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with
profit policy
- form of life assurance policy which, on maturity,
entitles the beneficiary to participate in the profits of the life assurance
or pension fund involved.
Under a conventional policy the insurance company declares bonuses during
the life of the contract (known as reversionary bonuses) which once
allocated to the policy cannot be taken away. In addition a final (terminal)
bonus may be paid at the end of the policy term. Under a unitised policy the
investment purchases units within a
unitised with-profits fund. Some companies reserve the right to adjust
the value of such units in extreme circumstances, this is known as a market
value adjuster.
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W
with profit policy
Introduction
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