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should he meet an unexpected end in this 5 years, his family will
not have to surrender the BMW. The proceeds of the term plan
will help cover the losses.
2. Whole Life Insurance
With whole life insurance, the insured is guaranteed lifelong
protection. Whole life insurance pays out a death benefit hence
the insured can be assured that his/her family is protected
against financial loss that can happen after his/her death.
3. Endowment Policy
An Endowment Policy is a savings linked insurance policy with a
specific maturity date. Should an unfortunate event by way of
death or disability occur to the insured during the period, the
Sum Assured will be paid to the insured’s beneficiaries. If the
insured survives the term, the maturity proceeds on the policy
become payable to the insured.
4. Money back plans or cash back plans
Under this plan, certain percentage of the sum assured is
returned to the insured person periodically as survival benefit.
On the expiry of the term, the balance amount is paid as
maturity value. This type of cover is priced higher than term or
endowment or whole life insurance.
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