Date: August 14, 2017
Whole Life
– A form of permanent insurance policy
– Provide coverage for the entire life of the insured
– Premiums can be paid:
–Throughout insured’s life;
–or For a limited period
Term
A form of temporary insurance
Provide coverage for a specified time period only (known as “policy term”)
Death benefit is payable when death occurs during policy term
If insured survives the policy term, nothing is paid
Endowment
A form of permanent insurance
Provide coverage for a specified time period only (known as “policy term”)
If insured dies during policy term, death benefit will be paid
If insured survives the policy term, maturity benefit will be paid upon maturity of the policy
Classification of TraditionalLife Insurance
Quick Review
Investment-linked Insurance Policy (ILP)
An life insurance policy which provides a combination of protection and investment.
Premiums are used to purchase life insurance protection and investment units in investment-linked fund(s). Policyholders can choose from the list of investment-linked funds offered by insurer.
The value of the ILP at any time varies according to the price of the underlying units, which in turn depends on how the underlying fund performs.
How does one take-up an ILP?
Types of ILP
