Flexibond FAQ
How does the Flexibond work?
When you invest money into the NFU Mutual Flexibond you buy units in one or more of seven funds available to choose from. This enables you to tailor your investment to your own needs and requirements. More information on the funds available can be found further down this page.
The Flexibond is a medium to long-term investment, and its value can go down as well as up and you may not get back what you invested.
Am I eligible?
To take out a policy you must be aged over 18 and less than 85 years old.
How much can I invest?
You can invest a lump sum, make regular contributions or a combination of the two.
Currently, the minimum lump sum investment is £1,000, and this is also the minimum additional investment you can make.
Regular contributions can be made monthly, minimum £25 per month, or annually subject to a minimum of £300 per annum, paid by direct debit.
What if I want a break from paying regular contributions?
You can stop, restart, increase or decrease your regular payments at any time.
Can I take money out of my flexibond?
Yes. You can make one-off withdrawals by writing to us. You can also take regular withdrawals to supplement your income on a monthly, quarterly, half yearly or annual basis.
Surrender penalties may be applied if you take withdrawals within three years of making an investment.
The minimum amount you can withdraw is currently £100, and a minimum balance of £500 must remain in your policy.
How can I follow the progress of my investment?
You will receive an annual statement which will show you the value of your investment and tell you about its performance.
How much might my policy pay out?
You can request an illustration of potential benefits by calling our Customer Services Team free on 0800 622 323.
The actual amount will, however, depend on the performance of your chosen fund(s) and any withdrawals made.
What funds are available to invest in?
There are seven Flexibond funds to choose from. You can invest in one or more of them to spread your risk. Information about the risk rating for each fund is available in the key features document for this investment.
1. Mixed fund
Objective: To achieve balanced long-term growth.
Strategy: To invest in a combination of our other funds to maintain a spread across types of investment. The mix of funds is managed and regularly monitored by our investment team. The fund will be exposed to the world's investment markets.
2. UK Equity fund
Objective: To provide long-term growth by investing in UK quoted company stocks and shares.
Strategy: The portfolio invests predominantly in blue-chip companies
3. International fund
Objective: To provide long-term growth by investing overseas.
Strategy: To invest in a number of stocks throughout the world. The fund is biased towards the world's major equity markets. Investments can also be made in the smaller markets, which can be more unstable, but can also produce good returns.
4. Fixed interest fund
Objective: To provide a return from a portfolio investing mainly in gilts and investment grade corporate bonds.
Strategy: The fund will invest in a portfolio of bonds and other fixed and floating rate securities denominated mainly in sterling and issued by governments, government agencies, supra-national and corporate issuers (including preference shares).
5. Deposit fund
Objective: To invest in secure UK money market accounts. The fund is an ideal temporary haven for your money while you're deciding where to invest it for the longer term. The fund isn't intended as a long-term investment.
Strategy: To place money on short-term deposit in the UK money markets to get competitive rates of interest. The return will reflect the short-term interest rates in the money markets.
6. Managed fund
Objective: To maximise long-term growth from capital and income.
Strategy: To invest in one or more of our other funds with a view to maximising the long-term return. The mix of funds is managed and regularly monitored by our investment team. The fund is mainly exposed to UK and overseas equity markets and will therefore reflect the unpredictability of those markets, but could also be invested in other assets.
7. With-profits fund
Objective: We invest your money with the aim of achieving long term growth. Returns on your investment are smoothed out over time, as we keep back some of the growth from good years to boost returns in poor years.
Strategy: We invest your money, together with that of all of our With-Profits policyholders, in a wide range of investments including shares, commercial property, government securities and corporate bonds.
At least once a year we decide whether we can add a bonus, and if so how much. We don't guarantee the size of future bonuses because they depend on any future profits we might make. We may have to cut bonus rates in future.
If we decide to add a bonus, we increase the price of the With-Profits Fund units. When you cash in units or transfer part of your investment from the With-Profits Fund into one of the other funds, we may add a final bonus to reflect the overall growth in your fund.
Can I switch funds easily?
Yes. You can switch your investment from one fund to another at any time, although in exceptional investment conditions NFU Mutual reserves the right to delay switches.
Full details of this policy can be found in the Flexibond Key Features Document which should be read and understood before you decide to proceed with any purchase. This can be requested via our contact us page or by calling 0800 622 323.
For security and training purposes, telephone calls may be recorded and monitored. Your enquiry may result in a call from an NFU Mutual Financial Consultant or Customer Telephone Adviser who advises on NFU Mutual's products and services and in special circumstances those of other providers.
|
Insurance
