A non-profit, whole-of-life assurance policy will pay:
A return, linked to the insurance company's units
A fixed sum, provided death occurs within a pre-determined time
An amount linked to the prevailing rate of inflation
A fixed sum chosen at the outset
A non-profit whole-of-life assurance policy is a type of life insurance that guarantees a fixed payout upon death, without any investment element.
Why is Option D Correct?
The sum assured is determined at the start of the policy and does not fluctuate.
Unlike unit-linked or with-profits policies, the payout is fixed and guaranteed.
Why Not Other Options?
A (Linked to insurance company’s units) → Only applies to unit-linked policies, which have investment risk.
B (Pre-determined time limit) → Describes term life insurance, not whole-of-life.
C (Inflation-linked payout) → Applies to index-linked policies, not non-profit whole-of-life.
???? Reference: FCA Handbook (Insurance Conduct of Business), CISI Wealth & Investment Management.
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