Royal & SunAlliance is revamping its with-profits bond from this week to offer a range of features i...
Royal & SunAlliance is revamping its with-profits bond from this week to offer a range of features including a money back guarantee.
Investors will be able to at least get back the money they put into the bond 10 years before, with for example a client investing £10,000 at outset and not taking income are now guaranteed to get back at least £10,000 after 10 years. If the same client takes £2,000 in income from the bond over the 10 years the amount they would then be guaranteed to get back would be £8,000.
Royal & SunAlliance is also offering a one for one commission sacrifice option on initial commission of more than 0.62%. If the IFA gives up 5% of initial commission this would lead to a corresponding increase in the allocation rate on the with-profits bond to 105% from 100%. Standard IFA commission on the bond is 5.25% initial and no renewal or 3% initial and 0.5% renewal.
The life office is also adding an option allowing investors to make top-up investments of £3,000 and above with 100% allocation and no policy fee.
Mark Edwards, promotions leader for IFA personal business at Royal & SunAlliance, said: "With-profits bonds have proved to be an excellent investment for cautious savers in today's low inflation climate. We expect this to continue and we are increasing their appeal by delivering the increased flexibility IFAs and their clients are looking for. Our bond has proved to be among the best in the market with compound annualised returns of 11.3% a year, net of basic rate tax. We believe these changes will maintain our position."
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