Our Income Protection Plus policies include a Profit Share scheme that aims to accumulate a lump sum for payment once the policy reaches maturity.
Our members receive their accumulated Profit Share lump sum upon the maturity of their policy, whether they have claimed or not.
Whenever we make an annual profit from our Income Protection Plus business, we share it with our Income Protection Plus policyholders through a notional 'annual bonus' to their Profit Share Accounts, which we then invest for the future.
When we apportion interest during the lifetime of your policy, we do so on a compound basis. This means the longer a member stays with us, the more substantial their potential payment will be at the end of their policy.
We examine our performance at the end of each year.
We decide if an Annual Bonus can be awarded to our members based on our performance.
We apportion any Annual Bonus award to a notional Profit Share Account.
We send you an Annual Bonus statement each year to keep you updated on the performance of your Profit Share.
You can take the full Profit Share amount when your policy matures.
Take a look at our recent figures to see how we've shared our success with our members.
| PG Mutual members profit share 2017 - 2021 | |
|---|---|
| Total annual bonuses to members | £6,064,498 |
| Total amount paid to departing members | £4,708,806 |
Figures taken from fully audited accounts 2017, 2018, 2019, 2020 and 2021.
Frequently Asked Questions - This information is a summary only. Please contact us if you have any further questions about your Profit Share Account and annual bonus.
Our Income Protection Plus policy incorporates a Profit Share Account. This Profit Share Account is designed to ensure that members with this policy can share in any profit generated from our Income Protection business. Any profit generated each year is invested along with the rest of the Society’s funds to generate further returns for our members. It is this design that makes our policy different from purely Income Protection policies and rewards our members for their loyalty.
The Annual Bonus process is the means by which the Board of Directors provisionally allocate a proportion of the Society’s funds to members. The final amount you will be due on the date your membership comes to an end will be determined by factors such as the level of future Annual Bonuses made to you, any penalties that may apply for early termination or for causing the Society to incur a loss on its investments, and whether you will be entitled to a loyalty bonus.
The Society’s annual surplus is determined by deducting all income benefit claims, management expenses and any transfers to the Society’s reserves from the income the Society earned from its membership contributions and investments. If this surplus is considered sufficient by the Board of Directors an Annual Bonus will be declared. However, there are factors that the Board of Directors must take into consideration before declaring an Annual Bonus. These include the need to maintain the financial strength of the Society to standards set by our prudential regulator, the sustainability of the level of apportionment, and the realistic prospects for the economic and investment environment.
Interest is applied in proportion to the provisional balance of your Profit Share Account throughout the last financial year. If you have made any withdrawals from your individual Profit Share Account in that year, the amount of interest apportioned will be lower from the date of each withdrawal. Dividends are made in proportion to the shares you subscribed for during the course of the last year. If you increased or decreased your shares in that year, or if you moved between Active and Associate status, your dividend per share will be applied in proportion to the shares held before and after the date of the change in your shares or your status.
If you are an Active member of PG Mutual, the maximum you can withdraw is £500 at any one time. This can only be claimed if you are in financial difficulties, or require it as a contribution towards non-cosmetic medical treatment. If you are an Associate member and 60 years or older, you can withdraw as much of your balance as you wish without penalty and keep your account open, providing you do not withdraw all your funds. Such a payment may also be eligible for a loyalty bonus payment as well if available at the time of the withdrawal.
Our understanding of current UK tax law is that your provisional Profit Share Account balance and any withdrawals made from it is generally free from income tax and capital gains tax liability. However, this is subject to your individual circumstances and can be subject to change. As the Society cannot provide you with tax advice, if you are unsure of the tax treatment in your own circumstances we recommend that you seek professional tax advice.
No. You also cannot place it in trust. However, you can nominate one or more individuals to receive a direct payment from your Profit Share Account balance in the event you die during your membership. If you would like further details about the nomination service, please contact us.