Conventional With-Profits
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How do I know if I have a Conventional With-Profits policy?
Please note that we stopped selling Conventional With-Profits policies in June 2005. If your policy started after that date it is a Unitised With-Profits policy and this section does not apply to you.
The following table shows the types of policy we offered. If you are in any doubt as to whether you have a Conventional With-Profits policy, please call our Customer Helpline on 0800 056 0563.
Tax-Exempt Series 1 Taxable Series 1 Tax-Exempt Series 2 Taxable Series 2 Available up to Feb 1996 Available up to Oct 1996 Available between Oct 1995 and Jun 2005 Available between Apr 1996 and Jun 2005 Savings Growth Plan Savings Growth Plan Tax-Exempt Savings Plan* Endowment With-Profit High Yield Savings Plan Retirement Savings Plan Child Tax-Exempt Savings Plan* Retirement Savings Plan Retirement Extra Savings Plan The Friendly Savings Plan Special Saver 2001 Tax-Exempt Savings Plan Over 60's Savings Plan Child Tax-Exempt Savings Plan Endowment Endowment-Expectations Endowment and Family Income Plan Low Cost Endowment Special Low Cost Endowment Whole of Life Whole of Life With-Profit Covercare Whole of Life Whole of Life and Family Income * Please note that we launched ‘Unitised’ versions of these policies in January 2005. If you bought your plan between January and June 2005, please refer to your Annual Bonus Certificate (Conventional) or Annual Statement (Unitised) to see which type you have.
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How does Conventional With-Profits work?
All of our conventional with-profits policies provide valuable life cover in the event of death. This is known as the Guaranteed Sum Assured.
If yours is a savings or endowment type of policy, it is also designed to provide you with a cash sum at the end of your savings term.
Each year, depending on a number of factors, including how well the Fund has performed and what we expect future returns to be, Teachers Assurance will declare two annual bonus rates (one as a percentage of your Guaranteed Sum Assured and the other as a percentage of your previous Annual Bonuses). In extreme conditions, these may be zero.
These Annual Bonuses are added to your Sum Assured, to increase the guaranteed minimum payout at the end of your plan term (if you have a savings plan) or on death.
You may also receive a Final Bonus when your plan ends although this is not guaranteed.
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How do you manage the Fund?
The Conventional With-Profits Fund can invest in a range of assets including equities (company shares), fixed interest bonds (government and company), index linked bonds, property and cash. How much you get back will depend on the length of time you hold your investment, the types of asset held in the Fund and how well these assets perform.
The mix of assets may change over time. During periods of turbulence in economic and investment conditions as seen in periods such as 2000-2003 and 2008-2009, we may take a relatively cautious approach to investment by holding more of the Fund in cash and government bonds. We do this to protect the interest of our members who invest in the Fund and to reduce the ups and downs in comparison to holding a larger proportion of equities in the Fund.
Our target level for equity and property investment is 60% of the Fund, as over the longer term equities are generally considered to provide the best opportunity for investment returns. The investment performance of the Fund and the overall return you can expect depends on the mix of assets held over the lifetime of your plan.
The chart below shows the asset mix of the Conventional With Profits Fund as at 31st December 2011.
(Figures have been rounded)
Target Position
We usually have a higher proportion of equity and property investments in the Fund as these are generally considered to produce the best returns in the long term.
(Figures have been rounded)
The values of the investments in the Fund are constantly changing so the actual proportion of the Fund invested in each asset class may not always look like this.
Want to know more?
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What if I need your help or advice?
If you need our help or advice, please give us a call:
0800 056 0563
8.30am to 8pm Weekdays
9am to 1pm SaturdaysTo help us continually improve customer service, calls may be recorded or monitored.
Ask us for information
Our Helpline can answer any questions you have or post you an application pack for any of the products on offer.
Ask us for advice
Our expert Financial Consultants can help you choose the most suitable products for your needs, you can ask for personal financial advice over the phone or face to face .
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Book a school visit for one of our Financial Consultants to hold a free financial planning session for teachers in your school.
Our Consultants are only able to advise on our own products and services and those of selected third parties.
Want to know more?
For a customer friendly description of how we manage our Conventional With-Profits business click on the link below:
For a more technical guide to how we manage our With-Profits business click on the link below:
