Savings and Investment Plan Terms and Conditions
Definitions
Throughout the plan there are words and phrases that have special meanings and are shown in italics.
"Fund" means each separately identifiable account maintained by us.
"Fund switch" means the cancellation of units in one fund and their allocation instead to an alternative Fund or Funds. The Unit account Value on the effective day of the fund switch will be the same before and after the fund switch.
"Plan" means the 1000 Forester Life Savings & Investment Plans you have applied for, which are evidenced by this Plan Document, less any that have been surrendered. Each of the 1000 Plans is a separate arrangement and those that remain from time to time are identical. These Terms and Conditions apply to all of those Plans and any reference in these Terms and Conditions to the Plan is a reference to all those 1000 Plans, less any that have been surrendered.
"Plan Value" effective on a given date means the sum of the units of each Fund of the Unit Account on that date multiplied by the respective unit price effective on that date.
“Planholder” means person or persons named in the Schedule.
"Schedule" means the personal information relating to the Plan.
"Stakeholder" means an account, which meets the Government’s requirements for a stakeholder account as set out in the Stakeholder regulations. For the purposes of this Plan, only an insurance policy is available.
"Stakeholder regulations" means the Stakeholder Products Regulations 2004 as amended or re-enacted from time to time.
"Start date" means the date specified in the Schedule.
"Unit account" on a given date means the units of the Funds that remain allocated to the Plan at the end of the previous day. Any units cancelled before that time for any reason described in this document do not form part of the Unit account.
"We" and "Us" mean Forester Life Limited. "Our" has a corresponding meaning.
"You" means the Planholder(s) and, where the context requires, the legal personal representatives of the surviving Planholder. "Your" has a corresponding meaning.
Contributions
You may invest regular monthly and/or one off contributions to your Plan. The minimum contribution is £20. There is no maximum limit. Contributions must be in the currency of England.
Single contributions can be made by cheque or direct credit. Monthly contributions can be made by direct debit or standing order and are due on the Start date and monthly thereafter.
Optional Changes to Monthly Contributions
You may increase or decrease your monthly contributions at any time. Monthly contributions may not be reduced below the minimum of £20.
You may stop your monthly contributions at any time. If monthly contributions have stopped they may be restarted at any time subject to any conditions or restrictions we may apply.
Automatic Increases on Monthly Contributions
Your monthly contribution will increase automatically on each anniversary of the Start date. The rate of each Automatic Increase in monthly contributions will be equal to the proportion by which the Retail Prices Index, for the month six months before the month in which the anniversary falls, exceeds the Index for the month eighteen months before the month in which the anniversary falls.
The rate of the increase will be applied to the amount of your monthly contribution, payable on the due date immediately preceding the anniversary, allowing for any contribution changes attributable to Optional Changes. If the increase in the Index for a year is negative, no Automatic Increase will be made on the respective anniversary date and your monthly contribution will remain unchanged. If the Retail Prices Index is replaced or discontinued, we will decide which other suitable Index we should use for calculating Automatic Increases.
Automatic Increases will be cancelled on all future anniversaries of the Start date if you request them to be cancelled, subject to 14 days’ written notice. If Automatic Increases have previously been cancelled you may request their reinstatement at any time. The first Automatic Increase after reinstatement will be made on the following anniversary of the Start date, subject to 14 days written notice. The reinstatement will not take account of any Automatic Increases that would have been made previously but for their earlier cancellation.
Investment of Contributions
Contributions will be invested in the Fund(s) selected for your Plan. The investment objectives of the Fund(s) are set out in our Savings & Investment Plan Brochure and Key Features. Subject to meeting the conditions for a stakeholder account, we have discretion as to how the assets of each Fund are invested. Any income arising from the assets of a Fund will be added to the Fund.
Each Fund is divided into units of equal value. We will increase or reduce the number of units into which a Fund is divided at our discretion, in which case we will transfer in to or out of the Fund an amount of money so that the value of each unit is unaffected.
We will value each Fund each business day based on the closing prices of the assets for the previous business day. However, in order to ensure fairness between existing investments, and transactions based on these Fund values, we may base the valuation of each fund price at a different time. We will calculate the value of the assets in each Fund on a fair and reasonable basis and check that the investment limits for each Fund are in accordance with the Stakeholder regulations.
We will calculate the value of a unit of each Fund at a valuation by dividing the total value of the Fund calculated at that day’s valuation by the total number of units of the Fund existing at that time. We will then set a price for a unit of the Fund for the purpose of allocating units to Plans and computing the benefits under Plans that are linked to the Fund. It will be equal to the value of a unit of the Fund rounded to the nearest one-tenth of a penny. Unit prices set at a valuation will be effective from the following day.
We may open new Funds from time to time or close or combine existing Funds if we think this is appropriate. Where we open new Funds, and subject to any conditions or restrictions we may apply, you may request that we redirect future contributions and/ or fund switch existing units, using the unit prices effective on the later of the date you select and the day after we receive your written instructions. Where we close or combine Funds we will redirect future contributions and/or fund switch existing units, as we decide are appropriate, using the unit prices on the effective date.
Allocation of Units to Your Plan
On each monthly due date, we will allocate to the Plan units of the Fund(s) using the unit price or prices effective on that date. The total value of the units we allocate at that price will be equal to the monthly contribution due.
If a monthly contribution is paid after its due date then we reserve the right to allocate units of each Fund selected at the unit price effective on the day after we receive the monthly contribution rather than at the unit price effective on the due date. If we have allocated units in respect of a monthly contribution that is not paid, those units will be cancelled.
For each single contribution received, we will allocate units to your Plan using the price effective on the later of the day after we receive the payment and the Start date. The total value of the units we allocate at those prices will be equal to the payment received.
The number of units of a Fund allocated in respect of each payment, and each fund switch, will be rounded down to the next lower 1/100th of a unit.
If the effective date for any unit cancellations under the Plan is the same day as the effective date for any unit allocations the allocations will take place first.
Fees and Charges
The annual management charge that we will levy is set out in our Saving & Investing Plan Brochure and Key Features. In addition we will make a deduction from each Fund before the Fund is valued, to cover the costs of taxation, dealing charges and any expenses incurred in complying with our legal requirements.
Annual Statements
We will prepare and send to you, at least annually, a statement including valuation of your Plan and the amount of all regular and lump sum contributions made since the previous statement date.
Encashment
On receipt of your written instructions, you may request that we pay you all or a portion of the Plan Value. This will be effective on the later of the day you select and the day after we receive your request. We will surrender a part of your Plan and withdraw funds from the remainder of your Plan, at our discretion. If the Plan Value in respect of the part of the Plan that is surrendered is greater than the amount requested, we will invest the difference in the remainder of your Plan as a single contribution.
We will cancel a number of units of the Unit account equal in value to the amount payable. If units of more than one Fund remain allocated to the Plan at the time, we will cancel units of each of those Funds equal in value to the proportionate value of the units of each Fund. The number of units of a Fund cancelled in respect of the partial withdrawal will be rounded up to the next higher 1/100th of a unit.
Before we make any payment, we will require evidence satisfactory to us of the entitlement of the benefit of the person or persons claiming payment. We may also require the return of this Plan Document and any endorsements. All payments are due in the currency of England at our registered office.
Payment of benefit will release us from our obligations under the Plan.
Death Benefit
In the event of your death (the second death where the Plan is held on a joint life basis), we will pay 101% of the Plan Value effective on the day after we receive notice and evidence, satisfactory to us. Payment will be made to your legal personal representatives.
Before we make any payment, we will require evidence satisfactory to us of the entitlement of the benefit of the person or persons claiming payment. We may also require the return of this Plan Document and any endorsements. All payments are due in the currency of England at our registered office.
Payment of benefit will release us from all of our obligations under the Plan.
Cancellation Rights
Your Plan Document is issued together with a Notice of your right to cancel. You have 30 days from receipt of this Notice in which you can change your mind about taking out your Plan. The amount returned to you may be less than the contributions paid, if the value of units bought on your behalf has fallen.
If you wish to cancel you should complete and return the Notice to us.
Termination
You may terminate your Plan at any time by giving us notice in writing.
We reserve the right to terminate your Plan by giving you 30 days’ written notice after the 5th anniversary of the Start date, if regular contributions stop or have stopped and the Plan Value is less than £1,750.
Disputes
We take the concerns of our Planholders very seriously. If at anytime you do have any comments or wish to make a complaint, please write to the Customer Relations Officer at Foresters, Foresters House, Cromwell Avenue, Bromley, Kent, BR2 9BF.
In the unlikely event that your complaint cannot be resolved to your satisfaction, you can write to the Financial Ombudsman Service (FOS), South Quay Plaza, 183, Marsh Wall, London, E14 9SR (telephone 0845 080 1800)
The existence of the FOS or this complaints procedure does not prejudice your right to take legal action.
Data Protection
We will record the personal information contained in your application on computer and use it to assess your application and to administer your policy. The information may be used for fraud prevention or money laundering prevention.
We may share your information with organisations who are our business partners. We, or they, may contact you by mail, telephone, SMS, fax or e-mail to let you know about any goods, services or promotions, which may be of interest to you. If you do not wish to receive such information please write to our Data Protection Officer, Foresters House, Cromwell Avenue, Bromley BR2 9BF.
By applying for this Plan you consent to our processing your sensitive personal data, such as health data, for the above purposes. You have a right to ask for a copy of your information (for which we may make a small charge) and to correct any inaccuracies. When you give us personal information about another person we will assume that they have appointed you to act for them and have consented to the processing of their personal data, including sensitive personal data.
General
This document contains the schedule and all the Terms and Conditions of the Plan. We will not be liable for any condition, claim, statement, warranty or representation, whether express or implied, and whether collateral to this agreement or not, which differs from these Terms and Conditions.
No term or condition in this document can be modified or waived (unless this document expressly provides that it can be) except by an endorsement issued by us from our registered office and signed by one of our authorised officials.
We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under these Terms and Conditions is competent to carry out those functions and responsibilities.
Any requests made in connection with these Terms and Conditions must be made in writing and delivered to our registered office. We will use certain procedures and forms when any change to your Plan or any payment is to be made. We will only make changes when all normal procedures have been complied with.
We will retain all the charges and deductions described in this document for our own use and benefit.
We are authorised and regulated by the Financial Services Authority.
We will send any notices or other correspondence to the address that you have given to us in your application form, or to a new permanent residential address provided you have advised us of it in writing.
We will update our literature from time to time.
We will always communicate with you using the English language.