Norwich Union Section 32 NO Bonus for 5 years now

MyMateMartin

Deleted not relevant

dunstonh

Tried to transfer to Virgin, but transfer value was just below GMP.

Thanks God you failed doing that. That would have been an awful thing to do.

How much GMP is there compared to transfer value?
What is the guaranteed annuity rate?
Is there any protection on the tax free lump sum?

Are they doing something wrong with this.

No. Usually, the plans with the most guarantees get no bonuses as the return is wrapped up in the guarantee.

EdInvestor

You are the winner in this sitiuation.The insurer must pay you the GMP, even if your fund is too small to cover it - which it is.The fact it gets no bonuses doesn't matter at all.

Retired_I.F.A.

I imagine MyMateMartin is thinking this but yet to ask and as I only have a suspicion of how it's done I'll ask:

How can a with profit plan entitled to a share of the profits of the company pay bonus's on one policy without a GAR yet pay none on a policy with one?

If a GAR on one policy applies at say 65 only and the policyholder takes the benefits at a different age will he be worse off than the otherwise identical policyholder without a GAR who likewise takes benefits at that same age because that policy has had more bonus's attached?

EdInvestor

Retired_I.F.A. wrote: »

How can a with profit plan entitled to a share of the profits of the company pay bonus's on one policy without a GAR yet pay none on a policy with one?

GARs are not free.You have to pay a fee for them these days via smaller or nil bonuses.Otherwise it's not fair to the other members of the WP fund - look at what happened to those without GARs at Equitable Life.