Your plan benefits are guaranteed provided you maintain any regular payments. Guarantees may apply only at a particular date, for example the maturity date or retirement date. Most plans also have a guaranteed amount payable on death. These are not necessarily the same as the guarantees at maturity. The bonus statement will tell you if guarantees apply to your plan. Some of these may be valuable and you should make sure that you understand them before taking any action. You can find more information on some specialised types of guarantee below:
Guaranteed annuity rates (on conventional with-profits self-employed or executive pension plans).
Some pension plans include a guaranteed rate for turning the plan value into an income at retirement. These are probably better than can be obtained anywhere else.
The guaranteed rates apply regardless of how much a plan is worth, and we still offer a favourable rate should you want to take your benefits early. Your bonus statement tells you the income we guarantee from your plan at the plan retirement date as well as the minimum age at which guaranteed rates apply.
Mortgage endowment guarantees (on plans that have accepted all recommended premium increases)
Some conventional endowment plans contain a review clause, the purpose of which is to monitor the performance of the plan and recommend necessary increases to ensure the plan remains on track. If all the recommended increases are taken up, then the plan is guaranteed to reach its target amount at the maturity date, subject to all premiums due being paid.
A life plan will provide a guaranteed amount if you die before your plan ends.
Waiver of payment cover
You may have chosen to pay for cover to waive regular payments if you are unable to work through sickness or disability. See your plan documents for the exact details of the cover provided.