Life assurance contracts are split into two broad types:

• Those which provide protection only, such as term assurance; 
• Those which have both a protection and an investment element.

R02 is concerned mainly with considering life assurance as an investment rather than as a protection product.

• Higher protection products – Certain products, e.g. mortgage endowments, incorporate a substantial element of insurance and this aspect is important where protection is required in the event of death.
• Higher investment products – In contrast, life offices have developed many other products where the element of insurance is low, and the product is designed primarily as an investment, e.g. single premium bonds.