Life Assurance as Investment

We saw in Section 6 that besides providing protection on death, life assurance is a major form of personal saving. One of the most popular investments is a conventional with-profits endowment policy, under which reversionary bonuses resulting from the overall profits of the insurance company are distributed at regular intervals.

Section 6 includes details of these policies and the way in which profits arise principally from the return obtained by the insurer's investment team. As a matter of policy, insurers spread their risk as broadly as possible by investing in a wide range of investments, including property, government and fixed-interest stocks, mortgages and ordinary shares.

Over the past few years, new investment-type policies, such as equity-linked contracts, property bonds, and policies linked to building societies, have been designed. In each case, the profits emerging depend not on the overall results of the insurance company, but on the investment performance of a. special fund. With equity-linked contracts, this fund is composed almost entirely of ordinary shares; with property bonds, the fund consists of buildings, which may be offices, shops, residential property, or land owned by the insurer; and with building-society linked policies, most of your money is invested in a particular building society.

Insurance companies marketing unit-linked policies have recently formed an association called the Linked Life Assurance

Remember that the main attractions of life assurance as a regular investment are the tax relief obtainable on the premiums and the fact that the policy proceeds are usually tax free.

Group for address and telephone number) which intends to produce a code of conduct for its members.


Life Assurance as Investment

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 Equity-linked policies

We saw in Section 6 that besides providing protection on death, life assurance is a major form of personal saving. One of the most popular investments is a conventional with-profits endowment policy, under which reversionary bonuses resulting from the overall profits of the insurance company are distributed at regular intervals.

Section 6 includes details of these policies and the way in which profits arise principally from the return obtained by the insurer's investment team. As a matter of policy, insurers spread their risk as broadly as possible by investing in a wide range of investments,... see: Life Assurance as Investment Equity-linked policies