Savings Plan

Your Savings Plan is a capital protected (if kept till maturity) 'with profits' savings plan, a life assurance contract very popular worldwide. The plan provides you with a very effective and secure method of combining a long term savings plan with the protection of life assurance. Your contributions are invested into your policy account which accumulates bonuses on a daily basis.

The main features at a glance

• An attractive bonus rate declared annually in advance by HSBC Life Assurance (Malta) Ltd. The bonus rate for 2008 is 4.30% p.a.
• Additional terminal bonus may be paid if the investment is kept for 10 years and over.
• An automatic guaranteed minimum life assurance of €2,330.
• The plan can be a simple savings plan. You may want to add more life assurance or disability benefits.
• You can make additional single premium deposits (minimum €230) whenever you like.
• You can increase your premium at the next payment date or simply take an automatic increase of 5% annually to safeguard against inflation.
• You may reduce your premium by up to 25% p.a. at the next payment date, as long as you maintain the minimum annual premium.
• You may take a premium holiday after your policy has been active for 2 years.
• You may withdraw the declared annual bonus from your policy up to 1 month after you receive the annual bonus statement. Bonus will be paid to the Beneficiary if designated.
• The lump sum payable at the end of the term is tax free under current legislation but this may be subject to change in the future.
• You will normally tie your money up for a fixed period of time, minimum 10 years.
• Policy fees apply (see details below).
  

Additional benefits

Click here to learn what other benefits are available on the above product.

How much should you invest in your plan?

This is entirely up to you and will depend on your income and financial commitments. Our Financial Planning Officers will identify your current needs and circumstances and help you identify the amount of money that you can save for the future. The minimum premium amount is €35 per month or €420 annually.

How much will it cost?

A percentage of your regular premium is kept as a charge by HSBC Life Assurance (Malta) Ltd. This is age and premium dependent and varies between 1% and 5% of the premium.

Policy fee varies according to the frequency payments. Yearly payments attract an annual policy fee of €17.47. Premiums may be paid monthly, quarterly, half-yearly or yearly.

Terminal bonuses

Like with all our with-profit policies, it is our intention to declare not only the annual bonus but also a terminal bonus on maturity or death of the life assured, if this occurs after ten years from the start of the policy. This may add a substantial amount to the value of the policy. This terminal bonus is not guaranteed and may only be given to policies with a ten year term or more.

How can I find out more?

The decision to take out life insurance is an important one.

For more information please call Customer Service on 2380 2380, or visit your nearest branch and discuss your personal needs with one of our Financial Planning Officers / Managers .

• Click here to access the product brochure (pdf)
• Click here to access the product key features (pdf)