Your Statements Explained
As a Life Trust Planholder, you'll receive a statement once a year, shortly after your birthday.
Your statement will keep you up to date with everything you need to know about your Plan, including:
- a summary of the Fund holdings
- the value of your holdings as at the statement date
- the value of Birthday Units added since your last statement
- the projected annual income payments from your Plan
- details of any Fund switches you have made
- full transaction history, including deductions for monthly life cover
Once you start to receive an income, your statement will also show details of the payments you have received.
Some definitions
Below are some definitions which you may find useful in understanding your statement:
Birthday Units
These are additional fund units allocated to you on your birthday. These units arise from the redistribution of the investment funds held by Planholders who have not survived during the course of the year. The amount of units you receive depends on your age, gender and the size of your unit holdings at that time.
Value of your Plan holdings
This is the total value of the holdings in the different funds you have invested in as part of your Plan.
Projected annual payments
These are the up-to-date projections of the annual payments you could receive from your Plan based on the current value of your Plan holdings.
You will see two projections on your statement:
1. The first projection shows what your income would be if your Plan were to grow by 5%, 7% and 9% and if Planholder longevity were to be in line with the Mortality Table prescribed by the FSA.
2. The second projection shows what your income would be if Planholder longevity were to differ by 2 years more or 2 years less than expected, assuming your Life Trust funds grow by 7% each year.
Both projections include an assumed number of Birthday Units allocated to you every year. The number of units you receive will depend on actual Planholder mortality.
Planholder longevity
This relates to the actual life expectancy experience of all Longevity Income Planholders, which may be higher or lower than the FSA Mortality Table predicts.
Fund switch
You can change the funds within your Plan at any time via your financial adviser. These fund switches will be listed on your statement. To read more about the funds, please read our Fund Investment Guide.
Monthly life cover
There is an annualised charge for life cover which varies with age and is deducted monthly from your Plan. This life cover guarantees that you'll get your original investment back if you die before receiving the full amount of your investment back in income.
We hope you find the statement easy to understand. If you have any queries, please check our Frequently Asked Questions or call us on 0845 051 8351.