Future for with-Profits Is Bleak As Savers Face Bad News On Bonuses ; with the Life Insurance Giants Standing by to Unveil Crucial Figures, Fears Growthat Low Payments Could Sparkan Exodus of Disillusioned Clients

Mail on Sunday › January 05, 2004

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Summary

The future of with-profits saving is in the balance. More than 30 insurers are to announce annual bonuses on millions of endowments, pensions and with-profit bonds in the next three months.

There are two types of bonus - final, which pays out when a policy matures, and annual. The yearly bonus influences how quickly a policy grows and how much it pays at maturity.

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Extract

Future for with-Profits Is Bleak As Savers Face Bad News On Bonuses ; with the Life Insurance Giants Standing by to Unveil Crucial Figures, Fears Growthat Low Payments Could Sparkan Exodus of Disillusioned Clients

Bonuses were slashed last year, with maturity payouts reduced by up to 20 per cent. And five insurers took the unprecedented step of paying no annual bonus.

Now, after a year when t...

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