surrender value.....

Hello

This is a difficult question to answer because only the without-profits contract has a guaranteed payout of 100,000. We will need to calculate the premium for each contract by discounting back the expected benefits of 100,000 (which includes the bonuses for with-profits).

The unit-linked policy will be invested in assets with a high expected return and so will have the lowest premium. Note that these assets are also very risky, so the final payout could be much more or less than the expected amount.

The without-profits policy will be invested in very low risk assets that match the liabilities as far as possible. The return on these assets is very low, so the premium required is very high. The maturity payout of 100,000 will be met with certainty.

With-profits offers some guarantees, but will have some exposure to risky assets in order to provide higher bonuses. Its investment strategy and premium rate will be part way between the other two contracts.

Returning to your question, as without-profits has the highest premium it will be expected to have the highest asset share, and hence the highest surrender value. This surrender value will grow slowly due to the low returns from the assets, and will be 100,000 at maturity.

As unit-liinked has the lowest premium it will be expected to have the lowest asset share, and hence the lowest surrender value. This surrender value is expected to grow rapidly, but is expected to always lag behind the without-profits policy until maturity.

The with-profits surrender value is expected to lie somewhere between the other two.

However, the unit-linked (and to a lesser extent with-profits) assets are very volatile, so in practice the surrender value colud be greatly more or less than the without-profits policy.