KEY FACTS

PART I - IMPORTANT INFORMATION

ITS AIMS
(a) To provide a tax free guaranteed cash sum at the end of its term from a tax exempt fund.
(b) To provide a tax-free guaranteed cash sum in the event of death before the end of term.
(c) To add tax free 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.
(b) If you stop paying the premiums at any time the Endowment Assurance (with Profits) 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) Legislation may change, to affect the tax-exempt fund.
(c) Your circumstances may change, forcing you to cash in early.

WHAT IS THE 'TAX EXEMPT SAVINGS PLAN WITH LIFE COVER'?
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 tax-exempt fund. With the exception of the tax credit on dividends, which can no longer be reclaimed.
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.

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?
Depending upon the number of premiums that have been paid, a surrender value may be available though you could get back less than you have paid in. Surrender values are shown in our literature. Contact us for a copy.
If premiums are more than three months in arrears the Society reserves the right to cancel the policy, in which case it will be converted to a paid up policy with no further participation in profits, or a surrender value will be paid and all other benefits will be forfeit.
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 tax-free lump sum equivalent to the sum assured plus any bonuses that have been added.
Protection against the financial consequences of death is modest. If you would prefer further protection in this area, 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 would lapse with no life cover or cash 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 future.

TAX
The proceeds of the policy are free from tax when payable on maturity or death. 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 after the first year you may apply for a paid up policy. The guaranteed sum assured will be reduced. The bonuses already added will not be affected, but future bonuses will be calculated according to the reduced sum assured.

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.