Saturday, April 11, 2015

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




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