Standard Life - FREELAX

Standard Life
                   FREELAX

Important Information Before Contract Conclusion

                 Base Package
Standard Life presents itself ..................................................................................................... 3
General tax information regarding FREELAX – Tax information regarding tax-preferred
insurance FREELAXDV and FREELAXGROUP DV ................................................................. 6
   Tax information regarding FREELAX ....................................................................................................... 6
   Tax information regarding tax-preferred insurance FREELAXDV and FREELAXGROUP DV .................... 9
The small print made quite large – Insurance policy terms and conditions .............................. 11
   Part I – General Terms and Conditions ................................................................................................. 12
   Part II – Supplementary terms and conditions for the guaranteed mortality amount ........................ 29
   Part III – Supplementary terms and conditions for occupational disability coverage .......................... 31




                                                                                                                         Standard Life 2
FR/D/1006/XI/11/13
Standard Life presents itself
Just between us: You should always look closely to whom you entrust your investment for a long period. Thus, ask
all the questions that are crucial to you. Because, in the long run, you should feel comfortable with a decision that
possibly has a lifelong significance. Here we have put together all the questions that our clients frequently ask when
we become acquainted.

Where does Standard Life come from?                            How can Standard Life cater to my wishes?

Our head office has been located in the Scottish               Very simple: by the way we work. We work very
capital Edinburgh since 1825:                                  closely together with our agents and share ideas with
Standard Life Assurance Limited                                them about the needs of our customers. Also our
Standard Life House 30                                         service staff – who carefully take care of each
Lothian Road                                                   individual contract and support you by telephone –
Edinburgh EH1 2DH                                              are closely involved with your multi-faceted matters.
United Kingdom                                                 Thanks to this closeness, we are able to become a
Registry No. SC286833                                          little bit better for you every day.

Hence, we have nearly 200 years of experience in               Is my future in good hands with Standard
investments and insurance. We are also represented             Life?
in Canada, Ireland, Hong Kong, India and China.
Since our IPO in 2006, "Standard Life Assurance                In Germany, we are still exclusive. As the largest UK
Limited" has lead the life insurance and pension               provider, however, we are no longer an insider's tip.
annuity business. Since 1996 we have been present              We have already acquired a reputation around the
in Germany, and since 1998 in Austria.                         world: Six million customers entrust us with a total of
                                                               some EUR 265 billion (as at: 30.06.2013). And,
Address of our branch registered office in                     furthermore: the specialised rating agencies
Germany                                                        Standard & Poor’s and Moody’s rate our financial
                                                               strength as being very good to good.
Standard Life Versicherung German Branch Office of
Standard Life Assurance Limited                                What do I need to know about Standard Life
Lyoner Straße 15                                               and my contract?
60528 Frankfurt, Germany
                                                               The contract language
The branch office is registered at the District Court of       Although we are a British company, you will receive
Frankfurt am Main under the register number HRB                all written and verbal communication in conjunction
41297.                                                         with your insurance contract in German.

Primary authorised representative of the branch is             The regulatory authority
Mr. Richard Stevenson.                                         In the UK, Standard Life Assurance Limited is
                                                               licensed by the Prudential Regulation Authority and is
What type of company is Standard Life?                         supervised by the Financial Conduct Authority and
                                                               Prudential Regulation Authority. The German branch
The Standard Life Group in the United Kingdom                  office is subject to the financial supervision of the
comprises insurance and our own real estate                    Prudential Regulation Authority, and with regard to
investment company Standard Life Investments -                 statutory supervision the German Federal Financial
which also takes care of investing your premium                Supervisory Authority (Bundesanstalt für
contributions.                                                 Finanzdienstleistungsaufsicht; BaFin):
                                                               Prudential Regulation Authority
Exactly what products does Standard Life                       20 Moorgate
offer to me?                                                   London, EC2R 6DA
                                                               United Kingdom
Our main business is the sale of pension annuities.
Depending on your needs, please select an offering             The background
from our basic provision products, company pension             Each British insurance company must regularly prove
schemes or a capital investment product.                       to the responsible British supervisory authority that
                                                               they have sufficient financial reserves to meet all
What makes our products unique is their flexibility.           future obligations to their customers.
This means that, depending on your situation, your             The calculation rules of the responsible British
contract adapts to changes in your life. Furthermore,          supervisory authorities applicable to reserve
we regularly inform you by sending                             accumulation and assessment are conservative and
clear-cut information about the exact value of your            include very tight margins for assessing the financial
contract.                                                      position of insurance firms. In addition to the
                                                               minimum reserves, the responsible British
                                                               supervisory authority requires, among other things,
                                                               that stress tests are performed regularly. The results
                                                               of these are indicative of whether the investments of
                                                                                                     Standard Life 3
FR/D/1006/XI/11/13
a life insurer still provide sustainable coverage of       measure attributable to these measures, as well as to
obligations toward policyholders and are sufficient        the stringent regulations of Financial Conduct
when subjected to pre-defined crisis scenarios in the      Authority (FCA).
capital markets. Along with the tests required by the
responsible British supervisory authority, Standard        In the very unlikely event that Standard Life is no
Life – like most life insurers – also undergoes            longer solvent to pay amounts owed to their
additional voluntary tests. Year for year, we meet the     customers, and also the transfer of the contracts is
requirements of the responsible British supervisory        not possible and there is no other alternative way to
authority and our reserves are well above the              preserve the contracts in question, the FSCS can
minimum level required by the regulatory authority.        make an indemnification payment. This indemnity is
                                                           subject to certain rules and limits stipulated by the
Furthermore, in Germany the abusive practices              FCA. Generally, there are no upper limits for life
supervision of BaFin is applicable and we are a            insurance or pension annuities. The regulations for
member of the German Insurance Association                 the determination of indemnification are set by the
(Gesamtverband der Deutschen                               FCA, but can be summarised as follows: With
Versicherungswirtschaft; GDV).                             respect to life insurance and pension annuities,
                                                           presently 90 percent of the claims against insurers
German law for your insurance contract                     are indemnified; there is no upper limit. The FSCS
Details pertaining to you and the person to be             can alter these limits.
insured, as well as the data recorded in the
application in combination with the relevant policy        Customers can be indemnified if, due to their
conditions, provide the basis for the contract which       dealings with a regulated financial services company,
you have concluded with Standard Life. The legally         they have suffered a financial loss. The FSCS can
binding terms and conditions provided to you inform        only provide an indemnification payment for a
you about the mutual rights and obligations arising        financial loss.
from the insurance relationship.
                                                           Ultimately, the amount of the indemnification
The contractual basis and all contracts concluded          payment depends on the individual case of
with us shall be subject to the law of the Federal         insolvency and the claim of the individual customer
Republic of Germany. For details on the court of           towards the insurer. The FSCS is flexible in order to
competent jurisdiction, please refer to Section 23 of      find an equitable solution for every individual case.
the enclosed insurance policy terms and conditions.        Thus, it is not possible for us to show a calculation of
                                                           possible indemnification as an example.
Bankruptcy protection for German customers
Our German and Austrian customers whose                    Who can I contact if I have questions or am
contracts have been issued as of 1 December 2001,          dissatisfied?
have the right to apply for compensation from the
British Financial Services Compensation Scheme             Your agent knows you, your expectations and needs
(FSCS):                                                    best of all; you should contact him or her if you have
FSCS                                                       any concerns about private pension schemes. But, of
7th Floor                                                  course, our service staff would also be pleased to
Lloyds Chambers                                            help you with your questions, requests and
1 Portsoken St., London, United Kingdom                    suggestions. You can call them at 0800-2214747
E1 8BN                                                     from Monday to Thursday from 8:30 to 18:00 and
                                                           Friday from 8:30 to 17:00 (free of charge).
The FSCS provides comprehensive information on             You can also send an e-mail to us at
their methods and procedures, rules, scope and             kundenservice@standardlife.de. You can reach us
financing at the website: www.fscs.org.uk                  by fax at 0800-5892821.

This means:                                                If you object to our benefits provision or service, you
In the unlikely event that Standard Life should be         can contact the complaints management department.
insolvent, you can apply to the FSC for compensation
for your contract. You are entitled to the FSCS's          You can reach us via e-mail at
protection to the same measure as the British              beschwerde@standardlife.de.
customers.
                                                           If you wish, you can contact the extrajudicial
What does FSCS bankruptcy protection                       mediation office:
mean?                                                      Versicherungsombudsmann e. V.
                                                           P.O. box 08 06 32
The first priority of any bankruptcy protection is the     10006 Berlin
preservation of the insurance contract in its originally   Tel. 0800-3696000
agreed form. Therefore, the FSCS's objective is to         E-mail: beschwerde@versicherungs-ombudsman.de
"save" the insurance portfolio to the greatest extent      www.versicherungsombudsmann.de.
possible. The FSCS can, for example, transfer a
contract to a different insurance company or provide       We emphasize that your possibility to pursue matters
support for such a transfer. Since the founding of the     in court remain undiminished.
FSCS on 1 December 2001, there has not been a
single insolvency of a life insurer. This is to no small
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FR/D/1006/XI/11/13
Additionally, you can also address complaints to the
supervisory authorities who are responsible for us.

Bundesanstalt für Finanzdienstleistungsaufsicht
Bereich Versicherungen
Graurheindorfer Straße 108
53117 Bonn
Tel. 0228-41080
E-mail: poststelle@bafin.de
www.bafin.de

Prudential Regulation Authority
20 Moorgate
London EC2R 6DA
United Kingdom


We want to make sure that you are doing really well later on - that's why you have made a wise decision
in choosing to conclude a Standard Life insurance policy to provide for your private pension.Here's to a
good partnership!
Your Standard Life team




                                                                                         Standard Life 5
FR/D/1006/XI/11/13
General tax information regarding FREELAX
Tax information regarding tax-preferred insurance FREELAXDV and
FREELAXGROUP DV
The following explanations provide you with an overview of the basic tax law regulations applicable to
your insurance contract. They are based on the tax legislation applicable at the time of printing.
This is only general information, which is not an integral part of the life insurance contract concluded
with you. In particular, it does not replace case-specific tax advice from your tax advisor.
During the term of the contract, judicial jurisprudence and changes in laws and regulations can have an
impact on your insurance contract, over which we have no influence.
Please also keep in mind that contract amendments can also have tax implications. Therefore, please
inform yourself before undertaking a contractual amendment.


Tax information regarding FREELAX                          One-time capital sum payments from a pension
                                                           scheme with a choice of capital payment are subject
                                                           to taxation. The amount of difference between the
(I)      Income tax                                        payout amount and the total of premium contributions
                                                           paid is taxable. The portion of premium contributions
(a) The tax treatment of premium contributions             allocated to covering the risks of occupational
                                                           disability may not be deducted from the amount paid
Contributions to deferred annuities are not tax-           out.
deductible as special expenses.
                                                           We must deduct 25 percent capital gains tax
(b) The tax treatment of the payment of pension            from this amount of the difference. In accordance
benefits                                                   with Section 43 Subsection 3 Line 1 of the German
                                                           Income Tax Act (EStG), we transfer this amount –
The capital gains portion of current pension               along with the associated solidarity surcharge –
payments from private pension schemes is, in               directly to the tax authorities. You can request that
accordance with Section 22 (1) Line 3a.bb of the           we also automatically deduct the church tax for you.
German Income Tax Act (Einkommensteuergesetz;
EStG) subject to income tax. The capital gains             With this, the income tax applicable to these capital
portion depends on the age of the insured person at        gains has been settled (i.e. flat-rate withholding tax).
the beginning of the payment of pension benefits and       An examination of the most favourable tax treatment
remains unchanged for the duration of the pension          option(flat-rate withholding tax vs. individual taxation)
payment. The capital gains portion only comprises          in the context of the income tax return may be
capital gains from the ongoing pension payments.           requested by the taxable person.
Capital gains attained during the deferral period
remain tax-free.                                           (c2) Half difference

In case of an annuity life insurance pension with a        Only half of the difference amount is subject to
contractually agreed minimum duration, if the insured      income tax if the payment is made at the end of
dies within this time period then the capital gains        twelve years after contract conclusion and after the
portion is also subject to income tax for the              completion of 62 years of age of the taxable person.
beneficiaries and/or the legal successor (usually the
heir) until the end of the minimum duration. The           In this case, however, deduction of capital gains tax
capital gains portion applied to the testator is thereby   on the full amount of difference is carried out by the
continued.                                                 insurance company. These tax amounts are
                                                           prepayment of the personal income tax. The
Pensions from an additional occupational disability        determination of the amount of the tax actually to be
insurance policy are, as time-limited life annuities,      paid can only be made within the framework of the
subject to tax for the capital gains portion according     income tax assessment of the taxable person at his
to Section 55 Subsection 2 of the German Income            or her specific tax rate, offset by the amount paid in
Tax Implementation Regulation (Einkommensteuer-            advance by the insurer.
Durchfuhrungsverordnung; EStDV). The amount of
the capital gains portion - unlike with retirement         (c3) Miscellaneous
pension benefit payments - depends on the
foreseeable duration of payment of pension benefits.       At your request, we shall provide you with an
The shorter it is, the smaller is the proportion of the    appropriate tax statement.
pension which is to be regarded as taxable income.
                                                           By submitting an exemption application or a non-
(c) The tax treatment of one-time capital sum              assessment certificate, you can prevent the retention
payments                                                   of the capital gains tax, solidarity surcharge and, if
                                                           applicable, any church tax in whole or in part.
(c1) Total amount of difference

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FR/D/1006/XI/11/13
One-time capital sum payments in the event of death       (II)     Inheritance tax and gift tax
are completely exempt from income tax.
                                                          Insurance benefits paid to the policyholders
                                                          themselves are not subject to inheritance tax.
(d) What should you observe in case of                    Surviving dependants' benefits are subject to
contractual amendments?                                   inheritance tax. Whether or not inheritance tax must
                                                          be paid depends on the amount of the total amount
Please also note that the exercise of options or an       acquired from an inheritance tax perspective and the
amendment of the contract may result in a situation       tax-exempt amount granted to the acquirer.
where, in case of the exercise of the choice of capital
payment or termination of your insurance policy, the      If the policyholder and beneficiary of the insurance
full difference amount may in whole or in part be         benefit are not the same person, then we must notify
subject to income tax. This applies in particular to      the tax office of this before disbursing payment of the
contribution premium and benefit increases not            benefits. Because of the regulations set forth in
agreed to at contract conclusion, if a period of less     Section 20 Subsection 6 of the Inheritance Tax Law
than twelve years lies between the date of the            (Erbschaftsteuergesetz; ErbStG), if the payment is to
change and date of maturation when the capital sum        be made in a foreign country we need a certificate of
payment is made.                                          compliance from the tax office prior to payment.

(e) "Riester" private pension saving incentive            If an insurance policy is transferred without
                                                          remuneration through a change of policy holder
An incentive as per Section 10a and Section XI of the     during the lifetime of the original policyholder, it is
EStG ("Riester-Rente"; a private pension saving           subject to the the gift tax. Whether or not gift tax must
incentive) is not possible with this product.             be paid depends on the amount of the total amount
                                                          acquired from an gift tax perspective and the tax-
(f) Pension payment notification procedure                exempt amount granted to the acquirer.

In accordance with Section 22a of the EStG,               For each change of policy holder, we must notify the
insurance companies are obliged to notify the             responsible tax office of the previous policyholder.
German federal pension authority (Deutsche
Rentenversicherung) upon payment of private               (III)    Insurance tax
pension benefits.
                                                          The contributions to deferred annuity policies are
The notification must be made by March 1 of the year
                                                          exempted in accordance with Section 4 of the
following the year in which the taxable person
                                                          Insurance Tax Act (Versicherungsteuergesetz;
received pension payment. For this purpose, the
                                                          VersStG), insofar as you – as the policyholder – have
taxable person must provide the insurance company
                                                          a domicile or habitual residence in the Federal
with his or her tax identification number.
                                                          Republic of Germany.
(g) Disposal of an insurance policy
                                                          If you change your residence to another country, then
                                                          your insurance contract can be subject to the
In case of disposals of a life insurance policy, we as
                                                          insurance tax there in accordance with the local tax
an insurance company must notify the tax office
                                                          legislation. As the case may be, we will then be
which is responsible for the taxable person (= seller)
                                                          required to charge you with this insurance tax and
in accordance with Section 20 Subsection 2 No. 6
                                                          transfer it to the responsible authorities.
Line 2 of the EStG. At the request of the taxable
person (= seller), we provide a certificate detailing
the amount of the contributions paid up to the time of    (IV) Value Added Tax (VAT)
the disposal.
                                                          In case of deferred pension scheme, the contribution
(h) Taxable person                                        premiums and benefits are exempted from the value
                                                          added tax.
In terms of Section 20 Subsection 1 No. 6 of the
German Income Tax Act (EStG), a taxable person is         (V) Notes for companies with balance
someone who, in his or her own name and on his/her        sheet accounting
own account, has made his or her own capital in the
form of savings shares available to an insurance          For policyholders in the legal form of a company with
company for their use.                                    balance sheet accounting, the tax notes mentioned
                                                          above generally do not apply. Companies with
As a rule, the policyholder is a taxable person           balance sheet accounting can regularly declare the
because he or she has relinquished the savings            contributions tax deductible as a business expense.
shares for usage and thus possesses the right to          In turn, for am employer the insurance benefits
claim insurance benefits.                                 derived from the reinsurance policy represent
                                                          operating revenue. The value of the insurance policy
With the granting of irrevocable rights to draw the       is part of the business assets and must be
taxable insurance benefit, principally the beneficiary    capitalised.
of the capital gains is regarded as a taxable person.


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FR/D/1006/XI/11/13
If a benefit is taken in the form of a lump sum, the
insurance company must withhold 25 percent capital
gains tax plus solidarity surcharge from the full
difference amount and transfer it to the tax office.
The flat-rate withholding tax, in effect since 2009,
does not apply to companies subject to corporation
tax.

As the reinsurance policy is always taxed due to the
capitalisation, the company – as insured party – can
take the capital gains tax into account in their next
tax return.

Please contact your tax consultant for binding
information.




                                                        Standard Life 8
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Tax information regarding tax-preferred                    payment no savers' flat-rate deduction can be
insurance FREELAXDV and                                    claimed pursuant to EStG Section 20 Subsection 9.
                                                           An exemption of capital gains is therefore not
FREELAXGROUP DV                                            possible (missive from the German Federal Ministry
                                                           of Finance of 31 March 2010, margin number 116).
Part I: The tax treatment of the employee
                                                           (c) "Riester" private pension saving incentive
(I)      Income tax
                                                           An incentive as per Section 10a and Section XI of the
(a) The tax treatment of premium contributions             EStG ("Riester-Rente"; a private pension saving
                                                           incentive) is not possible with this product.
Employer contributions to a tax-preferred insurance
policy are regarded as employee remuneration. This         (d) Pension payment notification procedure
applies regardless of whether or not the employer
contributions are made in addition to the wages or         In accordance with Section 22a of the EStG,
salary, or whether the worker waives a part of his or      insurance companies are obliged to notify the
her salary (deferred compensation). The following          German federal pension authority (Deutsche
explanations apply to both forms of financing.             Rentenversicherung) upon payment of private
                                                           pension benefits. The notification must be made by
According to section 3 No. 63 of the EStG, the             March 1 of the year following the year in which the
contributions can be applied tax-free insofar as the       taxable person received pension payment. For this
contributions in the calendar year do not exceed 4         purpose, the taxable person must provide the
percent of the contribution upper limit in the statutory   insurance company with his or her tax identification
pension scheme system for workers and employees            number.
(in Western Germany). This amount shall be
increased by EUR 1,800 p.a. if the contributions due       (e) Benefits notification
to a pension commitment are made after 31
December 2004 and in the respective calendar year          With the "Notification regarding taxable benefit from a
no contributions for a pension benefit pursuant to         private pension scheme contract or from a company
Section 40b of the EStG (in the valid version at 31        pension scheme (EStG Section 22 No. 5 Line 7),
December 2004, referred to in the following as old         referred to hereinafter as benefits notification,
version) are taxed at a flat rate.                         pension recipients subject to taxes are officially
                                                           notified as to the benefits paid to them by means of a
If the choice of capital payment is exercised no           specified form. The notification lists the benefits
earlier than one year before retirement, the               separately according to the taxation categories, thus
contributions will continue to be tax-free pursuant to     making it easier for you to fill out your tax return. For
the EStG Section 3 No. 63. Otherwise, exercising this      this purpose, the taxable person must provide the
choice has the result that the preconditions of EStG       insurance company with his or her tax identification
Section 3 No. 63 are no longer met and the                 number.
contributions are taxable.
                                                           (II)     Inheritance tax and gift tax
(b) The tax treatment of pension benefits
                                                           The pension contributions of the employer to the
Pensions and one-time capital sum payments from a          employee are not subject to inheritance tax or gift
tax-preferred insurance policy based on tax-free           tax.
contributions pursuant to EStG Section 3 No. 63 are
completely subject to income tax (deferred taxation)       Benefits derived from a tax-preferred insurance
as per EStG Section 22 No. 5. The amount of income         policy based on tax-free contributions and paid to the
tax to be paid depends on the individual's tax rate.       employee are not subject to inheritance tax. Benefits
This also applies to a death benefit.                      from a tax-preferred insurance policy paid to an
                                                           employee's widow/widower or orphans because of
If the benefits are based on both tax-free and non-        beneficiary's rights are also not subject to inheritance
tax-free, individually taxed contributions (for example,   tax, but reduce the respective personal pension
during parental leave the employee's own                   exemption of the beneficiary.
contributions paid, or because the limits referred to in
Section(a) are exceeded) or on a flat-rate tax paid        Benefits from a tax-preferred insurance policy paid to
contributions pursuant to EStG Section 40b (old            other beneficiaries or survivors of controlling
version), the benefits must be divided up accordingly      shareholders or directors of a proprietary company,
in the payout phase.                                       or which have been acquired as part of the estate of
                                                           the deceased worker, are subject to inheritance tax.
For the taxation of that part of the benefits which is     Whether or not inheritance tax must be paid depends
not based on tax-free contributions, the explanations      on the total amount acquired from an inheritance tax
described under (i) (b), (c1) and (c2) of the tax          perspective and the tax-exempt amount granted to
information for FREELAX shall apply.                       the acquirer.
Death benefits which are not based on tax-free
contributions are exempt from taxation.
Overall, as this concerns income as per EStG
Section 22 No. 5, in case of a one-time capital sum

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FR/D/1006/XI/11/13
Part II: The tax treatment of the
employer
(a) The tax treatment of premium contributions

Employer contributions to a tax-preferred insurance
policy are considered operating expenses.

(b) The tax treatment of pension benefits

Benefits derived from a tax-preferred insurance
policy by the employer are to be recorded as
operational income, insofar as the employer may be
entitled to them.

If an insurance benefit is taken in the form of a lump
sum, the insurance firm must withhold the 25 percent
capital gains tax plus solidarity surcharge on the full
difference amount and transfer this to the responsible
tax office. The flat-rate withholding tax, in effect since
2009, does not apply.

(c) Capitalisation

Claims arising from a tax-preferred insurance policy
must not be capitalised by the employer, insofar as
the entitlement goes to the employee or his/her
dependant.

If the employer lends against a tax-preferred
insurance policy or if he/she assigns claims thereof to
a third party, the capitalisation obligation is only
eliminated if he/she undertakes in writing to the
beneficiary to treat that person in an insurance case
as if no assignment or lending has taken place (EStG
Section 4b).

If the insurance claims are wholly or partially
attributable to the employer, the claims must be
capitalised.
There is no obligation to account for a tax-preferred
insurance policy on an accruals basis.

(d) Insurance tax

Pursuant to VersStG Section 4, the contributions to
deferred annuity policies are exempted from the
insurance tax if the policy-holder has his habitual
residence or, in the case of legal entities, domicile in
the Federal Republic of Germany.

If you change your residence to another country, then
your insurance contract can be subject to the
insurance tax there in accordance with the local tax
legislation. As the case may be, we will then be
required to charge you with this insurance tax and
transfer it to the responsible authorities.

(e) Value Added Tax (VAT)

In case of deferred pension scheme in the form of a
tax-preferred insurance policy, contributions and
benefits are exempted from the VAT.




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The small print made quite large
Insurance policy terms and conditions

Dear Policyholder,

On the following pages we will provide you with information on the terms and
conditions of the insurance contract between you and us - Standard Life Insurance,
German branch Standard Life Assurance Limited - in addition to any other contractual
arrangements which apply to your insurance policy for one of the listed products:
FREELAX
FREELAXDV
FREELAXGROUP DV
FREELAXRDV.

We use the personal form of address here and refer to you as "policyholder", and thus
generally as the person who has applied for the insurance policy and concluded the
contract. As our direct contractual party, you are named specifically in the insurance
certificate. If, however, you are only the the "insured person" – i.e. the person whose
life is insured (because your employer has taken out a life insurance on you, for
example), the terms and conditions do not affect you directly.
The rights and obligations are primarily addressed to the policyholder, i.e. the direct
contractual party.

If your insurance contract has been concluded as FREELAXDV or FREELAXGROUP
DV, or was ever treated as a tax-preferred insurance policy based on tax-free
contributions, the corresponding stipulations of these terms and conditions shall also
remain valid in case of private continuation of the policy by the employee or, in case of
a transfer to a new employer due to a change of employers.

In Part I, the rules summarized under the heading "General Terms and Conditions"
apply to all of the products listed above. Differing stipulations pertaining to the
individual products are listed in the relevant paragraphs.

Furthermore, these insurance policy terms and conditions also include in parts II and III
"Supplementary Terms and Conditions" for the respective risk coverage components
"Guaranteed mortality amount" and "Occupational disability coverage". These rules are
then only decisive for you - in addition to the "General Terms and Conditions" - if you
have included the respective risk coverage in your insurance policy contract.
The present insurance policy terms and conditions are an integral part of your
insurance policy contract. Please read attentively the insurance policy terms and
conditions and store them carefully together with the certificate of insurance and, in
case of any amendments of the contract, the annexes to the certificate of insurance
sent to you. Annexes are also elements of the insurance contract.




                                                                           Standard Life 11
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Part I – General Terms and Conditions
                                                            ▸ the pension guaranteed in the insurance certificate
Section 1 What is insured? When and which                   for the beginning of the pension period, based on the
benefits do we provide?                                     actuarial assumptions valid at the time of contract
                                                            conclusion.
(1) British private pension scheme
                                                            For the guaranteed pension (cf. Section 2 (a)
The deferred pension scheme with worldwide                  (second bullet point), the following applies:
insurance coverage which you have selected is a so-
called (unitised) "with profit product" with agreed         (aa) In case of an additional contribution (cf. Section
maturity. This means:                                       13 Subsection 1 (e)) or a dynamic premium (cf.
                                                            Section 10 Subsection 2), the guaranteed pension is
(a) A legal entitlement to the benefits listed under        increased at the time of additional contribution or
Sections (2) to (4) is only valid when the agreed           dynamic premium. With regard to the additional
beginning of your pension period has been reached           contribution or dynamic premium, their increase is
(cf. Subsections 2 and 3) or in the event of death          calculated on the basis of the recognized methods of
before the agreed beginning of your pension period          actuarial mathematics instead of on actuarial
(cf. Section 4). In the event of a postponement of the      assumptions applicable at the time of contract
date of the beginning of your pension period, the           conclusion, which are valid for us new contracts for
entitlement to the new beginning of the pension             comparable annuity policies at the time of the
period date only then exists if the conditions of Article   additional payment or dynamic premium, if these lead
15 are met.                                                 to lower benefits than the calculation using the
                                                            contract actuarial assumption valid at contract
In case of a premature termination of the contract (for     conclusion. The increased guaranteed pension is
example due to cancellation), however, you are not          stated in the associated annex.
entitled to any of the insured benefits, but only to the
current value. A cancellation deduction may also be         The date of the beginning of the pension period (cf.
taken into account where appropriate in the payout          Section 15, Subsection 1 (b)) for the guaranteed
amount (cf. Article 11, for example).                       pension is fully recalculated according to recognized
                                                            methods of actuarial mathematics (bb) upon an
(b) Your insurance policy is, in the deferral period        adjustment of the originally selected pension scheme
prior to attainment of the agreed beginning of your         option (cf. Section 16, Subsection 2 (a)) and in the
pension period, bound to the financial performance of       event of a delay of the date of the beginning of the
partial assets - the V series of the German With Profit     pension period or a shifted date of the beginning of
Fund. This will give you the opportunity, in particular     the pension period. This is based on the actuarial
with regard to an increase in value, to achieve an          assumptions valid for your contract instead of the
increase in value (cf. Section 3 Subsection 3); when        previous actuarial assumptions which we apply to
prices fall, you bear the risk of a loss in value.          new contracts for comparable annuities, in case the
                                                            recalculation with these actuarial assumptions leads
In the event of a premature termination of the              to lower benefits than the recalculation with the
contract, you bear the risk of value depreciation of        actuarial assumptions valid for your contract. For
your insurance policy, in particular due to price           details, see the annex which you have received due
declines and capital losses within the V series of the      to the amendment made.
German With Profit Fund.
                                                            (b) As of the beginning of the pension period the
(2) Life-long annuities from the beginning of the           specific pension is guaranteed in its full amount;
pension period                                              there are no variable elements of the pension
                                                            scheme; the pension does not participate in
(a) If the insured person experiences the agreed date       surpluses.
of the beginning of the pension period, we will pay to
the agreed due days a lifelong, monthly life annuity        The pension scheme determined in this manner will
related to the life of the insured person. The              not be increased during the pension phase unless
determination of this pension provision is based on         you have a pension dynamisation included in your
actuarial assumptions (in particular recognized             contract. In this case, the pension increases
mortality tables and the applicable interest rate factor    automatically each year by the agreed percentage.
during the term of the pension. At the beginning of         The yearly increases are thereby guaranteed.
the agreed pension period, you will receive the higher
pension of the two variants in comparison in the            (c) If you have concluded a FREELAXDV or
following.                                                  FREELAXGROUP DV policy and the benefits
▸ The pension, which is based on the nominal value -        provision commitment was given for up to 31
agreed at the beginning of the pension period and           December 2011, the beginning of your pension
then available for the pension period - of the              period may not be prior to the date on which the
insurance policy (cf. Section 3 Subsection 2 (a)), with     insured person completed 60 years of age. For
the actuarial assumptions valid at this time for new        benefits provision commitments made after 1
contracts immediately starting a comparable pension         January 2012, 62 years of age shall replace 60 years
scheme, or                                                  of age.

                                                                                                Standard Life 12
FR/D/1006/XI/11/13
survivor's protection can be paid as a one-time lump
(3) The lump sum payment at the date of the                 sum.
beginning of the pension period (exercising of the          If there are no survivors at the time of death in terms
choice of capital payment)                                  of EStG Section 3 No. 63, then the burial allowance
                                                            documented in your insurance certificate shall be
(a) As of the date of the beginning of the pension          provided to the rightful claimants.
period, the pension defined according to Section 2
can be - wholly or partially - settled with a single lump   If neither survivors nor rightful claimants to the burial
sum if:                                                     allowance are named in the insurance certificate,
▸ the insured person is alive at the schedule date          then no survivor's protection is due.
▸ the product provides for a choice of capital payment
and this has been contractually agreed with us, and         (c) Rights to the death benefits arise with the end of
▸ we have received a request for the choice of lump         the month in which the insured person dies.
sum payment no later than three months before the
beginning of the pension period.                            (5) Capital preservation or the guaranteed duration of
                                                            pension payments in the event of the death after the
(b) Partial settlement of the pension payment is only       date of the beginning of the pension period
possible if the lump sum payment is at least EUR
1,500 at the beginning of the pension period and the        If the insured person dies after the date of the
remaining pension payments per year are at least            beginning of the pension period, no death benefits
EUR 120.                                                    are due.

(c) If for the products FREELAXGROUP or                     However, as death benefit we shall provide
FREELAXDV DV the pension is only partly settled by          ▸ either the amount which has been determined and
a one-time lump sum, then a maximum of 30 percent           annuitised according to Section 2, minus the pension
of the capital existing at that time will be settled. The   payments already paid, if capital preservation in the
option of a complete lump sum payment remains               form of a single lump sum payment or a survivor's
unaffected.                                                 protection has been agreed, or
                                                            ▸ the pension determined as per Section 2 until the
(4) Death benefit in case of death before the               the end of the guaranteed duration of pension
beginning of the pension period                             payments, if a guaranteed duration of pension
                                                            payments has been agreed.
If the insured person dies before the date of the
beginning of the pension period, we provide - if the        In case of a FREELAXDV or FREELAXGROUP DV
obligations to cooperate as described in Section 17         policy, a guaranteed duration of pension payments
have been met - the following death benefits within         cannot be agreed.
the limits of Sections 5 and 6:
                                                            Section 2 What is the amount of your insurance
(a) In the event of death of the insured person before      benefits? What can be insured in addition?
the date of the beginning of the pension period, we
provide either                                              (1) Please refer to your insurance certificate for the
▸ the current value of the contract (determined             amount of the guaranteed insurance benefits.
according to Section 3 Subsection 3 (c)), or
▸ the nominal value of the insurance policy (cf.            (2) At the time of contract conclusion it is possible to
Section 3 Subsection 2 (a)) or                              optionally select benefits - insofar as they are offered
                                                            for the chosen product - in addition to the benefits
▸ in the event of death of the insured person before
                                                            referred to in Section 1 (major component) during the
completion of the the 70th year of age, the sum of the
                                                            deferral period, e.g. in case of occupational disability
contributions paid into the contract and co-payments,
                                                            (occupational disability exemption from contributions
minus any partial payouts made (premium refunds),
                                                            or occupational disability exemption from
depending on which of these amounts is higher.
                                                            contributions and occupational disability pension) or
                                                            a minimum benefit in the event of death (guaranteed
(b) The form of the death benefits provided will
                                                            mortality amount).
depend on the respective chosen product:
(aa) If you have concluded a FREELAX or
                                                            Whether and in what amounts these benefits
FREELAXRDV policy, the death benefits are paid out
                                                            (additional risk coverage components) are insured is
as a one-time lump sum. Upon payment of the death
                                                            documented in your insurance certificate. The
benefit, any claim to further benefits derived from the
                                                            respective rules are listed in the corresponding
contract is voided.
                                                            supplementary terms and conditions (Parts II and III).
(bb) With regard to the FREELAXDV or
                                                            Section 3 Is your contract a contract with
FREELAXGROUP DV products, survivor's protection
                                                            participation in profit-sharing? What principles
is automatically paid out in the form of a survivor's
                                                            and standards apply to the definition of the
pension if there are survivors in terms of Section 3
                                                            nominal value and the current value? What is the
No. 63 of the EStG. Decisive for the amount of the
                                                            basis of our freedom of investment? How do we
pension are the actuarial assumptions valid at the
                                                            finance our guarantees?
beginning of the pension payment. Upon request, the
                                                            (1) No participation in profit-sharing
                                                                                                  Standard Life 13
FR/D/1006/XI/11/13
reserves. On the basis of these regulatory
Your pension scheme is a contract without profit          requirements applicable to Standard Life, the Board
sharing in terms of Section 153 of the VVG; profit-       of Directors compares the market value of the capital
sharing of this kind is completely excluded.              investments with the liabilities of the German With
                                                          Profit Fund and thus determines the capital gains
Your insurance policy is not involved in the              generated in this fund.
commercial profits of the company.
                                                          (d) Application of capital gains of the German With
(2) Definition and significance of the nominal value      Profit Fund

Rather, your insurance policy is bound by the             As a principle, all capital gains of the German With
nominal value in the deferral period to the               Profit Fund are only due - in the form of insurance
performance of separate partial assets - the V series     benefits - to the insurance policyholders whose
of the German With Profit Fund, with the chance of        contracts are assigned to this linked balance sheet.
an appreciation in value.
                                                          Only in the exceptional case that the shareholders of
(a) The nominal value is a calculation parameter          Standard Life Assurance Limited have lent financial
defined in the contract which is comprised of             resources to the German With Profit Fund in order to
contributions paid and ongoing increases (cf. Section     meet mandatory regulatory requirements relating to
3 (b)), after the costs for closing and administration    the solvency of the fund, then the capital gains of the
(see Section 14 Subsection 1) as well as the risk         German With Profit Fund can also be used to repay
costs (cf. Section 14 Subsection 2) and partial           this loan.
payouts (cf. Section 13 Subsection 2) have been
deducted.                                                 Depending on the general development and
                                                          assessment of the possible future developments of
The nominal value includes - as stipulated by the         the capital market and thus the German With Profit
provisions of the following sections - any ongoing        Fund the Board of Directors determines the extent to
increases from capital gains from capital investments     which the nominal value can be increased.
calculated together with the V series of the German       There is no waiting period for your contract, which
With Profit Fund, as well as from the smoothing of        means that right from the beginning the nominal
contract values. In addition, as stipulated by the        value of your contract can be increased as follows:
provisions of the following sections, there will be a
final payment where appropriate.                          (aa) Ongoing increase of the nominal value

(b) The setup of the German With Profit Fund and          At least once per year, the Board of Directors shall
breakdown in series                                       determine a percentage increase of the nominal
                                                          value for the series V in accordance with the
In order to ensure adequate participation of all          principles set out in Subsection 3. This percentage
policyholders in the capital gains from the               will be communicated to you. It can also be zero, but
investments, the capital investments of similar           it can never be negative. The nominal value of the
contracts are consolidated for management purposes        contract will be paid interest on daily basis with this
and reported in the balance sheet. Within these           percentage.
linked balance sheets the capital investment is
divided into series, which correspond to the different    (bb) Final payment
product series.
                                                          On the date of the beginning of the pension period or,
Your contract is part of the Life Insurance product       in the event of death before the beginning of the
class in Germany series V. The linked balance sheet       pension period, the current value of the contract is
is the German With Profit Fund. Capital gains             determined in accordance with the principles of
attributable to your contract are based on the            Subsection (3) (c). If this value is higher than the
financial performance of the capital of the series V of   nominal value, the result is a final payment as the
this linked balance sheet.                                difference between current value and the nominal
                                                          value. On the date of the beginning of the pension
The costs to be directly charged to the V series of the   period, or at the time of death before beginning of the
fund are reported in Article 14 Subsection 3.             pension period, this last payment increases the
                                                          nominal value and is thus included in the
(c) Balance sheet reporting of the German With Profit     determination of the insurance benefits in
Fund                                                      accordance with Section 1.

At least once a year a balance sheet, in accordance       (3) Principles for ongoing increases in the nominal
with regulatory requirements of Great Britain, is         value and for the determination of the current value
produced for the German With Profit Fund. These
requirements differ from the rules for German             (a) Basic principles
insurance companies mainly inasmuch as the value
of the investments is reported as fair value in the       Standard Life invests for the German With Profit
balance sheet. For this reason, in contrast to the        Fund in a portfolio of asset classes, such as equities,
balance sheet reporting of German insurance               fixed-income securities and other money market
companies, there is no establishment of valuation         instruments.
                                                                                               Standard Life 14
FR/D/1006/XI/11/13
possible smoothing their income would mean an
As the German With Profit Fund involves separate            unreasonable disadvantage for the contracts
partial assets which in principle are only due to those     remaining in the With Profit Fund.)
insurance policyholders whose contracts are                 ▸ Standard Life uses so-called "asset shares" as a
assigned to this fund (see Subsection 2 (d)) in the         support for the determination of the current value.
form of insurance benefits, the following principles        The asset share of the contract involves a projection
relate to the fair distribution of the partial assets to    of the amount of the premium contributions paid
the different policyholders.                                minus any deducted costs and partial payouts of the
                                                            capital gains achieved. The costs taken into account
Particularly the interests of those policyholders           include costs for conclusion and administration, both
whose contracts are withdrawn from the fund (by             from the contribution as well as directly from the
termination or transition to the pension phase, for         Fund, and the risk costs for insured risk benefit. It is
example) and the interests of those policyholders           also taken into account that for the financing and
whose contracts remain in the fund be weighed               hedging of the guaranteed pension for life starting the
against each other.                                         beginning of the pension period or the mature lump
                                                            sum payments or the nominal values used as a
In order to ensure the fair distribution of the partial     calculation parameter at the beginning of the pension
assets to all insurance policyholders, an office with a     period (without any possibly granted final payments)
special position of responsibility has been set up          a certain percentage of the fund value within the fund
within British insurance companies, at the time of          is separated (cf. Subsection 8). The income
printing namely the so-called With Profits Actuary. It      generated is capital gains from the investments of the
is responsible for adherence to the fair treatment of       German With Profit Fund and profits and losses
all insurance policyholders.                                arising on the smoothing of insurance benefits.
                                                            ▸ Due to the fluctuations in the capital markets and
The Executive Board has set itself the goal of              the taking into account of smoothing profits and
avoiding high fluctuations in the ongoing increases in      losses, the value of the investments can go up or
determining the fair value. By their nature, the            down. Accordingly, the asset share can rise or fall. In
fluctuations in fair value are greater than those of the    particular, the asset share can be lower than the sum
current increases. The development of the capital           of all premium contributions paid.
investments of the German With Profit Fund                  ▸ Because of the smoothing, the current value can be
depends, however, on the general developments in            higher or lower than the calculated asset share.
the capital markets, which Standard Life cannot
                                                            ▸ If contracts from the fund are withdrawn and the
influence. The level of the current increases and the
                                                            current value is less than the asset share, the
fair value can therefore be subject to fluctuations and
                                                            German With Profit Fund achieves a smoothing
is not guaranteed.
                                                            profit. If the current value is higher than the asset
                                                            share, however, the German With Profit Fund makes
(b) The basic principles for determining the ongoing
                                                            a smoothing loss.
increases of the nominal value
                                                            (4) The increase of the nominal value does not lead
As increases in the nominal value (only) for the
                                                            to an increase in the guaranteed benefits cited in the
agreed beginning of the pension period or in the
                                                            insurance certificate; in particular, it does not lead to
event of death prior to the beginning of the pension
                                                            an increase in the guaranteed pension. This means
period have been committed, large ongoing
                                                            that, even if the nominal value is increased during the
increases limit the investment freedom of the
                                                            deferral period, a significant change in the actuarial
German With Profit Fund. However, a far-reaching
                                                            assumptions can lead to only the pension guaranteed
investment freedom allows the company to invest a
                                                            in the insurance certificate being paid at the
higher proportion of the German With Profit Fund in
                                                            beginning of the pension period.
stocks, for example, which generally provide greater
potential returns than investments in fixed-income
                                                            (5) The separate payment of the increases in the
securities. Consequently, the Executive Board
                                                            nominal value cannot be demanded. They flow into
therefore weighs the interest of the policyholder in
                                                            the determination of the benefits in accordance with
achieving large ongoing increases in the investment
                                                            Section 1.
against the broad investment freedom for capital
investments favouring higher potential returns for
                                                            (6) Starting with the date of the beginning of the
insurance policyholders.
                                                            pension period, the contract is no longer involved in
                                                            the German With Profit Fund and the pension to be
(c) Principles for the determination of the current
                                                            paid is guaranteed in full as of this date.
value
                                                            (7) Freedom of investment
The current value is determined as "fair value" in
accordance with the following principles:
                                                            The product you have selected is a "with profit"
▸ Under normal circumstances, Standard Life is
                                                            product. Accordingly, we are increasingly investing in
committed reducing (smoothing) the fluctuations in          shares, for example.
the value resulting from the volatility of the underlying
investments. (Standard Life could, for instance,            (8) Financing of the guaranteed pension benefits or
suspend the smoothing technique if after heavy              the mature lump sum payments or the existing
losses of capital investments an above-average              nominal values (without any possibly granted final
number of customers terminate their contracts and a
                                                                                                 Standard Life 15
FR/D/1006/XI/11/13
payments) used as a calculation parameter at the            The insurance coverage is limited, however, if the
beginning of the pension period                             death was caused directly or indirectly by acts of war
                                                            or civil disturbance, insofar as the insured person has
(a) The percentage of the fund value which is               taken part as one of the troublemakers. In this case,
separated for the financing and hedging of the              our duty to perform is limited to only the current value
guaranteed pension for life starting the beginning of       amount of the surrender value (cf. Section 11,
the pension period or the mature lump sum payments          Subsection 3).
or the existing nominal values (without any possibly
granted final payments) as a flat rate fee and within       With respect to the form of payment, Section 1
the German With Profits Fund is 1.25 percent p.a.           Subsection 4 (b) shall apply accordingly. There is no
                                                            restriction if:
(b) This separation accordingly reduces the current         ▸ the death of the insured person occurred during a
value of your contract (cf. Subsection 3 (c)) and thus      stay outside of the Federal Republic of Germany and
in particular the surrender value (cf. Section 11,          the insured person has not taken part in the warlike
Subsection 3).                                              hostilities on the side of the warring parties
                                                            ▸ the insured person, as a member of the
(c) Insofar as the amount separated in the fund or          German armed forces, a police force or the Federal
parts thereof are not required over a longer period of      Police, acting with a NATO or UN mandate, is
time for the financing and hedging of the lifetime          helping in their providing of humanitarian aid or in
pension benefits guaranteed starting with the date of       peacekeeping operations outside the territorial limits
the beginning of the pension period or the mature           of the NATO member states.
lump-sum benefits or the existing nominal values
(without any possibly granted final payments), the          Section 6 What applies in the event of suicide of
amount exceeding requirements will again be                 the insured person?
separated to go into the German With Profit Fund.
                                                            (1) In the event of deliberate suicide of the insured
(d) The overall procedure corresponds to the                person, we shall provide if three years have passed
accepted rules of actuarial mathematics.                    since the conclusion of the insurance contract (cf.
                                                            Section 4). This period begins anew with a contract
Section 4 When does the insurance coverage                  amendment which extends our duty to perform or
begin?                                                      with a restoration of the insurance policy with respect
                                                            to the amended or restored part.
(1) We accept your request in the form of a written
declaration or the sending of the insurance                 (2) In the event of deliberate suicide of the insured
certificate.                                                person before the expiry of the three-year deadline,
                                                            there is insurance coverage only then if it has been
(2) Your insurance coverage begins when we have             proven to us that the suicide was committed in a
accepted your request in accordance with Subsection         state of mentally ill disturbance precluding the
1 and the initial or one-time amount (first premium         exercise of free will.
contribution, cf. Section 8 Subsection 2 Line 1) has
been fully remitted to us; the receipt by us is decisive.   Otherwise, our duty to perform is limited only to the
                                                            current value amount calculated for the surrender
There is no insurance coverage, however, before the         value (cf. Section 11, Subsection 3).
agreed beginning of the insurance policy as specified       With respect to the form of payment, Section 1
in the insurance certificate.                               Subsection 4 (b) shall apply accordingly.

(3) If provisional insurance coverage has been              Section 7 What does the pre-contractual
agreed with you, it shall remain unaffected by the          disclosure obligation mean? What consequences
provisions of Section 2.                                    must you expect in case of a breach of this
                                                            obligation?
Section 5 What applies in case of military service,
civil disturbance or war?                                   (1) Your pre-contractual disclosure obligation

(1) The rules for the restriction of our duty to perform    (a) We assume provision of the insurance coverage
in case of the occupational disability of the insured       trusting that you have answered all of the questions
person are presented in Section 4, Subsection 2 of          in text form truthfully and completely prior to
the supplementary terms and conditions for                  conclusion of the contract. This so-called pre-
occupational disability coverage (Part III).                contractual obligation applies in particular to the
                                                            questions pertaining to current and former illnesses,
(2) With regard to the restriction of our duty to           health problems and complaints.
perform in the event of death, the following rules shall
apply:                                                      (b) If the life or the risk of occupational disability of
                                                            another person is to be insured, he or she is also - in
We shall also provide insurance coverage then in            addition to you - responsible for completely and
particular when the insured person has died while           truthfully answering the questions.
serving in the military or police service or in case of
civil disturbances.


                                                                                                  Standard Life 16
FR/D/1006/XI/11/13
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