Important Notes on Policy Account Statements
Important Notes
These notes shall be read in conjunction with the Policy Account Statement (Maltese version can be found below)
Policy Account
The Policy Account Balance represents the accumulation, at the bonus rates declared by MAPFRE MSV Life p.l.c. (MAPFRE MSV) from time to time, of the Investment Premiums received less policy charges if any. The Policy Account Balance shown in this statement excludes any Premium and/or Policy Loans and accrued interest payable by the Policy Owner under the policy, and therefore any such policy loans and interest must be deducted from the Policy Account balance to arrive at the investment value of the policy.
Regular Bonuses
Policyholders investing in MAPFRE MSV’s With-Profits Fund participate in the distribution of profits of the MAPFRE MSV with-profits fund by means of an allocation of annual Regular Bonuses declared from time to time. The Regular Bonus Rates are usually expressed as a percentage of the Policy Account Balance.
Once declared, Regular Bonuses are guaranteed to be paid in full at maturity or on the prior death of the Person Covered. However, should the policy be surrendered, MAPFRE MSV will not pay the Regular Bonuses in full but will apply the Cash Surrender Value penalties, applicable at that time, to the Policy Account which will include Regular Bonuses Declared up to the date of surrender. A Market Value Reduction may also be applied by MAPFRE MSV to the Policy Account, including the Regular Bonuses already declared. The purpose and operation of a Market Value Reduction is explained hereunder.
Regular Bonuses are calculated on a daily basis from either the date on which MAPFRE MSV receives the premium or the premium due date, whichever occurs later.
Final Bonus
Depending on its profits experience, MAPFRE MSV may, after the end of the plan’s tenth year, or after ten years full premiums have been paid, decide to allocate from time to time a Final Bonus in addition to other declared bonuses. Such Final Bonus will normally be expressed either as a percentage of the Policy Account or as a nominal amount. A Final Bonus, if declared, is payable on policies that become claims by maturity or death, but not by surrender. Policy owners should be aware that Final Bonus rates are likely to be highly volatile and very dependent on the investment performance of MAPFRE MSV.
It is to be noted that where additional non-contractual top-up premiums have been made, a separate Final Bonus will be calculated and paid on the value of the policy account of each top-up contribution, provided that, the said top-up contribution was made more than 10 years before the maturity date of the plan or the date of death of the person covered, if earlier. The percentage of the Final Bonus granted in respect of each top-up contribution will vary according to the length of investment in the With-Profits Fund of each contribution.
Cash Surrender Value
Cash Surrender and Paid-Up Policy Values are determined at the discretion of MAPFRE MSV. The Paid-Up Policy Value will normally be equal to the Cash Surrender Value.
The primary factor affecting the level of Cash Surrender Value is the investment return earned on the assets of the MAPFRE MSV with-profits fund. In addition, the Cash Surrender Value is affected by the expenses, tax and the cost of risk benefits (such as life cover) borne by the MAPFRE MSV with-profits fund and deductions to provide a return to shareholders. The expenses include payment of commission, medical report expenses, office administration costs, investment management fees and other expenses incurred in setting up the policy.
At most the Cash Surrender Value will be the amount of the Policy Account reduced by the Surrender Charge (where applicable), but MAPFRE MSV reserves the right to increase the level of Surrender Charge and, if necessary, to apply a Market Value Reduction (MVR). A Market Value Reduction is a deduction, which MAPFRE MSV may make on surrender of a Policy. For example, if the underlying investment return after allowing for expenses, tax, risk benefits and shareholder deductions is less than the return already provided for in the form of Regular Bonuses, MAPFRE MSV may decide to apply a Market Value Reduction to reduce the Cash Surrender Value.
The Market Value Reduction serves to protect the interests of both investors who remain in the MAPFRE MSV with-profits fund and MAPFRE MSV, who would otherwise have to supplement the amount paid on surrendering policies. MAPFRE MSV does not apply a standard percentage deduction on all Policies but determines the deduction to apply to each individual surrender at the time the surrender is made. The amount depends on a number of factors including the length of time the Policy has been in force and the underlying investment return over the same time period. There will be no Market Value Reduction at maturity or on death. This means that at maturity or on death the payment of the Policy Account is guaranteed.
The Cash Surrender Value may be less than the total amount of premiums paid up to the date of surrender. Any amounts due to MAPFRE MSV will be deducted from such Cash Surrender Value.
Bonus Philosophy
MAPFRE MSV’s continued bonus philosophy is that the combined return to policyholders from Regular and Final Bonus rates should reflect the policyholders’ share of the profits made on the with- profits business. MAPFRE MSV aims to achieve a fair and equitable distribution of these profits between different generations and types of with-profits policies.
It is important to note that the profits made on with-profits business depend primarily on the investment returns earned on the underlying investments. Although MAPFRE MSV aims to provide policyholders with some protection from fluctuations in the investment markets by smoothing Regular Bonus rates from year to year, Regular Bonus rates may vary significantly over the lifetime of the Policy.
Investment returns can go down as well as up and therefore past performance is not necessarily a guide to the future. It is not possible to predict what the bonus rates will be in future and they may be higher or lower than their current level.
The bonus philosophy of MAPFRE MSV is centred on the ability to pay supportable bonus rates to with – profits policyholders in the medium to long term. MAPFRE MSV may review its bonus philosophy in the light of changes in economic conditions.
Policy Loans / Automatic Premium Loans
In some cases, the value of the with-profits policy can be used to provide security for a loan. It may also be the case that an automatic premium loan is granted to prevent a policy from lapsing in the event that a premium payment is late. In either case the loan, as well as any interest charged, must be repaid before a policy claim will be honoured or a maturity payment made. MAPFRE MSV may offset the value of any outstanding loan amounts against any payments made in connection with the policy.
Tax Position of With-Profits Policies
Policyholders of with-profits policies are currently not liable to any personal or capital gains tax irrespective of whether the Policy is surrendered or left to mature. Similarly, dependants will not be liable to any tax if they receive payment under this Policy by virtue of the premature death of the Person Covered. Tax treatment depends on individual circumstances and is based on current tax legislation which may change in the future.
MAPFRE MSV Life p.l.c. (C-15722) is authorised by the Malta Financial Services Authority (MFSA) to carry on long term business under the Insurance Business Act. MAPFRE MSV Life p.l.c. is regulated by the MFSA. MMSV070422
Noti importanti dwar id-dikjarazzjoni tal-kont tal-polza
Noti Importanti Dawn in-noti għandhom jinqraw flimkien mad-Dikjarazzjoni tal-Kont tal-Polza
Kont tal-Polza
Il-bilanċ tal-kont tal-polza jirrappreżenta l-akkumulazzjoni, bir-rati tal-bonus iddikjarati minn MAPFRE MSV Life p.l.c. (MAPFRE MSV) minn żmien għal żmien, tal-primjums tal-investiment riċevuti nieqes l-ispejjeż tal-polza, jekk huma applikabbli. Il-Bilanċ tal-kont tal-polza muri f’din id-dikjarazzjoni jeskludi kwalunkwe primjum u/jew self kif ukoll imgħax akkumulat pagabbli mis-sid tal-polza. Għalhekk, kwalunkwe self u imgħax tal-polza għandhom jitnaqqsu mill-bilanċ tal-kont tal-polza biex jkun kalkulat il-valur tal-investiment tal-polza.
Bonuses Regolari
Id-detenturi ta’ poloz li jinvestu fil-With Profit Fund ta’ MAPFRE MSV jipparteċipaw fid-distribuzzjoni tal-profitti tal-fond permezz ta’ allokazzjoni ta’ bonuses regolari annwali li huma ddikjarati minn żmien għal żmien. Ir-rati tal-bonus regolari huma normalment espressi bħala perċentwal tal-bilanċ tal-kont tal-polza.
Ladarba jiġu ddikjarati, il-bonuses regolari huma garantiti li jitħallsu b’mod sħiħ fil-maturità jew mal-mewt preċedenti tal-persuna koperta. Iżda, jekk ikun hemm ċediment (cash surrunder), MAPFRE MSV ma tħallasx il-bonus regolari b’mod sħiħ iżda tapplika l-penali tal-valur taċ-ċediment applikabbli f’dak iż-żmien, għall-kont tal-polza, li jinkludi bonus regolari dikjarati sad-data’ meta’ sar iċ-ċediment.
It-tnaqqis fil-valur tas-suq (Market Value Reduction) ukoll jista’ jiġi applikat minn MAPFRE MSV għall-kont tal-polza, inklużi l-bonuses regolari diġà ddikjarati. L-iskop u l-operat tat-tnaqqis tal-valur tas-suq huma spjegati hawn taħt.
Il-bonuses regolari huma kalkulati fuq bażi ta’ kuljum jew mid-data li fiha MAPFRE MSV tirċievi l-primjum jew id-data ta’ skadenza tal-primjum, skont liema minnhom isseħħ l-aktar tard.
Bonus Finali
Skont ir-riżultati tal-profitti tagħha, MAPFRE MSV tista’, wara t-tmiem tal-għaxar sena tal-pjan, jew wara li jkunu tħallsu għaxar snin primjums sħaħ, tiddeċiedi li talloka minn żmien għal żmien bonus finali flimkien ma’ bonuses oħra ddikjarati. Dan il-bonus finali normalment ikun espress jew bħala perċentwal tal-kont tal-polza jew bħala ammont nominali. Bonus finali, jekk iddikjarat, huwa pagabbli fuq poloz li jsiru pretensjonijiet b’maturità jew mewt, iżda mhux b’ċediment. Is-sidien tal-poloz għandhom ikunu konxji li r-rati tal-bonus finali x’aktarx li jkunu volatili ħafna u jiddependu ħafna fuq il-prestazzjoni tal-investiment ta’ MAPFRE MSV.
Ta’ min jinnota li fejn ikunu saru primjums addizzjonali mhux kuntrattwali, iżda bħala suppliment, il-bonus finali seperat jiġi kkalkulat u mħallas fuq il-valur tal-kont tal-polza
ta’ kull kontribuzzjoni supplimentari, sakemm, l-imsemmija kontribuzzjoni supplimentari tkun saret aktar minn 10 snin qabel id-data tal-maturità tal-pjan jew id-data tal-mewt tal-persuna koperta,jekk qabel. Il-perċentwal tal-bonus finali mogħti fir-rigward ta’ kull kontribuzzjoni supplimentari jvarja skont it-tul tal-investiment fil-With Profit Fund ta’ kull kontribuzzjoni.
Valur ta’ ċediment ta’ flus kontanti
Il-valuri tal-polza ta’ ċediment kif ukoll il-valur ta polza li hija Paip Up huma ddeterminati fid-diskrezzjoni ta’ MAPFRE MSV. Il-valur tal-Polza mħallsa li hija Paid up normalment ikun ugwali għall-valur taċ-ċediment tal-flus kontanti.
Il-fattur primarju li jaffettwa l-livell tal-valur ta’ ċediment ta’ flus kontanti huwa r-redditu mill-investiment miksub fuq l-assi tal-With Profit Fund ta’ MAPFRE MSV. Barra minn hekk, il-valur taċ-ċediment ta’ flus huwa affettwat mill-ispejjeż, it-taxxa u l-ispiża tal-benefiċċji tar-riskju (bħall-kopertura tal-ħajja) imġarrba mill-fond tal-profitti tal-MAPFRE MSV u t-tnaqqis biex jipprovdi redditu lill-azzjonisti. L-ispejjeż jinkludu l-ħlas tal-kummissjoni, l-ispejjeż tar-rapport mediku, l-ispejjeż tal-amministrazzjoni tal-uffiċċju, it-tariffi tal-immaniġġjar tal-investiment u spejjeż oħra mġarrba fit-twaqqif tal-polza.
Il-massimu tal-valur taċ-ċediment fi flus kontanti se jkun l-ammont tal-kont tal-polza mnaqqas bit-tariffa ta’ ċediment (fejn applikabbli), iżda MAPFRE MSV tirriżerva d-dritt li żżid il-livell ta’ ħlas ta’ ċediment u, jekk meħtieġ, li tapplika Market Value Reduction. It-tnaqqis ta dan Market Value Reduction kapaċi jsir minn MAPFRE MSV meta ċċedi il-polza. Pereżempju, jekk ir-redditu sottostanti mill-investiment wara li jiġu kkunsidrati l-ispejjeż, it-taxxa, il-benefiċċji tar-riskju u t-tnaqqis mill-azzjonisti jkun inqas mir-redditu diġà previst fil-forma ta’ bonuses regolari, MAPFRE
MSV tista’ tiddeċiedi li tapplika Market Value Reduction biex tnaqqas il-valur ta’ ċediment ta’ flus kontanti.
Market Value reduction iservi biex jipproteġi l-interessi kemm tal-investituri li jibqgħu fil-With Profits Fund ta’ MAPFRE MSV kif ukoll ta’ MAPFRE MSV, li inkella jkollhom jissupplimentaw l-ammont imħallas fuq il-poloz ta’ ċediment. MAPFRE MSV ma tapplikax tnaqqis perċentwali standard fuq il-poloz kollha iżda tiddetermina t-tnaqqis li għandu japplika għal kull ċediment individwali fiż-żmien li dan jsir. L-ammont jiddependi fuq numru ta’ fatturi inkluż it-tul ta’ żmien li l-polza ilha fis-seħħ u r-redditu sottostanti mill-investiment matul l-istess perjodu ta’ żmien. Mhux se jkun hemm Market Value Reduction fil-maturità jew mal-mewt. Dan ifisser li fil-maturità jew mal-mewt il-ħlas tal-kont tal-polza huwa garantit.
Il-valur taċ-ċediment tal-flus jista’ jkun inqas mill-ammont totali ta’ primjums imħallsa sad-data taċ-ċediment. Kwalunkwe ammont dovut lil MAPFRE MSV se jitnaqqas minn dan il-valur ta’ ċediment ta’ flus kontanti.
Filosofija tal-Bonus
Il-filosofija tal-bonus kontinwa ta’ MAPFRE MSV hija li r-ritorn ikkombinat lid-detenturi tal-poloz mir-rati tal-bonus regolari u finali għandu jirrifletti s-sehem tad-detenturi tal-polza With Profit magħmula fuq in-negozju tal-profitti. MAPFRE MSV għandha l-għan li tikseb distribuzzjoni ġusta ta’ dawn il-profitti bejn ġenerazzjonijiet u tipi differenti ta’ poloz With Profit.
Huwa importanti li wieħed jinnota li l-profitti magħmula fuq in-negozju With Profit jiddependu primarjament fuq ir-redditu mill-investiment miksub fuq l-investimenti sottostanti. Għalkemm MAPFRE MSV għandha l-għan li tipprovdi lid-detenturi tal-poloz b’xi protezzjoni mill-varjazzjonijiet fis-swieq tal-investiment billi twitti r-rati tal-bonus regolari minn sena għal sena, ir-rati tal-bonus regolari jistgħu jvarjaw b’mod sinifikanti matul il-ħajja tal-polza.
Ir-redditu mill-investiment jista’ jinżel kif ukoll jitla’ u il-passat mhux neċessarjament gwida għall-futur. Mhuwiex possibbli li wieħed ibassar x’se jkunu r-rati tal-bonus fil-futur u dawn jistgħu jkunu ogħla jew aktar baxxi mil-livell attwali tagħhom.
Il-filosofija tal-bonus ta ‘MAPFRE MSV hija ċċentrata fuq il-ħila li tħallas rati ta’ bonus sostnuti lid-detenturi tal-polza With Profit fit-terminu medju sa twil. MAPFRE MSV kapaċi tirrevedi l-filosofija tal-bonus tagħha fid-dawl tal-bidliet fil-kundizzjonijiet ekonomiċi.
Self ta’ Polza / Self ta’ Primjum Awtomatiku
F’xi każijiet, il-valur tal-polza With Profit jista’ jintuża biex jipprovdi garanzija għal self. Jista’ jkun ukoll il-każ li jingħata self awtomatiku ta’ primjum biex jipprevjeni li polza tiskadi f’każ li l-ħlas tal-primjum ikun tard. Fiż-żewġ każijiet, is-self, kif ukoll kwalunkwe imgħax mitlub, għandhom jitħallsu lura qabel ma tiġi onorata talba ta’ polza jew isir ħlas ta’ maturità. MAPFRE MSV tista’ tibbilanċja il-valur tal kwalunkwe ammont ta’ self pendenti ma’ kwalunkwe ħlas magħmul b’rabta mal-polza.
Il-pożizzjoni tat-taxxa tal-poloz With Profit
Id-detenturi tal-poloz With Profit bħalissa mhumiex soġġetti għal xi taxxa fuq il-qligħ personali jew kapitali irrispettivament minn jekk il-polza hijiex ċeduta jew titħalla timmatura. Bl-istess mod, id-dipendenti ma jkunux soġġetti għal xi taxxa jekk jirċievu ħlas taħt din il-Polza minħabba l-mewt prematura tal-persuna koperta. It-trattament tat-taxxa jiddependi fuq iċ-ċirkostanzi individwali u huwa bbażat fuq il-leġiżlazzjoni fiskali attwali li tista’ tinbidel fil-futur.