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Liverpool Vic maintains bonus rates

Liverpool Victoria has bucked the industry trend by keeping its regular and annual with-profits bonus rates unchanged.

Regular bonuses on the mutual&#39s with-profits income bonds stays at 4.25 per cent, and the rate on the with profits growth bond remains at 2.25 per cent.

The terminal bonus rate for a 10-year policy is 5.7 per cent, and for a 25-year policy it is 130.7 per cent.

This means that a £50 a month, 25-year policy maturing in September would pay out £79,523,while a 10-year policy would pay £8,196. These figures are equivalent to a return of 11.6 per cent a year.

Group actuary Ian Blanchard says: “Although reductions in bonus rates have been inevitable this year because of the lasting effects of difficult stockmarket conditions from 2000 to early 2003, we are confident that we will continue to be able to offer our members some of the best overall with-profits payouts in the industry.”

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