MVA-free options
This section only applies to CMI Premier Bond II, which is an offshore single premium
investment plan with some life cover.
It is important to understand the difference between the contract and the fund(s)
in which you have invested. Your contract does not have a specified investment term
or maturity date and can continue for the whole of your life. Through the contract
you have access to a range of investment funds including the Offshore With-Profits
(OWP) fund in which you may be currently invested. The OWP fund does not have a
specified investment term but in some cases a market value adjuster (MVA) free-date
may apply. If applicable, the MVA-free date was fixed on the day you invested in
the fund.
You can give us notice to make changes to your investment on the MVA-free date,
without an MVA being applied. However, this option is only available on the MVA-free
date and cannot be extended. In line with the policy provisions, we must receive
your instruction at least 30 days before the MVA-free date.
On the MVA-free date there are four main options available. We recommend you read
the following information carefully, and discuss these options with your financial
adviser before making a decision.
Please select the information you require from the list below:
If you wish, on the MVA-free date you can leave your Offshore With-Profits (OWP)
investment as it is and all of your existing units will remain allocated to your
fund. If you choose this option you do not need to contact us and you will automatically
receive a new MVA-free date in three years time.
Please note: If you are taking regular withdrawals from your OWP investment, and
choose to leave your investment as it is, the existing withdrawals will continue.
Please read the regular withdrawals section for more information.
If you would like to increase or reduce your regular withdrawals on the MVA-free
date, please indicate this on the regular withdrawal form.
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If you provide us with the required 30 days notice before the MVA-free date, you
can switch all or part of your investment without an MVA being applied. The minimum
switch amount is currently £200 ($300 or €300).
The following switching rules and guidelines apply:
1. You can switch to any of the available funds under your plan.
2. You can hold up to ten separate investment funds in your CMI Premier Bond.
3. You can switch between any of the available funds up to twelve times a year,
without a switching charge being applied. Please note: If you switch out of an Offshore
With-Profits (OWP) fund on any day other than the MVA-free date, an MVA may apply.
4. You can choose to leave part of your investment in the OWP fund and switch the
rest into any of the available funds.
5. You can choose funds to suit your investment objectives based on the funds risk
rating.
If you would like to switch some or all of your investment to another fund on the
MVA-free date, please complete an OWP switch form. If you would like to switch some
of your investment on the MVA-free date and surrender the rest, please complete
an OWP surrender form and return it with your OWP switch form.
Please click on the following for a list of the funds available. The International
Insurance Fund Report details the performance of these funds over a five-year period.
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Free download so you can view the
document in pdf format.
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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.
- If 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 indicate this 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 reinstate them at a later date, please note an MVA may apply
- If you choose to 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.
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.
If you would like further information on regular withdrawals, please contact our
client services team:
Customer Services Team
CMI Insurance Company Limited
Clerical Medical House
Victoria Road
Douglas
Isle of Man. IM99 1LT
Tel: +44 (0) 1624 638888
Fax: +44 (0) 1624 625900
Email: IOM.PolicyAdministration1@clericalmedical.com
Please only use email for general enquiries, as your message is not encrypted and
will not be secure.
Please click on the following for a list of the funds available. The International
Insurance Fund Report details the performance of these funds over a five-year period.
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Free download so you can view the
document in pdf format.
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If you provide us with the required 30 days notice before the MVA-free date, you
can choose to:
1. Surrender all of your Offshore With-Profits (OWP) investment on the MVA-free
date. This amount will be paid to you free of any MVA or surrender charges.
2. If you wish to take advantage of the MVA-free date but not surrender your investment,
you can set up regular withdrawals of up to 10% of your initial investment in any
12-month period. The withdrawals will be MVA free. A new MVA-free date will apply
to the remaining investment in three years time. This option is not a contractual
right and may be withdrawn at any time.
3. Surrender part of your investment and leave the rest invested in the OWP fund.
A new MVA-free date will apply in three years time.
4. Surrender part of your investment, leave a proportion invested in the OWP fund
(for which a new MVA-free date will apply in three years time) and switch a proportion
into any of the other available funds.
5. Surrender part of your investment and switch the rest into any of the other available
funds.
If you would like to surrender some or all of your investment on the MVA-free date,
please complete an OWP surrender form. If you would like to surrender some of your
investment on the MVA-free date, and switch the remainder to a new fund, please
complete an OWP switch form and return it with your OWP surrender form.
We recommend you carefully read all the options available to you on the MVA-free
date and discuss these with your financial adviser before making a decision. We
also recommend you consult your financial adviser on the tax implications of partial
or full surrenders in your country of residence.
If you would like further information about your surrender options, please contact
our client services team:
Customer Services Team
CMI Insurance Company Limited
Clerical Medical House
Victoria Road
Douglas
Isle of Man. IM99 1LT
Tel: +44 (0) 1624 638888
Fax: +44 (0) 1624 625900
Email: IOM.PolicyAdministration1@clericalmedical.com
Please only use email for general enquiries, as your message is not encrypted and
will not be secure.
Please click on the following for a list of the funds available to your product.
The International Insurance Fund Report details the performance of these funds over
a five-year period.
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Free download so you can view the
document in pdf format.
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