Life Assurance Flashcards
1
Q
With-profit policies come in which type on premium contract?
A
Both single and regular
2
Q
How is investment performance reflected in life assurance policies?
A
Through annual bonuses
3
Q
Why is an MVR sometimes applied to a unitised with-profits fund?
A
To reduce the amount payable on
surrenders or switches and operates in times of adverse investment conditions, for
example, a stock market crash.
4
Q
Does the MVR apply on death or maturity?
A
Not usually
5
Q
Purchased life annuities are split into what 2 elements and how are they taxed?
A
Capital - tax-free
Income - taxed as savings income
