Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
Page 37 Of 45
Go to:
Two Most Basic plans, offered by Life Assurance Companies, are: Term Assurance Plan, which pays, only if the Life-Assured dies during the Tenure of the Policy, and Pure Endowment Assurance Plan, which pays, only if the Life-Assured does not die during the Tenure of the Policy. Most of the Traditional Plans, offered by Life Assurance Companies, are a Combination of these 2 Basic Plans.
Term assurance plan - Provides only death cover. Pure endowment plan - Provides only survival benefit.
Endowment assurance plan - Combination of Term Assurance and Pure Endowment Plan. Provides sum assured (SA) on survival of a specified period (Pure Endowment) or on death (term assurance), if it happens earlier i.e during the tenure of the policy.
Whole life plan - A term assurance plan with an unspecified period. Sum Assured is paid whenever Death happens.
Money back plan - Combination of a term assurance plan and multiple pure endowment plans.
MODELEXAM® 
www.realsoftinfoplan.com