Standard Life has just decided to demutualise, meaning that many of it’s policyholders could be eligible for a lovely windfall of free shares next year, the lucky things.
But before you go running off to dig out your insurance policies or pension documents, the Motley Fool investigates who will be eligible and how much they may receive.
As for eligibility, possibly the most interesting thing said is:
Anyone who opened a policy after 30 March 2004 is unlikely to qualify for a windfall, nor will anyone who is only a customer, not a member, of the firm. To be a member, you must be a policyholder of The Standard Life Assurance Company, which usually means being an investor in its with-profits fund.
Here are a few other points they raise:
- 2.5 million Standard Life members are in line to receive shares.
- They will be allocated free shares worth at least Â£500, with the typical payout being around Â£1,000.
- Anyone making applications for new policies received on or after 18 October 2005, will not be eligible.
- The company is contacting all eligible members this month, although a vote will take place next May or June, and the earliest it is likely to go through is July 2006.