An assurance policy that pays a specified amount of money on an agreed date or on the death of the life assured, whichever is the earlier. As these policies guarantee to make a payment (either to the policyholder or his or her dependants) they offer both life cover and a reasonable investment. A with-profits policy will also provide bonuses in addition to the sum assured. These policies are often used in the repayment of an endowment mortgage or as a form of saving.
Subjects: Financial Institutions and Services.