Whole life, term, and endowment are the three classifications of life insurance policies. Whole life policies provide protection until age 96 and accumulate cash value that can be borrowed or surrendered. Premiums are paid until age 96 or death. Benefits are paid to beneficiaries upon death before 96 or to the insured at maturity age 96. Term policies only provide protection, while endowment policies provide protection and pay a maturity benefit if the insured survives to the endowment period.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Whole life, term, and endowment are the three classifications of life insurance policies. Whole life policies provide protection until age 96 and accumulate cash value that can be borrowed or surrendered. Premiums are paid until age 96 or death. Benefits are paid to beneficiaries upon death before 96 or to the insured at maturity age 96. Term policies only provide protection, while endowment policies provide protection and pay a maturity benefit if the insured survives to the endowment period.
Whole life, term, and endowment are the three classifications of life insurance policies. Whole life policies provide protection until age 96 and accumulate cash value that can be borrowed or surrendered. Premiums are paid until age 96 or death. Benefits are paid to beneficiaries upon death before 96 or to the insured at maturity age 96. Term policies only provide protection, while endowment policies provide protection and pay a maturity benefit if the insured survives to the endowment period.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Whole life, term, and endowment are the three classifications of life insurance policies. Whole life policies provide protection until age 96 and accumulate cash value that can be borrowed or surrendered. Premiums are paid until age 96 or death. Benefits are paid to beneficiaries upon death before 96 or to the insured at maturity age 96. Term policies only provide protection, while endowment policies provide protection and pay a maturity benefit if the insured survives to the endowment period.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Download as doc, pdf, or txt
You are on page 1/ 4
BASIC LIFE
INSURANCE PLANS
BASIC LIFE INSURANCE PLANS
It is an accepted notion that insurance need is universal, but not every individual would have similar need for protection or for saving and or for retirement fund. For this reason, BF Life devised life insurance policy contracts, which tie together these three (3) services in proportions, except term, which provide protection only. You must therefore be specific in the needs of your prospects.
There are three (3) classifications of life insurance policies:
1. WHOLE LIFE
2. ENDOWNMENT
3. TERMS
As we shall see later on, all life insurance policies basically
evolved from a whole life policy. They differ in one or more of three modifications of the whole life policy:
1. The period of protection or effectivity of contract
(For how long will insured be covered by his policy?)
2. The period in which premiums are to be paid
(For how long will the premium be paid?)
3. The time proceeds will be paid for the endownment element is
eliminated. (When can the benefit be availed of?)
A. CLASSIFICATION OF POLICIES 1. THE WHOLE LIFE PLANS
In general, whole life plans emphasize protection more
than savings or retirement income. Since policies protect the insured up to age 96, the maturity benefit of endownment is paid to the policyholder himself upon attaining age 96. But since only a few policyholders actually reach 96 therefore almost all cases, if the company pays any benefit to a whole life policyholder, it is invariably in the form of death benefit paid to the beneficiary of the insured.
However, since whole life plan accumulate cash values, the
policyholder may also avail of some benefits by borrowing the cash values in case of emergencies or by surrendering the policy for its cash value to be used as retirement income (these are the living benefit of the Whole Life Plans).
WHOLE LIFE
……………………………………………………………………………………… Protection Period * ……………………………………………………………………………………… Premium Paying Period ** ……………………………………………………………………………………… Death Benefit *** ……………………………………………………………………………………… Issue Date Age 96 Maturity Benefit
* Covers the insured from the date it is issued until he/she
reaches age 96 or until his/her death before attaining age 96.
** Premiums are payable from the date of issue until age 96
or until death of insured before reaching age 96.
*** Proceeds are payable to the beneficiaries upon the death
of the insured prior to age 96 or to the insured himself (as a maturity benefit) if he reaches age 96.
