Prudential is altering the income options on its with-profits bond and is also launching an IFA extranet site.
The life office is changing the income withdrawal options on its Prudence Bond to allow the maximum amount of income that can be taken to be the greater of 7.5% of the original investment, or 7.5% of the fund value of the plan.
Previously, the maximum income that could be taken was restricted to 7.5% of investment in the fund, meaning those wanting income could not increase the amount they took in-line with the growth in the with-profits fund. Standard IFA commission on the Prudence Bond is 5.25% initial and no renewal or 3% initial and 0.5% renewal.
The group is offering an IFA extranet site providing online quotations for the Prudence Bond. It is also planning to offer quotes for top up investments into the Prudence Bond as well as adding online policy valuations and the ability to make top-up investments through the site. The site can be found at www.pruifa.co.uk.
Prudential head of business development Vince Smith-Hughes discusses the consequences of pensions freedom and changes to death benefits