Life Assurance Flashcards
1
Q
What is it
A
Required if investor has a dependent & would like to provide for them in event of death (financially secure)
2
Q
Types
A
In addition to basic cover two savings products linked to assurance;
Whole life policies
- non profit fixed sum
- with profit fixed sum + bonus
- unit linked - fixed or regular sum to buy life cover and balance units
Endowment polices - life insurance contract pays lump sum on maturity
- non profit fixed sum paid on maturity or death
- with profit fixed sum plus bonuses
- low cost variation of profit
3
Q
Uses
A
Use of products declined in years due to transparency in
Cost of profit
Smoothing of returns
Interrelationship between products
Underlying investment return
-linked to saving schemes provide return as well as life cover
