What is an important characteristic of a 'non-profit' whole life assurance policy?

A non-profit whole life assurance policy is characterized by the absence of bonuses, which differentiates it from profit-oriented policies. In a non-profit policy, the premiums paid by policyholders are used primarily to provide the promised death benefit and cover administrative costs, without the intention of generating profits that would be distributed to policyholders in the form of bonuses.

This structure means that while policyholders can expect a guaranteed death benefit, they won't receive any additional payouts that could result from the insurer's profitability, unlike with participating policies which may allocate profits back to policyholders as bonuses. Therefore, understanding that non-profit policies do not offer these bonuses is key to recognizing their operational model and appeal to certain segments of the market who may prioritize guaranteed coverage over potential investment returns.

The other options are less characteristic of non-profit whole life assurance policies; for example, such a policy can offer competitive investment returns but does not focus on maximizing these for the policyholder, and it is not inherently limited by lower coverage limits or restricted only to seniors.