Scottish Life has announced it is to cut terminal (or final) bonuses on regular and single premium life and pension policies, resulting in cuts of around 23%. The cuts reflect the continuing state of World stock markets and the slow recovery seen by with profits funds.
Our View
Whilst many Scottish Life policyholders will not be impressed with the terminal bonus cuts, at least they are still rewarding policyholders, despite the poor returns received since the year 2000. Had with profits policyholders been invested in other funds, their returns would have been much worse. At least it is something to be thankful for, if not what was hoped for.