Uwp?!

[psychopath 0_o]

I am so confused about accumulating with profit.

In CR it describes mainly UWP, which is fine. But why a UWP will be non-unitised?

What are the differences, in layman term, between a non-unitised UWP policy and a CWP policy???

 

[PoojaS]

I am so confused about accumulating with profit.

In CR it describes mainly UWP, which is fine. But why a UWP will be non-unitised?

What are the differences, in layman term, between a non-unitised UWP policy and a CWP policy???

In both the differences are mainly of structure which leads to differences in source of surplus distributed:

1. UWP without any explicit charging structure: is a lot like CWP. Under this bonuses will reflect policyholders share of all the surplus.

2. UWP with a explicit charging structure: P/hs receive all investment surplus and s/hs receive rest through use of explicit charging structure.
Explicitly deducted charges from the premiums (or unit fund), like:
- Allocation rate
- FMC
- policy fee
- risk charge deductions say for mortality benefit

3. In general the bonuses under UWP are more volatile than CWP
- Often p/h just participating in investment surplus so can reasonably expect stronger corrlation between investment return and declared regular bonus.
- Bonus applied to unit fund rather than sum assured so p/h views it a bit like a bank account and expects to see something like actual returns applied annually.

That's some I can think about....

Cheers
P