High MVRs still being applied to with-profits

with-profits

exit penalties applied by some major life offices can be up to 27%, survey reveals

Market value reductions (MVRs) of up to 27% are still being applied to with-profits policies, some 12 months into the current market rally. MVRs are applied to early leavers of with-profits funds and can vary, depending on the type of policy and the amount of time the policyholder has been in the fund. While some life companies have been reducing their exit penalties recently, average charges remain significant, especially for pension policies invested in with-profits funds, according to a survey of groups conducted by Investment Week. The one group that was in the headlines most for it...