| Q. Can you tell me how much the financial adjustment is on surrender? |
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A. When policyholders cash in their with-profits benefits early, we reduce the Policy Value and enhancement by the financial adjustment to determine the surrender value. At present the financial adjustment applied to non-contractual termination of with-profits policies is 5%. This may increase or decrease in the future.
The total of the Policy Value and enhancement may be significantly less than the minimum guaranteed benefit under your policy even before the reduction of the financial adjustment. That is because minimum guaranteed benefits under the Society’s policies can be high. You and your adviser should always take account of the guarantee you will be giving up when deciding whether to cash in your policy early.
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| 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.
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| Q. What do I need to do to transfer my life policy? |
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A. If you would like to transfer your life policy, please contact us.
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| Q. What do I need to do if I want to take my open market option to buy a pension elsewhere? |
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A. If you would like to take your open market option, please contact us.
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| Q. How can I find out the value of my policy? |
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A. Please contact us.
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| Q. What is the asset mix of the with-profit fund? |
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A. It is expected that the exposure to asset classes backing the sterling with-profits business will remain in the ranges:
- Gilts & Corporate Bonds: 75-90%
- Property related investments: 0-10%
- Equity-type assets: 0-15%
- Cash: 0-25%
In line with the Society’s with-profits investment policy, investments are mainly in fixed-interest securities. As at 31 December 2011, gilts were 56% and corporate bonds 28% of the asset mix.
If you require more detail, we submit an Annual FSA Insurance Return and form 48 sets out the asset allocation. Click here to see the information.
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| Q. Where can I find out how you manage the with-profits fund? |
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A. If you would like more information on our with-profits funds then the following documents should help.
We publish a detailed document intended to assist knowledgeable observers called Principles and Practices of Financial Management (PPFM) which explains how the with-profits fund is managed.
We also publish a customer friendly version of the PPFM which explains, as simply as we can, how with-profits work. This is "A guide to how we manage the with-profits fund".
Every year, we publish a report which covers the management of the with-profits fund. This is the Annual Report for with-profits policyholders.
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| Q. Where can I find information about the different funds? |
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A. You can find quick and easy information about the objectives of the different funds.
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| Q. Where can I find information on fund performance? |
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A. You can find quick and easy access to fund prices.
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| Q. Where can I find the forms and documents that I need to make changes to my policy? |
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A. We hold a library of forms and documents that you may need and can download. If you need help to choose the right document please contact us.
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| Q. Where can I find more information about the Government Compensation Scheme? |
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A. We have more information on the background to the compensation scheme and some questions and answers.
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