THERE was mixed news for Standard Life policy holders yesterday with annual bonuses cut but terminal bonuses increased.

The life company has cut its reversionary bonus, which is paid to all policy holders every year. However, it has also slightly increased its terminal bonus.

The reversionary bonus has been cut to 3.25 per cent on the sum assured from 3.75 per cent last year. The bonus on the reversionary bonuses from past years has also been cut. It is down to 4.5 per cent from 5 per cent a year ago.

A spokesman for Standard Life said: "The reversionary bonuses are determined by actuaries and reflect the company's judgment on future and past performance".

But there is better news for anybody cashing in their policy this year. The terminal bonus, which will be paid on claims arising on or after February 1st, will range from 13 per cent for policies which have been in force for six years to 300 per cent for policies which have been in force for 40 years or more.

The terminal bonuses last year ranged from 3 per cent for policies in force eight years to 275 per cent for those in force over 40 years.

The company said net returns' policy holders after both tax and expenses are 9.48 per cent a year over 10 years and 13.84 per cent a year over 20 years.