MVA-free options
This section only applies to the CMI Premier Bond II, which is a single premium,
whole of life, unitised life assurance policy.
If your MVA-free date on your Offshore With-Profits investment is approaching, it’s
important to carefully consider all your options on the MVA-free date.
First of all it is important to understand the difference between the bond and the
fund(s) in which you have invested. Your bond does not have a specified investment
term or maturity date and can continue for the whole of your life. Through your
bond you have access to a range of investment funds including the Offshore With-Profits
(OWP) fund in which you are currently invested. The OWP fund does not have a specified
investment term but it does have a market value adjuster (MVA) free-date, which
was fixed on the day you invested in the fund
On the MVA-free date you have a number of options available to you, which are explained
below.
If you are happy with your investment, you can remain invested in OWP and receive
a new MVA-free date in three years time. If you choose this option you do not have
to do anything.
We recommend you carefully read all the options available to you on the MVA-free
date and discuss them with your financial adviser before making a decision. We also
recommend you consult your financial adviser on the taxation treatment of regular
withdrawals in your country of residence.
What are your options?
Please click on one of the below further information.
If you are happy with your bond and its benefits you can leave the bond as it is,
especially if your personal circumstances and financial goals haven’t changed. Your
bond is whole of life so you can keep it as long as you want. On the MVA free date
you can choose taking MVA-free regular withdrawals, up to a maximum of 10% of the
original value of your OWP investment each year, if you select this option on your
MVA-free date.
You can currently switch funds up to 12 times a year free of charge. You can select
from a range of funds to suit your attitude to risk. Please see the below for more
details. If you switch to a fund other than OWP, you can also take regular withdrawals
or partial encashments at any time after the MVA-free date with no MVA.
Before choosing an alternative fund or funds, you need to determine your attitude
to risk. Using the table below find the statement in the left hand column which
best describes your attitude to risk; this gives you an idea as to the risk rating
in the right hand column that you can use to select the fund(s) that suit your investment
needs. Please remember that the risk category of each fund is the opinion of Clerical
Medical and may not necessarily match your own perceptions of risk.
CMI fund range
CMI Investment Solutions fund range
Click on any fund to view the fund factsheet.
CMI Investment Solution funds
CMI fund range
The CMI Premier Bond has a regular withdrawal facility, which allows you to take
money out of your investment on a monthly, quarterly, half-yearly, or yearly basis.
The minimum that can be taken from the bond at any time is currently £200 ($300
or €300). If your regular withdrawals are taken from the Offshore With-Profits (OWP)
fund, the maximum regular withdrawal that can be taken in any 12-month period is
10% of the original investment.
you continue your investment after the MVA-free date and would like to take regular
MVA-free withdrawals from that investment, please complete the regular withdrawal
form.
If you are already taking regular withdrawals from the OWP fund, and you choose
to remain invested in the fund after the MVA-free date, your withdrawals will continue
unless you tell us otherwise. If you would like to increase or reduce your regular
withdrawal amount, please tell us on the regular withdrawal form.
If you continue your investment in the OWP fund(s) after the MVA-free date and wish
to postpone or cancel your current regular withdrawal, please tick the appropriate
box on the regular withdrawal form. If you cancel your regular withdrawals and wish
to start them again at a later date, please note an MVA may apply.
If you switch into the most currently available version of OWP, the 10% withdrawal
limit is not based on the original investment but will be based on the actual amount
switched into the fund.
We pay regular withdrawals directly to your bank account by direct credit or telegraphic
transfer. Direct credit transfers are free and can be made in sterling to UK bank
accounts, but there may be restrictions on direct credit payments in other geographical
areas. Please note that bank charges are deducted for payments made by telegraphic
transfers.
|
Free download so you can view the
document in pdf format.
|
|
|
Free download so you can view the
document in pdf format.
|