CISI Professional Practice Exam 2025 – Complete Prep Guide

The whole-of-life insurance policy that pays only the insured sum upon death is accurately described by the concept of a non-profit policy, specifically one where a fixed sum is chosen at the outset. This type of policy guarantees that the beneficiary receives the specified amount upon the death of the insured, without any additional features such as investment or profit-sharing components.

In contrast, a with-profit policy typically involves investment elements that can yield bonuses over time, impacting the total payout. Unit-linked policies are connected to investment funds, meaning their value can fluctuate based on market performance, which is not aligned with the fixed payout structure of a non-profit policy. Term policies provide coverage for a specific period and do not pay out the sum assured if the insured survives the term; they are not classified as whole-of-life insurance.

Thus, the non-profit policy stands out as the correct option because it straightforwardly delivers the specified coverage amount on the insured's death without additional variations or complexities.