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Glossary

Helping you understand some of the common investment plan terms

Capped Income Drawdown
A type of Income Drawdown that was available before 6 April 2015. It is no longer possible to designate a pension pot for Capped Income Drawdown, although existing Capped Income Drawdown pots can remain in place. The main difference to Flexi–Access Drawdown is that for Capped Income Drawdown there are minimum and maximum amounts that can be taken, and the Money Purchase Annual Allowance does not apply.

You can make transfer payments from pension pots that have already been designated for fund or funds, however, we do not offer capped income drawdown and any capped income drawdown pots will be converted to a flexi–access drawdown pot. Your flexi–access drawdown pot will have its own drawdown policy year. The first drawdown policy year will start from the date that your flexi–access drawdown pot started with us. This will be the date that you first designate all or part of your pension pot for flexi–access drawdown with us, or the date at which we accept an application for a transfer payment from a pension pot that has already been designated for fund or funds. Each flexi–access drawdown pot you have with us will be treated separately.

Cash Account

The Policy is linked to an interest bearing cash account held with a bank of our choice. The cash account is intended to be used for short term holdings of cash and to facilitate payments of charges or withdrawals, it is not designed as a long term investment option.

Charges Schedule

A separate document that explains the charges that can apply to the VitalityInvest Retirement Plan, VitalityInvest ISA or the VitalityInvest Junior ISA. It includes details of the product charge and the rate that this will apply at across the different tiers. It also contains details of the Healthy Living Discount and an example of how the product charge is deducted.

Child Trust Fund (CTF)

Junior ISAs are long term tax-efficient savings accounts for children. Only children under the age of 18 and resident in the UK can hold a Junior ISA. It's not possible for a child to hold both a Junior ISA and Child Trust Fund (CTF). If your child was born between 1 September 2002 and 2 January 2011, the UK Government would have automatically opened a CTF on your child's behalf. If your child holds a CTF, you can transfer the investment into a Junior ISA. Parents or guardians can open a Junior ISA and manage the account on behalf of a child, but the money belongs to the child and the investment is locked until they reach 18 years of age.

Eligible Funds

To be eligible to receive the Investment Booster or the Retirement Booster, you will need to link the value of the Policy to one or more eligible Vitality funds. The eligible funds for each benefit may be different and are detailed in the Investment Booster Schedule and Retirement Booster Schedule. All documentation can be found on Member Zone. 

Financial Adviser

A Financial Conduct Authority (FCA) authorised Financial Adviser.

Fund or Funds 

Either an internal insurance fund operated by VitalityInvest or a collective investment fund to which the value of the Policy is linked. 

Fund Fact Sheet

A document that provides an overview of the fund. This is produced by the fund manager.

Healthy Living Discount

A discount on the Product Charge. Details of the discounted rates of Product Charge are contained in the Charges Schedule.

HMRC

Her Majesty’s Revenue and Customs.

Income Drawdown

A way of taking benefits from a pension plan. It allows you to take an income directly from the value of the pension plan, while the remaining value of the pension plan remains invested.

Investment Booster

An enhancement to the value of the Policy held in eligible funds for a continuous minimum investment period.

Investment Booster Schedule

A separate document that explains the Investment Booster that can apply to the plan. It contains the rates of the Investment Booster and an example of how the amount is calculated and added.

Plan

A VitalityInvest ISA, a VitalityInvest Junior ISA or a VitalityInvest Retirement Plan.

Policy

The sole investment within the Plan. It is a life insurance policy for your plan on your life and for your child’s plan on the life of your child. The value of the Policy is linked to the value of the funds in the plan.

Policy document

The document containing the terms and conditions of the Policy.

Product charge

This charge is for setting up and maintaining the Policy.

Retirement Booster

The Retirement Booster is an enhancement to the value of the Policy. The amount of the enhancement depends on the amount of income taken from your Flexi Access Drawdown pot, your Vitality status and the value of the Policy invested in eligible funds.

Retirement Booster Schedule

A separate document that explains the Retirement Booster that can apply to your plan. It contains the rates of the Retirement Booster and an example of how the amount is calculated and added.

Transfer Payment

A payment into your plan that represents the value of another plan you hold with a different provider.

Vitality Core

By opening one of our VitalityInvest plans, you’ll automatically qualify for the Vitality Core version of the healthy living programme.  Earn Vitality points by doing health checks, tracking your daily steps and looking after yourself. By getting more points, you’ll increase your Vitality status. The higher your status, the lower the product charge you pay. 

For a full list of partners and rewards available, visit vitality.co.uk/investments/partners-and-discounts/

Vitality Funds

Unit linked funds operated by VitalityInvest.

Vitality Status

Your Vitality status is a measure of how much you’ve done to look after your health, and we give you points for doing healthy things. The points count towards your Vitality Status. As you earn points, your Vitality status increases - everyone starts with Bronze. There are four statuses to work towards: Bronze, Silver, Gold and Platinum. We work out your Vitality Status using the activities you’ve recorded between each Policy Year.