Britannic Assurance is offering an immediate income facility of up to 7.5% on its with-profits bond ...
Britannic Assurance is offering an immediate income facility of up to 7.5% on its with-profits bond and is also providing extra allocation on investments of £20,000 and over.
As previously reported in Investment Week, the life office has been planning to add in an immediate income facility on its with-profits bond as part of a move to build IFA business. It is offering an extra 1% allocation on investments of £20,000 plus until 17 December, exclusively to IFA clients, taking the allocation rate to 104%.
The minimum investment for the product is £5,000. For investments of between £5,000 and £9,999 the allocation rate is 101% and it is 102% for investments of between £10,000 and £19,999. The usual allocation rate for investments of £20,000 plus is 103%.
Investors wishing to make withdrawals must take out a minimum of £100 regardless of the withdrawal option chosen. Britannic is offering withdrawal facilities including monthly, quarterly and annual options. IFA commission on the product is 6% initial and there is no renewal commission. The Britannic with-profits bond previously offered a full income facility only after the product had been held for five years. For those who were looking to make withdrawals after holding the product for less than five years, one withdrawal was allowed per policy year.
Britannic is making the move to increase the product's competitiveness in the IFA market. It said that IFAs would tend to bring in larger sums per client which made offering an immediate income facility more viable.
The life office, which has traditionally operated in the home service arena, entered the IFA market in May with a revamped version of the with-profits bond. For more details and product literature contact the Britannic IFA help unit on 0845 305 5556.
Earlier this year, Britannic revealed it is paying around £150m for a 75% stake in Britannia Asset Management. It will be renamed Britannic Asset Management and the acquisition deal is set to go through in December.
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