In the long term, we aim to pass on all of the investment returns, profits and losses from our business activities attributable to the With Profits fund. So, if investment returns remain high, then payouts are likely to be higher. Similarly, if investment returns remain low. then payouts are likely to be lower.
With Profits Regular BonusesWe usually add regular bonuses throughout the period of your investment. We will review the bonus rate that will apply to your type of policy annually. The method used to add this depends on the type of product you hold - please refer to the relevant guide for further information on this.
We don't promise to add any regular bonuses, however once we add a regular bonus it is guaranteed (subject to any MVRs in place).
You can keep track of the regular bonuses that have already been added. We send you an annual statement, which gives you the current value.
Annual Bonus Rates for Unitised With Profits policies
Year |
2020 |
2019 |
2018 |
2017 |
2016 |
Life Fund |
1.25% |
1.25% |
1.75% |
2.00% |
2.50% |
With Profits ISA |
1.50% |
1.75% |
2.25% |
2.50% |
3.00% |
Pension Fund (Series 1) |
2.25% |
2.50% |
3.00% |
3.25% |
3.75% |
Pension Fund (Series 2 & above) |
1.50% |
1.75% |
2.25% |
2.50% |
3.00% |
The annual bonus rates above are effective from 2 April the following year e.g. 2020 rates will be effective from 2 April 2021. The bonus rates are gross of annual management charges (AMC).
Annual Bonus Rates for Conventional With Profits policies (not available on new policies)
|
2020 |
2019 |
2018 |
2017 |
2016 |
Life Fund |
0.50% |
0.75% |
1.00% |
1.00% |
1.25% |
|
(1.00%) |
(1.50%) |
(1.75%) |
(1.75%) |
(2.00%) |
Pension Fund |
0.10% |
0.10% |
0.10% |
0.10% |
0.20% |
|
(0.20%) |
(0.20%) |
(0.20%) |
(0.20%) |
(0.40%) |
The annual bonus rates above are effective from 2 April the following year e.g. 2020 rates will be effective from 2 April 2021.
We declare two annual bonus rates. One rate is a percentage of the sum assured, and the second rate (in brackets above) is a percentage of the annual bonus that the policy already has. For conventional policies we add the annual bonus to the sum assured and any existing bonuses where previously declared.
These bonus rates are specific to the conventional With Profits policies. Three parts make up these policies:
1. Sum assured - this is a value that the policy set up with and is guaranteed
2. Annual bonus - this is the bonus that gets added each year, it is based on the bonus rates declared. Once it has been added to the policy it is guaranteed
3. Final bonus - this is paid when the policy ends but it is not guaranteed