Chapter 23 - Practice Question

Discussion in 'SA2' started by wmalik, Aug 30, 2020.

  1. wmalik

    wmalik Member

    Can someone please explain the answer to question 23.4 (ii)b? I suppose I dont really understand the question..
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi

    Can you tell me what specific bit you do not understand for this part?
    It is basically just comparing a standard unit-linked contract (ie without the index guarantee) with the g'teed investment bond and how the former might even be more attractive, depending on features such as the surrender and death terms. It also explains how the g'teed investment bond still incurs charges (ie via the omission of dividends) as the guarantee will need to be paid for somehow.
    Hope this helps. However, let me know if there was something particular you did not understand.
    Thanks
    Em
     

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