| Q. Can you tell me how much the financial adjustment is on surrender? |
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A. At present the financial adjustment applied to the non-contractual termination of with-profits policies is 5%. This may increase or decrease in future. Note: The financial adjustment for some International policies may be different. |
| Q. What do I need to do in order to encash my Life policy? |
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A. If you would like to surrender your life policy, please contact us. Click here to see how. |
| Q. What is the asset mix of the with-profit fund? |
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A. In order to protect with-profits policyholders from the effects of falling stock markets and property values, the Society operates a relatively conservative investment policy as a result of its solvency position and to satisfy any requirement for liquidity. Accordingly, the Society invests mainly in fixed interest securities (both gilts and corporate bonds). This policy also limits the returns that will be achieved in rising markets. The asset mix at 31 December 2006 was;
Gilts 52% (2005: 49%)
Corporate bonds 24% (2005: 25%)
Property (including property unit trusts) 12% (2005:15%)
Cash 8% (2005: 6%)
Equities 4% (2005: 5%) |
| Q. How can I find out the value of my policy? |
A. Please contact us. Click here to see how. |
| Q. Is the Society still Solvent |
A. Yes, the Equitable Life Assurance Society remains solvent and more than satisfies the Financial Services Authority's Long Term Insurance Capital Requirement. |
| Q. How can you be confident that your provisions are adequate? |
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A. It is necessary to adjust provisions in the light of new information which arises as various projects develop. It is a key corporate objective to make progress with the various claims and reviews for which provisions are made in order to reduce the risks associated with the provision calculations. The care taken by the Board over these issues is described in the Accounts under the heading 'The Board's conclusions on provisions and going concern'. |
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