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With Profits Policy Holders Vent Their Anger

For many years the with profit insurance policy was seen by many as a means of saving for the future with funds invested in the economy and additional profits added each and every year - profits which could not be reclaimed by the insurance companies. However, a report from Money Management has shown that with profits investments are no where near as lucrative as many people believe.

Figures, based upon a 30 year old taking out a £50 monthly premium for ten years, show that many of these policies have actually lost money over the period. Even some of the better policies have performed worse than the stock market average and in many cases the rate of inflation - the average gain was just 1.6% per annum.

However it is the likes of Royal Life and Scottish Life with profits policy holders who seem to have born the brunt of the troubles. The Money Management report claims that Royal Life policies have actually fallen over the ten year period (with investors only receiving back £5,544 from their £6,000 investment) and while Scottish Life policies have appreciated in value, the figure in question was just 0.1%.

This report is sure to make many people think again before going for the traditionally safe route of with profits investments.

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