Overview

with-profits life insurance


Related Overviews

 

'with-profits life insurance' can also refer to...

 

More Like This

Show all results sharing this subject:

  • Economics

GO

Show Summary Details

Quick Reference

Life insurance where benefits to the policy-holders depend on the financial performance of the fund accumulated from their premiums. This is in contrast to without-profits life insurance, where a policy-holder receives a guaranteed level of benefits regardless of the financial performance of the fund. As with-profits policies involve far less risk for the insurance company than without-profits policies, premiums on with-profits policies are less than those on without-profits policies giving the same level of expected benefits at maturity. However, with equal premiums a without-profits policy offers more cover during the early years of a policy. A with-profits policy offers much better protection against inflation over the life of the policy than a without-profits policy.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.