Endowment Assurance Plans

It has both death and a survival benefit component.

Endowment is primarily a savings programme, which is protected by provision of insurance against the contingency of premature death.

The plan is also made attractive because of the provision for deduction of premiums for tax purposes.

Variants of Endowment Assurance plans

• Money Back Plan
• Par and Non- Par Schemes

Limitations of Term Assurance Plans

• The Purpose of taking insurance cover is more permanent and the needs for protection extends beyond the policy period
• The policy holder may uninsurable after the age of 65 or 70
• Term assurance may not work in such situations

Whole Life Insurance Plans

1. It is an example of permanent life insurance policy throughout the life
2. There is no fixed term of cover but the insurer offers to pay the agrees death benefit when the insured dies, no matter whenever the death might occur.
3. Whole life premiums are much higher than term premiums.
4. Cash Value: After taking the amount of money it needs from premium to meet the cost of term insurance; the balance money is invested on behalf of the policy holder.

Variants of term Assurance

Decreasing Term Assurance

These plans provide a death benefit that decreases in amount with term of coverage

Mortgage Redemption:
It pays off a policy holder's mortgage in the event of the person's death

Credit Life Insurance:
Designed to pay the balance due on a loan, the borrower dies before the loan is repaid

Increasing Term Assurance
This plan provides a death benefit, which increases along with the  term of the policy

Premium generally increases as the amount of coverage increases

Term Insurance with return of premium
This plan leaves the policy holder with the satisfaction that he/she has not lost anything in case he/she survives the term

The premium paid would be much higher than that applicable for an equivalent term assurance without return of premium

Traditional Life Insurance Products

Term Insurance Plans:

1.Term Insurance is valid only during a certain time period that has been specified in the contract

2.Only Death Benefit

3.A term insurance policy comes handy as an income replacement plan

4.Term Assurance can be bought as a standalone policy as well as a rider with another policy

5.In decreasing term insurance, the premiums paid remain constant over time

6.Term insurance plan is a good choice for an individual who needs insurance and has a low budget

7.Price is the primary basis of competitive advantage in term assurance plans.