UWP

[Jishnu Bhatia]

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
Or
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.

 

[Em Francis]

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
Or
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.

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.

Thanks
Em

 

[Jishnu Bhatia]

Thanks for your reply above Em.

Please ignore the second part above. I was asking about non unit funds investment risk. But that obviously would remain with shareholders anyways.

Thanks.