Provider Friends Provident Life Office Product Investment Portfolio Bond Special offer The...
Friends Provident Life Office
Investment Portfolio Bond
There is a Special Launch Offer of an extra 2% allocation on all investments made from 17 September 2001 to 9 November 2001.
Launch date of current with profits tranche
With Profit Fund (series 14) launched on 17 September 2001.
Financial strength ranking
AKG Actuaries & Consultants Ltd, specialists in this field, have allocated a rating factor of A, B+, B, B- or C to each company dependent on its financial strength.
Friends Provident is rated B+
A rating of 'A' denotes excellent financial strength
A rating of 'B+' denotes very good financial strength
A rating of 'B' denotes good financial strength
A rating of 'B-' denotes satisfactory financial strength
A rating of C denotes weak financial strength
These ratings are the results of analysis of a range of key criteria, such as size, free assets, parentage, distribution image and reputation within the IFA market, expense levels, market share and profitability.
3 out of 5
Size of with profits fund (£)
Minimum age attained at entry
The minimum age of applicants is 19 next birthday.
Maximum age attained at entry
The maximum age at entry is 84 next birthday. For joint lives the younger life must be under the age of 85.
Minimum stand alone single premium (£)
The minimum investment is £5,000.
Minimum additional single premium (£)
The minimum additional investment is £2,000.
Initial charge incorporated in the bid/offer spread (%)
There is no initial charge.
Annual man charge (%pa)
The annual management charge is 1.25% , 0.5% taken as a monthly deduction of units, the remainder through the unit price.
There is no administration fee.
There is no policy fee.
Early surrender charge levied
Surrender charges are as follows:
Year 1 8.5%
Year 2 7%
Year 3 5.5%
Year 4 4%
Year 5 2.5%
Year 6 0%
The deduction will apply on death or for any withdrawals of up to 7.5% per annum of the total invested. Any excess will be subject to the deduction.
Allocation rates (%)
The allocation rates are as follows:
Investment Allocation Rate
£5,000 to £9,999 100%
£10,000 to £19,999 101%
£20,000 to £99,999 101.75%
£100,000 plus 102.25%
Allocation % £5k
The allocation rate for investments of £5,000 is 100%
Allocation % £10k
The allocation rate for investments of £10,000 is 101%
Allocation % £25k
The allocation rate for investments of £25,000 is 101.75%
Allocation % £50k
The allocation rate for investments of £50,000 is 101.75%
There is no loyalty bonus.
MVA free options
Friends Provident reserve the right to use a reduced unit price on encashments at any time except:
any withdrawals up to 7.5% of the original investment in any one year; and
on payment of death benefit.
Other fund links available
Investors may choose from up to 10 of the following funds:
With Profits (Series 14)
UK Index Tracking
Investment Trust Portfolio
Fund of External Funds
Number of free switches per year
The first twelve switches in each Plan year are at present free of charge.
Charge per fund switch (£)
A nominal charge, currently £15, is made for any subsequent switches. All switches will be carried out at the bid price.
Guaranteed bonus payable
Although a guaranteed bonus is not available, investment will be eligible for any terminal bonus from day one.
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 1st death basis
The Plan cannot be written on a joint life first death 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 automatically be split into clusters, maximum number 999.
Percentage paid out on death of the life assured
101% of the bid value of units is paid out on death.
Fixed sum regular withdrawals available
Fixed sum regular withdrawals are available, subject to a minimum of £50 with £2,000 remaining in the fund.
Regular withdrawals available as a fixed percentage of current value
Regular withdrawals are not available as a fixed percentage of current value.
Regular income payment frequencies
Regular withdrawals can be taken annually, half-yearly, termly, quarterly or monthly. The minimum withdrawal amount is £50, and the minimum value that must remain in the policy after a regular or ad-hoc withdrawal is £2,000. Ad-hoc withdrawals are permitted subject to a minimum of £250 with a remaining balance of £2,000. A discontinuance deduction may apply in the first five years if withdrawals exceed 7.5% of the original investment.
Phased investment option available
There is no phased investment option available.
Share exchange scheme available
A share exchange scheme is offered.
‘Important to have an anchor’
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Lack of innovation for solutions
Some 2,000 consumers affected