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PROTECTING YOUR FUTURE WITH aDCB

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Savings and Protection Solutions


CAN I REALLY PREPARE FOR THE FUTURE?

V1/June2012

When you’re working every day to achieve your financial ambitions, it’s understandable that your focus is often on the here-and-now. As a result, planning for your future doesn’t always get the priority it deserves. But how are you going to protect your hard-earned wealth in years to come or prepare for those events that are simply not possible to predict?


Imagine that your financial circumstances changed. Would you be able to pay your mortgage? Or if the unthinkable happened and you were no longer able to provide for your family, would your loved ones have the financial resources to get by?

Of course, there are many positive reasons for financial planning too. Ensuring that you have the comfortable retirement you deserve, for example. Or putting money aside for your children so that you can cover the expense of a wedding or educational fees. At ADCB, we understand the pressures of ambition and so we want you to answer yes to all those questions. That’s why we provide a comprehensive range of savings and protection with solutions that allow you to plan for your own future, as well as that of your family.

“Providing the best for my family is my number one priority and proper savings for our future is a part of that responsibility.”

“I am so glad I planned for my daughter’s wedding because today is her special day that she will never forget!”

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HOW DO I PRESERVE MY WEALTH SO THAT MY FAMILY IS PROTECTED?


You don’t want to lose the accumulated wealth that you’ve worked so hard to amass in case of any mishap. The good news is there are a number of options available to help you. We offer both conventional and Shari’ah-compliant protection solutions that are designed to suit you and your family’s needs without compromising on your beliefs. The protection plans provided by our internationally-renowned partners give you access to the following: 1. Life cover so that you can choose the right level of financial protection for yourself. 2. Flexible and low premium payments for high levels of insurance cover. 3. Portable plans that can move with you when you relocate. 4. Benefits paid on the death of the insured to ease the financial burden on the surviving dependents.

5. Additional and comprehensive protection benefits like accidental death, hospitalization income, family income benefit, critical illness, long- term care, permanent total disability (PTD), waiver of premium (where future policy premiums are waived if insured person becomes permanently and totally disabled), and other benefits. 6. A life-time protection plan that can supply funds in case you’re unable to provide for your family through severe illness and accident or death. 7. Access to offshore financial centers providing tax efficiency and wealth transfer means.

“Planning ahead to financially protect our children’s future gives us peace of mind.”

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WHICH LIFE INSURANCE OPTION SHOULD I TAKE? Our qualified and experienced team will be able to help you decide which insurance option and cover is right for you in line with your needs and affordability. The choice is between ‘Whole of Life Insurance’ and ‘Term Life Insurance’.


Whole of Life Insurance provides financial security for you (up to the age of 95 years), as well as your family or business, in the event of death or disability or a critical illness. These plans are mainly unit-linked and accumulate a residual account value depending on the underlying investment fund’s performance. For comprehensive cover, you can add extra benefits to the plan, which may include cover for critical illness, permanent total disability, waiver of premium, family income, hospitalization, accidental death or long-term care benefits.

Term Life Insurance provides protection, financial security and peace of mind for you (up to the age of 80 years) as well as your family or business for a fixed term. It offers high protection values at relatively cheap rates. In contrast to ‘whole-of-life’ protection solutions, term life insurance does not accumulate any account value. The policy pays a lump sum benefit if the risk insured against occurs during the policy term. Critical illness or permanent and total disability benefits can be added to the plan. Term insurance is ideal to cover a mortgage liability.

THE EARLIER YOU TAKE OUT YOUR INSURANCE COVER, THE CHEAPER THE PREMIUM.

Primary factors contributing to your insurance cost comprises the amount of insurance cover you need, your age, the tenor of cover, and your health condition.

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HOW SHOULD I INSURE MYSELF ON THE ROAD? Auto insurance covers your car against accidents or risks on a comprehensive or third-party liability basis. Personal accident insurance benefits are usually also attached to the comprehensive auto insurance cover.


Whether you are insuring your new car or renewing your existing insurance, we can provide you with quick and affordable solutions. Auto Insurance through ADCB gives you access to a variety of benefits such as:

• Comprehensive and third-party liability cover. • Various additional benefits and add-ons including Oman and Qatar Territory Extension, auto gap, involuntary loss of employment, off-road cover, hire-car cash benefit and valet parking cover. • Policy delivery to your doorstep. • Affordable and competitive rates currently starting from as low as 2.85%.

TouchPoints is ADCB’s unique reward scheme, in which you earn TouchPoints for every product and service you use. TouchPoints can be redeemed for Etihad Guest miles, Emirates Skywards miles and vouchers for some of the UAE’s most premium retailers. Additionally, you can redeem TouchPoints for Salik top up, to pay utility bills and make Zakat donations.

If you would like more information about our comprehensive car insurance or for an instant quote: Call 800 2030

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CAN I FIND COVER TO SUIT MY BUDGET? Our range of simple protection products will give you coverage from as little as AED20 per month. Term life insurance and personal accident insurance are both available to suit all budgets. For Non Resident Indians (NRI) we also offer a specific health insurance to cover you during your time in India, alone or with your family or your parents back home.


INSTANT COVERS THAT YOU CAN APPLY FOR Secure Life insurance plan Secure Life insurance is a simple and affordable term insurance plan. For a regular contribution (with a choice over different tariff plans), you will receive different levels of coverage. You’ll have the flexibility to increase your cover whenever you wish and can be protected from as little as AED 20 per month. SMS “SECURE” to 2626, visit adcb.com, call 800 2030 or visit any ADCB branch.

Family Protector Plus Accident insurance Family Protector Plus is an easy, accessible personal accident insurance plan that offers unique benefits covering accidents and natural disasters. Protect your family’s financial future with installments starting from AED 25 per month. You can choose a life insurance plan that covers natural death in addition to accidental death, disability, and in-patient medical expenses which occur during the duration of the plan. SMS “LIFE” to 2626, visit adcb.com, call 800 2030, visit any ADCB branch.

NRI Health Insurance ADCB brings out yet another first for the Non Resident Indians – a comprehensive health insurance coverage for inpatient facilities across major hospitals in India, with a maximum insured sum of Rs. 500,000. Now, enjoy complete security and peace of mind whenever you travel back home. To learn more, visit adcb.com or call 800 2030 or visit any ADCB branch.

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Which savings solutions are right for me?


Your personal financial planning solution may depend on many factors, including your current age and the stage you’ve reached in life. To tailor the solutions that are right for you, we also need to know about your goals, when you want to reach them and – importantly – your attitude to risk. Our team of professionals will take time to understand you, your family and your objectives in life. We’ll then help you establish a personalised financial plan that meets your needs, without compromising your beliefs. How can I potentially benefit? Through our partner tie-ups with internationally renowned providers, we are able to offer you a wide range of attractive savings solutions. Although it’s important to look at the specific features of individual plans, you can be certain that they have been constructed with your long-term financial security in mind. Minimise investments risks Over short time periods, markets can sometimes be turbulent places. By adopting a disciplined investment approach and portfolio diversification strategy (process of selecting different investment funds across different assets classes) you can attempt to mitigate investment risks associated with market volatility. Through a concept known as ‘dollar cost averaging’, it’s also possible to buy more units when prices are low and less units when prices are higher.

Invest flexibly You pay low premiums and have flexibility over your investments – matching them to your appetite for risk and attempt to hedge against inflation. You can choose to add insurance benefits as appropriate. And if you want to switch or redirect your savings, you can do so free of charge. We also make it easy to check on the value of your investments and set objectives for the short, medium and long term horizon. Access the world We are able to offer access to world-class funds, investing across the financial spectrum in equities, bonds and commodities, as well as technology, real estate and world indices. Tax efficient vehicles & trust benefits Some of our savings solutions are domiciled in highly regulated offshore financial centers that offer you the opportunity to grow your wealth free of capital gains or income taxes. We also offer you trust services to help you protect your capital and aide your inheritance and wealth transfer planning. If you are interested in any of our savings solutions or would like to speak to one of our professionals, please SMS INS to 2626 or visit any ADCB branch.

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Three plans to choose from There are three kinds of savings plans available and a member of our qualified team will be able to help you decide which vehicle is right for you: Unit Linked Savings Plan

Capital Guaranteed Savings Plan

Lumpsum Savings plan

Time frame

Short to long term.

Medium to long term.

Short to medium term.

Savings method

Contribute regularly for a specific tenor.

Contribute regularly for a specific tenor.

Lump sum investment at the beginning of the period. No regular investment is required and you can top up your investment at any time.

Objective

Grow capital / Dollar cost averaging / guard against inflation.

Key benefits Returns are based purely on the market performance of the funds you select. Unit-linked solutions are ideal for general savings or for setting money aside for retirement or children’s education. They are also well suited to buying a house or planning for your child’s wedding.

Grow capital with the initial investment guaranteed.

Grow capital / easy access to capital.

Capital guaranteed vehicles Grow wealth/meet short to medium term are ideal for retirement, savings or for your children’s financial needs. education needs. They are also valuable if you want to buy a house or to plan for your child’s wedding.


Savings Tip The earlier you start planning for your future financial needs and objectives the lower the amount of money you need to tie-up today for achieving a future goal. SMS “INS� to 2626, visit adcb.com, call 800 2030 or visit any ADCB branch.

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Unit Linked Savings solutions General Savings Example 1 Imagine you are 30 years old and newly married. You want to start saving for the future, so you have decided on a nest egg of $80,000 to meet any future expenses and commitments that crop up. You might decide – depending on your timescales and appetite for risk – to contribute $500 a month over a ten-year period. Customer Age - 30 Years Unit Linked Savings Plan for 10 Years Term

Total Contributions

*Account Value

After 5 Years

$30,000

$35,171

After 10 Years

$60,000

$86,960

Savings for Education Example 2 You are 35 years of age and married and you want to start saving for the future so you are able to meet the costs of your child’s education and wedding expenses. You’re also hoping to retire at the age of 60 and want a 25-year Savings Plan which can help you with all these commitments. Customer Age - 35 Years Unit Linked Savings Plan for Childs Education, Wedding Expenses & Your Own Retirement Point of Requirement*

Total Contributions Made

Account Value*

Childs Education

At year 10

$120,000

$163,764

Childs Wedding Expenses

At year 15

$180,000

$296,852

Your Retirement

At year 25

$300,000

$746,841

Savings Objective

* The indicative average net investment composite yield generated by the strategy above was taken at an assumed growth rate of 8.00 % p.a. ** You can make partial withdrawals from your account value to meet particular needs, but that will proportionally reduce your available account value at the various other stages. *** At retirement, you have the option to either take the remainder of your account value as a lump sum or you can convert your plan into an annuity for a recurring income.


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Capital Guaranteed Savings Solutions Savings for Education Example 1 You are 35 years old and have a new-born child. You are hoping to send your child to university at 17 years old and want to ensure a sum of $25,000 per annum over five years to cover education fees. In this case a Capital Guaranteed Savings plan could well be a good solution. COLLEGE ENTRY AGE - 17 Years  Plan Tenor

Desired college Entry Age

Required Contribution

Guaranteed College fee per annum (paid out for 5 years)*

Single lump sum

17

17

$71,668

$25,000

Annual regular premium

17

17

$5,284

$25,000

Contribution Period 

Example 2 You are looking to get the same return as in Example 1 above, but you didn’t start planning for your child’s education until he was eight years old, therefore, a higher contribution would be needed to meet the same objective as in Example 1 above. We’ll assume once again that you are 35 years old at the time you take out the plan. COLLEGE ENTRY AGE - 17 Years  Plan Tenor

Desired college Entry Age

Required Contribution

Guaranteed College fee per annum (paid out for 5 years)*

Single lump sum

9

17

$101,041

$25,000

Annual regular premium

9

17

$12,137

$25,000

Contribution Period 

* The indicative average net investment composite yield generated by the strategy above was taken at an assumed growth rate of 4.00 % p.a.


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Savings for retirement needs Example 1 If you are 30 when you take out the plan and select a retirement age of 55, you would need to make contributions for 25 years. Let’s assume that you are targeting a guaranteed pension of $24,000 per annum until the age of 99. Customer Age - 30 Years DESIRED RETIREMENT AGE - 55  Desired Retirement Age

Plan Tenor

Required Annual Contribution

Guaranteed Retirement Income (Till age 99)*

55

25

$11,620

$24,000

Example 2 Now, let’s take a different scenario. You are 45 and defer retirement until you’re 60, with 15 years to make contributions, targeting the same $24,000 pension until age 99 that was highlighted above. Customer Age - 45 Years DESIRED RETIREMENT AGE - 60 Desired Retirement Age

Plan Tenor

Required Annual Contribution

Guaranteed Retirement Income (Till age 99)*

60

15

$20,513

$24,000

* The indicative average net investment composite yield generated by the strategy above was taken at an assumed growth rate of 4.00 % p.a. ** In the event that you die before age 99, your beneficiaries will receive the difference between the value of total contributions made during the accumulation phase and what has already been paid out to you.


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Insurance Products are made available to clients on request, based on an analysis of their needs. Insurance products are underwritten by respective insurance providers and issued subject to their terms and conditions. Abu Dhabi Commercial Bank (ADCB) does not offer insurance advice, nor does it manage, underwrite or issue insurance policies. ADCB is not responsible for rejected applications or claims by any insurance company. Premiums received by ADCB for insurance plans are not bank deposits. Investment products are not bank deposits and are not guaranteed by ADCB. They are subject to investment risks, including possible loss of principal amount invested. Past performance does not guarantee future results. Please refer to ADCB Terms & Conditions for Investment Services. This brochure is for information purposes only and does not constitute an offer or solicitation to purchase investment products.

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