Conventional With-Profits

• 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.

• 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.

• How do you manage the Fund?

  Over the past year or so, you’ll no doubt be aware, that there have been substantial falls in the value of equities and property across the world. Teachers Assurance reduced the amount of equities held within our With-Profits Fund last year and took a relatively cautious approach by holding more of the Fund in cash and government bonds. Although these are more stable types of investment they may not produce the best returns in the long run, but they have helped to reduce the ups and downs compared to holding a larger proportion of equities in the Fund.

  However, during 2009 we introduced more equities into the Fund, as they are generally considered to provide the opportunity for higher investment returns when held over the long term. We did this, because we believed that investment conditions were becoming more favourable and it will be in the long-term interests of our members.

  The chart below shows the asset mix of the Conventional With Profits Fund as at 31st December 2011.

  

  (Figures have been rounded)

  Target Position

  The chart below shows our long-term, target asset mix for the Fund (60% invested in equities and property in total):

  

  (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?

  • Guide to how we manage the With-Profits Fund (Conventional) (PDF)
• What if I need more information or support?

  If you need our help when navigating around our website or would like support when buying a product, please give us a call:

  0800 056 0563
  8am to 9pm Monday to Friday
  9am to 6pm Saturday
  10am to 4pm Sunday

  To 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 a school visit - Money Talks!

  Book a school visit and hold a free financial education and information session for teachers in your school.

  Teachers Assurance offer their own products and those of selected third party providers.

Want to know more?

For a customer friendly description of how we manage our Conventional With-Profits business click on the link below:

• Guide to how we manage the With-Profits Fund (Conventional) (PDF)

For a more technical guide to how we manage our With-Profits business click on the link below:

• Principles & Practices of Financial Management (PDF)
• Directors Report on our Compliance with PPFM in 2010

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