Existing bonds may have a Level or a Stepped charging option. The Level charging option is still available if you make an additional investment to an existing bond taken out on or before 19 June 2009.
The option you have will affect the charges that apply to your bond and you can't switch between charging options. You'll find further details about the charges in our Key Features Document.
FMC
Each year we take a percentage of your fund(s). This is the Fund Management Charge (FMC). The FMC varies depending on which fund or funds you choose.
The charge can vary and will depend on the charging option you choose.
Additional Expenses
Fund Managers may charge an additional expense to cover costs. Where this charge applies, it is taken directly from the fund and is included in the unit price.
The additional expenses are the same on both the Level and Stepped charging options.
Allocation Rate
We invest a proportion of your investment. This is called the allocation rate. The allocation rate depends on the age of the youngest life assured when you make the investment, and the amount invested.
A higher allocation rate is given to the Stepped charging option. For more information on the allocation rate, please see our Key Features Document for details.
Commission
We pay your financial adviser for arranging the bond. This is paid for from the standard charges on your bond. The amount we pay is shown in your personal illustration.
Exit Penalties
If you select the Stepped option, we will take an exit penalty if you make one-off withdrawals or cash in your bond within the first five years of your investment. If you select the Level option, there is no exit penalty.
Switching funds
There is no charge for switching funds. You can switch your payments in and out of various funds to change the mix of investments.
If you invest in a property fund, you should be aware that property can be difficult to sell, so you might not be able to sell your investment when you want to. In exceptional circumstances, it could take up to six months. The valuation of property is generally a matter of a valuer's opinion rather than fact.
The charges and additional expenses are not guaranteed and may be altered to reflect changes in the costs.
