KEY FACTS

PART I - IMPORTANT INFORMATION

ITS AIMS
(a) To provide a guaranteed cash sum at the end of its term.
(b) To provide a return of premiums (plus interest) in the event of death before the end of the term.
(c) To add bonuses to the cash sum, when payable.

YOUR COMMITMENT
(a) You agree to pay a regular premium, i.e. monthly or yearly, throughout the term, or a single premium.
(b) If you stop paying the premiums at any time the Regular Savings Plan will stop.
(c) If you cash in your policy during the early years you are unlikely to receive as much back as you have paid in.

RISK FACTORS
(a) Bonuses will depend on investment performance.
(b) Your circumstances may change, forcing you to cash in early.
(c) Tax may be payable on benefits.

WHAT IS THE "REGULAR SAVINGS PLAN"?
The plan is an endowment savings policy, which pays a guaranteed sum assured if you survive to the end of the selected term.
Your premiums are paid into a fund, the income of which is taxed..
Bonuses are added (and once added cannot be taken away) out of the fund's profits.
Following survival to the end of the selected term, the full value of the sum assured plus bonuses is paid.

IS THERE A TAX LIABILITY?
Your money is invested in a fund on which Sheffield Mutual pays tax. Currently if you are a basic rate tax payer in the year in which you receive the proceeds of your policy, you will not be subject to any taxation of those proceeds. However, if you are a higher rate tax payer in the year you receive the proceeds, you may be liable to tax on your investment gain at the difference between the higher rate of tax and the basic rate. This information is based on our understanding of current taxation legislation which may change in the future.

HOW WILL IT WORK FOR ME?
Details of how the plan will work are contained in the illustration which is available on request.
This leaflet and the tables will answer some of your questions; please ask your adviser if you have any other questions.

WILL MY PLAN WORK OUT EXACTLY AS IN THE TABLES?
That will depend on what bonuses can be allocated.

WHAT HAPPENS IF I STOP PAYING PREMIUMS?
In the first year the policy will lapse without value.
After the first year you can cash it in but you are likely to get back less than you have paid in. Surrender values are shown in the attached example (which may be taxed).
In the event of ill health you may arrange for a third party to continue your premiums on your behalf. In the event of prolonged ill health, at the discretion of the Society a benefit in the form of a surrender value may be paid.

WHAT ABOUT PROTECTION FOR MY DEPENDANTS?
In the event of death before the end of the selected term, the surviving spouse (or nominated dependants) is entitled to receive a lump sum equivalent to a refund of all premiums paid to date (up to the date of death of the member) plus interest.
If you feel that additional protection in this area is needed, please ask your adviser about alternatives.

PART II - FURTHER INFORMATION

CANCELLATION RIGHTS
After your proposal is accepted you will receive a notice of your right to cancel. You will then have 30 days in which to change your mind.

PREMIUMS
Premiums are paid monthly or annually. Missed premiums could mean that your policy may lapse with no value.

BONUSES
Bonuses calculated on the basis of the profits of the fund are added to your policy. The bonus rate is decided by Sheffield Mutual Friendly Society acting on the advice of the actuary.

CHARGES
The charges, expenses and other deductions used in this guide are at current levels. They could vary in the future.

TAX
The fund is taxed on income under current legislation. Tax may be payable on maturity or surrender according to your circumstances. The current tax position could be altered in the future.

CASHING IN
You can cash in your policy whenever you like after the first year, but you should remember if you cash in early you are likely to get back less than you paid in.

PAID UP VALUES
If you stop paying premiums, any time after the first year you may apply for a free paid up policy or surrender value.

LAW
In legal disputes the Law of England and Wales will apply.

LEGISLATION
All or any of the benefits, the premiums, or the policy conditions may be adjusted as deemed appropriate
if there is any change in Law or taxation affecting the policy
if any levy is imposed on the Society under statute or statutory authority as a consequence of any amendment to General Laws. Notice would be given of any such adjustments.

QUERIES AND COMPLAINTS
For further information or if you wish to complain about any aspect of the service you have received, please contact the Society. If a complaint is not dealt with to your satisfaction you can then complain to the Financial Services Ombudsman, South Quay Plaza, 183 Marsh Wall, London E14 9SR, or telephone: 020 7964 1000. Making a complaint will not prejudice your right to take legal proceedings.

COMPENSATION
Information on compensation arrangements is available from the Society on request.

Authorised & Regulated by the Financial Services Authority.