Page 4 - Life Assurance

/1 Preface:

The major contracts of ordinary life
insurance are of three types: term, whole life,
and endowment. There are also packages of
contracts that represent combinations of these
three basic types.

Individual insurers apply countless names
for specific policies issued, but all ordinary
policies are simply combinations of three basic
types are listed below:

1- Term Insurance
- Level-term contract
- Decreasing-term contract

2- Whole-Life Insurance
- Ordinary life (straight life) contract.
- Limited-payment life contract

3- Endowment insurance
- Limited term (e.g. 20 years) contract.
- Retirement income contract

5/1/2 Term Insurance:

As indicated before, term insurance
contracts are issued for a specified number of
years and usually do not contain any savings

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