Savings or protection policies?

[Snowy]

How do we know if a policy is a savings or protection policy?
eg April 07 Q2 - with profit whole of life is listed as both a protection and savings policy - but I would think it would be protection alone as it pays on death? - how do we know for sure?

 

[bystander]

Not seen the full question.

But the way you could look at it is term assurance is protection because there is no surrender value. With WOL maybe there is. Also, the with profit angle means the sum assured will grow and so maybe you can think of this as
extra although the reality is in setting premiums there is an expectation of bonus build in.

If you have the sum assured set at that you require long term, then bonus will be on top ie you are guaranteed what you want and so there is some saving element? Long shot I know but any other ideas out there?

Its a bit like having a repayment mortgage but backing with a level term assurance so there is something spare on death.

 

[b_colgan]

I agree with you that a Whole of Life would be protection because it pays out on death. The fact it's written under a with-profits structure would mean it also has a savings element - in the sense that a with-profits policyholder would share in the profits of the company.

I guess a without-profit Whole of Life would be classed as pure protection business because the policyholder receives the sum assured on death with no share of the company's profits.