With-profits Policy - Market Value Reduction (MVR)

Market Value Reduction (MVR)

A Market Value Reduction or Market Value Adjustor is a mechanism used by the insurance company to ensure that policy withdrawal payments are reasonable in relation to the policy's fair entitlement to the assets of the life fund. After a period of poor investment performance the value of the withdrawal is reduced to reflect the reduction in the underlying value of the assets of the life fund. .

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