Due to our merger with Oddfellows. This product is now closed for new business and we cannot accept new applications.
Yes, if you surrender the plan before its maturity date then we'll pay out a surrender value. However, this will not be the case in the first 12 months of your plan or if the first 12 months of premiums haven't been paid.
The surrender value, especially in the early years, may be lower than the amount you have paid into the plan.
The Society reserves the right to cancel your plan if premiums are more than six months in arrears.
Your plan will have a Guaranteed Lump Sum, calculated at the start of your plan, which is based on your age when you apply, the regular premium amount and the number of years that the plan will last for. This will be paid on maturity along with any bonuses, as long as all premiums due have been paid.
Bonuses are declared at the end of each year and depend upon the performance of the With Profits fund. This is called the Reversionary Bonus and once added, it can't be removed.
As a Friendly Society, we ensure that all our Members receive a fair share of any investment returns. Therefore we regularly check that you have the correct bonuses to achieve this and if appropriate, we may add a Final (Terminal) Bonus to your plan when it matures.
For more information on our With Profits fund, please read our Principles and Practices of Financial Management (PPFM).
Every year, you will receive a statement that details the premiums paid into your plan and any bonuses that have been added.
The Society charges for the costs of running the Society across all of its policies in force. At present, the amounts charged to this type of plan are between 55% and 60% or premiums in the first year of the plan and 8% thereafter plus 0.7% per annum of the fund size each year. The Society also charges for the Life Cover in excess of the fund generated on its expected cost.
The plan will pay out the Guaranteed Lump Sum, plus any bonuses on death unless a special clause has been added to the plan due to pre-existing medical conditions.
If the sponsor of a child plan dies then a new sponsor will need to take over paying the premiums.
The terms and conditions of your Regular Savings Plan will remain the same once the merger is complete.
You can learn more about the merger with Oddfellow here.