The information on this page is only relevant to Refuge Assurance Industrial Branch (RAIB) with profits policyholders.
During March and April 2021, we’re writing to customers with policies invested in the Refuge Assurance Industrial Branch Fund to let them know about the changes we’re making.
This page tells you about our plans to merge the RAIB fund into the Royal London Open Fund, which is the main with profits fund within Royal London. This will let us share out the rest of the Estate with policyholders like you sooner than would otherwise be the case.
You can download a copy of the information we’ve mailed to customers by clicking on the links in the ‘Mailing pack’ section.
If you need any help after reading the information on this page, you can find our contact details here.
This is the information we have sent to customers affected by the changes.
The pack includes:
- Cover letter summarising the changes and what it means for you. There are 3 versions of the letter tailored to:
- Customers with a single policy [PDF, 0.2MB]
- Customers with multiple policies [PDF, 0.2MB]
- Customers with a single policy and a change to their T&Cs [PDF, 0.2MB] Only a small number of policyholders are impacted by a change to their terms and conditions. This change won’t impact the amount we’ll pay out when their policy is claimed.
- Your guide to the changes [PDF, 0.7MB] - This booklet explains everything you need to know. It also includes a summary of the updates we’re making to our Principles and Practices of Financial Management (PPFM) in relation to the changes.
We sent you lots of reading material in your mailing pack. Here we’ve gathered some key documents that we refer to in the pack that you may find helpful if you need more information. We’ll add to this section with more information later in the year.
If you have any questions or would like a copy of this document in a different format, such as large print, please call us on the number provided at the bottom of the page.
Royal London maintains a Principles and Practices of Financial Management (PPFM) document for each of its With Profits Funds. The PPFM is a document that outlines how we manage a with profits fund. With profits policies invested in the RAIB Fund are managed as part of the Royal London Long Term PPFM.
This is the current PPFM that covers your policy. This is the PPFM with the proposed changes that will take effect at the end of 2021. It also allows for our plans to merge three of our other With Profits Funds into the Royal London Open Fund this year. We won’t know until close to the end of 2021 whether all of these changes will go ahead. This is because some of the changes are dependent on a vote by some directly impacted customers, which is due later in 2021, as part of a series of ‘Schemes of Arrangement’ as they are known.
Change of details
Tell us about a bereavement
To make things easier at what is a difficult time, you can notify us about the person who has died by completing our notification of death form.
Frequently asked questions
What is the mailing you recently sent me all about?
We’re merging the Refuge Assurance Industrial Branch Fund in to the Royal London Open Fund, which is our largest With Profits Fund and open to new policies.
These changes will allow us to increase both the current value of your policy and the minimum amount we promise to pay out. The changes will give you more certainty over the amount we’ll pay you or your family when your policy is claimed.
The changes are complicated. What should I do if I don’t understand it?
We understand that some of this information is technical. Please read your information pack carefully and consider discussing it with a trusted friend or family member.
If you still need help, please feel free to call us on 0345 646 1013 (or +44 1625 718586 if you’re calling from outside the UK) between 8am and 6pm Monday to Friday (excluding bank holidays).
We can’t give you advice, but we can explain the changes and answer any questions as best as we can.
Why is Royal London doing this now?
As the Refuge Assurance Industrial Branch Fund is closed to new policies, the number of policies in the fund is reducing as policies pay out. The fund is getting quite small. Merging the RAIB Fund into the Royal London Open Fund now will let us share out the rest of the Estate with policyholders sooner than would otherwise be the case. It also allows us to spread the cost of making these changes over a larger number of policyholders.
Our proposal is also part of our plan to simplify and modernise the way we do things for the benefit of our longstanding customers. Our proposal will help us become a more efficient business. This will reduce our costs. We’d be able to share any savings with our policyholders through lower charges and higher payouts.
When will the changes take effect?
We expect to implement these changes on 30 June 2021. We will write to you later this year to confirm the changes have been made and the effect of the changes on your policy.
How do I know what you're doing is fair?
Royal London have carefully considered the interests of our policyholders. Our With Profits Actuary and Chief Actuary have provided reports to the Board confirming their view that the proposal is fair. We have also appointed an Independent Expert to make sure you and other policyholders are being treated fairly. Our Regulators have also been informed of the changes we are making.
Is my policy safe?
Yes. Royal London is the largest mutual life, pensions and investment company in the UK and all with profits funds we manage are in a healthy financial position. The changes involve moving your policy into the Royal London Open Fund. This is a much larger, more varied fund than the Refuge Assurance Industrial Branch Fund.
How do I know this isn't a scam?
We understand that everyone needs to be cautious these days. If the name Royal London doesn’t ring any bells, we’re the largest mutual life, pensions and investment company in the UK. We've been looking after your policy since it transferred to us from the United Assurance Group in 2001. So you feel safe that we’re not trying to scam you, you can find us registered with the Financial Conduct Authority.
Will there be any change to how my policy is administered?
We plan to change the way we calculate future bonuses on a small number of policies. This is so that we can use the same approach to calculating bonuses for similar policies and become more efficient as a business. This will mean a small change to the terms and conditions for some policies but won’t affect the amount we pay out when policies are claimed. If your policy is affected by this change, we’ll have explained this in the letter we’ve sent you.
Otherwise, we’ll continue to administer your policy in the same way as we currently do.
What happens if my benefits are claimed before the RAIB Fund is merged into the Royal London Open Fund?
The changes we're making wouldn't apply to you if any of the following happens before we make the changes on 30 June 2021:
- The Life Covered dies
- You cash in your policy
- Your Endowment policy reaches the end of its policy term
- You stop paying your Premiums early and your policy becomes a Non Profit Policy
Will this change the UK tax treatment of my policy?
The changes will not alter the treatment of your policy for UK tax purposes.
I’ve changed my contact details. How can I notify Royal London?
Please complete the update your details form or give us a call on 0345 646 1013 (or 01625 718586 if you're calling from outside the UK) between 8am and 6pm Monday to Friday (excluding bank holidays). There may be certain documents we need to update your details.
I’ve appointed a person under a power of attorney to look after my affairs. Do I need to tell them about this?
If you’ve told us about the person that you’ve appointed under your power of attorney previously, an information pack has been sent to them.
If you’ve appointed a person under a power of attorney but haven’t told us about it yet, please call us on 0345 646 1013 (or +44 1625 718586 if you’re calling from outside the UK) so we can keep their information on file. You should then tell that person about the changes and discuss the information pack with them.
I’m bankrupt or about to be declared bankrupt. Do I need to tell anyone about this?
If you’ve been declared bankrupt, ownership of your relevant policies may have automatically transferred to the trustee in bankruptcy. If this applies to you, you should make them aware of this pack and its contents. If you’ve been declared bankrupt recently or you think we may not be aware of your bankruptcy, please get in touch with us.
The Life Covered has died. What should I do?
We’re sorry to learn that the Life Covered has passed away. Their next of kin should complete the notification of death form or call us on 0345 646 1013 (or +441625 718586 if you're calling from outside the UK) as soon as possible and we’ll talk them through what they need to do. Please make sure they have the Life Covered's death certificate when they phone.
Can I receive my mailing pack in an alternative format?
We’re happy to provide your documents in a different format, such as Braille, large print or audio. Just call us on 0345 646 1013 (or +441625 718586 if you’re calling from outside the UK).
If you're calling from outside the UK you can phone us on +44 1625 718 586.
Our customer services team are available between 8am and 6pm Monday to Friday (excluding bank holidays).
Contact us online
You can also get in touch with us with any other queries using our online contact form.
Alternatively you can write to us at:
Royal London House
Giving you personal support
Have you experienced a change in your circumstances that impacts the way you manage your money? If you explain how we can help, we'll use that information to give you more personal support.