London

Austin Professional
Resourcing
71-75 Shelton St
London
WC2H 9JQ
01235 821 160
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Edinburgh

Conference House
152 Morrison Street
Edinburgh
EH3 8EB
01235 821 160
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Administrative Office

BH Office
Church Street
Ardington
Wantage
Oxfordshire
OX12 8QA
01235 821 160
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Unit Linked Projection

This calculator projects a policyholder’s unit-linked savings fund, according to the amount and profile of the payments, the charges applied, fund growth and any expenses or commission. It also calculates the discounted profit for the provider, based on the above cashflows into the non-unit fund and whether any reserving allowance is applied.

Payments

Regular premium Single premium
Premium Frequency

Projection Basis

Projection Period (months) Risk Discount Rate
Unit Fund Growth Allow Reserves?
Non-Unit Fund Growth

Charges

Initial Allocation Rate Bid/Offer Spread
Fund Management Charge (%) Policy Fee (£)

Expenses and Commission

Initial Expense (£) Initial Commission (% of premium)
Renewal Expense (£) Renewal Commission (% of premium)

Assumptions

  • Commission is borne by the policyholder directly (post-RDR world) and is taken from the premiums straight away. Initial commission is taken from any premiums paid in the first month, renewal commission is taken from premiums paid thereafter.
  • After commission but still at the beginning of the month, premiums, allocation charges and policy fees are then processed.
  • The fund management charge is taken at the end of the month.
  • Charges to the unit fund are paid monthly by dividing the annual charge by 12, except for the policy fee which is taken annually in advance.
  • Expenses are paid yearly by the provider on the policy anniversary.
  • The regular payment commences immediately from the first month.
  • Reserves (if applicable) are set up to eliminate future negative cashflows from the non-unit fund.
  • Mortality and lapse are ignored.
  • The policy fee is capped by the fund value.
  • The only policyholder benefit payable is the full unit fund value.


Projected values

Projected Fund Value
Projected Discounted Profit



Unit Fund Table
t Fund size at start Payment Commission Allocated Policy fee Fund size before growth Fund size after growth AMC Fund size at end
Non-Unit Fund Table
t Allocation AMC Policy fee Expenses Profit Profit signature

This tool has been developed by APR LLP. All figures are for illustrative purposes only.