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Unit-linked Companies Versus Friendly Societies...

Much the same could be said of friendly societies in their role as life insurance companies.

The main function of most of the hundreds of friendly societies still operating is the provision of sickness and disability benefits for their members.

Many also include modest life insurance cover among their schemes; a few, however, make it a major part of their activity. see

The benefits they provide often represent poor value for money when compared with policies offered by conventional companies.

Again, within their own sphere of local benefit schemes the "friendlies" have much to offer, but in terms of life insurance designed to meet the protection and investment needs of the average person they are not real competitors with life insurance companies.

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Read On: read next:for Cost Of The Policy 2

The disparity between the cost of protection and investment-oriented contracts mentioned on p.
21 will be reiterated throughout this site.
Since the vast proportion of the premiums on any participating, or even non-participating, policy aimed at producing a capital sum will be devoted to investment rather than to providing life cover, the cost of a given sum assured for an endowment policy of a given term does not vary greatly according to age.
For example, a with profit endowment........ see: read next:for Cost Of The Policy 2


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