Question

Write Short Notes on the following:

Types of life insurance policies

Answer 1

The following are some of the various types of life insurance policies:

i. Whole life policy - Under this policy, the assured sum is paid to the beneficiaries only after the death of the insured.

ii. Endowment life assurance policy - Under this policy, the assured sum is paid either at the time of the death of the insured or at the expiry of the contract, whichever comes first.

iii. Money-back policy - Under this policy, the insured is paid a fixed percentage of the insured amount during the life of the policy. In addition to this, full insurance amount is paid to the dependents in case of the death of the insured before maturity.

iv. Joint life policy - This is a special type of policy that secures the life of two or more individuals against the payment of a fixed premium by those individuals or any one of them.