Talk:With-profits policy

With-profits policy vs. with-profit fund
It is correct to refer to a with-profits policy such as an endowment or investment bond but technically incorrect to categorise these as with-profit funds.

The premiums life assurance companies collect are held in the life fund of that company. The life fund has premiums from both with-profits and non-profit policies. The life fund is invested at the companies discretion and derives it's profit from the assets. When (and if) the company declares a bonus each year some policyholders participate in the bonus and other policyholders don't particpate in the bonus. The policyholders who participate in the bonuses are with-profit those who don't are without-profit or non-profit policyholders. So as you can see there is no specific with-profits fund only with-profits policies.

The situation is slightly more complicated for unitised with-profit policies but essentially the same. simonthebold 08:09, 15 November 2005 (UTC)

Internationalization
I began some internationalization by including the USA equivalent terms of "participating policy" for "with-profits policy" and "dividend" for "bonus". I also created a redirect from Participating policy. The article still has a decidedly Commonwealth feel, but once keyed on the basic equivalent terms, most of the concepts hold for both. 2*6 23:38, 7 January 2007 (UTC)


 * After all of this time, this article is still apparently Commonwealth- and US-centric. Is this sort of policy generally issued outside the English-speaking world?  If so, is it perhaps commonly known as something other than a "with-profits" or a "participating" policy?  2600:1004:B153:C2B4:CC32:6B7F:A4AF:1187 (talk) 00:57, 4 December 2016 (UTC)