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ScotLife pledges WP clients will get windfalls

Scottish Life is hitting back against claims that its with-profits policyholders will not receive windfalls from its takeover by Royal London.

The life office insists that members will receive an automatic compensation of £500 for loss of membership rights and with-profits policyholders will get windfalls averag-ing £3,500.

It insists windfalls are not dependent on whether or not the policyholder is a member of the life office and believes this reassurance will quell IFAs&#39 concerns.

Ownership of a with-profits policy does not automatically confer membership of Scottish Life.

Many personal pension policies do not qualify but Scottish Life says these policyholders will get a windfall payment.

Scottish Life says it has already written to policyholders and IFAs with details of the proposed takeover.

Scottish Life head of communications Alasdair Buchanan says: “Anyone who has with-profits benefits in their Scottish Life policy may expect to receive extra benefits as a result of the proposed arrangement with Royal London. This applies whether or not they are a member of Scottish Life.”

Jonathan Smith & Partners proprietor Jonathan Smith says: “We would like to see that in writing because it is not clear to us at the moment.”

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