2021 April, Q5)

[N_Exam]

Hi everyone,

The 2021 April Exam paper, Question 5) is about a policyholder who has a "Unit Linked Endowment Assurance" policy. They can either continue their policy, make it paid up or surrender it.
The Question 5) ii) asks "Discuss each of the options from the point of view of the policyholder."
As it is a "Discuss" question, my answer gave positives and negatives (different points of view) of each action, e.g. a negative would be "surrender means death benefit ends". However, the model solution focuses on the "positives" and the policyholder circumstances. It doesn't give different points of view as would be required from a "discuss" question.

Please can someone shed some light on the wording of this question.

Thank you.

 

[Lynn Birchall]

Hi - I wonder whether the points just needed that little bit more, to specifically link them to the policyholder's view. So for example not just the fact that the DB ends, but what the policyholder's view of that loss of DB would be.

I'd imagine you could express this as either a positive (eg 'surrender means death benefit ends which may be ok as policyholder may no longer need the cover') or as a negative (eg 'surrender means death benefit ends which would be a negative if the policyholder still has dependants in need of cover') and either would be demonstrating the same understanding.