With-Profits Policy

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Related to With-profits: terminal bonus, With profits policy

With-Profits Policy

A chiefly British and Commonwealth term for a participating policy.
References in periodicals archive ?
1]] and its distribution should result in enhancements to pay-outs to circa 30,000 with-profits policyholders.
A Au10,000 with-profits bond purchased 10 years ago is now worth Au17,248, giving customers an impressive annual return of 5.
It said investment markets have remained "volatile" and the challenging economic backdrop has highlighted the value of the "prudent approach" it has taken to managing with-profits funds.
Before any investor dumps a with-profits policy, says Connolly, they should get it examined by a financial advisor.
Margaret Flaherty, with-profits communications manager at Standard Life, said; "After an encouraging start to the year for investment markets, we have seen sharp falls in equity values over the last couple of months.
A with-profits endowment policy into which someone had paid pounds 50 a month for 10 years would have been worth an average of pounds 6548 at the beginning of May, according to Money Management magazine.
Tens of billions are locked in with-profits bonds, which are supposedly super safe, because they are invested in shares, bonds, fixed interest investments, property and pensions funds.
To address these issues, the FSA introduced a requirement for all firms operating with-profits funds to publish principles and practices of financial management (PPFMs).
With-profits investments are longterm savings policies that hold back some of the returns in good years to pay out in bad ones.
The insurer's parent company Aviva is offering qualifying members of two of its with-profits funds a total of pounds 1bn in exchange for giving up their rights to any future redistribution of the money.
Using a mix of shares, fixed interest securities, property and cash deposits With-Profits Bonds also had the advantage of smoothing out the ups and downs of the market while yielding steady returns.