Your guide to with-profits

Your policy is likely to be a with-profits policy (in whole or in part) if your policy document (issued when your policy started) mentions 'with-profits' or 'carries the right to participate in the profits/surplus assets of Scottish Widows/the Society'

and

at least one of the following applies:

• You have received each year a statement of your bonus headed 'Bonus Notice'
• You have received an Annual Benefit Statement referring to the Unitised With-Profits bonus rate and showing the value of units in the with-profits fund
• Your policy number starts with the letter 'Z' followed by the numbers '03'

and you have not:

• Switched from with-profits into unit-linked or other non-with-profits benefits
• Or started to take a pension from your policy (unless your policy is a Unitised Annuity)

Conventional with-profits

The with-profits part of your policy is likely to be a 'conventional with-profits' contract if you have received each year a statement called 'Bonus Notice' that shows what bonuses have been added in the year.

Unitised with-profits

The with-profits part of your policy is likely to be a 'unitised with-profits' contract if:

• You have received an Annual Benefit Statement each year referring to the Unitised With-Profits bonus rate and showing the value of units in the with-profits fund
• Or your policy number starts with the letter 'Z' followed by the numbers '03'

Your policy will either be a pensions or life assurance policy.

Pensions policies

If you are using your with-profits policy to save up for retirement and/or it has the word pension in the name on your contract, it will be a pensions policy. Here are some of the names of pensions policies:

Executive Pension Policy, Free Standing Additional Voluntary Contributions (FSAVC), Pegasus Executive Pension Plan, Pegasus Early Leavers Plan, Pegasus Plus Pension Plan, Personal Pension Plus, Personal Pension Policy, Section 32 (Buy Out) Policy, Top Hat Policy.

Life assurance policies

Otherwise it is likely to be a life assurance policy. This might be associated with a mortgage or other regular savings you are making. It may be called:

Endowment, Endowment Plan 10, Extra Cover Assurance, Flying Start Endowment, Full Endowment, Versatile Endowment Plan, Whole of Life Assurance.

Pensionplanner

The third guide is only for a special group pension contract used by a small number of defined benefit schemes, which is called Pensionplanner.

If your policy documentation says your policy is a Flexible Options Bond, you could be invested in either the Growth or Income Fund. Your annual statement will indicate which fund and the respective guide that applies to it. If you are already receiving a pension and it is a unitised with-profits pension from Scottish Widows, then it will be a Unitised Annuity.

Otherwise, the two main types of policy are pensions or life assurance.

Pensions policies

If you are using your with-profits policy to save up for retirement and/or it has the word pension in the name on your contract, it will be a pensions policy. Here are some of the names of pensions policies:

Executive Pension, Free Standing Additional Voluntary Contributions (FSAVC), Group Personal Pension, Pension Solutions, Personal Pension, Section 32 (Buy Out) Plan.

Life assurance policies

Otherwise it is likely to be a life assurance policy. This might be associated with a mortgage or other regular savings you are making. It may be called:

House Purchase Savings Plan, Regular Savings Plan, With Profits Savings Plan, Flexible Investment Bond, International Investment Bond, Jersey With-Profits Bond, Lifetime Protection Plan, With-Profits Bond.

Easy. Just call us on 0845 845 0845 and we'll arrange to send you a copy of the relevant guide.