With-profits

If we look after a life insurance or pension policy for you, then some of your money might be invested in something called a ‘with-profits fund’.

If you’re not sure whether your money is invested in a with-profits fund, ask us.

What is a with-profits plan?

A with-profits fund is a kind of investment fund. Like most kinds of investment fund, it works by pooling together lots of people’s money to invest in a range of assets, such as shares, bonds, property and cash. Unlike other kinds of investment fund, a ‘with-profits’ fund aims to limit the short-term ups and downs of investing, while still delivering growth in the long-term.

How does a with-profits fund work?

In any year, your investments might perform well or they might perform badly. If they perform well, the fund’s value will go up. If they perform badly, the fund’s value will go down.

Most kinds of investment fund expose you to every up and down. Depending on when you take your money out, you could get more than you put in. But you could also get less.

A ‘with-profits’ fund aims to protect you from these short-term ups and downs. It does this by reinvesting some of the profits from the ‘up’ years to smooth out any losses in the ‘down’ years.

What this means for you is that you’ll get your share of the profits as an annual bonus. We add this to your policy – you don’t have to do anything. Once we’ve added your bonus, no-one can take it away. You might also get a bonus when your policy matures – this is called a ‘terminal bonus.’

The size of each bonus depends mainly on how your investments have performed. This means that, if your investments perform badly for several years, you could get small bonuses or no bonuses at all.

Loan interest rates

The following current loan interest rates apply for eligible with-profit plans:

Sun Life Financial of Canada

Plan issue date from Plan issue date to Interest type Interest rate
1 December 1971 Current Variable 5%
1 April 1968 30 November 1971 Fixed 7%
1 January 1957 31 March 1968 Fixed 6%
1 January 1949 31 December 1956 Fixed 5%

Confederation Life

Plan issue date from Plan issue date to Interest type Interest rate
1 January 1969 Current Variable 5%
1 December 1932 31 December 1968 Fixed 6%

 

With-Profits Committee Terms of Reference Adobe PDF document

For more information about the SLFC Assurance UK With-Profits Fund please visit our latest news page.

Principles and Practices of Financial Management (PPFM)

The PPFM of a with-profits fund explains in detail how we manage the fund and how with-profits policies or plans work. We have included a PPFM for each of our with-profits funds below.

SLOC With-Profits Fund

PPFM SLOC with-profits fund Plans sold by Sun Life Financial of Canada before 2001.

Policy/plan numbers begin with LA, LI or LM followed by 4 or 8.

 

SLFC Assurance UK With-Profits Fund

PPFM SLFC Assurance UK with-profits fundPreviously known as the Lincoln With-Profits Fund before September 2009.

Policy/plan numbers begin with 05, 06, 09 and 240.

 

Confederation Life With-Profits Fund

Confederation Life With-Profits plans sold before the purchase of Confederation Life by Sun Life Financial of Canada in 1995.

Policy/plan numbers begin with LL.

The Confederation Life With-Profits Fund has now been converted to Non-Profits. For more information please visit our latest news page or contact us.

 

Unsure which fund you have?

It’s important that you view the correct information for your fund. If you are unsure which fund you have, please check your Annual Statement and refer to the information provided under each of the fund names. If you are still unsure, please contact us with your policy/plan number to hand – we will be happy to help.

Consumer Guides

The Consumer Guide of a with-profits fund is a briefer version of the Principles and Practices of Financial Management (PPFM). It explains in clear and non-technical language how we manage the fund and how with-profits policies or plans work. We have included a Consumer Guide for each of our with-profits funds below.

SLOC With-Profits Fund

Consumer guide - SLOC with-profits fund - Life or endowment plansConsumer guide - SLOC with-profits fund - pension plansPlans sold by Sun Life Financial of Canada before 2001.

Policy/plan numbers begin with LA, LI or LM followed by 4 or 8.

 

SLFC Assurance UK With-Profits Fund

Previously known as the Lincoln With-Profits Fund before September 2009.

Policy/plan numbers begin with 05, 06, 09 and 240.

 

Confederation Life With-Profits Fund

Confederation Life With-Profits plans sold before the purchase of Confederation Life by Sun Life Financial of Canada in 1995.

Policy/plan numbers begin with LL.

The Confederation Life With-Profits Fund has now been converted to Non-Profits. For more information please visit our latest news page or contact us.

 

Unsure which fund you have?

It’s important that you view the correct information for your fund. If you are unsure which fund you have, please check your Annual Statement and refer to the information provided under each of the fund names. If you are still unsure, please contact us with your policy/plan number to hand – we will be happy to help.

Bonus Notices

The bonus notice provides information about how we set the bonus rates for the fund. We normally send you the latest bonus notice with your annual statement. We have included the Bonus Notices we produce for our with-profits funds below.

SLOC With-Profits Fund

Bonus notice - SLOC with-profits fund Plans sold by Sun Life Financial of Canada before 2001.

Policy/plan numbers begin with LA, LI or LM followed by 4 or 8.

 

SLFC Assurance UK With-Profits Fund

Bonus notice - SLFC Assurance UK with-profits fundPreviously known as the Lincoln With-Profits Fund before September 2009.

Policy/plan numbers begin with 05, 06, 09 and 240.

 

Confederation Life With-Profits Fund

Confederation Life With-Profits plans sold before the purchase of Confederation Life by Sun Life Financial of Canada in 1995.

Policy/plan numbers begin with LL.

The Confederation Life With-Profits Fund has now been converted to Non-Profits. For more information please visit our latest news page or contact us.

 

Unsure which fund you have?

It’s important that you view the correct information for your fund. If you are unsure which fund you have, please check your Annual Statement and refer to the information provided under each of the fund names. If you are still unsure, please contact us with your policy/plan number to hand – we will be happy to help.

Directors’ Reports

The Directors’ Reports explain how we have managed the fund in the past year and include an independent report from the With-Profits Actuary. We have included a Directors’ Report for each of our with-profits funds below.

SLOC With-Profits Fund

Directors' report - SLOC with-profits fund Plans sold by Sun Life Financial of Canada before 2001.

Policy/plan numbers begin with LA, LI or LM followed by 4 or 8.

 

SLFC Assurance UK With-Profits Fund

Directors' reports - SLFC Assurance UK with-profits fundPreviously known as the Lincoln With-Profits Fund before September 2009.

Policy/plan numbers begin with 05, 06, 09 and 240.

 

Confederation Life With-Profits Fund

Directors' reports - Confederation Life with-profits fundConfederation Life With-Profits plans sold before the purchase of Confederation Life by Sun Life Financial of Canada in 1995.

Policy/plan numbers begin with LL.

 

Unsure which fund you have?

It’s important that you view the correct information for your fund. If you are unsure which fund you have, please check your Annual Statement and refer to the information provided under each of the fund names. If you are still unsure, please contact us with your policy/plan number to hand – we will be happy to help.