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Affinity Consulting Group

 

FRIENDS PROVIDENT INTERNATIONAL Ltd ZENITH

Summary

Duration: Unlimited

Liquidity: Within the first 5 years there is a penalty if you withdraw more than 10% of your initial deposit each year cumulatively. The penalty is 5% in the first year reducing by 1% each year for 5 years. For full surrender the outstanding Establishment charges have to be paid as well. After 5 years there are no restrictions on the amount that may be withdrawn

Bonuses: Upon deposit you receive an enhanced allocation as follows:

£10,000 - £24,999 or $15,000 - 37,499 100%
25,000 - 49,999 or $37,500 - 74,999 101%
50,000 - 99,999 or $75,000 - 149,999 102%
100,000 - 199,999 or $150,000 - 299,999 103%
200,000+ or $300,000+ 104%

Charges: There are 2 visible charges:

  • An establishment charge of 0.4% of amount deposited per quarter for the 1st 20 quarters. After 5 years these charges cease.

There are other hidden charges, taken out before the funds are priced and so they are not seen:

  • FPIL take 1.2% pa out by reduction of the fund prices each day. The performance of the mirror funds are therefore 1.2% pa less than the underlying funds being mirrored.
  • The funds themselves have internal charges (but have been selected based on their net performance).

Life Insurance: There is a minimal element of life insurance in the plan so that it falls under the protection of the Isle of Man Government Policy Holders Protection Act whereby the government refund 90% of your fund if the insurance company goes into liquidation. The amount of life insurance is 1% of the value of the fund at the time you die - or when both of you die if it is in joint names.

Switching: Bear in mind that there are no charges for switching between funds and no restrictions on how long you need to remain in any fund.

Withdrawals: In the first 5 years up to 10% of the original investment can be withdrawn without penalty each year. If not used, this allowance can be rolled over to following years. After 5 years there is no limit on the amount that can be withdrawn. Withdrawals can be paid monthly, quarterly, half yearly or annually

Within the first 5 years there is a penalty if you withdraw more than 10% of your initial deposit each year cumulatively. The penalty is 5% in the first year reducing by 1% each year for 5 years. For full surrender, the outstanding Establishment charges have to be paid as well.

Tax Advantages:

Their main tax advantage is that in the UK and most of Europe, investments in offshore bonds give a gross rollup. This means that they are not taxed on a yearly basis but only when a taxable event takes place, like redemption or the death of a bondholder.

Switching of assets within the Investment Account is not a tax event and therefore is a totally tax neutral activity.

Zenith Brochure

Zenith Product Summary

Bank Instruction Form

Fund Transfer Form

Withdrawal / Surrender Form




FPIL Savings Plan
FPIL Lump Sum Plan
FPIL Portfolio Bond
FPIL Whole of Life Insurance
Royal Skandia Pension Plan
Royal Skandia Investment Bond