As a with profits customer, you should consider the following:

Switching investments

  • The value of your plan may be subject to the application of a market value reduction. For more information, see our Understanding Market Value Reductions (PDF: 48KB) factsheet. 
  • If your bond has any guaranteed minimum additions such as Contractual Annual Interest or Contractual Minimum Addition, you may get a lower investment growth rate from the fund that you switch into. Contractual Annual Interest is available on plans taken out between 13 February 1989 and 3 June 1993 inclusive.  Contractual Minimum Addition is available on plans taken out between 1 January 1995 and 27 July 1997 inclusive. You can see if a contractual addition applies to your bond by checking your annual bonus statement.
  • You may be giving up valuable guarantees.

More details on the above can be found in your policy documentation.

Cashing in your bond

  • The value of your plan may be subject to the application of a market value reduction. For more information, see our  Understanding Market Value Reductions (PDF: 48KB) factsheet.
  • Some of our bonds have guaranteed minimum additions such as Contractual Annual Interest or Contractual Minimum Addition. If you cash in your bond you’ll lose this guaranteed growth amount. Contractual Annual Interest is available on plans taken out between 13 February 1989 and 3 June 1993 inclusive. Contractual Minimum Addition is available on plans taken out between 1 January 1995 and 27 July 1997 inclusive. You can see if either of these apply to your bond by checking your annual bonus statement.
  • You may be liable for tax.
  • You may be giving up valuable guarantees.
  • An early surrender charge may apply if you cash in all or part of your bond.

More details on the above can be found in your policy documentation.

If you need help understanding any of this information, please speak to your adviser.