory.

Zurich International Life Limited (Singapore branch) is registered by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Financial Dispute Resolution Scheme.

Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training and quality purposes.

zurich vista understanding your clients

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