Taking out a glu life insurance product.

The profit that gets shared is based on the operating and investment returns generated (after the allowance of expenses and capital requirements as required by regulation). Your annual notional bonuses are based on the premiums paid by you relative to the total value of premiums received by glu in the year.

We issue a Profit-Share policy when you take out a glu life insurance policy and earn your first notional Profit-Share. Notional Profit-Share assignments are made each year. After 10 years 20% of your Notional Profit Share vests and belongs to you, and at each 5-year interval thereafter. The vested com-ponent moves into your glu investment policy. After 25 years, or when you turn 65, 100% of the Notional Profit Share vests and becomes accessible to you.

Vesting (transferring ownership to you) takes place in stages, with 20% vesting at your 10 year policy anniversary, and an additional 20% vesting every 5 years thereafter. This continues until your policy turns 25 or you turn 65 – whichever happens sooner. At that point, 100% of the profit share balance vests and becomes accessible to you.

If the accessible portion is not withdrawn, these funds continue to be invested and are subject to investment market fluctuations.

As a glu member, you will have a single Profit-Share Policy. Notional ProfitShare bonuses declared by other products will be added to this Profit-Share Policy and will follow the same processes.

The choice is yours! The accessible portion can be withdrawn as cash, invested in a PPS Investment fund for further growth, used to fund future discounts on life insurance premiums, buy additional products, or donate to charity. More exciting options will be shared in due course.

Notional Profit-Share Bonuses are based on the profitability of glu Mutual as a business and can be positive or negative. Your glu Profit-Share policy balance however can never fall below zero. Growth in your policy balance is dependent on investment market performance as well as Notional Profit-Share Bonuses allocated.

As a mutual, glu proudly pays all valid claims even though these reduce the profits available for sharing. A member’s Profit-Share balance is not reduced by their claim amount. When a claim is paid on a disability or critical illness benefit, and the policy remains in force, the notional Profit-Share bonus is based on all the premiums paid during the year, including for the claimed benefit.

If the policy remains active after a terminal illness benefit settlement (due to other benefits remaining in-force), all subsequent Profit-Share bonuses will become immediately accessible.

Upon the death of the member, if not already withdrawn, the accessible portion of the Profit-Share will be paid to the beneficiaries nominated in the Profit-Share policy. The inaccessible Profit-Share is also payable with a death or terminal illness claim. This is equivalent to the inaccessible Profit-Share balance at the start of the year, plus investment returns up to the claim payment date.

If the policy ends before the Profit-Share bonus declaration, due to a death, disability or critical illness claim, the member will receive their Profit-Share as an enhanced benefit with their claim.

If a glu life insurance policy ends, is cancelled or lapses before the full vesting date, any rights to that policy’s inaccessible Profit-Share will be forfeited. If the policy ends before the notional Profit-Share allocation date, it is excluded from the allocation process. glu doesn’t do pro-rata profit assignments if a policy was cancelled or lapsed during the year.

Forfeited Profit-Share is returned to glu to increase benefits, provide value-adding services and enhance future Profit-Share allocations of remaining members.