Tax Exempt Savings Plans With Life Cover Option

Transcription

1 Tax Exempt Savings Plans With Life Cover Option

2 Here for everyone Kingston Unity is a Friendly Society. We re totally different to banks, because we re owned by our members. We re run for the benefit of you, and your family, not for shareholder profit. We ve helped hundreds of thousands of members, their children and grandchildren, to make more of their money with tax-efficient savings and investments. We ve been looking after our members money and best interests since We re financial friends for life. You ll find this document helpful because it includes really useful information about all our Tax Exempt Savings Plan options. Please read this along with the Key Information Document and the Terms and Conditions before you apply for this savings plan. 2

3 Tax Exempt Savings Plan (TESP) There are two reasons why our Tax Exempt Savings Plan is a family favourite. It encourages the habit of saving regularly, whilst offering long term tax free growth potential for your family. We offer two types of plans, one with life cover and one without, just select the Life Cover Option on the application form if you want this version. Everyone can benefit Available to adults and children living in the UK. You choose how much Select the regular premium at the start of the plan, from 15 to 25 per month for adults and from 5 to 25 per month for a child. You say when Fixed savings period, from 10 to 30 years, that can mature on a specific date, such as a special birthday. Get a Guaranteed Lump Sum Calculated at the start of the plan and paid out when it matures. Know what to expect Bonuses are calculated using the Guaranteed Lump Sum, not the amount you ve saved over the term of the plan. Once added a bonus can t be removed. Life Cover Option For those aged 65 and under, a Life Cover option is available. Please see Question 5 for more information. Money back Guarantee On the maturity date of the Tax Exempt Savings Plan we guarantee to pay out the Guaranteed Lump Sum plus any bonuses added to the plan. This Tax Exempt Savings Plan aims to meet the demands and needs of an individual who wants to save regularly in a tax exempt product for a period of at least 10 years. As Kingston Unity is not able to provide advice, the information provided is there for you to make an informed decision about this product. We are unable to determine if the TESP is appropriate for you, so if you are unsure of its suitability, please speak to an Independent Financial Adviser (IFA). You may be charged for this advice. 3

4 Your questions answered 1. Who can open a Tax Exempt Savings Plan (TESP)? Anyone aged between 18 and 75 can apply to open a TESP. For those aged 65 and under a Life Cover Option is also available. For a child, under 18, then an application can be made by a sponsor, who will be responsible for making the regular premiums. A sponsor can be any adult, over 18, who wishes to help a child save for the future. The child will be the plan holder and the money will be payable to them. 2. Is it easy to apply? To apply simply download an application pack from our website kingstonunity.co.uk or contact us on and we can post one to you. 3. How much can I invest in a TESP? Adults can invest from 15 to 25 per month or 180 to 270 per year and for a child you can invest from 5 to 25 per month or 50 to 270 per year. Due to the tax benefits of this plan, the Government restricts the amount you can save to 25 per month or 270 per year for both adult and child plans. 4

5 4. How long can I invest for? You can choose how long you would like to take your plan for, from 10 to 30 years and even have it mature on a specific date such as a birthday or a special event. 5. What happens if I choose the Life Cover Option? If you decide to choose the Life Cover Option then your Guaranteed Lump Sum will be lower than a regular TESP. Your policy will, however, pay out the Guaranteed Lump Sum on death rather than refunding the premiums paid with interest. See Question 12. The Life Cover Option is only available to those 65 and under on entry. If you would like to add the Life Cover Option you can do this on the application form. 7. Can I change my mind? Certainly. In fact, you ve 30 days to change your mind, just complete and return your cancellation notice. 8. Can I stop paying into the TESP? Yes, if you surrender the plan before its maturity date then a surrender value will be paid. This will not be the case in the first 12 months or if 12 months premiums haven t been made. The surrender value, especially in the early years, may be lower than the amount you have paid into the plan. The Society reserves the right to cancel the plan if premiums are more than 6 months in arrears. 6. Where is my money invested? Your money will be held in our expertly managed With Profits fund that invests in shares, property, bonds and cash offering a low to medium risk investment. 5

6 9. Are there any bonuses or guarantees? Yes, both. Your plan will have a Guaranteed Lump Sum, calculated at the start of your plan i.e. based on the monthly premiums and number of years it will be open. This will be paid on maturity along with any bonuses, as long as all premiums due have been paid. Bonuses are declared at the end of each year and depend upon the performance of the With Profits fund. This is called a Reversionary Bonus and once added it can t be removed. As a Friendly Society, we ensure all our members receive a fair share of any investment returns. Therefore we regularly check that you have the correct bonuses to achieve this and if appropriate we may add a Final (Terminal) Bonus to any withdrawals when made. Please see our Guide to the With Profits Fund for more information. This can be found on our website at kingstonunity.co.uk/withprofits 10. How will I know what the account is worth? You will receive an annual statement detailing any bonuses applied to your TESP. 11. Are there any charges? The Society charges for the costs of running the Society across all of its policies in force. At present, the amounts charged to this type of policy are between 55% and 60% of premiums for the first year of the plan and 8% thereafter plus 0.7% per annum of the fund size each year. 12. What happens if I die? For a TESP with Life Cover We will pay out the Guaranteed Lump Sum on death plus any bonuses. For TESPs without Life Cover We will refund all premiums paid plus interest at 3% per year up to the date of death. 6

7 7

8 Other important information Tax liability Under current legislation, money invested in a Tax Exempt Savings Plan benefit from special concessions for tax exempt funds. No tax is paid on this fund and it is no longer possible for the Society to claim tax credits on dividends from shares. Currently the proceeds of the plan will be tax free on maturity, however tax legislation may change in the future. If you re in any doubt, please take advice from a professional tax advisor you may be charged for this advice. Fees paid If you re opening our Tax Exempt Savings Plan through a Financial Adviser they ll let you know if there are any charges or fees payable to them. If you ve been introduced by an Introducer Appointed Representative (IAR), we may pay them a fee. Don t worry, this won t be deducted from your Tax Exempt Savings Plan. An IAR is not qualified to give you advice about which product to apply for. Law and legislation In legal disputes the law of England and Wales will apply. It s possible that legislation affecting this Tax Exempt Savings Plan may change in the future. This may affect the benefits or conditions of the product. Anti-money laundering We may need to check your identity when you apply. This is so we comply with Anti Money Laundering regulations. Data Protection Kingston Unity collects your personal information when you apply for a product with us. We use this information to set up and manage the product you have applied for. Please see our Privacy Notice for more information explaining how we use your personal information. This can be found on our website kingstonunity.co.uk FIND OUT MORE AT enquiries@kingstonunity.co.uk kingstonunity.co.uk Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /001

9 Tax Exempt Savings Plan Terms & Conditions The following Terms and Conditions explain how our Tax Exempt Savings Plan will be managed and sets out both your rights and ours. Please make sure you read this document carefully as it contains information you need to know. In this document, where we say You or Your then this means the insured member of the Society who owns this Tax Exempt Savings Plan (TESP). Where we say either We, Us, Our or the Society then this refers to Kingston Unity Friendly Society. 1. Eligibility / opening the Tax Exempt Savings Plan (TESP) Anyone aged between 18 and 75 can open a TESP for themselves. If applying for a child under 18 then a sponsor, who will be responsible for making the payments can apply. The sponsor must be aged over 18. For those aged 65 and under a TESP with Life Cover is also available. A Tax Exempt Savings Plan is a qualifying regular premium policy. The maximum you can pay in to such policies in any one year is 3,600 for policies taken out after 6 April This limit includes any payments to qualifying policies with other friendly societies. We cannot accept applications that would breach this limit. If your Tax Exempt Savings Plan has or will become void because of any failure to meet the Regulations that we are aware of then we will inform you. If you believe you have broken any regulations (i.e. by contributing to more than the limits set out by the government), you must inform us. You can apply by returning a completed application form to us which can be download from kingstonunity.co.uk/tesp. Alternatively, you can contact us on enquiries@kingstonunity.co.uk or and we can post one to you. The plan cannot be assigned to anyone else and cannot be used as security for a loan. 2. Your right to cancel You have 30 days from the date you receive the cancellation notice to cancel. 3. Life Cover Option A TESP with Life Cover is available for those aged 65 and under on entry and 75 or under at maturity. If you choose a TESP with Life Cover your plan will pay out a Guaranteed Lump Sum on death plus any bonuses rather than refunding the premiums paid with interest. Choosing this option will mean your Guaranteed Lump Sum will be lower than a regular TESP without life cover. 4. Paying in For an adult plan you can pay in from 15 to 25 per month or 180 to 270 per year. For a child plan you can pay in from 5 to 25 per month or 50 to 270 per year. You can choose a premium collection date of 1 st or 16 th either monthly or yearly by Direct Debit. The plan term must be between 10 and 30 years and you can choose to have it mature on a specific date. For TESP without Life Cover the maximum age on maturity is age 85 and for TESP with Life Cover the maximum age on maturity is age 75. Once you have selected a premium amount, frequency and term length you cannot change it. If you stop making payments before the maturity date, you have 5 months to make up the missing premiums and continue paying into the plan. If the plan goes 6 months into arrears then it will be cancelled. If more than 12 months premiums have been paid, there may be a surrender value (see section 5). Premiums are invested into the Society s With Profits fund*. This fund is made up of investments into four main asset classes; equities (shares), property, fixed interest (e.g. gilts, corporate bonds etc) and cash. The purpose of this is to reduce investment risk whilst giving exposure to assets that over a period of time are expected to generate growth and provide a balanced approach with low to medium risk. A full refund of any premiums made into the plan will be made. Tax Exempt Savings Plan Terms & Conditions 1

10 Tax Exempt Savings Plan Terms & Conditions 5. Surrender* If you close the plan within the first 12 months or if 12 months premiums have not been made there will be no surrender value. If you close the plan after the first year and before the maturity date a surrender value will be paid. Due to the charges in the first year of the plan the surrender value, especially in the early years, may be lower than the amount you have paid into the plan. If you close the plan before the maturity date you may liable to pay tax on any investment growth on the plan. 6. Death For TESP without life cover the Society will refund all premiums paid plus interest at 3% per year up to the date of death to your estate. For TESP with Life Cover the Society will pay the Guaranteed Lump Sum on death plus any bonuses paid to your estate. 7. Guarantees* Your plan will have a Guaranteed Lump Sum which is calculated at the start of your plan. The value of the Guaranteed Lump Sum depends on the agreed premium amount, the number of years the plan will be in force and if you have selected a plan with the Life Cover Option or without. If you have selected a plan with Life Cover Option we will also use your age to calculate the Guaranteed Lump Sum amount. If all conditions are met, then this is the minimum you will receive at the intended maturity date. On maturity the maturity value will be the Guaranteed Lump Sum plus accrued bonuses. The final maturity value will depend on investment performance, our expenses and other factors such as the number of closures. 8. Bonuses* A Reversionary Bonus is added annually and is calculated by the Actuary for the Society and agreed by the Board of Management. This reflects the smoothed performance of the With Profits fund after allowing for the level of guarantees within the fund. It will also reflect an allowance for expenses as a percentage of funds under management. Once the net rate is announced and has been added to the plan it can t be removed. The bonus will be added as a percentage of the Guaranteed Lump Sum and not the premiums paid during the year. The Board may declare, from time to time, a Final Bonus which would increase the value of the plan payable on death or on maturity of the plan. 9. Charges / Managing the account We aim to charge a fair share of our expenses to each account holder and we can decrease or increase charges made on the account. At present we expect to charge between 55% and 60% of premiums for the first year of the plan and 8% thereafter plus 0.7% per year of the fund size but this will be reviewed annually based on the experience of the Society. Charges are deducted before the Reversionary Bonus is declared and the bonus credited is calculated on the Guaranteed Lump Sum. The Society also charges for the life cover in excess of the fund generated on its expected cost. You will receive an annual statement detailing the premiums paid in and any bonuses applied to your TESP. 10. Voting rights and attending the AGM As a member of the Society and if you are aged 16 or over, you have the right to attend and vote at the Society s AGM. To do this, you must first apply to become a delegate. Anyone under the age of 16 is not able to attend and vote at the AGM, however the Sponsor of the plan can apply to become a delegate and will have the same voting rights as any member. * Please see our Guide to the With Profits Fund for more information which can be found at kingstonunity.co.uk/withprofits Find out more at enquiries@kingstonunity.co.uk kingstonunity.co.uk/tesp Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /004 Tax Exempt Savings Plan Terms & Conditions 2

11 Key Information Document Tax Exempt Savings Plan Purpose This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Product The Tax Exempt Savings Plan is manufactured by Kingston Unity Friendly Society Limited. For more information visit kingstonunity.co.uk or call The Financial Conduct Authority (FCA) is the competent authority of Kingston Unity. This Key Information Document (KID) was produced on 30 November What is this product Type Objectives With Profits Tax Exempt Savings Plan To build a guaranteed tax free lump sum payable to you at the end of a specified term by investing in the Society s With Profits fund. The With Profits fund invests in a range of assets such as equities, property, fixed interest and cash. The guaranteed lump sum is enhanced by yearly bonuses, which are dependent on the performance of the With Profit fund as well as any expenses incurred by the Society. Intended retail investor Individuals with an investment horizon of at least 10 years with a low to medium appetite for risk. Insurance benefits If you die before the maturity date of your policy, the Society will refund all premiums paid plus interest at 3% per year up to the date of death. The value of the benefits can be found below in the section What are the risks and what could I get in return? The minimum you can invest is 15 per month or 180 per year, unless the plan is for a child in which case the minimum is 5 per month or 50 per year. Due to the tax benefits of the plan, the Government restricts the maximum amount you can save to 25 per month or 270 per year for both adult and child plans. Further information Anyone aged between 18 to 75 can open a Tax Exempt Savings Plan. You choose how long you want the plan to run for, the minimum term is 10 years and you must be 85 or under at maturity. Kingston Unity reserves the right to lapse the plan if premiums are more than 6 months in arrears. What are the risks and what could I get in return? Risk Indicator Lower risk Higher risk The risk indicator assumes you keep the product for 10 years. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level. Provided all your premiums have been paid for the term of the plan then you are guaranteed to receive your fixed Sum Assured plus any bonuses on maturity of the plan. If you cash in your plan before the first year s premiums have been received then there will be no surrender value. If you decide to cash in your plan after year one then a surrender penalty may apply and you could get back less than the premiums paid in. continued overleaf... Tax Exempt Savings Plan Key Information Document 1

12 Performance Scenarios The table below shows the money you could get back over the next 10 years, under different scenarios, assuming that you invest 1,000 per year. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and are not an exact indicator. What you get back will vary depending on how the market performs and how long you keep the product. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you. The figures shown include all the costs of the product. The figures do not take into account your personal tax situation, which may also affect how much you get back. Investment: 1,000 (each year) Scenarios 1 Year 5 years 10 Years Recommended holding period Stress scenario Unfavourable scenario Moderate scenario Favourable scenario What you might get back after costs ( ) , , Average return each year (%) -100% % -0.41% What you might get back after costs ( ) , , Average return each year (%) -100% -4.15% 1.81% What you might get back after costs ( ) , , Average return each year (%) -100% 0.44% 5.05% What you might get back after costs ( ) , , Average return each year (%) -100% 5.08% 8.55% Accumulated invested amount 1, , , What happens if Kingston Unity Friendly Society Limited is unable to pay out? The Society is covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation from the scheme. Circumstances vary, but most types of insurance business are covered for up to 90% of the claim with no upper limit. Further information about compensation arrangements is available from the FSCS website or by calling What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself for three different holding periods. They include potential early exit penalties. The figures assume you invest 1,000 per year. The figures are estimates and may change in the future.. Costs over time Investment: 1,000 (each year) Scenarios If you cash in after 1 Year If you cash in after 5 Years If you cash in after 10 Years Total costs ( ) 1, , , Impact on return (RIY) per year (%) 100% 9.10% 4.23% continued overleaf... Tax Exempt Savings Plan Key Information Document 2

13 Composition of costs The table below shows: the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; the meaning of the different cost categories. This table shows the impact on return per year One off costs Entry costs 1.72% The impact of the costs you pay when entering your investment. This is the most you will pay and you could pay less. This includes the costs of distribution of your product. Exit costs 0.00% This product does not charge any exit costs. Portfolio transaction costs 0.06% The impact of the costs of us buying and selling underlying investments for the product. Ongoing costs Insurance costs 0.00% This product does not charge any insurance costs. Other ongoing costs 2.45% The impact of the costs that we take each year for managing your investments. Incidental costs Performance fees Nil This product does not charge any performance fees. Carried interests Nil This product does not charge any carried interests. How long should I hold it and can I take money out early? Recommended holding period: 10 years The recommended holding period has been selected to enable investors to benefit from long-term growth whilst avoiding short-term volatility. If you cash in your plan before the agreed maturity date then you may have to pay a surrender penalty which could result in you receiving less money than you paid in. How can I complain? To make a complaint about our products or our conduct, contact us with your full name and address, your plan number and details of your complaint. More information can be found at: kingstonunity.co.uk You can submit your complaint via post to Complaints Department, Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ, via to enquiries@kingstonunity.co.uk or by phone Other relevant information Additional information about the product and policy conditions can be found in our Product Guide and Terms & Conditions and are available on our website. Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /002 Tax Exempt Savings Plan Key Information Document 3

14 Key Information Document Tax Exempt Savings Plan with Life Cover Purpose This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Product The Tax Exempt Savings Plan with Life Cover is manufactured by Kingston Unity Friendly Society Limited. For more information visit kingstonunity.co.uk or call The Financial Conduct Authority (FCA) is the competent authority of Kingston Unity. This Key Information Document (KID) was produced on 30 November What is this product Type Objectives With Profits Tax Exempt Savings Plan To build a guaranteed tax free lump sum payable to you at the end of a specified term by investing in the Society s With Profits fund. The With Profits fund invests in a range of assets such as equities, property, fixed interest and cash. The guaranteed lump sum is enhanced by yearly bonuses, which are dependent on the performance of the With Profits fund as well as any expenses incurred by the Society. Intended retail investor Individuals with an investment horizon of at least 10 years with a low to medium appetite for risk. Insurance benefits Upon death, the Sum Assured plus any bonuses to date will be paid to your estate. The value of the benefits can be found below in the section What are the risks and what could I get in return? The minimum you can invest into a Kingston Unity Tax Exempt Savings Plan is 15 per month or 180 per year, unless the plan is for a child in which case the minimum is 5 per month or 50 per year. Due to the tax benefits of the plan, the Government restricts the maximum amount you can save to 25 per month or 270 per year for both adult and child plans. Further information Anyone aged between 18 to 65 can open a Tax Exempt Savings Plan with Life Cover. You choose how long you want the plan to run for, the minimum term is 10 years and you must be 75 or under at maturity. Kingston Unity reserves the right to lapse the plan if premiums are more than 6 months in arrears. What are the risks and what could I get in return? Risk Indicator Lower risk Higher risk The risk indicator assumes you keep the product for 10 years. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a mediumlow level. Provided all your premiums have been paid for the term of the plan then you are guaranteed to receive your fixed Sum Assured plus any bonuses on maturity of the plan. As this plan includes an element of life cover, should you die during the term of the plan, your estate will receive the guaranteed Sum Assured plus any bonuses that the plan has accrued. If you cash in your plan before the first year s premiums have been received then there will be no surrender value. If you decide to cash in your plan after year one then a surrender penalty may apply and you could get back less than the premiums paid in. continued overleaf... Tax Exempt Savings Plan with Life Cover Key Information Document 1

15 Performance Scenarios The table below shows the money you could get back over the next 10 years, under different scenarios, assuming that you invest 1,000 per year. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and are not an exact indicator. What you get back will vary depending on how the market performs and how long you keep the product. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you. The figures shown include all the costs of the product. The figures do not take into account your personal tax situation, which may also affect how much you get back. Investment: Insurance premium: 6.47 (each year) 1 Year 5 years 10 Years Recommended holding period Survival Scenarios Stress scenario Unfavourable scenario Moderate scenario Favourable scenario What you might get back after costs ( ) , , Average return each year (%) -100% % -0.66% What you might get back after costs ( ) , , Average return each year (%) -100% -4.55% 1.63% What you might get back after costs ( ) , , Average return each year (%) -100% 0.04% 4.86% What you might get back after costs ( ) , , Average return each year (%) -100% 4.69% 8.36% Accumulated invested amount 1, , , Death Scenarios What your beneficiaries might get back ( ) 9, , , Accumulated Insurance Premium ( ) What happens if Kingston Unity Friendly Society Limited is unable to pay out? The Society is covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation from the scheme. Circumstances vary, but most types of insurance business are covered for up to 90% of the claim with no upper limit. Further information about compensation arrangements is available from the FSCS website or by calling What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself for three different holding periods. They include potential early exit penalties. The figures assume you invest 1,000 per year. The figures are estimates and may change in the future. Investment: 1,000 (each year) Scenarios If you cash in after 1 Year If you cash in after 5 Years If you cash in after 10 Years Total costs ( ) 1, , , Impact on return (RIY) per year (%) 100% 8.38% 4.15% continued overleaf... Tax Exempt Savings Plan with Life Cover Key Information Document 2

16 Composition of costs The table below shows: the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; the meaning of the different cost categories. This table shows the impact on return per year One off costs Entry costs 1.55% The impact of the costs you pay when entering your investment. This is the most you will pay and you could pay less. This includes the costs of distribution of your product. Exit costs 0.00% This product does not charge any exit fees on maturity. Ongoing costs Portfolio transaction costs 0.06% Insurance costs 0.14% Other ongoing costs 2.40% The impact of the costs of us buying and selling underlying investments for the product. This impact of the costs that we take each year for providing life cover. The impact of the costs that we take each year for managing your investments. Incidental costs Performance fees Nil This product does not charge any performance fees. Carried interests Nil This product does not charge any carried interests. How long should I hold it and can I take money out early? Recommended holding period: 10 years The recommended holding period has been selected to enable investors to benefit from long-term growth whilst avoiding short-term volatility. If you cash in your plan before the agreed maturity date then you may have to pay a surrender penalty which could result in you receiving less money than you paid in. How can I complain? To make a complaint about our products or our conduct, contact us with your full name and address, your plan number and details of your complaint. More information can be found at: kingstonunity.co.uk You can submit your complaint via post to Complaints Department, Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ, via to enquiries@kingstonunity.co.uk or by phone Other relevant information Additional information about the product and policy conditions can be found in our Product Guide and Terms & Conditions and are available on our website. Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /002 Tax Exempt Savings Plan with Life Cover Key Information Document 3

17 Tax Exempt Savings Plan Application Form Kingston Unity is a Friendly Society. We re totally different to banks, because we re owned by our members. We re run for the benefit of you, and your family, not for shareholder profit. We ve helped hundreds of thousands of members, their children and grandchildren, to make more of their money with taxefficient savings and investments. We ve been looking after our members money and best interests since We re financial friends for life. Our promise to you We will treat you as a retail customer which means that you will receive the highest level of customer protection available under UK financial services rules and regulations. You will be treated fairly in all of your dealings with Kingston Unity including: The product and associated services will be clearly described, so that you can decide whether it meets your needs Your obligation To complete the application to the best of your knowledge and inform Kingston Unity in writing immediately of any changes in your circumstances To read and understand the Product Guide, Key Information Document and Terms & Conditions of this product before making an application To read all documentation that we send to you You will be provided with clear and accurate information, during and after the point of sale We will deal with your queries and complaints effectively. See Key Information Document for our complaints procedure. Application checklist Page 2 Section 1 Complete with the details of the applicant of the Tax Exempt Savings Plan. For Adult plans we require a National Insurance number and at least 3 years of address history. For child plans complete this section with the child s details and continue to section 2 with the Sponsor s details. Section 2 If applying for a Child Tax Exempt Saving Plan the Sponsor who will be the responsible adult paying the premiums needs to complete this section. The child will be the plan holder and receive the proceeds of the plan at maturity. Section 3 Select if you would like to apply for the Life Cover Option - available for applicant s aged 65 and under at entry. Please ensure you have read the Product Guide, Key Information Document and Terms & Conditions for this option. Page 3 Section 4 Choose how long would like the plan to run for. You can select a term from 10 to 30 years or have it mature on a specific date such as a special birthday. The plan is available for those aged from birth to age 75 on entry (or age 65 if Life Cover Option is chosen). If you choose a term longer than 10 years the maximum age on maturity is 85 (or 75 if you choose the Life Cover Option). Section 5 Choose a regular premium amount and if you would like to pay monthly or annually. The minimum premium for a child plan is 5pm/ 50pa and for an adult plan is 15pm/ 180pa. Up to a maximum of 25pm/ 270pa for both adults and child plans. Section 6 Complete the Direct Debit Mandate with your bank account details and select your chosen payment date. Page 4 Section 7 This section describes how and in what circumstances we will use the personal information you give to us. It also gives you the opportunity to tell us whether or not you would like to receive newsletters and information about our other products and services, and to indicate your communication preferences if so. Section 8 Please read the declaration in full and once you have completed the application form, sign and date it in the space provided. Section 9 If someone has recommended you or if you have a promotional code then you can add it here and let us know how you heard about us. Tax Exempt Savings Plan Application Form 1

18 Tax Exempt Savings Plan Application Form To open this Tax Exempt Savings Plan please complete this form in BLOCK CAPITALS using black ink and read the checklist on the previous page. If you would like any help completing your application, you can contact us on Applicant s details - I apply to open a Tax Exempt Savings Plan (TESP) for: Title First name Last name Current address Post code Previous address* Previous post code How long did you live at this address? From dd/mm/yy To dd/mm/yy Gender Male Female Date of birth dd/mm/yy NI No** Telephone *Required for applicants aged 18 and over if you have lived at your current address less than 3 years **National Insurance Number required for applicants aged 18 and over 2. Sponsor details if applying for a Child Tax Exempt Saving Plan Complete this section with details of the responsible adult who will be paying the regular premiums of the child plan. Title First name Last name Current address Post code Previous address* Previous post code How long did you live at this address? From dd/mm/yy To dd/mm/yy Gender Male Female Date of birth dd/mm/yy Telephone *If you have lived at your current address less than 3 years 3. Life Cover Option Please note this option is only available for those aged 65 or under on entry and the maximum age at maturity is 75. Tick this option here if you would like to take the Life Cover Option. Please ensure you have read the Product Guide, Key Information Document and Terms & Conditions for this option. Qualifying Policies A Tax Exempt Savings Plan is a qualifying regular premium policy. The maximum you can pay in to such policies in any one year is 3,600 for policies taken out after 6 April This limit includes any payments to qualifying policies with other friendly societies. We can not accept applications that would breach this limit. Tax Exempt Savings Plan Application Form 2

19 Tax Exempt Savings Plan Application Form 4. Length of Plan Choose how long would like the plan to run for, from 10 to 30 years or select to have it mature on a specific date such as a special birthday: Years or Date of maturity * dd/mm/yy *Maximum age on maturity is 85 (or 75 if you choose the Life Cover Option) 5. Regular premium amount Choose whether you would like to pay monthly/yearly and how much you would like to pay: Monthly Choose how much you would like to save each month: Yearly Choose how much you would like to save each year: 5 (child only) or 50 (child only) Other Other * minimum monthly premium is 5 for a child and 15 for adults. Up to a maximum of 25 per month. (This limit includes any Tax Exempt Savings plans with other providers.) * minimum yearly premium is 50 for a child and 180 for adults. Up to a maximum of 270 per year. (This limit includes any Tax Exempt Savings plans with other providers.) 6. Instruction to your bank or building society to pay by Direct Debit Monthly collection date 1st 16th Choose one Instruction to your Bank or Building Society to pay by Direct Debit Please fill in the whole form using a ball point pen and send it to: Applications, Kingston Unity Friendly Society Limited 9 Navigation Court, Calder Park Wakefield WF2 7BJ Name and full postal address of your Bank or Building Society To: The Manager Bank/building society Service user number Reference Address Name(s) of Account Holder(s) Postcode Instruction to your Bank or Building Society Please pay Kingston Unity Friendly Society Limited Direct Debits from the account detailed in this Instruction subject to the safeguards assured by the Direct Debit Guarantee. I understand that this Instruction may remain with Kingston Unity Friendly Society Limited and, if so, details will be passed electronically to my Bank/Building Society. Signature(s) Bank/Building Society account number Branch Sort Code Date Banks and Building Societies may not accept Direct Debit Instructions for some types of account. This guarantee should be detached and retained by the payer. The Direct Debit Guarantee This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits If there are any changes to the amount, date or frequency of your Direct Debit Kingston Unity Friendly Society Limited will notify you 10 working days in advance of your account being debited or as otherwise agreed. If you request Kingston Unity Friendly Society Limited to collect a payment, confirmation of the amount and date will be given to you at the time of the request If an error is made in the payment of your Direct Debit, by Kingston Unity Friendly Society Limited or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society If you receive a refund you are not entitled to, you must pay it back when Kingston Unity Friendly Society Limited asks you to You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

20 Tax Exempt Savings Plan Application Form 7. How your information will be used We will use your personal information, and the personal information about the child for whom you are applying, that you provide us with to administer their account, including collecting payments, managing claims and withdrawals and providing regular statements. If you register an interest in an event, promotion or product for yourself we will use the personal information you give us to get in touch with you about it according to your indicated communication preferences. We may share the personal information you give us with our service providers to conduct our business efficiently and effectively. Information about your rights (and those of the child) in relation to our processing of your personal data are set out in our Privacy Notice. You can also find out more information about how, what, when and why we process such personal information in this notice. We take your privacy very seriously and we think you should too so please take a moment to read this notice in full. 7a. Keeping you informed Kingston Unity would like to keep you informed of other products and services we offer which we feel may be of interest to you. We will never sell or licence your personal information to a third party. You can easily opt out of receiving such information at any time by contacting us. Would you like to receive a member newsletter? We currently send a member newsletter by twice a year. It includes Society news, financial and lifestyle articles and information about community events. If you would like to receive this tick the appropriate boxes below: Post (I don t have an address) Would you like to receive information and offers about our products & services? If you would like to hear about latest offers and information about our products and services please tick the appropriate boxes: Post Phone Text Message 8. Declaration - Please ensure you sign and date this section. 8a. I declare that: I am 18 years of age or over I am the applicant or the sponsor of a child under 18 I am/ the child is resident in the UK, or is a UK crown servant, is a dependent of a UK crown servant or is married to/in a civil partnership with a UK crown servant I am / the child is not in breach of the annual limit of 3,600 for qualifying policies I do not / the child does not have other TESP s with other friendly societies that would breach the 25 per month limit. 8b. I agree to inform Kingston Unity of any changes to my/my child s details. 8c. I have read and understood the Product Guide, Key Information Document and the Terms & Conditions for the Tax Exempt Savings Plan. 8d. I declare that this application has been completed to the best of my knowledge and belief. Sign Here Date dd/mm/yy 9. Further information Promo code How did you hear about us? What to do next Read all the enclosed information carefully. Then, when you re ready to apply, complete this application form and return to Freepost RSJC-BBGE-KSAX, Kingston Unity, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ If you have any questions whilst completing this form you can contact us on: enquiries@kingstonunity.co.uk kingstonunity.co.uk/tesp Find out more at enquiries@kingstonunity.co.uk kingstonunity.co.uk/tesp Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /003 Tax Exempt Savings Plan Application Form 4

21 Tax Exempt Savings Plan Demands & Needs We hope that you have found all of the information you need in this information pack, the following questions will help you to understand whether our Tax Exempt Savings Plan meets your needs and will enable you to make an informed decision about the suitability of this product. Please answer the following questions and return your answers to us with your application. Name:... Date of Birth: Do you want a long-term (minimum of 10 years) regular savings plan with a fixed premium? Yes / No 2. Do you want to build a guaranteed tax free lump sum payable to you at the end of a specified term? Yes / No 3. Are you aware that if you surrender the plan in the first 12 months, or before 12 months premiums have been paid there will be no surrender value? Yes / No 4. Are you aware that penalties apply on early surrender and that you may get back less than you have paid in (especially during the early years)? Yes / No 5. Are you currently contributing into a Tax Exempt Savings Plan with any Friendly Society? Yes / No If you answer no to questions 1-4, this product may not meet your needs. We are not able to provide you with financial advice. So, if you are in any doubt whether this Tax Exempt Savings Plan meets your savings needs, you can seek advice from a Financial Adviser. You may be charged for this advice. Thank you for your interest in Kingston Unity Friendly Society. If you have any questions about this or any other of our products then please contact us using one of the methods below. Find out more at: enquiries@kingstonunity.co.uk Kingstonunity.co.uk Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /007 TESP Demands & Needs

22 A guide to how we manage our With Profits fund A consumer friendly version of the Principles and Practices of Financial Management (PPFM) The PPFM sets out how the Society manages it s With Profits fund and can be found on our website at kingstonunity.co.uk/withprofits. It covers two areas; the principles which are high level statements regarding the long term management of the fund, and the practices which are statements about how we implement the principles. Over time we may amend the principles but if we do this we will write to members to advise them of the changes. If we amend the practices we will write to members at the earliest opportunity to inform them. This consumer friendly guide aims to provide a simplified version of the main items contained in the PPFM. What are our guiding principles We manage our With Profits fund in a lawful, What is the With Profits fund This is an investment fund where your money is combined with that of other customers and then invested in a range of different assets (see section: How is the With Profits Fund invested). sound and prudent manner. We aim to treat all our customers fairly. We will operate in a manner to enable us to pay all guaranteed benefits when they become due. The objective is to ensure that on death or maturity you will receive the guaranteed benefit under the plan along with any annual bonus that has been added. Reversionary Bonus is not guaranteed to be paid and may vary, including the possibility of none being paid in a particular year or years, depending upon the investment performance of the fund, our expenses and other factors such as the number of withdrawals and closures. Some of our plans may also have a Terminal Bonus added but again this depends on the funds performance. Reversionary Bonus (Annual Bonus) The rate of bonus is set by the Society s Board after consultation with the With Profits Actuary, usually once every year. It is set by taking into account what the fund can afford both now and in the future to make sure that we can meet all the guaranteed amounts when they need to be paid. Once a Reversionary Bonus has been added it cannot be taken away providing the plan runs to maturity. Interim Bonus This type of bonus may be added if your plan matures during a period for which an Reversionary Bonus has not been declared. It is also the type of bonus that is added to your plan on death, (except conventional adult and Child Tax Exempt Savings Plans) and on surrender of ISA s and Bonds. Terminal Bonus Any Terminal Bonus is again agreed by the Board following consultation with the With Profits Actuary. This type of bonus is designed to ensure that the amount that you get back fairly represents the performance of the fund during the period of your investment. What is an asset share An asset share is calculated by taking into account the premiums you have paid, the investment performance of the fund whilst you have been investing minus the charges that we make to cover expenses and the cost of death or sickness benefits (where applicable). The investment returns credited reflect the level of guarantees on an individual plan. If the guaranteed benefits on a plan are high we have to adopt a safer investment approach in order to meet the guarantee (for example by investing in deposits or fixed interest assets). However where guarantees are low it allows us to invest in assets that may have a higher level of risk attached but over time could be expected to outperform the safer assets to provide a better return. On average we aim to pay out the full asset share to plan holders but we also use smoothing (see section on smoothing) to make sure that payouts, wherever possible, do not alter significantly from year to year. The Society s Board sets the target range for payouts and these are detailed in the PPFM. What is smoothing Smoothing helps to protect plan holders from short term fluctuations in the value of assets within the fund but will not protect from long term and sustained falls in value. We do this by retaining some of the surplus during a good year and A guide to how we manage our With Profits fund 1