CMI Portfolio product details
CMI Portfolio is explained in full in the product literature issued with your policy
documentation. Here are some of the main details to help give you an understanding
of how the product works.
Please click on the options below for more information:
The minimum additional investment amounts (or currency equivalents) are:
|
Currency
|
Additional Investment
|
|
Pounds Sterling
|
£5,000.00 |
|
US Dollars
|
$7,500.00 |
|
Euros
|
€7,500.00 |
We may review the minimum additional investment amounts from time to time.
The cash account is a key part of CMI Portfolio. It works just like a bank account
and its purpose is to facilitate monetary transactions in and out of the bond. It
is not designed as an investment option. All money paid in or out of the CMI Portfolio
passes through it, including all new investments, income received in the form of
dividends or investment credits and proceeds when investments are sold. All charges,
fees and withdrawals are deducted from the cash account balance.
The cash account is automatically set up in the base currency of the bond when the
bond is taken out. Additional cash accounts are available in most major currencies
to allow investment in funds other than in the bond base currency.
It is important to make sure there is enough money in each cash account to pay for
charges and fees and to cover regular withdrawals. If the cash account goes overdrawn
you may not be able to make new transactions or buy assets and you will also be
charged interest on the overdraft.
When the cash account is in credit it earns interest at 2% below the currency base
rate. There is an overdraft facility of £5,000 (US$7,500; €7,500) and debit interest
is currently charged at 4% above the currency base rate.
It is the policyholder’s or their appointed investment adviser‘s responsibility
to manage each cash account to make sure they stay in credit.
Overdrawn accounts usually occur through the deduction of fees and regular withdrawals.
There are several ways help maintain a credit balance:
- Allocate part of the initial investment to the cash account.
- Choose investments which pay an income.
- Set up a standing instruction to fund the cash account using our
regular dealing facility. This way you can redeem a set amount from one or more
of the underlying investments on a regular basis.
- Sell some assets.
- Make an additional investment.
- Closely monitor and manage cash balances - especially across multiple cash accounts.
- Select the appropriate cash account to fund an investment purchase.
- Pay proceeds from investment sales to other currency cash accounts.
You can choose to change the ownership of your bond and assign it to a third party
at any time. For example, you may wish to assign your policy to a spouse or a dependant.
We recommend you consult your financial adviser before assigning your bond to make
sure any tax implications are assessed.
If you would like to assign your bond please complete a
draft deed of assignment form. You'll find details of how to complete this
in the left hand margin of the form.
If your bond is held in trust, a separate deed may be required. Please note that
we may need to refer you to your legal adviser.
Please remember that you may be liable to personal tax when benefits are taken from
the bond. Please contact your financial adviser to discuss your tax position.
UK resident individuals or trustees may be liable to income tax on gains arising
from the bond on encashment and on some withdrawals.
A 'chargeable gain' and therefore a tax liability may arise:
- If the bond is cashed in totally or assigned for money, or money's worth (eg. the
bond is sold or traded to a third party).
- If partial encashments or regular withdrawals in any year exceed 5% of the amount
invested. This amount is cumulative so if a bond owner does not take any withdrawals
in policy years 1-4, he or she could take 25% in policy year 5 with no immediate
income tax liability arising.
- If the cumulative total of partial encashments or regular withdrawals exceeds 100%
of the amount invested.
- On payment of the death benefit.
Profits (gains) from a CMI Portfolio held by a company in the UK may be liable to
corporation tax.
Please note that CMI Insurance Company Limited is unable to offer personal taxation
advice. The above information is for guidance for UK resident policyholders only
and is based on our current understanding of the law and HM Revenue & Custom’s practice.
In the event of the death of either the bond owner or a life assured, please send
us an original death certificate by post so that we can update our records. We will
return the death certificate to you within 5 working days and notify you of any
additional requirements. We are unable to accept certified copies of a death certificate
due to Crown copyright.
If the relevant death triggers a claim (please refer to the event specified on the
policy certificates), please advise us in writing as soon as conveniently possible.
We will then notify you of the documentation needed to process the claim, which
may include the following:
- A copy of Manx Grant of Representation*.
- A completed verification of signature form
– this must be completed by the Personal Representative/Executor as legal owner
of the policy.
- Anti-money laundering documentation for Personal Representative/Executor.
- Completion of our Form of Authority & Discharge by the claimant(s).
*The bond is a Manx asset and CMI Insurance Company Limited therefore requires a
Grant of Representation issued by the Isle of Man Probate Office. Manx Advocates
can make this application if required. We regret that we are unable to recommend
individual firms of Manx Advocates but full details of firms specialising in probate
are available from:
Isle of Man Law Society
27 Hope Street
Douglas
Isle of Man
IM1 1AR
Tel: 01624 662910
Fax: 01624 679232
Email enquiries: enquiries@iomlawsociety.co.im
Fees for making the application to the Probate Office and procuring the Grant of
Probate or Letters of Administration are likely to be in the region of £175 plus
VAT, although Advocates may reserve the right to charge additional fees. The Advocates
will also require payment of the fee charged by the Isle of Man Government for issuing
the Probate. The fee depends on the size of the Manx estate (see table below). Please
note these fees are subject to change.
|
Amount
|
Charge
|
|
Under £2,800
|
Nil |
|
Between £2,801 and £21,000
|
£40.20 |
|
Between £21,001 and £70,000
|
£126.20 |
|
Between £70,001 and £140,000
|
£249.20 |
|
Between £140,001 and £200,000
|
£416.20 |
|
Exceeds £200,000
|
£539.20 |
The Isle of Man Registry levies a charge of £13.00 for settling and approving
a draft application.
There will also be a small governmental copy charge of £1.20 for a copy grant
that should be added to the appropriate court fee.