Windsor Life - Frequently Asked Questions


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Frequently Asked Questions (FAQs)

Q: On which dates are we able to accept direct debit payments?

A: Our system can debit your account on a date to suit you between the 1st and the 28th of each month. This is to take into account that February only has 28 days.

Q: Where can I obtain details about the funds in which I have invested?

A: Due to the number of the funds that Windsor Life currently administers, it is impossible to list current and past performance of these funds in any national newspaper. We usually update unit prices for our funds every working day and you can access the latest information by clicking here. Information on past fund performance is also available by clicking here. You can also contact us on 0800 073 1777 from 9.00am to 5.00pm Monday to Friday if you have any queries about the funds you are invested in.

Much more information about the performance of our funds is available in the Investment section of this website.

Q: Can I remove a life assured from the policy?

A: If the policy was taken out and accepted as a joint life policy at the start of the contract, then we are unable to change the lives assured. This is because the premium rate has been calculated on the ages of the lives assured as at the start of the policy. Subsequent changes are not available. In the event of your circumstances changing then either party is able to absolutely assign the policy to the one that wishes to take responsibility for maintaining the policy. This means that the other revokes all their interest in the policy absolutely. A Solicitor must draw up any such document. They may be able to advise you regarding your own particular circumstances.

Q: How does an assignment to a mortgage lender affect the policy?

A: When a life policy is used as security for a mortgage, the mortgage lender will often insist that the insurance company notes their interest in the benefits from the policy. There are two main ways in which this is done:

Deed of Assignment: This means that the insurance company must make a note in its records showing that a third party interest in the policy exists. The mortgage lender is then in effect the policyholder, and no significant changes can be made to the policy without their prior written authority. You are therefore unable to surrender the policy without their consent or notice of re-assignment.
Notice of Deposit: A notice of deposit or interest is less formal but still imposes similar restrictions on your ability to sell or make significant alterations to the policy. As formal assignments are expensive most mortgage lenders now prefer to take the notice of deposit/interest method.

Q: Why is there a difference between the fund value and the transfer or surrender value?

A: In the early years of the life of the policy we incur administration costs and expenses in setting up the contract and providing any corresponding life or protection benefits. Also the cost of any commission paid to the adviser who sold the policy is paid for by the charges taken during the early years.

Therefore the value of the policy during the early years is often less than the total contributions paid during that time. However after the effect of these early charges has worn off, then the value of the policy usually exceeds the premiums paid in.

Should you wish to surrender or transfer your policy early, then a penalty will usually be applied to the accumulated fund value, under the original terms and conditions of the contract. The penalties usually become gradually smaller according to how long the policy has been running.

Q: Can I take a premium / contribution break?

A: It is possible to take a premium holiday on most pension plans but not on many life policies. This is due to the tax rules on certain types of life policy, which insist on premiums being paid throughout in order that the benefits can be taken free of any further tax liability. Often you can stop and start life policies; if you are considering doing so then please contact our Client Services department who will let you know what is possible on your type of policy. For pension policies, the break from contributions can be unlimited provided your policy retains a fund value.

Q: I have an enhanced life annuity which was originally purchased from Tomorrow^TM and which included the Value Protection option. Will Value Protection still be attached to my annuity now it is with Windsor Life?

A: Yes - Windsor Life have not altered the terms of any contracts transferred from Tomorrow^TM. Under the Value Protection option a lump sum will be paid if you die before age 75 and any lump sum paid will be subject to 35% tax. Please note that Windsor Life does not offer Value Protection on any new annuities and does not sell enhanced life annuities.

Q: Can I surrender my pension policy?

A: HMRC restrictions prevent you from taking the benefits of your personal pension until you reach age 55. Personal pension contracts are designed to provide a retirement income as well as the option to take a lump sum at retirement. Consequently you are unable to enjoy the benefits of a personal pension contract prior to these ages.

Q: I am thinking of surrendering my life policy. What are my options?

A: Life Assurance is a long-term commitment. Premiums are payable usually for 10 years or more. Your money is invested to provide benefits in the future and the policy is not designed to be cashed in early.

There may well be other ways of raising the money you need rather than surrendering a valuable contract. Could you make use of any cash you already have in your bank, building society or National Savings account?

Surrendering a policy is a last resort; there may be alternatives such as a loan on the policy, making it paid-up or selling it on the Traded Endowments market. If you do chose to surrender your policy and it is assigned to a third party, we will need:

written confirmation, signed by all policyholders, stating that you wish to surrender the policy
the return of the original policy schedule/documentation
written authority from the assignee stating we can pay the surrender proceeds to you. This must be a letter on their headed paper, clearly stating their agreement or that they no longer have an interest in your policy.

Alternatively they can send us the discharged Deed of Assignment. An assignment is the transfer of ownership of a policy from one person to another. This often occurs on mortgage arrangements as security, and means the benefits are be payable to a third party (e.g. a bank or building society) in the event of a claim given the right to claim the benefits of the policy. You are responsible for providing the documents we need. We are happy to give you any information you need, but we are not allowed to contact third parties on your behalf due to the Data Protection Act 1998.

Points To Remember

If your policies were taken out before 14 March 1984, you may be paying your premiums less Life Assurance Premium Relief - LAPR. You lose this tax concession by surrendering a policy because LAPR is not obtainable on policies issued now.
Some contracts - term or temporary assurances such as family income benefit policies - do not as a rule ever attain surrender values. This is because these are life policies without a savings element - they provide protection only. They can be compared to household or motor insurance policies, which pay out only if a claim arises.
If your policy is intended to repay a loan - for example an endowment mortgage - you should not surrender it unless you have made other arrangements to repay the loan.
When taking out or changing a mortgage, it may be in your interest to use your existing policies as backing for the new loan. A top-up policy may be required if the new mortgage is more than your previous one.
The cash value of policies linked to special funds (such as property or unit trusts) is dependent on the value of your holding in the fund at the time of surrender.
We have a financial responsibility to all our policyholders. It is only fair, to those who complete their contracts, for those who surrender early to contribute to the costs involved in setting up their own policies.

The important thing is to talk to us or if you feel the need for advice then you seek independent professional advice, which would be at your own expense.