This is the appropriately qualified person holding the Senior Insurance Manager Functions of Chief Actuary and With-Profits Actuary (as approved by the Prudential Regulation Authority). The actuary is responsible for undertaking our investment, solvency and asset share calculations, and to advise the Committee on its compliance with the PPFM.
Association of Financial Mutuals – is the trade body that represents mutual insurers, friendly societies and other financial mutuals in the UK.
This is the bonus we may add to your policy each year. It is sometimes called a reversionary or regular bonus.
These are the investments held within the Society’s long-term business fund.
This is the term used to describe your fair share of the underlying assets in the Society’s long-term investment fund. It is calculated by taking the premiums paid, deducting the expenses of setting up and administering the policy, and increasing the value by the bonuses earned on the fund from year to year, less tax where appropriate. Please refer to our PPFM for further details.
Bonuses are normally added to policies each year (depending on actuarial advice) based on the sum assured or capital balance. These bonuses are not guaranteed and vary dependent on the policy type.
This is the governing body of the Society, elected by our voting members. From 1st January 2021, the 'Committee of Management' will become the Board of Directors 'Board'.
A policy combining life assurance and investment under which the sum assured is paid at a pre-agreed date, or on the death of the policyholder if earlier. A pure endowment policy will not have life assurance.
Another word for “share” - a shareholder’s equity is the value of the shares they hold.
We seek to adopt an ethical approach to investing and it is our policy not to invest knowingly or directly in industries relating to armaments, tobacco, gambling or pornography.
The FCA regulates firms providing services to consumers and maintains the integrity of the UK's financial market. It was formed as one of the successors of the Financial Services Authority (FSA) from 1st April 2013.
This is the bonus that we may add at the end of the investment. We sometimes refer to this as a terminal bonus.
The FSCS is the UK’s statutory fund of last resort for customers of authorised financial services firms. This means that the FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable to pay claims against it.
This is all the money that has been contributed to our long-term business fund, which is held in a variety of assets.
HMRC is a non-ministerial department of the British Government primarily responsible for the collection of taxes and the payment of some forms of support.
This is the bonus we will add when your policy matures or is surrendered part way through a bonus year.
Professionals who provide independent advice on financial matters.
A quote – an example to show possible returns and sum assured figures.
The investing of money or capital in order to gain profitable returns, as interest, income or appreciation in value.
This describes an adjustment to the value of your policy in adverse investment conditions, in order to ensure you receive your fair share of the fund on surrender or encashment.
The term used when the policy has run its full term and the investment is paid out.
The date that an insurance policy or other financial contract finishes or "matures", and the proceeds, sometimes known as the maturity value, become payable.
A mutual has no shareholders but instead is owned entirely by its customers known as members.
This term describes the value of the assets in the fund, which have been built up over time and are not part of an individual’s asset share.
This document (known as the “PPFM”) sets out the Principles and Practices of Financial Management by which we conduct our with-profits business.
The PRA is a UK financial services regulator formed as one of the successors of the Financial Services Authority (FSA). It carries out regulation of financial firms from 1st April 2013.
The monetary amount paid for a policy. The payment a policyholder makes in return for insurance cover / or an amount deposited to a savings plan. Usually paid monthly, annually or as a single lump sum.
A policy to which you make regular payments for a set term and amount which is chosen at the outset. Premium frequencies can be monthly or annually. Our Regular Savings Plan provides a sum assured figure to which bonuses are added each year (bonuses are not guaranteed).
This is the term used to describe the practice employed to make your return more even. Smoothing is a process which applies to with-profits policies to ensure that the amounts paid out do not vary excessively from year to year. Please refer to the PPFM for further information.
This is the amount shown on your illustration (quote) and is the guaranteed minimum final amount you will receive on maturity / death (depending on the type of policy), providing you continue to pay all the premiums due.
To cash in your policy before the end of its term.
The length of time a policy is to run for.
A type of investment plan sold in the UK in which extra amounts may be added to the main benefit (known as the sum assured) to reflect profits earned during the course of the contract. Regular or "reversionary" bonuses may be added, usually each year, and once declared are guaranteed.
A final or "terminal" bonus may be added when the policy becomes payable. With-profit funds are typically invested in a mixture of equities, property and fixed income investments. Under poor stock market conditions a “Market Value Reduction” (MVR) may be applied to the value of the policy if it is surrendered before the maturity date.