Details of our bonus rates

Bonus Recommendations – Scottish Friendly Assurance Main Fund

The following regular bonus declarations were recommended by the Board of Scottish Friendly Assurance Society in January 2016:

Conventional Ordinary Branch Business

There has been no recommended change to the current rates of regular bonus. The rates detailed below:

Table Bonus Rate
Tables W1, W2, E1, E2, N3, N4, N6, N7 & V1 A regular bonus of 0.80% on the sum assured and the previously declared bonus
Tables A3, A7, P1, P4 & P6 (Deferred Annuities and Personal Pensions)
Old City of Glasgow Tables (pre 1975)
Policies issued by other societies including Old Scottish Friendly (pre transfer to City of Glasgow)
Tables 15, 17 & 25
Tables G1 & B1 (Tax Exempt) A regular bonus of 1.00% of the sum assured and the previously declared bonus
Resolution Bond A regular bonus of 0.50% of the sum assured and the previously declared bonus
For Old Scottish Friendly (pre transfer to the City of Glasgow) business, tables 5, 8, 9 & 10 A regular bonus of 1.00% of the sum assured

Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2016.

Unitised Ordinary Branch Business

For unitised with profit business regular bonus is reflected within the unit prices and as such needs to be declared in advance of unit purchases. These rates are subject to review at any time and rates that apply from any future date may therefore be subject to amendment. It is recommended that there is no change to the current rates of regular bonus. The rates detailed below:

Product Bonus rate
Taxable – Growth & Security Bond and Moneybuilder A rate of 2.50% per annum should be reflected as the annual rate of increase in the unit price of the fund
Taxable – Mutual Investment Bond A rate of 2.50% per annum should be reflected as the annual rate of increase in the unit price of the fund
Tax-Exempt – Bonus Bonds, Personal Pension and ISA A rate of 3.00% per annum should be reflected as the annual rate of increase in the unit price of the fund
Tax-Exempt – My Plan ISA A rate of 1.00% per annum should be reflected as the annual rate of increase in the unit price of the fund

Pioneer Business

The current regular bonus rates apply to the basic sum assured at the rate of 2.0% for tax-exempt business and 1.0% for taxable business.

Royal Standard Business

A regular bonus of 1.5% applies to the sum assured and previously declared bonuses.

Conventional Industrial Branch Business

Product Bonus rate
Whole Life, Endowment and Pension Policies A regular bonus of 1.00% of sum assured.
Endowment Assurance with Deferred Life Assurance A regular bonus of 0.50% of sum assured.
Recurring Endowment 5 years Maintain the current rate of 5.00% of each recurring endowment payment.
Recurring Endowment 10 years Maintain the current rate of 10.00% of each recurring endowment payment.

Bonus Recommendations – Scottish Legal Life Fund

The following regular bonus declarations were recommended by the Board of Scottish Friendly Assurance Society in January 2016:

Conventional Ordinary Branch Business

The same rates of bonus will apply in respect of both the UK and the RoI business. It is recommended that for all products the current rates are maintained:

Table Regular Bonus Rate
9, 10d & 11 1.75% p.a. compound
11b Nil
18 1.25% p.a. compound
61 & 61b Nil
80, 81, 82, 84, 84a, 86, 88 & 88a Nil
83, 85, 85a, 87, 89 & 89a Nil
201, 202, 203, 211, 212, 221, 222 and 231 0.50% p.a. compound
281 & 282 0.50% p.a. compound

Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2016.

Unitised Ordinary Branch Business

For unitised with profit business regular bonus is reflected within the unit prices and as such needs to be declared in advance of unit purchases. These rates are subject to review at any time and rates that apply from any future date may therefore be subject to amendment. It is recommended that the current rates of regular bonus be maintained at the rates detailed below:

Product Regular Bonus Rate
UK Taxable A rate of 2.50% per annum
UK Tax-Exempt A rate of 3.00% per annum
RoI A rate of 3.00% per annum

These rates will be reflected as the annual rate of increase in the unit price of the fund.

Conventional Industrial Branch Business

The same rates of bonus will apply in respect of both the UK and the RoI business. It is recommended that for 2016 the current declared rates of regular bonuses for the whole of life policies (tables 1, 2, 3 etc.) and endowments are maintained at 0.25% per annum. It is recommended that the rates for the new series policies (tables 101,111 etc.) are maintained at 0.75% p.a. for 2016. The recommended rates are detailed below:

Table Regular Bonus Rate
1, 2, 3, 6, 21, 23 & 27 and Loyal Hearts 2, 3 & 7 0.25% p.a. simple
4 & 22 and Loyal Hearts 4, 6 & 8 0.25% p.a. simple
12 (a) Nil
16 0.25% p.a. simple
101, 111, 121 & 131 0.75% p.a. simple

Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2016.


Bonus Recommendations – Rational Shelley Fund and LANMAS Fund

Rational Shelley

It is recommended that there are no changes to the rate of regular bonus for this business. The recommended scales are detailed below:

Product Bonus Rate
Industrial Branch Maintain the current rate of 2.00% p.a. of the sum assured
Ordinary Branch Maintain the current rate of 3.00% p.a. of the sum assured

Where applicable, until further notice, the interim rate of regular bonus to be applied to claims will be equal to the rate declared for 2016.

LANMAS

For LANMAS the guaranteed rates of 3% and 0% will be applied to the unit price for policies commencing before and after July 1998 respectively. There is currently no other form of annual bonus.