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Middle Sea introduces two new products
by a staff reporter
Middle Sea Valletta Life Assurance Co. Ltd have yet once again
introduced two innovative products to help policyholders seek
to achieve long-term financial objectives. The Comprehensive
Flexi Plan and the Maximum Investment Plan are the latest of
a series of products launched by Middle Sea Valletta Life Assurance
Co. Ltd to assist investors to take a flexible approach in striking
a balance between their long and short-term financial objectives.
It is in everybody’s interest to set aside a portion of
one’s disposable income in order to consume it at a later
stage in life. These policies try to help build up that little
bit of extra cash so as to maintain one’s current lifestyle
even after retirement.
The Comprehensive Flexi Plan and the Maximum Investment Plan
are based on two elements: the Life Protection element (financial
protection in case of death of the breadwinner) and the Savings
Plan. Many families nowadays recognise the need for life protection
as vital, in view of increased life expectancy and improved
standard of living.
These products aim to make the cost conscious customer aware
of the costs incurred in taking out the required life cover.
The difference between the amount being paid and the cost of
life cover (after allowing for the policy charges) will go into
a policy account upon which one would earn a return, depending
on the product chosen.
Thus the total annual contribution (after allowing for the charges)
includes part life protection and part savings. The latter will
enable the policyholder to withdraw money when the policy matures.
The Comprehensive Flexi Plan
The main difference between the two products is how the policy
account (savings element) works. In the Comprehensive Flexi
Plan, the policyholder is participating with his savings in
the profits of the Middle Sea Valletta. Every year the company
will announce a bonus (in percentage terms) and this will be
added to the policyholder’s amount of savings.
This practice will carry on in the form of compound interest,
throughout the term of the policy. While every year, Middle
Sea Valletta does its best to give the best possible return
to its policyholders, the company’s objective is to preserve
the capital of the policyholders and provide its clients with
a good annual rate of interest on the capital. (The company
has declared a seven per cent reversionary bonus and a two per
cent terminal bonus for 1999).
The Maximum Investment Plan The savings account of this plan
will be linked to collective investment schemes managed by Fidelity
Funds SICAV and La Vallette Funds SICAV, according to the choice
of the policyholder from a list of 49 funds. In order to give
the policyholder a good investment strategy mix, the policyholder
can choose from a range of local and foreign bonds or equities
and cash funds. This product enables the policyholder to take
the investment strategy in his own hands and therefore he can
be more involved in the gains or losses of his investment strategy.
Policyholders with a long-term plan might easily take advantage
of these types of plans where they would expect to earn returns
generally related to worldwide stock market performance.
Middle Sea Valletta Life Assurance Co. Ltd is licensed under
the Investments Acts, 1994 to provide investment services and
is authorised to carry on long-term business under the Insurance
Business Act, 1998.
The value of the underlying assets (and hence the value of the
Plan) can fall as well as rise according to market conditions,
including exchange rate fluctuations. Past performance is not
necessarily a guide to future performance. Investments in foreign
currency
are subject to exchange control
regulations.
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