Higher bonuses from AMP

Press, 19 April 1982, Page 26

Higher bonuses from AMP

PA Wellington Increased yields from the AMP Society’s investments has enabled the life office to increase the amount paid out in bonuses to policy holders. The New Zealand manager (Mr I. F. Stanwell) said that reversionary bonuses will exceed $3O per $lOOO sum insured for. the first time this century, for major types of policies. Existing bonuses will also attract a higher bonus of $46 per $lOOO. compared with $34 for sums insured. Previously existing bonuses received the same bonus rate as sums insured. Mr Stanwell said the new system will ' affect 600,000 policies from May 1. The rate of terminal | bonuses has also doubled.

Mr Stanwell said the effect of the increases means that a new endowment insurance policy taken out for 40 years this year, with a $6OO annual premium which would have produced $109,000 cash at maturity (including a $7OOO terminal bonus), would produce $161,000 cash (including a $20,000 terminal bonus) if the new. bonus rates apply over the whole policy term’. The return on maturity of this policy (including the terminal bonus) of 7.85 per cent is equal to a taxable investment yielding 12.1 per cent on a 35c tax rate, 15.1 per cent on a 48c tax rate, 17.4 per cent on a 55c tax rate or 19.6 per cent on a 60c tax rate/he said.