Money Back Plan:
It is typically an endowment plan with the provision for return of a part of the sum assured in periodic installments during the term and balance of the sum assured at the end of the term.
Par and Non-Par schemes:
It is also known as participating and non-participating policies.
The term "Par" implies policies which are participating in the profits of the life insurer. "Non-Par" on the other hand represent policies which do not participate in the profits. Both kinds are present in the traditional life insurance.
Par schemes: Policyholders are either guaranteed a part of growth or get a share of surplus from investments by insurers. These plans have higher premiums. profits are payable as reversionary bonuses or dividends. Apart from this, life insurer may also declare Terminal Bonuses(not guaranteed)
Non Par: Benefits are fixed and guaranteed at the time of contract
It is typically an endowment plan with the provision for return of a part of the sum assured in periodic installments during the term and balance of the sum assured at the end of the term.
Par and Non-Par schemes:
It is also known as participating and non-participating policies.
The term "Par" implies policies which are participating in the profits of the life insurer. "Non-Par" on the other hand represent policies which do not participate in the profits. Both kinds are present in the traditional life insurance.
Par schemes: Policyholders are either guaranteed a part of growth or get a share of surplus from investments by insurers. These plans have higher premiums. profits are payable as reversionary bonuses or dividends. Apart from this, life insurer may also declare Terminal Bonuses(not guaranteed)
Non Par: Benefits are fixed and guaranteed at the time of contract
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