Hi I am struggling to see the difference between the total actual deductions to date and effect of deductions to date. At yr1 they are the same and then change? Actual deductions are using assumed central rate of investment - what happens in effect of deductions part? Thanks
"Total actual deductions to date" is just the sum of all the deductions from the start of the policy up to the end of year X, where any fund-related charges are determined assuming the central investment rate. It's a simple sum - there's no allowing for the time value of money in this column, The "Effect of deductions to date" is the accumulated value of all the charges by the end of year X. So this represents the effect of the deductions on the total fund value. For example, after 10 years, the deductions add up to 1,880 and if these hadn't been levied, the fund would have been 3,200 higher.
