Adult - Standard Savings Plans

If your clients want to save a bit more than £25 a month, then one of our Standard Savings Plans could be perfect. We’ll agree a guaranteed minimum return that they’ll get when the plan matures, as long as they’ve kept up their contributions and our Key Information Document will show them what they might receive.

A tax efficient way to save

With a Healthy Investment Standard Savings Plan, any proceeds your client gets on maturity are paid to them free of income tax and capital gains tax. It means they can now build a guaranteed cash sum on maturity of up to £50,000 - a great way to minimise their tax liability.

Your charges

We do everything we can to make it straightforward for you to collect your fees - as qualifying life policies, fees can’t be withdrawn from this investment but we can collect additional payments by Direct Debit either initially or for a fixed term.

Regular savings

It’s not always easy to remember to save, but the Healthy Investment Standard Savings Plan commits your client to putting away the same amount every month - a great way to build their fund gradually.

We’ll give your client regular bonuses every year and add them to the value of their policy. Once a regular bonus has been added it can’t be taken away - the level of the bonus isn’t guaranteed however, and can change every year. They may also receive a final terminal bonus when the policy matures.

Life cover means your client’s dependents will get the guaranteed sum assured on their death, plus any bonuses that have been added, if they die during the term of the plan and all contributions are paid up to date. If they’re paying in more than £25 a month they may be asked to answer a few quick medical questions.

Your client can choose how long they want to save for – you could suggest they arrange it so that their plan matures on a date that coincides with something special in your their life - a big birthday or a special anniversary.

We’ve found that these kind of savings accounts are really popular with clients - they may remind your clients of the kind of savings schemes their parents had when they were a child.

Friendly, professional & efficient service.

Swift responses to any queries from well informed staff. Always very pleasant and helpful on the telephone.

I couldn’t have asked for a better service. Replies were quick and all my queries were answered.

Important Points

Is it for my client?

Any UK resident can invest in a Healthy Investment Standard Savings Plan providing the plan matures before they are 65.

You might consider this plan if your client already has savings in a bank or building society and are now looking to put some money in to an investment which includes life cover, has some risk but potentially higher returns and the proceeds of which are paid tax free.

You might consider this plan if your client has already used their friendly society Tax Exempt Savings Plan limit of £25 per month and you want to invest more in to a similar policy.

Save from as little as £10 per month or a maximum of £275 per month (If they are already using their £25 per month Tax Exempt allowance).

They can have their Standard Savings Plan mature on a specific date, or simply select a term between 15-25 years, providing it matures before their 65th birthday.

Depending on the term chosen they should see this as a medium or long term investment.

Things to think about

Although the Standard Savings Plan grows through bonuses, bonus rates are not guaranteed and in exceptional circumstances could be nil.

If your client's circumstances change and they are unable to continue the payments they may receive back less than they have invested, especially in the early years.

Inflation will reduce what the proceeds of the policy will be able to buy in the future.

Tax rules can change at any time.

Our Ethical With-profits Fund

If your client decides to invest in a Healthy Investment Standard Savings Plan, they will be investing into our Ethical With-profits Fund, which includes a mix of stocks and shares, fixed interest bonds, commercial property and cash deposits. The mix of assets held changes over time.

We avoid investing in companies in certain industries and those whose activities are not in accord with our members’ personal values. Examples are the tobacco, armaments, alcohol and fur manufacturing industries, gambling and pornography providers and companies that manufacture products or ingredients that have been tested on animals.

We seek to invest in companies that are explicitly involved in activities that benefit society and the environment. Examples are companies that are tackling climate change, promoting a low carbon economy, promoting diversity and equal opportunities, and improving energy efficiency.

Our vision is to invest for a better future, deliver good financial returns and make a difference to society and the environment.

The Society aims to provide a consistent return by smoothing the investment return to avoid volatile fluctuations in the value of your client's investment. Smoothing may not protect against long term or sustained falls in the value of investments.

For further information on our Ethical With-profits Fund please click here.

Bonuses and benefits

Reversionary bonus
A reversionary bonus is an annual bonus which, once added to your Standard Savings Plan, can never be taken away.

Reversionary bonuses are expressed as a percentage of your guaranteed sum assured so it cannot be compared to a rate of interest.

These are the reversionary bonus rates we’ve previously applied to our Standard Savings Plan:

2022 – 0.65%
2021 – 0.65%
2020 – 0.65%
2019 – 0.75%
2018 – 1.25%
2017 – 1.25%
2016 – 1.25%

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance. The level of bonus also reflects the capital and bonus guarantees. The rate of bonus can change every year and could in exceptional circumstances be nil.

All reversionary and interim bonus rates are net of charges. The bonus rate declared is the bonus rate you receive.

Interim bonuses
Unlike declared reversionary bonus rates, which can never be changed, interim bonus rates can be increased or reduced by the Board at any point during the year. The current interim bonus rates are based on a prudent view of future investment performance, solvency and expenses over the year. Interim bonus is paid on policies paid out since the last reversionary bonus declaration on both maturity and death.

Terminal bonuses
A terminal bonus is an additional final bonus which may also be added on maturity or in the event of the death of the investor. The rate of final bonus can be changed at any time or can be withdrawn altogether.

Life cover
The Healthy Investment Standard Savings Plan includes life cover throughout the term of the policy.

The life cover consists of the original guaranteed sum assured (this is based on the amount you choose to save, the chosen term and your age) plus any bonuses already added to your policy.

When you complete a Standard Savings Plan application form we will ask you a few medical questions on any current and previous health issues and your current lifestyle. We will make an assessment on the details you have provided.

Guaranteed return

The agreed sum assured your client receives when taking out a Healthy Investment Standard Savings Plan is the absolute minimum they are guaranteed to receive at the end of the chosen term, providing all the premiums have been paid.

Every year we may add a bonus to the Standard Savings Plan to increase the guaranteed amount they will receive on maturity. The bonuses, which are decided by the Board, are calculated as a percentage of the original sum assured. Once a bonus has been declared and added to your policy it can never be taken away.

Bonus rates can change every year and could in exceptional circumstances be nil. They depend on investment performance and other factors.

When the policy matures they may also receive a terminal bonus to further increase their maturity amount. The terminal bonus isn’t guaranteed and can be increased, decreased or removed altogether at any time.

What could they get back?

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance.

The Key Information Document includes examples of what your client might receive back based on different investment scenarios. It also helps them understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.

Download our latest Key Information Document for our Standard Savings Plan here.

Download

Consumer Duty

The Consumer Duty ensures that the needs of our members and your clients are always put first. As a mutual we’ve been committed to doing the right thing throughout our long history, however this new FCA initiative is, we believe, going to drive up standards across financial services.

As part of our commitment to supporting you, the advisers we work with, our Consumer Duty Outcome Assessment is available to help you demonstrate that by recommending our products you’re doing the right thing for your client.

Download our outcome assessment for our Adult Standard Savings Plan here.

Download

Important Documents

Key Information Document
Download
Terms and Conditions
Download

Tax Exempt Savings Plan - Without Life Cover

View

Tax Exempt Savings Plan

View

If there's anything
you don't understand,
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Call Jerrol on 0161 762 5790

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Working in partnership

Recommending and submitting business to Healthy Investment is easy. There are a number of options and all of our products can facilitate the payment of your fees.

All of the financial advisers we work with have their own dedicated Healthy Investment Business Development Executive.