In return for your commitment to make regular payments over a set period of time the LIC UK savings plans include life cover and a guaranteed lump sum at the end of the term.

The Bonusbuilder, High Start Bonusbuilder and the Wealthbuilder Savings Plan are ‘with profits policies’. Each year a bonus may be added based on the performance of the investments in the with profits fund. As well as this, the policy may also receive a final bonus on maturity.

LIC UK invests money from these types of policies in a range of investments. Saving through a with profits policy helps to reduce the short term ups and downs of the stockmarket which affect many other types of investment and gives a smoothed effect over the short term. This is achieved by paying out much of the investment returns as bonuses in good years and holding back some of the returns to pay bonuses in years when  investment from the stockmarket returns are poor. These bonuses depend on investment performance and are not guaranteed.

For more information about these products, please click on the relevant product links:

Bonusbuilder Savings Plan
High Start Bonusbuilder Savings Plan
Wealthbuilder Savings Plan