This list compresses the cost-topic articles into ten items you can tick off. Print it out, or open it alongside your quotes – if you get a clear answer on all ten points, the cost side holds significantly fewer surprises.
- The list covers cost questions from the TKM to the bonus conditions – you can go through it point by point for each quote.
- Each point comes with a 'why it matters' explanation and a link to the detailed article.
- Getting the answers is also the broker's job – my comparison table is built along these very points.
The basics (1-4)
- TKM at the same term: what is the indicator for my term – and the two ends of the range? (the TKM article)
- Initial units: how many years' payments carry the higher deduction, and at what pace does it release? (details)
- Ongoing deductions: how large are the administrative and asset-based charges – and what are they applied to?
- Fund-management fees: how much for the asset funds I'm interested in – and is there a cheap (e.g. index-tracking) alternative on the palette?
These four points form the backbone of the cost picture – without them, a quote isn't a quote, it's a brochure.
The finer points (5-8)
- Cost of an ad-hoc payment: what's the deduction on the main tool for using up your cap?
- Asset-fund switching: how many switches a year are free, and what does it cost above that?
- Cost of partial access and making the policy paid-up: what do the flexibility release valves cost?
- Indexation effect: what cost structure does the increased premium portion carry – and does it affect the bonus entitlement? (indexation)
These items are rarely settled in the showcase – they emerge from the policy-terms text and the schedule of conditions.
The balance (9-10)
- Bonus conditions: when, how much credit is due – and exactly what can forfeit it? (the bonus article)
- The net picture: costs + bonuses + tax credit together – for my own term, which offer gives the cleanest overall picture?
The tenth point is the key one: we never assess cost on its own, only as part of the full design.
How should you use the list?
If you receive a quote – from me or from anywhere else – put these ten points next to it, and ask about anything that isn't clear. With me, the comparison table is already built along these points; if you don't get an answer to one of them elsewhere, that's information in itself.
Companion pieces to the cost chapter: 5 questions before you sign and the pre-signing checklist – together, the full protective gear for before you sign.
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