Two Norwich Union with profit funds are set to pay their policyholders an average of GBP1,000 each should they accept the offer.
Around a million customers hold these particular Norwich Union funds, with 700,000 of them set to receive between GBP400 and GBP1,000 and a further 220,000 looking at a minimum of GBP1,000 up to GBP3,500. The policies in question are the CGNU Life and CULAC with profit fund. The payout will be instead of any future claim on the surplus value of the funds so the options should the considered carefully.
The general opinion is that the offer is a very fair one and is likely to be accepted by most customers, especially in the current economic climate. Payouts are expected to begin in the middle of 2009 since there are a number of administrative procedures to carry out prior to Norwich Union allocating the funds.