Contents
Managing your Whole of Life plan
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Waiver of Premium: What to do if you’re unable to work
If you took out Waiver of Premium with your plan and you're unable to work through illness or accident, you may be able to apply for your payments to be made on your behalf. Please call so we can talk to you about this.
Before making any changes to your plan:
- Please make sure you understand your options and how they might affect your plan. Because once you've told us what you'd like to do, it may not be possible to change your mind.
- We recommend you get financial advice. See 'Getting financial advice’ for more information about this.
- Remember that the value of your investment can go down as well as up, so you might get back less than you put in.
Converted your Endowment plan to Whole of Life?
Understanding your options
Your options depend on your plan type and chosen benefits. We can explain these in detail if you call us or alternatively, speak to your financial adviser.
- Switch some or all of your money to another fund.
- Redirect future payments to a different fund, while leaving existing money where it is.
- Contact us and we can discuss where your money is currently invested, and your choices.
- Make your plan paid up - Stop making payments without cashing-in the plan.
- Reduce your payments - Lower the amount you pay into your plan.
- Cash-in part or all of your plan - Take some or all of the plan’s value.
- Fully cash-in your plan.
- Cash-in part of your plan.
Things to consider
Your personal investment profile
- Your comfort with balancing investment risk and reward.
- Your level of investment knowledge.
Fund-specific considerations
- Switching out of the With-Profits Fund could result in a Market Value Reduction (MVR), reducing the amount you receive.
- If you're invested in one of the PruFund protected funds any switch out will reduce your guaranteed amount.
- There may be a charge to switch funds, although redirections are usually free.
- Charges may differ between funds.
- Where you have a choice of funds, you can switch at any time,
- There may be a limit to the number of switches you can make, or the number of funds you can invest in.
Timing and processing
- You can't cancel a switch instruction once it's been given, however you can give subsequent instructions to us.
- Some switches are actioned straight away, others may take place 28 days after we receive your instruction.
- In exceptional circumstances, your switch instruction could be delayed by up to six months - we’ll let you know if this applies to you.
If you choose to make your plan paid up, you could see:
- Your level of life cover reduce or stop.
- The ongoing cost of the life cover will be paid for from your plan and may use up your plan’s value.
- Your plan may not meet its original purpose.
- A change in tax status which might mean paying more tax in the future.
- A change to charges, or additional charges, to your plan.
- Loss of Waiver of Premium or other benefits, where you chose them.
- Life cover and benefits – reducing or losing them can be harder and more expensive to replace later, especially if your health has deteriorated.
- Cashing-in early – if your plan is invested in the With-Profits Fund, this may trigger a Market Value Reduction (MVR), reducing the amount you receive.
- PruFund protected funds – any cash-in will reduce your guaranteed amount.
- Review and assessment – changes may require a review of payments and possibly a health assessment.
- Tax implications – changes could alter your tax status and result in paying more tax in future.
- Charges – existing charges may change or additional charges may apply.
- Plan purpose – plans are designed to pay out on death; cashing in early and investment changes can affect the value.
Additional benefits you might have
You may have additional benefits depending on the type of plan you have and the options you chose at outset. These may include sickness or disability benefit, conversion options and the right to change the life assured. We’ll tell you if any of these apply and explain how your changes might affect them if you call.
Getting financial advice
If you’re making an important financial decision, or thinking about your longer term financial health, then we recommend you get financial advice.
- You should speak to your financial adviser if you have one.
- If you don’t have an adviser, you can search for an independent financial adviser by visiting unbiased.co.uk or by calling them on 0800 023 6868.
- You could speak to M&G Advice. Whether it's about financial planning, accessing your pension, making sure you get the most from your tax allowances or protecting your loved ones; whatever your financial goals – we can help.
Next steps
To make changes to your plan, or discuss your options, call us on 0345 640 1000 or +44 1786 448844 if you’re calling from abroad. Lines are open Monday to Friday, 08:00 – 18:00, excluding public holidays.
We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications.
We might record your call for training and quality purposes. To find out more about how we use your personal data please visit the My Data page.
