This middle ground permits them to essentially take popular features of the old products and combine them. They will obviously lose market share at the lower premium range that they can no longer support, but the minimum has only increased by £75 per month and the addition of the loyalty bonus may attract more clients at the new minimum level.
The standard allocation rates range from 98% to 100% depending on the premium size, with a premium of at least £500 per month needed in order to get the 100% rate. Hansard also run a regular special offer on the product which provides up to 500% extra allocation on the first premium payment, depending on the savings term and premium level chosen. But a caveat of this extra allocation is that it will not count towards the surrender value of the policy if surrendered in the first five years.
The charges applicable on the product are typical of those in the market:
- Initial unit charge of 5.5% per annum of the “initial” unit value, taken monthly
- £5 (or currency equivalent) per month policy fee
- Annual charge of 1.5% of fund value, taken monthly
These are very similar to the charges on their old product offerings, but there have been enhancements to the features and benefits.