Please explain what each bonus means?
Regular Bonus (or Declared Reversionary) – is added to your Guaranteed Annuity. Once added it cannot be removed. In accordance with previous declarations we do not expect to add any Regular Bonuses to your Plan in the forseeable future. The rate of Regular Bonus therefore remains 0.00%. This is in order to maintain the flexibility of our investment policy and to protect the financial strength of the Fund. We aim to keep a substantial proportion of the amount payable on policy in a non-guaranteed form. Regular bonus rates for all our products are set in accordance with this aim. Overall Rate of Return – is applicable on your plan anniversary after 1 April 2010 and is designed to give credit for the investment return earned by the With-Profits Fund during 2009 but also reflects some of the smoothing of the 2008 return at the 2009 declaration. The improved investment return this year means the Overall Rate of Return declared is 0.5% p.a. for plans issued after 20 July 2000.
