The 10-year anniversary MVR-free days or spot guarantees written into 80,000 R&SA’s with-profits contracts start from 2006 and Resolution says up to half of policyholders could benefit.
The closed life book consolidator will give clients a three-month window to exercise their penalty-free exit option, in stark contrast to how most insurers operate their guarantees.
Several life offices only allow clients to get out without suffering an MVR on the specific day of the guarantee and do not advertise it.
Resolution Life bought R&SA’s closed life book of business for 850m in September and is understood to be looking for similar deals, such as Abbey’s closed book, which comprises Scottish Mutual and Scottish Provident, and Swiss Re.
Resolution Life chief executive Clive Cowdery says telling policyholders of their options is an extension of its pledge to treat customers fairly. He says all customers holding R&SA bonds will get the reminders of the guarantee on their policy in their annual mailing. Resolution is also providing tables for policyholders to find the current MVRs or terminal bonuses which apply to policies.
Cowdery says: “Resolution is founded on the belief that customers in closed life funds deserve at least the level of information and flexibility available to policyholders within life funds which are continuing to accept new business.”