Commuted Plan
The commuted plan is an investment only contract designed to provide a tax free cash sum at or after retirement. You must be transferring in from an existing Holloway Friendly Income Protection contract.
- Current practise is to invest the majority of premiums received in deposit accounts, fixed interest investments, long dated Government Stocks and shares.
- If you have not attained the retirement age of your income protection contract you must retain your Commuted plan for a minimum of 3 years or penalties may be incurred.
- Commuted plan units carry no entitlement to sickness benefit.
- Commuted plan units will be credited with an enhanced allocation of profits in lieu of there being no sickness benefit entitlement.
- Premiums are set at the out set and will not increase throughout the life of the contract, premiums must be maintained throughout the life of the plan.
- There is flexibility within the minimum 50, and maximum 500 units to suit most circumstances.
- A terminal bonus is currently paid when the proceeds of the account are paid out.
- This is paid without penalty at your request by the giving of just one month's notice.
