Page 5 - Life Assurance

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What is the Life Assurance Policy ?

The life assurance policy, which is the basic
product of life business is a contract requiring the
insuring office to pay a sum of money at an
agreed period or at the death of insured.

This contract differs from other types of
insurance by insuring a sum on the certainty of
the eventual death of the insured or the
expiration of the insured term. The principle
types of policy are :

1- term (temporary) assurances (for payment
in the event of insured dying during a fixed term).

2- whole life assurances (for payment after
the death of the insured).

3- endowment assurance (for payment at the
end of a fixed period or earlier if the insured dies
within that period).

Life assurance companies also sell
annuities; the assurers undertake to make
regular payments for specific periods in return
for installments or lump sum annuity
investments.

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