NIB Future
We all feel that it is important to plan for tomorrow and everyone wants to set aside some money for a rainy day. But very few of us actually follow the discipline of investing and protecting our own and our family’s future.
NIB joined hands with EFU Life Assurance Limited to bring for its customers a long term savings and investment plan along with a protection plan that keeps pace with their changing needs at every stage of life. Be it a child’s future or an early retirement plan, NIB is there to prepare for all the important milestones in a customer’s life and protects loved ones in unexpected times of trouble.
Features and Benefits
Features
- Convenient and affordable investment and insurance plan.
- Payments can be made automatically by debiting your account or by making payments through any other means to the branch.
- Long term saving along with life insurance plan.
- Life Future has been partitioned into four plan types namely:
- Long Term Investment and Savings
- Marriage Plan
- Education Plan
- Retirement Plan
Benefits
- Valuable investment and insurance benefits.
- Investment plan based on your current age, contribution payments and circumstances.
Highlights
- Convenience for the customer.
- Assists in making future plans more fruitful.
- Maximization of capital growth of your contributions.
Frequently Asked Questions
What is NIB Future?
NIB Future is a convenient and affordable investment and insurance plan based on regular contribution payments. These premium contributions can be paid through cheque, pay order or bank draft either on monthly, quarterly, and half-yearly or annual basis. Standing orders can be issued to the bank to make regular contribution deductions from your NIB bank account, so that premiums are paid without any hassle or delays. Your premium contributions are accumulated and invested in order to provide you long term returns on your savings while the insurance features of this product ensure that your family is taken care of, in the unfortunate event of your death.
How are my contributions managed?
Investments are strategically and professionally planned. The primary objective is to maximize capital growth of your contributions, which are utilized to purchase units of the EFU Managed Growth Fund and also invest in a balanced portfolio spread across a wide range of shares, government and other fixed interest securities and cash. The fund is managed by investment experts who adjust the mix of the underlying investments based on the prevalent economic conditions and investment opportunities.
What is the proportion of contribution allocated to investment?
The proportion of basic plan contribution allocated to investment is as follows.
| Policy Year | Allocation Percentage |
|---|---|
| 1 | 35% |
| 2 | 80% |
| 3 | 90% |
| 4 to 10 | 100% |
| 11 year onwards | 100% plus Loyalty Bonus Allocation |
Can I contribute more when I have extra funds to spare?
NIB Future allows depositing surplus funds called “Fund Acceleration Premium” (FAP) at any policy anniversary as permitted by the plan. FAP payments thus increase the cash value of the plan, without affecting the sum assured.
How do I earn a Loyalty Bonus?
For customers who pay contributions continuously for a period of at least 10 years, without any encashment at intervals, the plan gives a valuable loyalty bonus. The earned bonus is allocated to the plan every 5 years starting from the 11th policy year, thus increasing your underlying accumulated fund value rapidly. The extra unit allocation as a percentage of the average basic plan premium is in addition to the basic plan contribution and is as follows.
| Policy Year | Extra Unit Allocation |
|---|---|
| 11 | 30% |
| 16 | 45% |
| 21 | 60% |
| 26 | 75% |
| 31 | 90% |
| And so on |
Does this plan have an Insurance cover?
Saving with NIB ‘Future’, allows you to enjoy the benefits of life assurance protection. This cover means that in case of death, your dependants will receive:
The greater of either the sum assured or the cash value of the plan
at the date of death, AND
Any cash value of the FAP payments.
It offers alternate plans of selecting the sum assured at the inception with the flexibility to change this level according to different circumstances. The sum assured is determined on the basic plan annual premium, multiplied by the “Protection Multiple” which can be selected by the Customer.
Can I access my savings when I need them?
The plan provides complete access to your accumulated fund value at all times, provided two full years’ premiums have been paid and you have the right to encash all the units in your fund. In such an event the units will be encashed at the current bid price and the plan will be cancelled. Further, after the contributions have been paid for two full years, the fund can be withdrawn for its full or partial value, without any surrender penalty. You can also surrender the fund value partially by encashment of a limited number of units in the fund. Partial surrender is allowed as long as an amount of Rs. 20,000 remains in the fund.
How can I protect my savings from the effects of inflation?
The plan has a unique ‘built-in’ feature of protecting the benefits against the effects of annual inflation. Once you select this option to retain the purchasing power of the plan’s benefits, the required contribution would increase each year by 5% of the prior year’s contribution. The increase in contribution would also increase the level of benefits. However, you may, opt to increase only the contribution while keeping the sum assured at initial level, thereby channeling this increase to boost your capital accumulation.
What are the eligibility criteria and nature of the plan?
The minimum and maximum ages of entry are 18 and 60 years respectively. The plan is meant to cover your entire life, and provide you the benefits of life assurance protection and investment. This “open-ended” nature of the plan ensures flexibility of withdrawing your funds at any point in time, after the completion of two years.
Can I pay the contribution for advance years?
The plan offers you the flexibility of paying future years’ contributions in advance, regardless of the investment amount.
What is the maximum and minimum premium?
There is no cap on the maximum contributions. For the minimum, you can opt to enroll under the plan with the following in mind
| Premium Payment Frequency | Minimum Amount |
|---|---|
| Annual | Rs. 15,000/- |
| Half Yearly | Rs. 7,500/- |
| Quarterly | Rs. 3,750/- |
| Monthly | Rs. 1,250/- |
For FAP payments, the minimum contribution is Rs.15,000 and maximum contribution is 5 times the current year’s annual regular contribution. FAP Payments can be contributed at the time of each policy anniversary.
What are the expected benefits in this plan?
The plan provides valuable investment and insurance benefits. For your convenience, NIB has illustration software to provide you customized illustration of benefits for your plan based on your current age, contribution payments and circumstances. Please contact your NIB branch for a personalized illustration today.
When does the insurance cover start?
Commencement of the plan is entirely based upon receipt and realization of the first premium, and the policy document as issued by EFU life.
Is there any medical examination required before I can buy this plan?
This primarily depends on the coverage amount selected. For a low coverage amount, based on a low Protection Multiple, (depending upon the medical conditions stated in the application form), a policy may be issued without the need to undergo any medical examination. Please contact NIB for further details.
What if I stop making contributions to the plan due to any reason?
NIB Future is a long term saving plan and maximum benefits can be availed till the maturity date of the savings term. However, if you are unable to continue making the premium payments, the plan offers the paid-up option. You can inform EFU life about your inability to pay any further premiums and the amount payable on death or maturity will be equal to the total cash value of the policy. No further premiums would be payable and EFU life will continue to cancel enough units as required, to pay for the administrative costs of maintaining the policy.
Is there any grace period for payment of premiums?
For annual premiums, a grace period of 30 days is allowed for the payment of premiums after the first premium, during which the policy shall remain in force. For monthly, quarterly and hall yearly premium modes, a grace period of 7 days is allowed for the payment of any premium after the first payment, during which the policy will remain in force. In order to ensure continuation of your policy, the premium should be paid on time, or sufficient balance should be maintained in your NIB bank account before the premium due dates. If premium is not paid on time, the policy shall lapse and may be re-instated. In this regard NIB may be contacted for further details.
Does the plan offer any Free Look Period?
The plan offers you a free look period of 14 days in which you can cancel your policy by contacting EFU Life Assurance and have your premium refunded. However, as per law, certain charges may be deducted relating to any medical examinations that you may have under gone during the application stage.
Can I further enhance the benefits of my plan?
The plan gives you the flexibility of attaching any of the following additional benefits to enhance your coverage level, such as
- Additional Term Assurance
Provides additional death cover from 50% to 200% of the main plan, sum assured for a nominal contribution
- Accidental Death and Disability Benefits
Provides valuable additional coverage in case of accidental death and disability. This can range from 50% to 200% of the main plan sum assured.
- Family Income Benefit
A unique benefit which provides a regular monthly income to the family in case of death of the insured life
- Life Care Benefits
Gives a much needed assistance in case of diagnosis of any of the defined 16 common critical illnesses.
- Waiver of Premium
Cares for you in times of temporary disability by waiving future premiums while you are disabled.
- Medical Recovery Benefit
Provides a comprehensive coverage for 379 defined medical conditions.
Who is the underwriter of NIB Future?
NIB Future is underwritten by EFU Life Assurance which is registered and supervised by the Securities & Exchange Commission of Pakistan. EFU Life is part of the EFU Group and is the largest private sector life insurance provider
in Pakistan.
Disclaimer
Note: NIB shall only act as a facilitator for bringing the NIB Future plan facility to its Customers. Accordingly, the Bank shall not be held responsible or liable for any decision relating to the issuance of any policy, the process for settling of claims and/or for any act or omission on the part of EFU Life in relation to NIB Future.
