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This page relates to the National Mutual With-Profit Fund

The National Mutual With-Profit Fund was established on 31st December 2007 by the scheme that transferred the with-profit business from NM Pensions Limited (TomorrowTM) to Windsor Life Assurance Company Limited. It primarily contains the business originally written by National Mutual Life Assurance Society which was held in the National Mutual Fund.

Current With-Profit Policy Bonus Rates

Bonuses are additions to the benefits payable on with-profit policies. You can find more information about how bonuses are added to different types of policy in the National Mutual With-Profit Fund in our Principles and Practices of Financial Management (PPFM) for that fund.

1. Traditional With-Profit Policy Reversionary Bonus Rates

Product to 31/12/2009 to 31/12/2008
% of Sum Assured % of Existing Bonuses % of Sum Assured % of Existing Bonuses
Endowment Assurances 0.20% 0.20% 0.20% 0.20%
Pension policies except single premiums from October 1998 0.10% 0.10% 0.10% 0.10%
Pension policies - Single premiums from October 1998 0.10% 0.10% 2.00% 2.00%

Adobe acrobat Please click here to access our With-Profit Bonus Q&A document. (67Kb)

2. Current Unitised With-Profit Policy Accumulation Rates

Product Bonus Rate Effective Date
Unitised With-Profit 1.00% pa 01/04/2010

3. Deposit Administration Rates

Product to 31/12/2009 to 31/12/2008
% of Sum Assured % of Existing Bonuses % of Sum Assured % of Existing Bonuses
Deposit Administration 4.80% 4.80% 4.80% 4.80%

4. Demutualisation uplift

As part of the terms of National Mutual’s demutualisation, the inherited estate within the National Mutual With-Profit Fund is being distributed to eligible policies (broadly, with-profit policies written before March 2001). This happens by applying a percentage uplift to the benefits we would otherwise pay. The initial level of the uplift, taking effect from the end of 2001, was 5% (tapered for durations below ten years). Since 2002, we have reviewed the level of the uplift, with the aim of increasing it by a similar amount each year (although in practice the change will fluctuate and could be negative). We do this by increasing the investment returns allocated to policies in the Fund. The following table shows the additions made each year since the uplift was introduced.

Year
Increase to investment return
2002
0.25%
2003
0.25%
2004
0.53%
2005
0.71%
2006
0.84%
2007
1.15%
2008
1.60%
2009
1.00%

5. Traditional With-Profit Policy and Unitised With-Profit Final (Terminal) Bonus Rates

Rates depend on the type of product, the date it commenced, the duration and the premiums paid. If you need further information on your Plan call us on 0800 073 1777. If you are calling from outside the UK, please call 00-44-1952-292929. Please have your policy number to hand.

Final (or Terminal) Bonuses may vary or be removed at any time and are therefore not guaranteed. For Market Value Reduction information, please click here.

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