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InterviewSolution
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What Is The Difference Between With Profit And Without Profit Plans? |
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Answer» An INSURANCE policy can be 'with' or 'without' profit. In the former, bonuses DISCLOSED, if any, after periodical valuations are allotted to the policy and are payable along with the CONTRACTED amount. In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount. In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. |
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