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Legal & General has raised the level of early bonus and final bonus payments on its latest structured ‘kick out’ investment plan, the Early Bonus Plan 4.

l and g structured product
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The plan is available for investment until 24 February and has a six-year term which ends on 15 March 2018.

The new tranche now has the potential to pay a bonus of 66% of the initial investment at the end of the plan, compared to 56.4% from the Early Bonus Plan 3.

A kick out will be triggered on any of the plan’s anniversaries if the level of the FTSE 100 is equal to or above its level at the strike date (15 March 2012), otherwise the plan will continue until maturity.

If this happens the bonus payment will be equal to 11% per year, which means the final bonus payment (at the end of six years) would be 66% on top of the return of capital.

Capital is not protected in this plan and so if the FTSE 100 falls by 50% or more from the strike level, the original capital will be reduced by 1% for each 1% the level of the FTSE is below its starting level.

If the FTSE 100 closes less than 50% lower than the strike level, the original capital will be returned without a bonus payment.

Minimum investment in the plan is £3,000 and commission is 3% of the sum invested

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