A Guide To Life Insurance - With Profit Whole-life Policies ....


Find Out More


With Profit Whole-life Policies...

The with profit policy, as we saw earlier, may have surplus allocated to it in several different ways.

Reversionary bonuses will be added every one, two or three years to the basic sum assured, and the effect of a compound bonus rate is that the rise in the claim value of the policy grows more rapid as time goes on. Fig. 3 shows the effect of this for a younger man taking out a with profit policy.

The surrender value in the early years is low in relation to the total of premiums paid. In the first two years of the policy there is usually no surrender value at all, and not until at least seven years' premiums have been paid will the surrender value equal the gross premiums paid to date (as much as 12 years with some companies).

But by the thirtieth year the surrender value is 50% above the sum assured and by the fortieth year (when the man is aged 70) it is treble the sum assured. However, surrender values are generally not guaranteed, and the actual amount received will depend on the investment conditions prevailing at the time of surrender.

2015 - Guide To Life Insurance - For more information on ....

Other readers found these pages interesting


Read On: click here for Ensuring Better Value

Because of this long-term build-up, the with profit whole-life is most unsuitable as a short-term proposition for the younger man.
Someone taking out such a policy under the age of 35 has got to be prepared to stick with it for at least 20 years to reap the rewards.
The higher the age when taking out the policy, however, the faster the build-up in the surrender value, and so in this case it is not so much of a problem. Nor is this type of policy suitable as a way of buying protection........ see: click here for Ensuring Better Value


Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.


We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

Giving power to the reader...

  • To contact us, send an email and we will get back to you as soon as we are able. If you are looking for independent life insurance quotations then click here. If you are looking for any of the folliowing: Car insurance
    Bike insurance, Travel insurance, Home insurance, Life insurance, Landlord insurance, Pet insurance, Medical insurance, Dental insurance, Business insurance please click here

  • Have something to say?
    We publish financial articles on this site if they fulfil our requirments. more>>