Provider Scottish Widows Product Flexible Options Bond - Unit Linked Version Min/max Minim...
Flexible Options Bond - Unit Linked Version
Minimum age attained at entry
There is no minimum age for applicants. There can be either one or two applicants who will be the plan/policy owner(s) - although not necessarily the lives assured.
Maximum age attained at entry
There is no maximum age requirement for the older life on a joint life plan where the younger life maximum is 90 years. On a single life policy the maximum age must not exceed 85 next birthday.
Minimum stand alone single premium (£)
The minimum investment into the plan is £5,000 (However, please note that there are minimum withdrawal levels which will result in higher minima required for cases taking withdrawals depending on the frequency and amount of withdrawals taken.) The maximum investment into the plan is £1m
Minimum additional single premium (£)
The minimum additional single premium is £1000.00
Initial charge incorporated in the bid/offer spread (%)
There is no initial charge levied.
Annual man charge (%pa)
The AMC on units in each of the SW managed unit linked funds is 0.75% pa deducted daily. An additional AMC will apply on externally managed funds including the multi-manager funds. * An implicit charge of 0.60% pa is allowed for in the asset share calculations and bonus declarations for the With-Profits Growth Fund. * An implicit allowance of 0.75% pa is allowed for in the asset share calculations and bonus declarations for the With-Profit Income Fund. There is also a further AMC of 0.25% of fund value deducted by monthly cancellation of units. The units are valued as for Establishment Charge.
Administration fee (%)
Following payment of a new premium, there is an Establishment Charge of 0.5% of the fund value in respect of that premium for the first five years. This is taken monthly by cancellation of units.
Fund value is calculated as:
* value of units adjusted for final bonus and MVR for With-Profits Growth Fund * value of units adjusted for final bonus and MVR for With-Profits Income Fund * bid value of units for unit-linked funds The Establishment Charge can be reduced or removed by giving up allocation rates in 0.5% stages.
Policy fee (£)
There is no policy fee levied.
Early surrender charge levied
The surrender value is calculated as fund value minus a surrender charge where fund value is calculated as: * value of units adjusted for final bonus and MVR for With-Profits Growth Fund * value of units adjusted for final bonus and MVR for With-Profits Income Fund * bid value of units for unit-linked funds If the surrender is made within five years of a premium payment, the surrender value will be reduced by a surrender charge.
The surrender charge is calculated as a percentage of fund on a sliding scale taking account of the level of establishment charge for the bond as follows:
Surrender charge for a Bond where there is no Establishment Charge * 7.5% at the policy start date * 6.0% at first anniversary * 4.5% on the second anniversary * 3.0% on the third anniversary * 1.5% on the fourth anniversary * 0% on the fifth anniversary
Surrender charge for a bond where there is a full establishment charge * 10% at the policy start date
* 8.0% at first anniversary * 6.0% on the second anniversary * 4.0% on the third anniversary * 2.0% on the fourth anniversary * 0% on the fifth anniversary If an increment has been paid, then the level of surrender charge to apply is calculated as a weighted average of the charge applying to the base premium and the incremental premium.
No loyalty bonus is offered Projected maturity values for £5,000 invested for 5 years Projected maturity values for £25,000 invested for 5 years Projected maturity values for £5,000 invested for 10 years Projected maturity values for £25,000 invested for 10 years
Externally managed funds
Managed fund name
Number of free switches per year
There are 12 free switches allowed in any one policy year. Thereafter a charge of 0.5% of the value of the funds to be switched will be made, subject to a minimum of £10, maximum of £35.
Charge per fund switch (£)
There are no charges for the first 12 switches in any one policy year.
Plan can be written on a single life basis
The Plan can be written on a single life basis.
Plan can be written on a joint life 2nd death basis
The Plan can be written on a joint life second death basis.
Option to split the plan into a cluster of policies
The Bond will be divided into 20 policies. Up to 99 policies will be offered by concession for large cases.
Percentage paid out on death of the life assured
Life cover is calculated as 101% of fund value where fund value is calculated as: * value of units adjusted for final bonus and MVR for With-Profits Growth Fund * value of units adjusted for final bonus and MVR for With-Profits Income Fund * bid value of units for unit-linked funds Market value reduction (MVR) is guaranteed not to be applied to With-Profits fund values on death. These calculations will be done separately for each increment and summed.
Fixed sum regular withdrawals available
Regular withdrawals may be made from the Bond in regular fixed amounts of not less than £30 providing the remaining value is at least £100 per policy. Equal amounts (adding up to the total withdrawal) are deducted from each policy within the Bond. For 'Natural Income' under the Income Fund, the first regular withdrawal date (if monthly) will be six weeks after commencement date. (this is due to a difference in timing between the addition of 'income' units and cancellation of units for regular withdrawals. Regular withdrawals will normally be made across all of the funds in which the Bond invests. However, if the Natural Income Withdrawal option is chosen (on the With-Profits Income Fund), no withdrawals can be made from other funds. Unit de-allocations will be made on a last in, first out basis.
Regular income payment frequencies
Regular withdrawals can be paid yearly, half-yearly, quarterly or monthly.
Phased investment option available
There is an automatic phased switching option which allows the whole of a holding in any fund to be switched into one or more other funds on a staged basis over a period of 1, 2 or 3 years. Only one phased switch can be in place at any time.
Share exchange scheme available
A share exchange is available. This scheme will continue to be available with no charge where the whole of the proceeds from the sale of securities are invested with Scottish Widows. There is a charge for any proceeds in excess of £1000 which are not invested with Scottish Widows.
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