Amount at maturity

Advertisements compete with each other in giving the highest possible estimates of the value of your units at maturity. These are only estimates, and you should read them in that light. Some insurers take an over-favourable view of the future of their fund : others are more cautious. You should ask insurers to provide you with an estimate of the value of your units at maturity based, first, on the past performance of the fund over the last five years, and secondly assuming that the investments of the fund increase in value at a gross rate of, say, 10 % per annum, including capital appreciation and reinvested income. Ask your insurer to give you these estimates for a monthly premium of D0, taking into account all charges and deductions for taxes.

You must also consider whether the amount at maturity is guaranteed. All insurers repay you your units or the equivalent cash value, but only a few include a safeguard where unit values fall. You should, if possible, buy your policy with an insurer who guarantees to give you at maturity not less than the total premium you have paid during the term of the policy.

A few insurers include a useful option under which you may at maturity leave your units in the fund for as long as you wish for up to five years. In this way, you are protected against depressed values being in force on your maturity date. If the units are temporarily at a lower value, you can wait until prices rise before withdrawing them from the fund.

Amount on death: This, again, varies considerably between the contracts available. Some insurers pay an agreed sum assured, others pay the value of the units purchased before death together with the balance of unpaid premiums. A few pay a sum equal to the total premiums payable in the whole policy period. As before, ask a number of insurers how much cover you would obtain for a gross premium of£30 a month.

Amount on surrender: With most schemes, you receive an amount representing the value of the units on the day you surrender your policy. Some insurers make a deduction for expenses. You should not buy an equity-linked policy if you anticipate surrendering it before maturity.


Amount at maturity

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Life Assurance as Investment - Example

Advertisements compete with each other in giving the highest possible estimates of the value of your units at maturity. These are only estimates, and you should read them in that light. Some insurers take an over-favourable view of the future of their fund : others are more cautious. You should ask insurers to provide you with an estimate of the value of your units at maturity based, first, on the past performance of the fund over the last five years, and secondly assuming that the investments of the fund increase in value at a gross rate of, say, 10 % per annum, including capital appreciation and reinvested... see: Life Assurance as Investment - Example