With-profits distribution

Discussion in 'SP2' started by Jessi Faith, Feb 6, 2021.

  1. Jessi Faith

    Jessi Faith Member

    From my understanding, there are 3 main methods used to allocate profits to with-profits policyholders, namely:
    • Addition to benefits
    • Revalorisation
    • Contribution method dividend
    How does this relate to the other three logical ways of distributing profits that are also mentioned in the notes? (i.e. cash bonus, benefits increase, premium reduction)

    Please help :)
     
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Hi Jessi

    Here is the mapping between the two lists:

    Addition to benefits - benefit increase
    Revalorisation - benefit increase
    Contribution method - cash bonus, benefit increase or premium reduction

    Best wishes

    Mark
     
    Jessi Faith likes this.
  3. Jessi Faith

    Jessi Faith Member

    Thank you so much!
     

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