PREMIER

Overview

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Life insurance serves as a crucial financial safeguard, offering protection in case of an untimely demise, particularly for those who depend on your income. However, certain life insurance products can also double as tools for savings and retirement planning. This unique combination of protection and savings sets life insurance apart from other financial instruments. Various policies serve different purposes, some focusing on safeguarding you and your family, while others help you accumulate savings or fulfill both roles.

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When you have a life insurance policy, you can achieve the following:

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• Provide security for your family.

• Safeguard your home loan.

• Protect your business loan or overdraft.

• Enjoy personal pension income upon retirement.

• Address your estate planning needs.

• Explore alternative retirement savings and income options.

 

Life Insurance – Protection Plans:

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Life insurance protection plans come in various forms, with the most popular options being 'Decreasing Term,' 'Level Term,' and 'Whole of Life' coverage.

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Loan Protection Life Insurance:

A Decreasing Term life insurance plan provides coverage with a Sum Insured that gradually decreases over time. Typically, the Sum Insured decreases each year, aligning with the outstanding loan or mortgage debt. This type of plan covers you for a set duration, known as the 'term.'

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Fixed Term Life Insurance:

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Under a Level Term life insurance plan, you receive coverage with a fixed Sum Insured for an agreed-upon and unchanging term. In this plan, the Sum Insured remains constant throughout the policy's duration.

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Whole of Life Insurance:

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If you prefer not to commit to a fixed term, you can opt for a Whole of Life plan. This plan pays out the Sum Assured when you pass away, regardless of when that event occurs.

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Life Insurance – Savings Plans:

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Life Insurance Savings plans are designed to help you save money to achieve specific financial goals or bolster your retirement funds. In essence, they contribute to a more rewarding future.

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Additionally, a Life Insurance Savings plan provides a minimal amount of life insurance coverage in addition to your savings fund. In the event of your demise before the plan matures, your family will typically receive 101% of your savings fund. This nominal life cover (1%) classifies the plan as a life insurance policy, and it's worth noting that, under current Maltese legislation, your heirs won't be subject to any taxes on death payouts. Among the savings plans available, one can find regular savings plans such as the Flexi Plan and the Child Savings Plan, and lump sum investments such as the Single Premium Plan.

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Flexi Plan: Regardless of your savings goals, whether it's for a home, a vacation, a new car, or retirement, the Flexi Plan is designed to enhance the prospects of your future. With this plan, you enjoy full autonomy and the ability to customize it according to your individual needs and circumstances, providing a more fulfilling path to achieving your financial objectives. This savings plan involves regular premium payments invested in the MSV With Profits Fund. The fund aims for stable returns with essential protection and guarantees. Objectives include a tax-efficient medium to long-term investment, yielding a tax-free cash sum at the plan's term end, and a lump-sum payout in case of the policyholder's death before benefit withdrawal.

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Child Savings Plan: This is a flexible savings plan designed for your child's future dreams. It operates as a With Profits regular premium savings plan, adapting to changing circumstances. Contributions go into your Policy Account after deducting charges, and the plan participates in profit distributions.

The plan aims to:

1. Provide a tax-efficient medium to long-term investment, yielding a tax-free cash sum by the child's 25th birthday.

2. Offer a nominal Death Benefit of 101% of the Plan value if the Person Covered passes away before the Plan term concludes.

3. Allow access to some savings during the policy term for ongoing child-related expenses.

4. Provide flexibility in adjusting premium amounts to suit changing circumstances.

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Single Premium Plan: The Single Premium Plan is an investment option that involves a lump sum invested in the With Profits Fund. This type of investment utilizes a with-profits approach, which helps even out returns by spreading profits across both favorable and challenging market years.

Plan Overview: The MSV Single Premium Plan operates as a lump sum investment in the MSV With Profits Fund, employing the with-profits strategy to balance returns over varying market conditions.

Objectives:

1. Provide the potential for medium to long-term tax-efficient capital growth.

2. Allow access to invested funds through either one-off withdrawals or regular annual withdrawals.

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Life Insurance – Pension Plans:

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Pension plans aim to assist you in saving money and supplement your retirement income. You can obtain a Pension Plan either individually (referred to as a Personal Pension Plan) or through your employer (known as Voluntary Occupational Pension Schemes). There are two types of Personal Pension Plans - With Profits and Unit Linked.

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Similar to traditional savings plans, Pension Plans also offer the advantage of minimal life coverage. These plans often come with tax incentives, introduced to promote personal savings and corporate contributions.