Saturday, April 18, 2015

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.



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