Hi, In September 2015 Paper One question 7 part (iii) the examiners assume that the whole life offers a fixed sum assured - why is this true? policies can be unit or index linked! I answered under these assumptions - is that correct as well? Thanks, Jonathan
What I think Jonathan's is telling you, is do not confuse sum assured with sum at risk. A whole life policy has a set sum assured hence a known benefit paid on death that is fixed (with profits aside which may have bonuses added periodically but still a guarantee). The sum at risk on unit linked policies are the difference between the sum assured and attaching value of units and hence sum at risk fluctuates but sum assured does not.
