Guaranteed Terms

Guaranteed terms apply to with-profits benefits under Equitable Life UK policies in the circumstances set out below.

Pension policies

Our with-profits pension policies generally provide guaranteed terms on taking the benefits as an immediate pension or drawdown, and also on death before taking benefits. Some policies specify a minimum age for taking retirement benefits on guaranteed terms, and some policies do not provide a return on death before taking benefits.

If funds are transferred out from an Equitable Life UK with-profits pension plan on or after age 75, we will also pay guaranteed terms.

Life policies

Our with-profits life policies generally provide guaranteed terms on death. For certain types of policy such as endowment assurances, guaranteed terms also apply on the maturity date shown in the policy.

In addition, certain plans allow surrender on guaranteed terms at times specified in the policy documentation.

  • For Personal Investment Plans, full surrender on guaranteed terms applies on the 10th anniversary and on every 10th anniversary thereafter. Terms for partial surrender are guaranteed on every policy anniversary provided that the surrender does not exceed 5% of the total with-profits contributions paid.
  • For Regular Savings Plans, full surrender on guaranteed terms applies on the 5th policy anniversary and on every policy anniversary thereafter. There are no guaranteed terms for partial surrender.
  • For With-profits Bonds effected between 18 July 1988 and 5 February 1989 – Series 1 - terms for full surrender are guaranteed on the 10th anniversary and on every 5th anniversary thereafter. Terms for partial surrender are guaranteed on every policy anniversary provided that the surrender does not exceed 10% of the total contributions paid.
  • For With-profits Bonds effected after 5 February 1989 – Series 2 - terms for full or partial surrender are guaranteed on every anniversary.

Further information

Click here for more information about the way we run our with-profits business.

Please contact our Client Servicing Centre on 0330 159 1530 should you need any further information.

Advice

Before making decisions about your pensions and savings, we suggest you contact an Independent Financial Adviser. You may be charged for the advice given.