10 Questions
What happens to the value of shares in a unitized with-profit policy as the fund earns investment return?
The value of shares increases
Why were unitized with-profit products withdrawn from the UK and Australian markets by the early 2000s?
Due to poor publicity surrounding with-profit business
How is the benefit in equity-linked insurance calculated?
Linked to the performance of an investment fund
What is the main focus of Chapter 8 in the context of life insurance?
Introducing multiple state models
In Chapter 9, the theory developed in earlier chapters is applied to problems concerning what type of benefits?
Pension benefits
What is the key focus of Chapter 10 when it comes to risk in the insurance context?
Exploring diversifiable and non-diversifiable risk
What important quantity is defined in the chapter on survival models?
Force of mortality
How does term insurance for lenders demanding from borrowers differ from standard term insurance?
It requires a medical examination
For with-profit whole life insurance, what are the advantages and disadvantages of a cash bonus for the insurer?
Can lead to policy lapses
Why do insurers commonly design whole life contracts with premiums payable only up to age 80?
To limit insurance risk exposure
Learn about the unitized with-profit insurance contract in the UK, which offers transparency by using premiums to purchase units in an investment fund. Explore how the investment return affects the value of shares and the entitlement to reversionary bonus and terminal bonus upon death or maturity.
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