Royal Liver Life Insurance

Royal Liver Life Insurance

Royal Liver Assurance is an established life insurance company that is proud to have an esteemed heritage. Established in the 1850s, the company was formed to help the thousands of Liverpudlians with their financial difficulties at that time. The company has been constantly growing since then and now, it boasts more than 1.7 million members in the UK and Ireland. They employ close to 1,000 employees that handle around three and a half million policies which amounts to a whopping £3.7 billion.

Out of the Ordinary

Royal Liver Assurance is unlike the conventional life insurance provider in that it is actually a mutual or friendly society. This means that instead of being owned by shareholders, the company is owned entirely by its members. Simply put, each person who takes out a policy with Royal Liver Assurance can proudly say that he is a part-owner of the company itself.

For the company, this means that their primary objective is not to earn the largest amount of money possible. Instead, they aim to function solely for the benefit of their members. According to them, they put the interest of their members/owners above everything else.

Also, aside from having the standard type of premium arrangements, Royal Liver employs what they call ‘with- profit investments.’ Policy holders’ premiums are seen as investment rather than monthly payments. This means that when the time comes that a claim needs to be made, there’s more for the beneficiaries other than the fixed amount. On top of the guaranteed lump sum payment is the additional bonuses that are associated with the performance of the investment or the with-profit fund.

What the company does is it takes a percentage of each policy’s premium (it is actually the entire premium only less any costs) to come up with a common fund. They then make use of their tried and tested skills in the market by putting these funds in investments that will eventually pay out. Whatever profits are earned by these investments are in turn shared accordingly between all the policy holders. Aside from making it impartial for all parties involved, this strategy also reduces the investment risks to the lowest possible level.

Fair and Just

Royal Liver also makes sure that all its transactions remain as transparent as possible for all its members. To further this cause, the company regularly publishes a document called PPFM or Principles and Practices of Financial Management. This document details all the companies that offer, or have offered in the past, with-profit investments to Royal Liver.

It is readily available for download on the company’s website and in fact, even non-members can access this document should they wish to do a background check on the company. This way, members are sure to be informed of all the going-on’s in Royal Liver when it comes to their investments. This also guarantees that no shabby deals are made that ultimately fail to pursue Royal Liver’s objective of being just to all its policy members by providing them with an equal amount of excellent service.