Come to terms with your policies

Article Abstract:

Providers of pension products use a wide range of terms, most of which can be confusing for ordinary people. Common terms include unit-linked policies, which match direct stock market performance more closely than with-profits policies, where an annual bonus is connected with a policy and cannot be removed. Paid-up value is when a policy remains invested by the original provider and will be paid out on the agreed maturity date. Persistency rate refers to the percentage of people who decide to continue paying premiums into a policy instead of letting it lapse.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds

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Dependents provided for?

Article Abstract:

Many personal pension plans will only return the premiums paid in if the policyholder dies. Others will only return the contributions and either 4% or 6%, according to the type of pension plan. However, negative publicity on this issue is encouraging some pension plan providers to change their policy, and some now return all the policyholder's funds at death. Experts believe that the best way to protect the likely return of a pension fund is to take out separate insurance instead.

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Beware the poor performers

Article Abstract:

There can be a very wide performance gap between the worst and the best personal pension schemes, according to a recent survey. It has been shown that some of the most well-known insurance concerns in the UK produce the worst results, while a good performance is shown by some companies which are relatively unknown. When choosing a scheme, investors should always look at the consistency of performance over the long term.

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