Discussion in 'SA2' started by Jishnu Bhatia, Feb 9, 2019.

  1. Jishnu Bhatia

    Jishnu Bhatia Keen member

    Hi folks,

    Question 1 : Could someone please explain what is the value of the policy seen by the policyholders in a UWP contract?
    1. Premium plus Smoothed investment income less charges
    2. Premium plus bonuses declared till date less charges.

    Question 2 : Does the investment profit includes both profit on unitised fund and non unitised fund? And how is it distributed among Ph and Sh?

    Thanks in advance.
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi Jishnu
    Policyholders of a UWP contract will normally see the unit account credited by bonuses as opposed to the underlying investment return. Therefore 2. in your question 1.

    Regarding your question 2, sorry I am not 100% sure I understand the question. When you say unitised and non-unitised fund are you referring to UWP vs non unitised AWP which are two different contracts? Or are you referring to the concept of the unit fund and the non-unit fund, if so what do you mean by 'investment profit', are you referring to what policyholders receive?

    If you could clarify I will try and help.


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