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You asked: Will my No MVR Guarantee mean I'll never have a Market Value Reduction applied when I withdraw money in the future?

Investment bond customers only

This depends on whether an MVR is in place when you want to cash in units from the With-Profit Fund and if so, how much the MVR rate is. If it's less than your No MVR Guarantee amount we won't apply an MVR. If the MVR rate is more than your No MVR Guarantee, then you will have to pay the difference.

A is the amount originally invested on 1 February 2000 £50,000
B is the policy value that would be paid out at the guarantee date of 1st February 2010 £65,000
C is the policy value that would be paid at the guarantee date of 1 February 2010 if the no MVR guarantee did not apply (i.e. if MVR did apply) £58,000
D is the amount carried forward  £7,000
E is now the policy value on 1 February 2013 if no MVR was to be applied £75,000
F is the MVR applying on 1 February 2013  £8,000
G is the effective MVR, reduced by the carry forward (D)  £1,000
H is the policy value available on 1 February 2013 £74,000

This example assumes no further investments have been made into the With- Profit Fund. It also assumes the MVR amount is higher in February 2013 than in 2010. Investments will only qualify for the guarantee if they are continuously invested for 10 years. Any switches or withdrawals follow a ‘last in first out' basis.

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