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| February 2000
The association of friendly societies
CELEBRATION BONUS AT ROYAL LIVER "
Royal Liver Assurance, one of the country’s leading Friendly Societies, has announced as part of its 1999 Bonus Declaration, a special bonus in celebration of its 150th Anniversary which will be paid to all with-profits policyholders.
Like many other financial services providers, Royal Liver has restructured its reversionary bonus rates this year to reflect difficult market conditions with interest rates at their lowest levels for many years.
McCaul, Royal Liver’s Chief Executive, commented
“We are extremely pleased to be able
to reward policyholders with this special 150th Anniversary Bonus, in
addition to increasing or maintaining our
terminal bonus rates. As a Friendly Society, we work for our
members, not shareholders, and this announcement reinforces our
commitment to offer them good value for money
and a fuller future”.
many organisations cutting overall payouts significantly, this is a
major achievement for the Society. The 150th
Anniversary Bonus will effectively mean that the overall rates
declared to policyholders will remain the same as last year.
a result of the 1999 declaration, the Society’s Ordinary
Branch endowment plans will enjoy a
reversionary bonus of £30 per £1000 sum assured for
non-compound bonus policies and 2.5% for
compound versions. The 150th Anniversary Bonus will add £15
and 1% respectively to these values, bringing
the totals to £45 and 3.5%.
The Society launched a highly flexible new-style personal pension plan towards the end of 1998 and with-profits plan holders will benefit from an annualised bonus value of 4% plus 1% ‘Anniversary’ rate, bringing the total to 5%.
In practical terms, a typical 15 year endowment policy taken out on 1 January 1985, by a 30 year old male paying £60 per month, will mature this year with a value of £27,925. This equates to a substantial growth of 158% on the total contributions (£10,800) with all taxes paid. Compared with a typical building society return of £15,033* the Royal Liver plan clearly offers excellent value for money.
on the special bonus and other developments at Royal Liver, Brian
McCaul said “This is an exciting
time for the Society which is successfully blending 150 years of
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