Whole Life Insurance
Whole Life Insurance provides long-term protection where a sum will be payable upon the Death or Total and Permanent Disability (TPD) of the policyholder and/or insured person. Whole Life Insurance is offered in two forms:
With this plan, policy holders will get to share the profits of the insurance company through their participating fund. The profits made will be paid out in the form of non-guaranteed cash bonuses and dividends.
Unlike the participating plan, the policy holder of a non-participating plan will not share the profits of the insurance company.
Unlike Whole Life Insurance, Term Insurance policy holders will only get protection from the insurance company for a fixed period of time ranging from 5 years to 30 years depending on the need of the customer. Savings and investments will not be included in this plan so no cash value is paybale if the policy is terminated prematurely.
Upon Death or Total and Permanent Disability (TPD) of the insured person during and at the end of the policy term, the policy will pay out the sum assured or offer a refund of the premiums paid depending on what was offered.
This plan is a good option for business owners as it is able to insure key partners/stakeholders in the company, and it is cheaper than a Whole Life and Endownment insurance plan.
Under this plan, you will be offered protection for a fixed period of time where a lump sum is payable at the end of the policy term or upon Death or Total and Permanent Disability (TPD) of the insured person during the policy term. There are also policies that will pay out a guaranteed cash benefit yearly during the policy term as long as the insured person lives until the end of the policy term.
This plan is often purchased as a safety net for retirement savings and childresn's education. The cash benefit given to you might be less than what is offered in a Fixed Deposit because it offers insurance protection at the same time. It may also be subjected to investment risk as well.
An Investment-Linked plan is both an investment and a protection. You can decide on the protection and investment levels based on your needs and goals. It is this flexibility that has made the Investment-Linked plan one of the more popular choices.
Life Annuity Plan
The Life Annuity plan is usually purchased to provide supplementary income during the retirement years. You will be paid fixed payments at regular intervals for a fixed period of time or during your lifetime. Most of the plans require premium payments in a lump sum but there are also some that offer regular premium payments for a specific duration as well.
You can choose to attach additional Rider(s)/Supplementary Cover to the basic Term, Endowment, Whole Life or Investment-Linked plan to gain additional protection. These will result in additional premiums or insurance charges.
Mortgage Reducing Term Assurance (MRTA)
This plan will cover the repayment of an outstanding property loan to the financial institution in the event of untimely Death or Total and Permanent Disability (TPD) of the borrower/insured person.
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