Page 35 - IC23 life insurance application

Table 7 is a whole life policy without profit where the premium can be paid by a

single premium. Table 8 is a whole life policy with a single premium provision, but

earns bonus every year.

These plans serve the basic purpose of insurance - i.e. provision on death of the

breadwinner. Being of long term, the premium is comparatively low. They serve

excellently the purpose they are designed for.

Table No.27 is a bridge between whole life and endowment plan. It is a convertible

whole life plan, i.e. a whole life plan to start with , with an option to be converted into

an endowment plan after 5 years. This is particularly suitable for a youngman at the

beginning of his career, who has a lot of liability to carry, but not the means to

provide for each one of them immediately.

An endowment plan is a comprehensive plan and hence a large variety is available.

An endowment plan is a fixed term plan where the premium paying period is fixed in

advance and so also the date of maturity payment unless death strikes earlier. Table

11 and 14 are such endowment plans without profit and with profit respectively.

They are most popular plans, because they serve life’s most important problems -

death and old age. The sum assured is paid with or without bonus as planned, on

expiry of the period fixed or on death if earlier.

Some variations are made in this plan to serve other incidental needs of life. For

example the families need intermittent money to take care of the expenses of the

children’s education and/or marriage of the female relatives and purchase of house

etc. Therefore in order to meet such intermittent needs there are endowment plans

which are named as Money Back Plans in which some percentage of the sum

assured is made available after say every four or five years, keeping the death

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