9 Questions
What is a characteristic of the conventional without profits life insurance product?
The premium and benefit are determined at the outset and do not change unless the policy is altered
What distinguishes the with-profits life insurance product from the conventional without profits product?
It provides a guaranteed amount of benefit on death or survival to a specified point in time, plus a share of the profits or losses of the insurer
In what way are bonuses usually distributed in the with-profits life insurance product?
As reversionary bonuses added to the benefit or terminal bonuses paid at the end of the policy
What is an advantage of with-profits investments?
Bonuses are smoothed so no sharp rises and falls in your investment
What is a disadvantage of with-profits investments?
Low or no annual bonuses and uncertain final bonuses
What is a characteristic of unit-linked investments?
The premium and benefit are not linked to the number and price of units allocated to the policy
What is a feature of index-linked investments?
The benefit is adjusted for inflation or deflation based on an index
How do with-profits investments differ from unit-linked investments?
With-profits investments are more stable and protected from market fluctuations, while unit-linked investments are less stable and exposed to market fluctuations
What does a unit-linked investment's premium and benefit depend on?
The type and allocation of units chosen by the policyholder
Test your knowledge of conventional and with-profits life insurance products with this quiz. Explore the features, benefits, and differences between these two types of life insurance policies.
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