Frequently asked questions
Call us on: 0800 092 19 90. Monday to Friday 8:30am - 5:30pm. Or let us you.These have been
produced to help you understand your annual statement and include a
number of questions on various types of policies. If you do not
find the information you require, please contact us.
How will I know my policy type?
If the value of your policy is based on an initial sum assured
plus bonuses (both annual & final), this is a Conventional With
Profits policy.
If your policy purchases units in an investment fund, or funds,
this is a Unit-Linked policy.
If your policy looks very similar to unit-linked policies except
the value of units increase in line with bonuses added to your
policy, this is a Unitised With Profits policy.
What are bonuses and how do they work?
Bonuses only apply to With Profits policies (Conventional and
Unitised). You will receive part of your share of these profits in
the form of an annual bonus which we add to your policy.
In addition to your existing annual bonus, a final bonus may be
payable when the policy ends.
Why have I received my statement?
For Conventional With Profits policies – your statement provides
details of the amount added to your policy this year, in the form
of an annual bonus. The amount added increases the guaranteed
benefits which your policy will provide in the future.
For Unit-Linked policies – your statement shows the value of
your policy on the statement date. Some statements also provide a
summary of units allocated or deducted since the last statement
date.
For Unitised With Profits policies – your statement shows the
value of guaranteed benefits which your policy will provide in the
future, unless a market value reduction applies (see ‘What is a
Market Value Reduction (MVR)?’). Some statements also show the
value of your policy on the statement date.
On what dates are the annual statements based?
For Conventional With Profits policies – this year’s annual
bonus was added to your policy on 2 April 2008. If your policy
matures, or you were to die, during the following 12 months you
might have some extra annual bonus added as well, depending on what
type of policy you have.
For Unit-Linked and Unitised With Profits policies (except
Stakeholder Pensions and Group AVC policies) – the statement shows
the position of your policy on 31 March 2008.
For Unit-Linked and Unitised With Profits (Group AVC policies) –
the statement shows the value of your policy on 30 April 2008.
For Unit-Linked (Stakeholder Pensions) – the statement shows the
position of your policy on 5 April 2008.
Why does it take so long for you to send me my statement?
The calculations involved in preparing your statements are
detailed and to ensure the accuracy of all policy statement
figures, we have a rigorous quality control procedure that takes
place before we send your statement. Due to the complexities and
volumes concerned, this process usually takes several weeks.
If you would like an up-to-date valuation of your policy or
further details on your unit movements, please contact us.
Does the policy have to be in force for a full year before an
annual statement is produced?
For Conventional With Profits policies – your policy must have
started before 1 January 2008 and still be in force on 2 April
2008.
For Unit-Linked and Unitised With Profits policies (except
Stakeholder Pensions and Group AVC policies) – your policy must
have contained units within it on 31 March 2008.
For Unit-Linked and Unitised With Profits (Group AVC policies) –
your policy must have contained units within it on 30 April
2008.
For Unit-Linked Stakeholder Pensions – your policy must have
contained units within it at some point during the year 6 April
2007 to 5 April 2008.
How is my annual bonus calculated?
For Conventional With Profits policies – the notes at the bottom
of your statement normally say what the annual bonus rates are. For
most types of policy, the annual bonus is calculated as a
percentage of the sum assured plus a percentage of the bonuses you
already have.
For Unitised With Profits policies – these do not have bonuses
added each year as such – any bonus payable is added to your policy
throughout the year by increases in the unit price.
What is a final bonus and how is it calculated?
This only applies to With Profits policies (Conventional and
Unitised). A final bonus may be added to your policy when it
matures or if you die. We do not guarantee these bonuses so they
may change from time to time but certainly at least once a year
when new bonuses are declared.
It is usually calculated as a percentage of the annual bonus
depending on how long your policy has been in force, but the exact
method does vary for different types of policy. We may add an
allowance for a final bonus if you cash in your policy. However,
please note that in some circumstances you will not be entitled to
a final bonus.
Wesleyan Assurance Society membership benefits
It will state on your statement if you are entitled to
membership of Wesleyan Assurance Society.
What does membership of the Society mean?
As a mutual society, we are able to share our success with our
members, without needing to consider the potentially conflicting
interests of shareholders.
In 2007, the Mutual Rewards Scheme was launched for members as
at 31 July 2007 entitling them to a £100 cashback reward, when
taking out a new product from us or topping up an existing one.
This is the first example of our drive to find new ways to
reward our members for their loyalty and membership. And you can
expect more in the future.
In addition, members and policyholders have exclusive access to
two guaranteed investment products which have proved very popular
and remain unique in the market place.
Questions only applicable to Unitised With Profits
policies
What is a Market Value Reduction (MVR)?
This adjustment can be applied to protect the interests of the
policyholders remaining in the fund. However, we can’t always apply
a MVR, as it depends on the circumstances. Your policy document
will say in what circumstances a MVR may be applied. If
you are unsure whether an MVR is currently being applied to your
policy or would like to find out more, please contact us.
Statutory money purchase illustrations (SMPI)
Why does my pension statement include an illustration of what
my pension may pay me at retirement?
For most types of pension policies, insurance companies are now
required by law to provide, each year, an illustration of the
pension income that your policy may provide at retirement.
In this way you can assess whether the income from your pension
arrangements will be sufficient to meet your needs when you
retire.
The illustration allows for inflation between now and your
assumed retirement date. That is, it shows the possible benefits in
terms of today’s money.
We have included a further document with your
illustration, a leaflet entitled ‘Information about your pension
illustration’. This provides further details about your
illustration and the assumptions on which it is based. We strongly
advise you to read this document.
Why have I received an illustration for some of my pension
policies but not others?
We do not normally provide an illustration for policies that are
less then two years away from the selected retirement date on that
policy, or for certain types of policies that commenced prior to 1
July 1988. However, you can always request an illustration by
contacting us.
Why are the assumed current earnings shown on my illustration
very different from my actual current earnings?
We only show an assumed current earnings value on illustrations
where our records indicate that the Government will pay National
Insurance rebates into your policy in the future. We do not,
however, have a record of an individual’s current earnings.
Therefore, we have to estimate them based on the amount of the most
recent rebates paid into the policy.
What are protected rights policies?
These policies were set up to allow people to contract-out of
the State Second Pension (S2P, previously SERPS). They also made it
possible to transfer state benefits into a personal pension from
another pension arrangement.
What is the Free-Standing Additional Voluntary Contribution
Scheme (FSAVC)?
The FSAVC was designed to top-up policies from an employer’s
occupational pension scheme. Benefits can now be taken
independently of the occupational pension scheme.
What are retirement annuities?
These are policies that were set up before July 1998 and have
been subsequently replaced by personal pensions. The rules for
tax-free cash have changed to allow 25% of the pension fund and
benefits to be taken from the age of 50 (until 5 April 2010 after
which it will become 55).
Why is my retirement age shown as 55 when my policy was set up
with a retirement age less than this?
Under legislative changes introduced on 6 April 2006, the
minimum retirement age from 6 April 2010 onwards will be 55. If
your policy originally had a retirement age of less than 55, but a
retirement date of 6 April 2010 or later, we have assumed the
benefits will now be taken at 55.
Why are the contribution amounts shown slightly less than the
actual amounts that I am paying?
The contribution amounts shown on your illustration do not
include the cost of Waiver of Contribution Benefit, if applicable.
This benefit allows your plan contributions to continue if you are
unable to work due to sickness or accident. The illustration shows
only the amounts that are used to provide benefits at
retirement.
Further information
For Unit-Linked policies
A short guide has been produced which explains how we manage our unit-linked funds.
For With Profits policies
Short guides have been produced which explain how we manage our With Profits funds.
We hope this has told you more about how we are looking after
your investment. However, if you would like any more information,
please contact us.