Important information about surrendering and the effects of surrendering early

With Profits customers should consider that they:

• May be subject to the application of an MVR.
• May lose out on investment growth if their policy / plan has a guaranteed minimum annual growth rate (Contractual Annual Interest / Contractual Minimum Addition applies, at varying rates, to certain vintages of plans).
• May lose out on the opportunity of taking a guaranteed return of the original capital available on some With Profits Bonds.
• May be liable for tax that is if the action leads to the policy / plan becoming a non-qualifying policy / plan.
• May lose life insurance and critical illness cover benefits that are built in to their policy / plan.
• We’ve developed two new leaflets (to cover product variations):
  • W12299 covers topics such as money back guarantees and life cover. Amongst other things, it also reminds them that MVRs will be applied on surrender - A reminder of the benefits and features of your investment bond (W12299)
  • W7531 covers topics such as the disadvantages of surrendering, for instance loss of life assurance cover, and the alternative options open to them, for instance trading your endowment plan - Considering surrendering your plan? There may be a better solution (W7531)