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WPA Equitable Life and Comparator Graphs

The Scheme has prepared a number of illustrations of Relative Loss for With-Profits Annuities (“WPAs”). The graphs available are intended as indicative illustrations of the Relative Loss calculation and can be selected at the bottom of this page. Before accessing those illustrations we recommended that you read this guide carefully.

Limitations

The illustrations have been designed to capture a range of ‘standard’ WPA policies. Whilst they may be a close match to your policy, they may not be an exact match to your particular policy. This means that the graphs will not exactly replicate your individual Relative Loss calculation.

In order to select the example illustration which is closest to your loss calculation, you will need to select your policy details from the options provided in the selection boxes that follow.

The inputs required for this are explained below for further clarity.

Commencement Year

This represents the year in which your policy was bought. In order to be eligible under the Scheme, a WPA policy must have been bought in the Loss Calculation Period (i.e. between 1st September 1992 and 31st December 2000). Accordingly, illustrations are only provided for these years.

Example: If your policy was purchased on 31st March 1994, you should choose 1994 as your Commencement Year.

Policy Type

This represents the type of WPA policy that you purchased. The options are ‘Single Life’ or ‘Joint Life’. ‘Joint Life’ includes Joint life first death, Joint life second death and Pseudo joint life (pension) policies. Note that ‘Joint Life’ should be selected if you are a surviving spouse on a joint life policy.

Example: If you have a Joint life second death policy, you should choose ‘Joint Life’ as your Policy Type.

1st Life Gender

Please choose your gender in the case of a ‘Single Life’ policy; or the gender of the 1st annuitant in the case of a ‘Joint Life’ policy.

Example: If you are the 2nd annuitant on a joint life policy and your spouse is the 1st annuitant, you should choose the gender of your spouse as the 1st Life Gender.

Age at Policy Start Date

Please choose the age of the annuitant on their last birthday prior to the commencement of the policy. In the case of a ‘Joint Life’ policy, please choose the age of the 1st annuitant on their last birthday prior to the commencement of the policy.

Example: If the 1st annuitant was born on 2nd January 1933 and the policy commenced on 1st January 1993, then you should use 59 as the Age at Commencement and then select the appropriate Age Group range.

Guaranteed Investment Return (“GIR”)

If your policy had a GIR of 3.5%, please choose this option. Otherwise, please choose 0%.

Note that the GIR applied to most policies that commenced before July 1996.

Anticipated Bonus Rate (“ABR”)

The ABR was chosen by you at the commencement of your policy.

The ABR value is presented to you as a rate value or a rate band.

The ABR rate band is defined by a combination of rate values and operator symbols (=,>, etc), examples of rate values and rate bands are:

  • =4.5%          ABR equal to 4.5%
  • >4.5%          ABR band greater than 4.5%
  • 0%<=ABR<4.5%   ABR band equal to or more than 0% but less than 4.5%
  • 3%<=ABR<4.5%   ABR band equal to or more than 3% but less than 4.5%

Please select the appropriate rate value or rate band that is appropriate for the ABR of your policy.

Please note that the WPA examples are representative of standard policies only and the GIR and ABR selection boxes are pre-populated with the possible options.

Once the form has been completed, please click on ‘Show’ to view an indicative illustration of your Loss calculation.

Interpreting your illustration

The illustration shows a possible example of Equitable Life and Comparator annuity payments for your chosen policy details. These are shown for each policy year between your Commencement Year and policy year 2015. (Note however that the actual calculation of Future Loss is not limited to 2015.)

The Equitable Life annuity payments are shown in red and the Comparator payments in blue. The difference between the Comparator and Equitable Life annuity payments for each year are used to calculate the Relative Loss or Gain. These are shown in the adjoining table to the illustration. Note that the two lines joining the two sets of annuity payments are shown for illustrative purposes only and do not have any bearing on the loss calculation.

The dotted vertical line represents the End Date; the Past Loss calculation is illustrated to the left hand side and Future Loss to the right.

Relative Loss and Gain percentages (expressed as the Relative Loss or Relative Gain divided by Comparator annuity payment) are shown for each policy year within the table accompanying the illustration.