This will be received when the policy comes to an end or money is received from it - either through partial withdrawals or an income. This enhancement would only be made should Vote 1 be approved by members, and is only for members holding an eligible LV= With-profits policy.
We expect the payout enhancement to be an additional 0.1% for every complete calendar year that the policy has been held since 1996 - up to when the policy ends or an income is received from it. This equates to 1% for each 10 years that the policy is held. If you cash in an eligible policy that you have held for less than a full calendar year, then you would not receive a payout enhancement. If members vote in favour of Vote 1, the same payout enhancement is expected to be paid regardless of the outcome of Vote 2.
This payout enhancement is in addition to the existing mutual bonus and exit bonus, which we intend to continue to award (consistent with current practice) in the future; with the aim of maintaining the current rates dependent on the financial position of the LV= Fund. The LV= Fund sits within the With-Profits Fund and contains the LV= With-profits business and liabilities.
If our proposals go ahead in full and the legal and regulatory processes have been completed, the uplift would be added to policy payouts whenever they occur.