Thousands of insurance customers will get a £900 boost from Royal London Insurance if the plan is accepted


Policyholders of a leading insurance company are waiting for a financial boost worth almost a thousand euros.

he 93,000 people who have old Royal Liver, Caledonian Life and some Irish Life policies are expected to get an average €900 top-up to their policies, if the plan is approved.

They will have access to this money when their policies mature, if passed.

The payouts are offered by life assurance company Royal London in Ireland and are to be voted on by post, online and at a meeting of policyholders in Dublin on October 20.

This is due to the takeover of Royal Liver by Royal London, which was approved by that country’s competition authority in 2011.

Royal Liver then became part of Royal London, which is the UK’s largest mutual life insurance, pensions and investment company.

Royal Liver, the Liverpool insurance company that built the famous building on that city’s waterfront, once had a huge insurance operation in that country with premiums collected door to door by people known as name of Liver Men.

Caledonian Life was acquired by Royal London at the time during the takeover of Royal Liver and renamed Royal London.

Royal London is a mutual, which means it is owned by its members and any financial surplus goes to its shareholders.

Now the 93,000 policyholders here, who have endowment policies, whole life policies and pensions, can vote on a proposal to increase the value of the plans.

This is a pot of money that was withheld as a “rainy day fund” early in the takeover process

There have already been a number of so-called distributions of funds from the takeover of Royal Liver for Irish policyholders.

This was in 2013, 2018, 2019 and earlier this year, with the amounts paid out in the policies depending on the size of the person’s policy.

But the latter is the greatest.

This is a pot of money that was withheld as a “bad weather fund” at the start of the buyout process, in case there were any claims on the business, is now released.

These funds are known as an estate.

Royal London said: “Whenever there is more money in the estate than necessary, the extra money is shared with eligible policyholders by increasing the underlying value of their policy.”

The mutual said that if the offer goes through, it will make a final distribution of the estate to eligible policies.

This would increase the underlying value of these policies by 23.1 pc.

And it will be paid in December, if approved by the insured.

Royal London said the 23% value translates to an average increase of just over €900, based on an average eligible policy value of €4,000.

Some policies are under $100, but others are very large at over $100,000.

Thus, the impact for policyholders will vary depending on the size and type of policy they hold.

Royal London stressed that what it called the “uplift” is not a cash payment.

This will add to the value of the individual’s policy and they will benefit when the policy is claimed.

If the offer is accepted, this will be the last distribution.

If the proposal is rejected by policyholders, eligible policies could still receive distributions from the estate in the future, but the size and timing of these would remain uncertain, Royal London said.

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