Benefit on death – On receiving written notification at our support and administration office of the death of the last life assured on an EIB policy, we will:

• Stop all regular withdrawals and any other actions due to take place

• Sell all of your linked investments and add the sale amounts to the cash account

• Calculate the final death benefit of the policy.

We will only pay out the death benefit when we have received proof of:

• The death of the last life assured

• That you, your estate or someone else has the legal right (“probate”) to the policy benefits

We will not pay out the death benefit until we have sold all linked investments and the sale amounts have been added to the cash account. We must also receive any additional Endorsements at our support and administration office before will pay out the death benefit.

EIB taxation – Custodian Life Limited is subject to Bermuda tax laws. Therefore any growth or income earned in your policy is not taxed. However, withholding tax may be deducted at source on income arising from investments held in some countries, which cannot be reclaimed by us. You may have a personal liability to tax depending on the tax laws in your country of residence and your own personal circumstances. Tax implications should be discussed with your specialist adviser.

As a client with Custodian Life, there are two main elements that will affect the charging structure:

• Contract period – this is the period you chose for your premiums. Additional premiums can be set up with different contract periods in comparison to the initial premium.

• Allocation rate – this is the rate at which your premium is applied to the policy. This could be below or equal to 100%. It is possible to set an allocation rate of your EIB policy so that the whole establishment fee relating to the premium is deducted on the policy start date. Alternatively, you could set an allocation rate up to 100% and pay the establishment fee over a set period of time, the chosen contract period.

Depending on your EIB policy setup, different charges will apply.

• Establishment fee –  An establishment fee can be paid upfront or over a set period of time (the contract period), or in combination. If you chose an allocation rate higher than 92.25%, the establishment fee will be paid in part or zero upfront and in part or in whole over the contract period. The establishment fee you pay over the contract period will include an interest and will be amortized over the contract period. An early surrender fee may apply during the same period.
• Annual management charge –this is a charge that is taken throughout the lifetime of your policy as a percentage of the policy value exceeding your premium during the contract period and as a percentage of the policy value when contract period is due.

In addition to the establishment fee and the annual management charge there is also a flat policy fee. This is a fixed amount that may change in the future. It is taken from the cash account on the quarterly anniversary of the policy start date. The fee continues to be taken until the policy comes to an end.

The elements making your final charging structure will be detailed in your policy schedule. Your financial adviser can provide details before you apply for your policy. EIB additional fees

• Transaction charge- a transaction charge of USD 45 (or currency equivalent) will apply to each transaction in your EIB policy.

• Investment fees- the investment fees applied will depend on the investments to which your EIB policy is linked. Fees can include, but are not limited to, initial and annual management charges, performance fees and exit fees. Fees are determined by the investment manager. Where a discretionary manager has been appointed to your policy, our institutional discounts will not apply. You should ask your discretionary manager about expected investment fees.

• Custodian fees- these are charged to cover the costs of safekeeping records relating to linked investments. Custodian fees can vary in cost depending on the type of investments, however, to keep charges clear under EIB we charge a flat fee of USD 45 (or currency equivalent) per each purchase or sale of an investment. Where a discretionary manager has been appointed to your policy, our custodian fee will not apply. You should ask your discretionary manager about their custodian’s fees.

• Stockbroker fees- where a chosen linked investment requires, it may be necessary to buy or sell the investment through a stockbroker, any fees will be deducted from the EIB cash account. The current stockbroker fees are available from us on request. Where a discretionary manager has been appointed to your policy our stockbroker fees will not apply. You should ask your discretionary manager about their stockbroker’s fees.

• Advice fee- if you choose to appoint an investment adviser, their fees can be paid directly from the EIB cash account. An investment adviser fee up to 1.5% of the policy value, payable quarterly, can be requested. The amount available may be lower than this depending on other charges taken.

• Discretionary manager fees- if you choose to appoint a discretionary manager to manage the investments linked to your EIB policy their fees will be deducted at source. Discretionary managers may also have to pay custodian and stockbroker fees for some investments.

• Foreign exchange- where we are required to perform a foreign exchange (FX) transaction, this will be done at a rate determined by us, based on those commercially available in the market.