TARGET SAVINGS PLAN
Target Savings Plan is an investment arrangement through which funds can be accumulated for specific future needs while enjoying the benefits of a life assurance.
The funds are managed through a dedicated investment account into which allocated contributions and interest are credited.
The plan also provides you with additional life assurance cover based on the level of your annual contribution.
- A dedicated investment account is opened for each policyholder.
- Allocations for investment and interests are credited into the account.
- Life assurance cover is provided for the policyholder based on level of initial annual contribution.
- Policy duration is between three and five years
- Contribution/premium can be paid annually, half yearly, quarterly or monthly
- Contributions can be increased within the policy term
- Minimum contribution is GMD1,000 per month.
- On death of life assured before maturity/target date the life cover plus the amount in the Investment Account become payable.
- If regular contributions/Premiums are not paid as and when due; life cover ceases.
- At the end of the investment period, the policyholder receives the total amount credited into his investment account plus interest as a lump sum.
- Lump sum may be converted to annuity at the request of policyholder.
- No withdrawal charge is level on all allocations credited into investment account of policyholder if regular contributions/Premiums are not paid as and at when due; life cover ceases.
- If the policy is surrendered before the third year from commencement date, withdrawal charges are levied on accrued interests only.