Provider Clerical Medical Product Distribution Bond - bond fee. IFA Product This prod...
Distribution Bond - bond fee.
This product is available via IFAs.
Minimum age attained at entry
The minimum age attained for the applicant at entry is 18. There is no minimum age for the youngest life assured.
Maximum age attained at entry
The maximum age for the relevant life is 90.
The relevant life assured is the younger life for joint life last survivor cases, and the older life for joint life first death cases.
Minimum stand alone single premium (£)
The minimum investment is £5,000.
Minimum additional single premium (£)
The minimum additional premium is £1,000.
Initial charge incorporated in the bid/offer spread (%)
No initial charge is levied.
Annual Man Charge (%pa)
There is an AMC of 1% per year which is reflected daily in the unit price.
There is an administration fee of 1% per annum taken monthly for the first three years.
No policy fee is levied.
Early surrender charge levied
Each bond year up to 7.5% can be withdrawn free of encashment charges, if unused this allocation may be rolled over to subsequent years. e.g assuming no withdrawals, ad-hoc encashments or additional investments have been made during the first two years, then the encashment charge free withdrawal allocation in the third year will be 22.5%.
The allocation rates are as follows:
£50,000 + 101.75%
Allocation % £5K
The allocation rate on £5000 is 100%
Allocation % £10K
The allocation rate on £10000 is 100.5%
Allocation % £25K
The allocation rate on £25000 is 101.5%
Allocation % £50K
The allocation rate on £50000 is 101.75%
There is no loyalty bonus.
Plan can be written on a single life basis
The Plan is available on a single life basis.
Plan can be written on a joint life 1st death basis
The Plan may be written on a joint life first death basis. Only two lives are permitted on this basis and the oldest life must not be more than 90 years attained.
Plan can be written on a joint life 2nd death basis
The Plan may be written on a joint life second death basis. The youngest life must not be more than 90 years attained.
Withdrawals can be confined to the amount of income earned Withdrawals cannot be based on a percentage of the current value.
Withdrawals can be based on a percentage of the original investment
A maximum 7.5% per annum regular "income" withdrawal may be pre-specified, based on the initial investment. The minimum amount for regular withdrawals is £240 per year, e.g. £20 a month or £120 every six months.
Earned income can be reinvested
The full distribution can be reinvested every six months.
Automatic withdrawals can be taken monthly
Withdrawals can be taken monthly, termly, quarterly, half-yearly or annually.
Months in which distributions are made
Half-yearly distributions will be made in February and August every year.
Percentage paid out on death of the life assured
Death benefit will be 101% of the fund value unless the relevant life assured is aged 80 or over at outset when it will be 100%. The relevant life assured is the younger life for joint life last survivor cases, and the older life for joint life first death cases.
Number of free switches per year
The two funds available are: The Distribution Fund - this fund applies if the investor chooses to take the income earned within the fund as half-yearly payments, or
The Distribution Accumulation Fund - the income earned within the fund is invested for capital growth. This fund also allows the investor to take regular withdrawals by surrendering units.
Investors may switch between the two funds free of charge. 100% of the fund value must be switched.
Charge per fund switch (£)
No charge is made for switching units between the two funds.
A share exchange facility is available.
Option to split the plan into a cluster of policies
The Plan will be issued as 100 identical policies. If required, the bond can at a later date be split in to a number of clusters, each administered separately.
Part of investment committee restructure
Follows Asset Management Market Study
To open in second half of 2019
Regular reminders and updates
9 December 2019 deadline