GlobalCapital Life Insurance Ltd has declared a 2.5% annual reversionary bonus rate payable on all its interest sensitive life insurance policies in force as at 31 December 2010. This bonus rate applies across all interest sensitive polices except on those were higher guaranteed rates are built within the policy such as the GlobalCapital Money Plus and Malta Investment Bond which both offer a guaranteed bonus rate of 3.5%. Over the last ten years (between 2001 and 2010) GlobalCapital Life Insurance Ltd has declared an average annual bonus rate of 4.375%.
“The financial markets have shown a steady, albeit weak recovery fluctuating among various sectors, but have not recovered to pre-financial crisis levels while the real estate markets have continued to be stagnant and to a certain degree losing value. Against a difficult financial and economic landscape, characterised by low interest rates, GlobalCapital Life has declared a bonus rate which reflects the market volatility in 2010 that has affected the performance of the underlying investment portfolio. Nonetheless, the declared bonus rate given to our policy holders is competitive particularly when one looks at our average annual bonus rate over the years and the prevailing lower interest rate environment in the last couple of years ” stated Mr. Bashar Khatib, CEO, GlobalCapital plc.
In declaring this annual reversionary bonus, the Company takes into consideration the performance of the investment assets held within the Company’s Life Fund. The Life Fund is made up of carefully selected and diversified investment instruments which include bonds, equities, funds, real estate and bank deposits. The mix of such investment tools and the rating of the underlying assets is monitored and approved by the investment committee of the Company. Once declared, reversionary bonuses are guaranteed by the Company, if the policy is held till maturity.
The declared reversionary bonus rate applies for all the Company’s regular premium and single premium interest-sensitive endowment life insurance policies. An example of a regular premium plan is the Protected Savings Plan, an interest-sensitive endowment policy aimed at helping you save money for your future whilst providing a means of financial protection.