Bonus Announcements
BONUS DECLARATION AT 31 DECEMBER 2009
Please click on the link below to go to the correct link for you according to the company with whom you originally took out your policy.
Criterion Life Assurance (WPSF2)
Family/Time Assurance Ordinary Business (WPSF3)
Family/Time RA Business (WPSF4)
University Life Assurance Society (WPSF5)
Hearts of Oak Friendly Society (WPSF6)
Reliance Mutual with profits sub funds
Policies originally issued by Reliance Mutual
The following annual bonus rates are percentages applied to the original sum assured, with the exception of Reliance ordinary branch insurances where the rate is a percentage of the original sum assured plus attaching bonuses.
| Policy type |
Annual Bonus Rate |
|
Reliance ordinary branch whole of life and endowment insurances |
2.00 |
|
Reliance industrial branch with profit policies |
1.75 |
|
Reliance industrial branch mortuary bonus policies without regular cash bonuses |
1.50 |
|
Reliance industrial branch mortuary bonus policies with regular cash bonuses |
1.40 |
This table does not include contracts originally written by Burslem Mutual and Nation Life.
A final bonus (sometimes also called "terminal bonus") is paid on all with profits policies when they become claims on death or at maturity. An allowance is also made for final bonus within the calculation of surrender values. The amount of bonus is expressed as a percentage of the basic sum assured and attaching annual bonuses on the date of the claim. Final bonus rates are not guaranteed and may be altered at any time.
Different rates apply to ordinary and industrial branch business and to whole life and endowment assurance policies. The rates of final bonus depend on the year the policy commenced to share in profits, with longer duration policies receiving higher rates of bonus. Click here to view the detailed scales of final bonus which apply to death and maturity claims arising after 1 March 2010.
With Profits Sub Fund 2 (Criterion Life Assurance policyholders)
Policies issued by Criterion Life Assurance Limited
Annual bonus
Life policies - For all premium paying policies, 55% of the sum of all premiums, other than those to cover special risks, paid since the last declaration of bonus in December 2008 are available as a cash benefit or may be converted to an annual bonus. For non-premium paying policies an equivalent premium is used.
Pension policies - For most premium paying group pension scheme policies, 55% of the sum of all premiums paid since December 2008 are converted to a annual bonus using a set mortality factor and interest rate. No bonus is paid on paid-up plans, although some contracts have a guaranteed increase in benefits each year.
Final bonus
Only paid on life with profits policies. The following rates apply with effect from 1 March 2010
Pre 1 July 1975 policies: 67.2% of original sum assured plus attaching annual bonuses, increased by 11.2% for each complete 12 monthly period in force prior to 1 July 1975.
Post 1 July 1975 policies: 56.0% of original sum assured plus attaching annual bonuses.
With Profits Sub Fund 3 (Family & Time Assurance ordinary benefit policyholders)
This fund contains the former Family Assurance Time OB with profits fund.
The annual and final bonus rates are percentages applied to the original sum assured plus attaching annual bonuses. The annual bonus has been declared in respect of the year 2009. The final bonus applies to all with profits policies other than deferred annuities and is valid from 1 March 2010.
|
Policy type |
Annual Bonus Rate %
|
Final Bonus Rate %
|
|
Low cost and flexible endowment assurances |
3.75 |
50.0 |
|
Adaptaplan |
4.75 |
50.0 |
|
Other whole life and endowment assurances |
3.25 |
50.0 |
With Profits Sub Fund 4 (Family & Time Assurance Retirement Annuity policyholders)
This fund contains the former Family Assurance Time RA with profits fund.
Both the annual and final bonus rates are percentages applied to the annuity plus attaching bonuses for deferred annuities. The annual bonus has been declared in respect of the year 2009. The final bonus applies to policies commencing to pay a pension from 1 March 2010.
|
Policy Type |
Annual Bonus Rate % |
Final Bonus Rate % |
|
Regular premium deferred annuities (series 1) |
1.00 |
20.00 |
|
Single premium deferred annuities (series 1) |
1.25 |
25.00 |
|
Deferred annuities (series 2) |
1.00 |
20.00 |
When deferred annuities commence being paid, the proportion of the annuity represented by the final bonus remains a non-guaranteed amount, and may be varied from year to year. For 2010, no variation will be made in these amounts.
With Profits Sub Fund 5 (University Life Assurance Society)
This fund contains the former University Life Assurance with profits fund.
There is no annual bonus declared on these policies in respect of the year 2009. The rate of final bonus depends on the year the policy commenced to share in profits, with longer duration policies receiving higher rates of bonus. Click here to view the detailed scales of bonus which apply to claims on or after 1 March 2010.
With Profits Sub Fund 6 (Hearts of Oak Friendly Society)
This fund contains the former Hearts of Oak Friendly Society with profits fund.
Click here for details of the circular sent by the Hearts of Oak Board explaining the changes resulting from the transfer to Reliance Mutual. This circular refers to the restructure of guaranteed benefits that was implemented at the time of transfer. The benefit restructure replaced part of the previously guaranteed benefits with a non-guaranteed special bonus. With effect from 1 March 2010 100% of the special bonus is being paid on claims under life assurance policies, and 95% of the special bonus is being paid on claims under pension policies. No other non-guaranteed bonus additions are being paid