1. Entrance Fee:
Purpose: This is the fee charged for establishing and setting up the policy in the portfolio and/or system.
Rate: Once-Off Fixed Fee of SR 592.50
* This fee is collected within the first 6-7 months of the contract period.
2. Acquisition Fee:
Purpose: This fee is charged for marketing and subscription responsibilities and efforts.
Rate: 1.6% x Annual Contribution x Term
Contribution = SR 500 per month
Term = 10 years
Entrance Fee = 500 x 12 x 10 x 1.6% = SR 960.00
* This fee is payable within the first four months of the contract period
3. Administration Fee:
Purpose: This is the fee charged to properly administer & manage the policy throughout the term.
Rate: SR 31.25 or 0.14584% of Cash Value monthly, whichever is the higher.
* This fee is charged every month from the second month onwards and for the entire contract period.
4. Mortality Charge:
Purpose: This charge is to provide the Protection Benefits and ensure claims can be paid.
Rate: Charged individually for each Participant based on age, amount of Protection. It may include extra loading where Participants suffers medical conditions or have dangerous vocations.
5. Miscellaneous Fees:
Finally, there are
2-3 other fees/ charges that may be incurred, though not significant and only
levied in special instances. When Participants request extra Policy Statements
beyond the four free ones provided annually by ATC, a fee of SR 100 is charged
for every extra statement or where Participants wish to switch or do
redirecting of their units/ contributions (beyond the four free ones allowed
annually by ATC) in the savings element of the contract, a fee of 1% of the
value of units redeemed is charged.