Royal London has increased the final bonus rates on some of its with-profits policies.
The mutual company has increased the final bonus on 10-year regular-premium life policies from 11.1 per cent to 25 per cent.
Final bonus rates for 25-year regular-premium life policies have reduced from 140.1 per cent to 126.4 per cent.
On 10-year regular-premium pension policies, final bonus rates have increased from 6.8 per cent to 9.1 per cent while on 25-year poli- cies they have increased from 87.3 per cent to 88.7 per cent.
The payout on a £50 a month, 25-year endowment maturing is £48,773, which represents an annualised return of 8.4 per cent.
Group finance director Stephen Shone says: “The investment outlook continues to be dominated by low inflation and interest rates. I expect that the future headline returns on investments will be comparatively low by the standards of the last 25 or 30 years.
“Nevertheless, the arguments for investing in real assets over the long term remain strong. Over the long term, real assets, such as those backing our with-profits fund, have delivered above-inflation returns for investors.”