The life of Riley


Additional payment	An amount paid into the bond other than at the start.
Age-related charge	A charge determined by the age of the life or lives assured and whether the Minimum Death Benefit option has been selected. The charge may be zero.
Allocation percentage	The proportion of a payment that is allocated to be invested.
Applicant	A person, a trustee or a company that applies to start a bond.
Bond	The contract held by the bond owner.
Bond anniversary	The commencement date and each anniversary of that date.
Bond owner	A person, a trustee or a company that owns a bond after we have accepted an application and put the bond in force.
Bond year	Each period of 12 months, the first starting on the commencement date, and on each bond anniversary thereafter.
Cash-in charge	The charge potentially deducted from the net bond value in the event of a full cash-in or partial cash-in within the charge term in respect of each payment.
Cash-in value	The amount payable to the bond owner in the event of a full cash-in. It equals the gross bond value less any cash-in charge and outstanding set-up charges and after application of any amount in the tax account.
Charge term	The term, 5 years from the commencement date, during which cash-in charges and any set-up charges and outstanding set-up charges apply in respect of an initial payment. The term can be shorter for an additional payment paid less than 5 years before the Insured Date.
Commencement date	The date on which the bond starts, set by reference to the date of the initial payment and the date of the application.
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Death benefit	The amount payable upon death of the relevant life assured.
Effective date	The date of each transaction in a Stockmarket Fund or in the Insurance Fund. The effective date determines the unit prices used for the transaction.
FTSE 350 Managed Fund	The unit-linked fund invested in equity assets and is managed actively by the chosen fund manager, currently Schroder Investments Ltd.
FTSE 350 Tracker Fund	The unit-linked fund invested in equity assets and managed to track the FTSE 350 Index to a defined error level by RLAM.
Full cash-in	The exit in full of the bond at the option of the bond owner.
Fund charge	The charge expressed as a percentage of the value of the Stockmarket Fund and Insurance Fund and deducted each day when calculating the unit price.
Gross bond value	The value of the units allocated to the bond in the Stockmarket Funds and the value of the Insurance Funds held in respect of the bond without deduction of any cash-in charge or outstanding set-up charges, and before the application of any amount in the tax account.
Initial charge	The charge deducted from a payment before it is allocated to the bond. It therefore determines the allocation percentage.
Initial payment	The amount paid at the start of the bond.
Insurance Fund	This is designed to make up any shortfall if the value of units in the Stockmarket Fund is below the Protected Amount on the Insured Date.
Insured Date	The date at which the Protected Amount applies.
Insured Term	The term, generally measured from the start of the bond (or from the date in question) up to the Insured Date, expressed in years and months.
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Life assured	A person upon whose death the death benefit becomes payable or, in the case of a joint life, second death bond could become payable.
Loyalty bonus	The additional amount added to the bond at pre-determined intervals and rates.
Managed Insurance Fund	The derivative options based on the FTSE 350 Managed Fund that are held in respect of each bond.
Minimum Death Benefit option	The option chosen by the bond owner to have the death benefit subject to a minimum of the initial payment or such other amount as explained in the literature and the terms and conditions.
Net bond value	The value of the units allocated to the bond in the Stockmarket Funds and the value of the Insurance Funds held in respect of the bond after deduction of any amount in the tax account.
Partial cash-in	The withdrawal of part of the cash-in value as a lump sum with the bond staying in force. Each partial cash-in requires a separate instruction by the bond owner. A partial cash-in can be effected by fully cashing-in some but not all of the segments of the bond or by withdrawing an equal proportion from each segment. It does not include a regular withdrawal.
Primary bond owner	The bond owner to whom correspondence is sent.
Profit Review checking date	This is every quarter when we check the cash-in value as described below.
Profit Review Level	The amount chosen by the bond owner such that if the cash-in value on any Profit Review checking date exceeds that amount we will communicate this to the bond owner.
Protected Amount	The targeted protected amount on the Insured Date. If investment is in both the FTSE 350 Managed Fund and the FTSE 350 Tracker Fund it is the total of the Protected Amount - Managed Fund and the Protected Amount - Tracker Fund.
Protected Amount - Managed Fund	The targeted minimum combined value of the FTSE 350 Managed Fund and the Managed Insurance Fund on the Insured Date.
Protected Amount - Tracker Fund	The targeted minimum combined value of the FTSE 350 Tracker Fund and the Tracker Insurance Fund on the Insured Date.
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Protection charge	The charge payable at the time of a payment and selection of protection. Also payable in the event of an increase in the Protected Amount or an extension in the Insured Term.
Regular withdrawal	The withdrawal of part of the bond value at regular intervals based on advance instructions from the bond owner.
Segment	The element into which the bond is divided. Each segment is identical to the others although segments can be fully cashed-in individually.
Set-up charge	The initial charge expressed as a monthly set-up charge and deducted from the bond over the charge term.
Stockmarket Fund	Either of the FTSE 350 Managed Fund or the FTSE 350 Tracker Fund.
Switch	The cancellation of units in a Stockmarket Fund and the allocation of units in a Stockmarket Fund in different proportions according to the instructions of the bond owner.
Switch charge	The charge potentially payable in the event of more than one switch in a bond year.
Tax account	The account used to reflect the amount of tax payable by Royal London on the assets backing the bond.
Tracker Insurance Fund	The derivative options based on the FTSE 350 Tracker Fund that are held in respect of each bond.
Unit price	The price of units in either the FTSE 350 Managed Fund or the FTSE 350 Tracker Fund.
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