I want to surrender my Investment Bond but the life insurance company says it will apply a Market Value Adjustment – what is this?
MVA/MVR’s can be applied to a with-profits investment at the time of encashment if there has been a fall in the stock market during the period before surrender. This is to ensure the person surrendering the investment receives a “fair value” for their slice of the with-profits fund and to protect remaining investors from those taking their money out. Some investment bonds have an MVA free date – usually on the 10th anniversary – check your paperwork issued at the time you took out the investment or phone your life company for more details.
