Member eligibility criteria
We expect the one-off member compensation payment to be made early in 2022 once the member, regulatory and legal processes have fully completed. Additionally, from that date the enhanced policy payouts will start to be made for policies coming to an end.
The actual amount of these payments will be determined by the Board after consultation with the With-Profits Committee. The Board’s decision will also be reviewed by an Independent Expert to ensure that the Board has achieved its primary aim of being fair to all members.
This payment is for all existing eligible members, and provides member compensation in the form of a cash payment. This one-off payment will be made to all existing eligible members with an active policy when the transaction with Bain Capital completes; this is the date when LVFS will transfer its business to Bain Capital.
To protect the interests of our current members, new business policies received from the 1 March 2021 will not be eligible for the one-off member compensation payment.
We expect payments will be made in early 2022 once the member, regulatory and legal processes have fully completed.
Please note that the payment will be per member, and not for each member qualifying policy held.
With-profits members will be eligible for the enhanced payout at policy exit if they hold a With-profits policy at the date of the Special General Meeting (SGM) – expected to be scheduled in the first half of 2021 - and the overall vote is in favour of the transaction. This will remain the case even if after this date your policy lapses or you leave.
Any With-profits policies taken out from the 1 March 2021 will still benefit from the enhanced payout for With-profits members at policy exit if they hold a With-profits policy at the date of the SGM and the overall vote is in favour of the transaction.
These eligibility criteria were discussed and agreed at Board and considered alongside advice from the With-Profits Committee who agreed the proposals were fair to With-profits members.
New policies taken out from the 1 March will not be entitled to the one-off member compensation payment. This is to ensure we protect the interests of our current members.
With-profits policies taken out from the 1 March will still be entitled to the enhanced payout at policy exit, providing the policy is active at the date of the Special General Meeting and the overall vote is in favour of the transaction.
Yes, there are three types of With-profits members who will not qualify for the enhanced payout at policy exit: