Page 8 - Life Assurance

If the insured doesn't have the single
premium, it may be paid by installments
(premium) over whatever length of time is
desired.

An ordinary life contract is one so arranged
that the premiums are payable as long as the
insured lives until reaching age 100 or dies,
whichever event comes sooner. (Sometimes
additional cash payments or the use of dividends to
pay up the contract will effectively convert the true
ordinary life policy into a paid- up policy sooner than
this). A limited payment life policy is one, which
is so arranged that the insured pay a higher
premium than would be required on the ordinary
life plan, so that a definite termination date can
be established beyond which no further
payments are due. The most common limited
installment plans are 20 -payment life, 30-
payment life, and life paid up at age 65.

5/1/4 Endowment Insurance:

Endowment contracts are primarily savings
contracts, with an element of pure protection
incorporated into the policy, so that if the
insured dies before the savings plan is
completed, the insurer completes it.

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