Week 2 Flashcards
(14 cards)
What is life assurance?
Also known as whole of life insruance it runs you’re entire life until you die and payout is to beneficiaries when you die, IT OFFERS PROTECITON.
Life assurance/ whole of life insurance can offer protection, but what else can it offer?
Investment
List the different types of life assurances?
With profit fund (you invest into fund, you get returns and possible bonus)
unitised profit fund (similar to with with profit fund just split into units you get)
unit linked fund (You buy units directly linked to stock market you ride up and downs of markets)
distribution bonds and closed funds (regular payouts if you want income, invested in bonds)
How does an endowment policy and assurance/ whole of life policy differ?
An endowment policy will pay you after a fixed term such as 20 years, but If you die on 16th year assurance policy pays out upon death and so it kinda becomes that
What are the different types of endowment policies?
Unit linked endowment policy, term assurance, whole of life assurance and surrender value
Whats surrender value?
Its in endowment policy, the amount paid out based on value if you were to cancel.
What does TEP mean?
Traded endowment policy
What does a TEP do?
Traded endowment policies all policyholders to sell old policies to increase surrender value
What allows terminally ill to access cash?
Viatical settlement allows terminally ill to sell policies to access cash
Whats an endowment policy?
A type of life assurance which comes with an investment.
What is an annuity?
It converts a financial lump some of money into a stream of payments (used for retirement)
How long will an annuity pay out for?
Generally a smaller period of time such as 10 years (can depend on lump sum size paid)
What are the two types of annuity?
Immediate (starts paying immediately after lump sum put in)
Deferred (starts paying after a period, this also allows savings to grow)
