Page 16 - Life Assurance

rs of the policy and slightly larger than
average for the remaining years of the contract.
This is done by combining term insurance with
some form of permanent insurance so that the
insured pays more than the term policy would
cost, but less than the cost of the permanent
insurance.

Modified life contracts thus enable the
insured to obtain a permanent insurance policy
at a cost which is usually one half of what would
normally be paid for the first five or ten years.

The contract fits the needs of the young
married person with a limited income who wants
to develop a permanent insurance program but
cannot afford to do so until his or her income
rises.

The solution could also be found in the purchase
of straight convertible term insurance, but many
persons would fail to convert term insurance into a
permanent form because the premiums increase is
quite substantial. The modified life contract has the
advantage that the insured need not take any positive
action to convert the contract to a permanent form.

5/2/5 Multiple Protection Insurance
Contracts:

The multiple protection insurance contracts
employs term insurance to grant double, triple

116 Life51/life/life 08