The main types of insurance plans
Whole Life
A Whole Life policy provides lifetime protection for the life assured. A lump sum of benefit will be payable upon the death or Total Permanent Disability (TPD) of the life assured. It is a participating policy of which if the policy is surrendered before maturity, the policyholder is entitled to the cash surrender value.
Endowment
An Endowment policy provides protection for the term of the policy. This type of policy can be taken up for a specific period of time, for example 10, 15 or 20 years, or up to a certain age, for example 55,60 or 65. A lump sum of benefit will be payable upon death or TPD of the life assured. Should the life assured survive the policy term, the policyholder will receive the sum assured plus bonuses (if any), as a lump sum payment. Premiums are paid throughout the policy term.
Term
The sum assured of a Term policy is only payable if the life assured dies or become TPD during the policy term. This plan is affordable for someone who needs protection but may not have the budget.
Supplementary Benefits or Riders
Provide additional benefits that are not usually included in the main plans mentioned above. These include hospitalisation, medical expenses, advance payment due to critical illness,
temporary and permanent disability, death or disablement due to accidents and income
protection, just to name a few.
Investment-linked policy
An investment-linked policy provides investment returns on your savings and provides insurance coverage at the same time.