View more on these topics

ScotLife payouts rise despite lower terminal bonuses

Scottish Life is increasing with-profits payouts following the transfer of

its business to new owner Royal London although terminal bonuses have

fallen.

The transfer was completed on July 1. ScotLife increased bonuses in the

period before the transfer to give fair treatment to policies maturing

ahead of completion of the deal.

Terminal bonuses are lower than their pre-completion levels but increased

reversionary bonuses mean overall payouts are up by 2 per cent.

The terminal bonus on a 10-year individual life policy which matured on

July 1 this year is down to 27.5 per cent from 30 per cent declared in

March. On a regular-premium pension, the terminal bonus after 10 years has

fallen to 32.5 per cent from 35 per cent.

But the maturity payout on a 10-year endowment is £9,329, up from

£9,134 in March, based on a male aged 30 paying £50 a month. On a

25-year endowment, the payout is £109,336, up from £104,146.

Head of communications Alasdair Buchanan says: “With-profits endowments

continue to provide satisfactory returns. The real rate of return for one

of the 20-year policies from ScotLife is over 8 per cent a year compound,

even without allowing for the cost of life cover.”

Recommended

Attack from the mainland

In finishing off this short series on the value to be secured by having atax planning awareness in this world of diminishing charges, selectivedisintermediation and an intensification of competition, I would like tolook at the importance of keeping an eye on what is going on in Europe. It has been reported that moves are afoot […]

Scarborough Building Society- Flexible Lifetime 1.25 Per Cent Discount

Friday, 31 August 2001.Type: Discounted rate flexible mortgage.Discounted term: Term of loan.Discount: 1.25 per cent.Payable rate: 5.49 per cent.Minimum loan: £25,000.Maximum loan: Up to 95 per cent of valuation subject to a maximum £250,000.Income multiples: Three times principal income plus second or 2.5 times joint.Features: Overpayments, underpayments, payment holidays, interest calaculated monthly.Arrangement fee: None.Redpemtion fee: […]

Public saving for a recession

Britons are preparing for a financial storm by saving 32 per cent of theirdisposable income, according to findings from Alliance & Leicester&#39s newwealth tracker index. A&L asked a sample of 2,000 to detail their level of disposable income andhow much of this is saved, spent or invested to reveal the average Britonaims to save £93 […]

A CONSUMER&#39s VIEW

One of the more enlightened moves ever made by the financial servicesindustry was to set up the Unclaimed Assets Register some 18 months ago. All credit to Aon for taking this imaginative and common-sense initiative. The service the UAR offers is invaluable in tracing unclaimed assetsbelonging to those who have moved house, forgotten their investments […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com