Adult - Tax Exempt Savings Plans

Unique to friendly societies like ours, the Healthy Investment Tax Exempt Savings Plan allows your clients to take advantage of an extra government tax break by saving on a regular basis. This version of the plan comes with life cover, meaning that if your client was to die before the plan ends their estate will receive the guaranteed sum assured plus bonuses (providing all contributions are up to date).

A regular saving habit

With our Healthy Investment Tax Exempt Savings Plan your clients are committed to paying in the same amount every month - meaning that they can build their savings gradually over time. They can invest anything from £10 up to a maximum of £25 a month - if they want to invest more, then our Standard Savings Plan will suit them better.

A guaranteed return

We’ll agree a guaranteed sum assured when the policy starts that will be the absolute minimum they’ll get when the plan matures (as long as they’ve kept up all of their contributions of course). We also give regular bonuses every year and add them to the value of their policy. These can never be taken away - and they may also get a final bonus at the end of their term. The level of bonus added each year is not guaranteed and can change.

A tax exempt pay out

When the policy matures none of the money your client receives will be taxed, and the fund that the money is invested in is also free of UK income and capital gains tax.

Your clients’ money will be invested in the Healthy Investment Ethical With-profits Fund which includes a mix of different assets - all actively managed to maximise the potential for growth while carefully managing any risk.

The client chooses how long they want to save for - anything from 15 years to 25 years. It’s the perfect way to get that extra bit of tax free savings allowance or simply to invest a modest amount every month for their future.

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everything we can to make it straightforward for you to collect your fees - as qualifying life policies, fees can’t be withdrawn from this investment but we can collect additional payments by Direct Debit either initially or for a fixed term.

These kinds of Tax Exempt Savings Plans are hugely popular - 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 Tax Exempt 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.

Save from as little as £10 per month or a maximum of £25 per month (or £270 per year).

Your client can have their Tax Exempt 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 they choose they should see this as a medium or long term investment.

Things to think about

Although the Tax Exempt 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 has 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 Tax Exempt 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 Tax Exempt Savings Plan, can never be taken away, providing all future premiums are paid.

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 Tax Exempt 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 without any medical questions
The Healthy Investment Tax Exempt Savings Plan includes life cover throughout the term of the policy.

If you would like a Tax Exempt Savings Plan without life cover, please click here.

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

We do not ask any medical questions when you choose to take out a Tax Exempt Savings Plan. The life cover will start on receipt of your first premium.

Guaranteed return

The agreed sum assured your client receives when taking out a Healthy Investment Tax Exempt 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 Tax Exempt 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 the 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 Tax Exempt 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 Tax Exempt Savings Plan.

Download

Important Documents

Key Information Document
Download
Terms and Conditions
Download

Standard Savings Plan

View

Tax Exempt Savings Plan - Without Life Cover

View

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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.