Are you in line for a windfall?

By DAILY MAIL REPORTER
Updated:

 

WINDFALLS are on the way for more than three million customers of four insurance companies this year. However, a significant number of the insurers' customers won't get anything. We take you through each offer - and the timetable for payouts.

AXA SUN LIFE
ABOUT 450,000 AXA Sun Life and AXA Equity & Law policyholders should by the end of this month have received payout cheques averaging £400 per policy. The payments are a result of AXA's decision to sort out its £1.7 billion of orphan assets.

In return for signing away their rights to any future orphan assets, the 450,000 people who hold 542,000 policies will get cash payments worth between £100 and £93,000, depending on the policy size and how long they have been with AXA. Over time, they will also get £225 million in extra bonuses paid into their policies.

The payments will go out between April 17 and April 27. If you haven't got your windfall by the end of this month, contact AXA on 0345 341341. To qualify you had to have a with-profits policy open on or before July 24, 2000. Those who bought policies from Sun Life Assurance do not qualify.

SCOTTISH PROVIDENT
ITS planned sale to Abbey National for £1.8 billion is expected to go through this summer, with windfall payments towards the end of this year or early next.

In four to six weeks' time, the 450,000 members will get details of the deal and voting packs for the extraordinary general meeting (EGM) in June or July. Qualifying members would get a flat payout of £500 under the deal.

With-profits customers would get a variable payout, depending on the size of their policy.

Anyone who took out a non-with-profits policy (say, term assurance or critical illness) after January 1, 1996, is not a member and won't get a bonus. Those who do qualify will be given a choice of cash or loan notes.

FRIENDS PROVIDENT
THE mutual insurer is on course for flotation this winter. To qualify, you had to have a Friends Provident Life Office policy opened on or before May 4, 2000.

About 1.7million members of Friends Provident are expected to get bonuses. As the insurer is floating, the bonuses will be in the form of shares.

It is expected all qualifying members will get a flat windfall payout of shares, with the 650,000 with-profits customers getting extra shares. Members may also be offered the chance to buy extra shares at a discounted price.

SCOTTISH LIFE
THE mutual insurer is set to be taken over by Royal London, another mutual, in the middle of this year.

In the next four to six weeks, Scottish Life is expected to send details to its members ahead of the EGM - probably in June or July.

If policyholders vote for the deal, they will get their £500 cash payment in the autumn. They will also get extra bonuses added to their policies starting from next year.

About 220,000 members of Scottish Life will get the cash payments. About 270,000 with-profits customers will get the extra bonuses.

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