If the Stockmarket Fund halves.
Finally, using the same figures, should the Stockmarket Fund halve over the term to the insured date the Insurance Fund will pay out the difference so that they receive their protected amount of £20,000.

However if they had not set a protected amount and invested all of their £20,000 in the Stockmarket Fund their current bond value would only be worth £10,000.

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The examples do not allow for charges or taxation which will reduce returns. Remember the actual split between the Stockmarket and Insurance Fund is calculated on the day your client invests and will be confirmed shortly afterwards. Tax law can change and will reflect individual circumstances. Remember that investment returns can go up and down and are not guaranteed and the price of units can rise and fall. Riley is designed so that the value of the Stockmarket Fund combined with the Insurance Fund will be no less than the protected amount on the insured date but there are circumstances in which clients may get back less than they invested.

The examples do not give a complete description of all the opportunities or pitfalls.

Riley is a life insurance bond for a minimum investment of £10,000. Your clients may not get back the fill amount of their investment

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If the Stockmarket Fund grows a little.
Given the same figures, should the Stockmarket Fund rise by a small amount such as 10% over the ten years, their current bond value would be £18,700 - somewhat less than their protected amount of £20,000.

In this scenario their Insurance Fund is designed to cover the difference.

If they had chosen not to protect they would have received £22,000

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If the Stockmarket Fund doubles.
Your client has £20,000 to invest and sets a protected amount of £20,000 and an insured date of ten years time.

On the day your client invests, £3,000 is allocated to the Insurance Fund and the remaining £17,000 is allocated to their choice of Stockmarket Fund.

After ten years the amount in the Stockmarket Fund doubles and their current bond value is £34,000.

But, if they had chosen not to set a protected amount, then all of the £20,000 would have been put into the Stockmarket Fund.

This would mean that at the end of ten years their current bond value would be £40,000, £6,000 more than it would have been worth had they chosen to protect their investment.

This means that the £3,000 invested in the Insurance Fund represents the cost of protection.

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