In the world of finance, it’s reassuring to come across an organisation that genuinely puts its members at the heart of its operations. But that’s precisely what ProfitShare is all about.
Whether you’ve never heard of ProfitShare, or simply want to learn a bit more, we’re here to break it down for you.
What is ProfitShare?
Imagine being part of an organisation that believes in sharing its profits with eligible members. ProfitShare is the embodiment of this belief.
Instead of profits going to shareholders, they are distributed to eligible members’ plans as bonuses, potentially increasing the value of policies over time. In simple terms, when the organisation does well, members benefit directly. It’s one of the perks of being part of a mutual!
Who is eligible to receive ProfitShare?
Typically, you need to hold a qualifying With-Profits plan or invest in a specific With-Profits fund to be eligible. If you have a plan and aren’t sure if you’re eligible, check your plan’s terms or contact us to confirm.
How do we share profits with our eligible members?
At Scottish Friendly, we share some of our profits with our members instead of shareholders. These profits are added to eligible members’ plans as bonuses.
Regular bonuses increase the guaranteed value of your policy throughout each year at the rate we declare. Whilst we can change the rate of regular bonus at any time, we will never reduce your guarantee.
A final bonus may also be paid on top of the guaranteed amount when you take money out of your plan which reflects the total profits that have been made by your policy. This includes any investment return achieved and the ProfitShare addition. Final bonuses may go down as well as up and are not guaranteed.
What does our friendly expert have to say about ProfitShare?
According to Callum Stuart, our With-Profits Actuary,
“ProfitShare is one way we show what it means to be a mutual organisation and our way of rewarding those members who choose us to help them achieve financial wellbeing.”
Keep in mind that stock market investments can go down as well as up, so you could get back less than you've paid in. Scottish Friendly doesn’t provide advice. If you’re seeking advice, you should contact a financial adviser. Advisers may charge for providing such advice and should confirm any cost beforehand.
