:.. ALICO-AIG [American Life Insurance Company Pakistan] Limitted ..:

Cost of living is sky rocketing
How will you maintain your standard of Living after Retirement?

How does vision for Retirement (VFR) work?
VFR is a unit linked plan. It is designed to accumulate value for your retirement. You

The target Marriage Fund, i.e. the amount of marriage expenses and the expected future inflation.

May either choose?
• The amount of basic Premium you wish to up to retirement, or
• The amount of monthly pension you wish to receive life long commencing at retirement.

Both alternatives are subject to the minimum and maximum Basic premium or pension determined by the Company at that time.

Is it necessary for me to submit any evidence of good health, undergo medical exams to buy VFR?
Evidence of good health or medical exams will be required only if you decide to attach riders providing life insurance or disability protection. See later.

What is Unit Linked Life Insurance?
Unit linked life insurance policy provides you the opportunity to participate in stock market linked investments, while enjoying the benefits of life insurance. The investments are in terms of number of units and unit price of investment sub-account under range of investment strategies for you to choose from. Investment in a sub-account is carried out by buying its units at the Offer Price. The value of investment sub-account times its unit Bid Price. The Offer Price is higher than the Bid Price by a percentage referred to as the Offer spread.

What are investment strategy choices I have?
You have the following investment strategy choices that would match your needs and financial objectives:

Aggressive strategy: This strategy seeks to provide you with long term capital growth mainly through investments in equities.

Balance strategy: This strategy seeks steady growth in capital through a combination of investments in stocks and government securities and/or other secured investment.

Conservative strategy: The strategy would be the most appropriate for those owners, who wish to invest more cautiously. Accordingly, the investments are made in government and/or other secured investments. There is no exposure to the stock market.

Islamic Sharah Compliant strategy: the investment sub-account offered under this strategy conforms to the Sharah as determined by the Sharah Board appointed by the Company or by a third party fund manager or by an issuer, as applicable.

Under each strategy you have an investment sub-account as listed in the application. The percentage of premium you wish to allocate to buy units in an investment sub-account should also be indicated. Each of these percentages should be a multiple of 10% (or zero in case you do not wish to invest in it). The sum of there percentages must equal 100%. You can therefore direct the investments by creating your own investment strategy portfolio a range of options to suit you needs and preferences. You will have the option the to switch between the investment sub-accounts anytime subject to certain conditions.

How will the account value build up by the premium I pay to provide for the marriage expenses?
The percentages of premium you wish to allocate to the investment sub-account (net of premium related expenses) will be applied to buy units of those sub-accounts at the applicable Offer Price. The units purchased will be credited to the appropriate sub-account representing the investment sub-account. Each timer you pay premium more units are added to your sub-account. The number of units added will depend on the Offer Price of the unit on the day of purchase.

To pay monthly management charges, administration, cost insurance (if any) and premium for supplementary contracts (if any), deduction will be made from the sub-account on a pro rata basis by canceling the equivalent number of units at the Bid Price of the sub-account. This process will continue during your chosen premium paying period.

Your account value at any point in time will be the aggregate of the investment sub-account values. The value of a sub-account is the number of units held times the Bid Price of that sub-account.

What will be the impact on my account value if I stop premium payments?
The monthly deduction for expenses and cost of insurance where applicable will continue to be made from the sub-account, whether or not you pay premium. If you stop premium payment the number of units in each sub-account will continue to deplete.

Your policy will lapse if the account value becomes insufficient to the monthly deductions. As such, it is advisable to continue premium payment under the policy for the full premium paying period.

Is there any incentive to continue premium payment for its full term?
Yes. Generous incentive is offered in the from of Loyalty Bonuses, which are allotted at the end of each 5 years period provided (A) the policy is in force (B) all the premiums falling due during this 5 year period have been paid and (C) partial withdrawals have not been made during this 5 years period. The Bonus amount is applied to units in the selected investment sub-account at the Offer Price and added to your account value. The rates of Bonus as follows:

Policy Anniversary	Percentage of the Basic Premium
5	10%
10	25%
Thereafter every 5th anniversary	25%

What percentage of the Basic Premium I pay is allocated to my account value?

Policy Year	Net Allocation as a Percentage of Basic Premium
1	35%
2-5	94%
6 onwards	100%

What other expenses are changes to my account value?

Management Charge:	1/12 of 1.5% of account value per month in the first 10 Thereafter, 1/12 of 1.3% of account value per month.
Bid-Offer spread:	5%
Administration:	Rs. 25.00 Per month
Processing Fee:	Rs.300.00 on partial withdrawal full surrender
Transfer Fee:	Rs. 300.00 on each transfer between sub-accounts

Would I be able to male withdrawals from my account during the premium paying period?
Yes may make withdrawals from your account value after the has run for 5 years, subject to minimum and maximum withdrawals amount as per Company rules. The withdrawals can or more investment sub-account as determined by you and will be processed by canceling the appropriate number of units of the sub-account(s). The withdrawals amount payable would be the number of units canceled times the applicable Bid Price. Since the main purpose of the account value is to for your daughter’s marriage, it is not advisable to make any early withdrawals. Furthermore, you lose entitlement to the loyalty bonus if you make partial withdrawals during any of the preceding 5 years.
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What is the difference between the account value and cash surrender value?
Cash surrender value equals the account value less a surrender charge depends on the policy your. The policy acquires cash value after premiums had been paid for two years.

What if I die before reaching the retirement age?
God forbid, if you die before reaching retirement age, the account value or the premiums paid, whichever is higher will be paid to your beneficiaries.

Can I attach a rider providing life insurance protection in case of death before the retirement age?
Yes. You may do so by attaching Term Life Insurance Rider and pay additional premium, subject to your providing evidence of good health satisfactory to the Company.

What other riders can I attach to NFS?
You may attach the following rider subject to evidence of insurability satisfactory to the Company

Accidental Death Benefit
Waiver of premium
Permanent and Total Disability benefit
Recovery Benefit
Income Benefit

Can I choose the retirement age?
Yes of course. You chose any age from 55 onwards provided premiums have been paid for at least 10 years. You may defer retirement to 65, 70 if you wish. The number of units in your account value will continue to grow during this period if you continue to pay premium.

But it is not advisable to choose the retirement age below 55 as the amount of pension would be too small to be meaningful.

Can I have estimates of the account values at different durations before my retirement?
An illustration will be provided assuming 3 different unit Bid price growth rates to give an idea of your account value at different duration up to maturity.
Please note that the entire amounts shown in the illustration are projection and not guaranteed.

What option will I have at maturity with respect to the accumulated account value?
You will have the following option:

Take the full account value at elected maturity date in cash
Apply it fully to buy life-time pension commencing at elected retirement age
Take it partly in cash and apply in cash and apply the balance to buy pension

The pension is payable for a minimum guaranteed period of 2 year and thereafter for you life-time.

What would happen to the remaining pension payments if die after receiving the pension for, say, only 3 years?
The pension is guaranteed to be payable for a minimum period of 20 years. If you die after 3 years, the pension will continue to your beneficiaries for the remaining 17 years.

Suppose, I receive pension for the guaranteed period of 20 years and continue to survive, will the pension continue?