Darragh Kelly
Ton up Member
Hi
I just have a few questions in relation to chapter 22.
Section 2 - Page 8 (middle of page)
It mentions in the middle of page 8, that to reduce risks for critical illness products, the contract was offered in unit-linked form rather then long-term guaratee. Is this because the policyholder for unit linked contracts, gets the values of the units at the end of term. Rather then say a with-profit product that offers a guaranteed value which the insurer would have to meet any shortfall on?
Section 3 - Page 9 (Bottom paragraph Core Reading)
Just wondering how disclosure requirements set out the discontinuance basis, and how they can influence the extent to which policies termination later, or remain to maturity subsidise the benefits offered on short term duration discontinuance? Just finding it tough in general to understand the paragraph at the bottom of page 9.
Section 7.2 - Page 17+18
So why is the provider modifying the contract here to offer a joint life annuities and annuity options for other frequencies of pension payment, based on the guaranteed annuity rates and non-guarateed rates? Is the point here that it needs to be communicated to the customer clearly their options so they understand all options available to them?
Section 8.2 - Page 19
How exactly does selectiive withdrawals govern discontinuence terms? For example, policyholders that have a term assurance contract and know they are very healthy, decide to surrender and get some sort of lump sum. So they know they are healthy and will more then likely survive the term so decide instead to withdraw to get some kind of payout?
Section 10.2 - Page 25
Just on members that move from active to deferred status what does transferring benefits away mean? Is it just transfering the value into another arrangement eg savings account or another pension scheme? And does retaining discontinuance benefits mean waiting until retirement to recieve the benefits (lump sum) you've earned to the point at which you defer?
Thanks very much in advance for the help.
Kind regards,
Darragh
I just have a few questions in relation to chapter 22.
Section 2 - Page 8 (middle of page)
It mentions in the middle of page 8, that to reduce risks for critical illness products, the contract was offered in unit-linked form rather then long-term guaratee. Is this because the policyholder for unit linked contracts, gets the values of the units at the end of term. Rather then say a with-profit product that offers a guaranteed value which the insurer would have to meet any shortfall on?
Section 3 - Page 9 (Bottom paragraph Core Reading)
Just wondering how disclosure requirements set out the discontinuance basis, and how they can influence the extent to which policies termination later, or remain to maturity subsidise the benefits offered on short term duration discontinuance? Just finding it tough in general to understand the paragraph at the bottom of page 9.
Section 7.2 - Page 17+18
So why is the provider modifying the contract here to offer a joint life annuities and annuity options for other frequencies of pension payment, based on the guaranteed annuity rates and non-guarateed rates? Is the point here that it needs to be communicated to the customer clearly their options so they understand all options available to them?
Section 8.2 - Page 19
How exactly does selectiive withdrawals govern discontinuence terms? For example, policyholders that have a term assurance contract and know they are very healthy, decide to surrender and get some sort of lump sum. So they know they are healthy and will more then likely survive the term so decide instead to withdraw to get some kind of payout?
Section 10.2 - Page 25
Just on members that move from active to deferred status what does transferring benefits away mean? Is it just transfering the value into another arrangement eg savings account or another pension scheme? And does retaining discontinuance benefits mean waiting until retirement to recieve the benefits (lump sum) you've earned to the point at which you defer?
Thanks very much in advance for the help.
Kind regards,
Darragh