Page 75 - IC23 life insurance application

have to pay any more annuities. Therefore, another variant of annuity is "with return

of capital". That is, on the death of the annuitant, the total purchase price is returned

to the heirs. It is clear that in this case, only the interest equivalent is paid as annuity

and the capital is saved for return on death.

In the other annuities described above, a part of the capital is added to the annuity

amount.

There can be a joint life annuity where the annuity is continued to be paid to the

survivor; may be at a lesser rate. It is also possible to return say one third of the

capital in cost at the beginning and pay lesser equity thereafter.

COMBINATION OF PLANS:

Insurance is offered to solve a particular problem. The agent would do well to select

any single plan or combination of plans to meet the requirement.

The insurance companies normally offer a large variety of plans, which are in effect

combination of several basic plans to meet a particular need. We have discussed

these varieties above and we shall discuss more of them, when we come to chapter

on product designing.

POLICIES FOR FEMALES, CHILDREN AND PHYSICALLY HANDICAPPED:

The females, hitherto were considered a separate group from males for insurance

purpose for several reasons, some of which are not valid today.

Females are considered weaker sex because they can be killed easily to take

benefit from insurance. Examples of such deaths are many. Dowry death, widow

killing are social scourges, with which we lived for quite long. Such crimes are

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