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Insurance Laws and Practices
Notes Duration of policy
Methods of Duration
Whole life policy
Limited payment Whole life policy
Convertible Whole life policy
Methods of Term Insurance
Temporary assurance policy
Renewable term policies
Convertible term policies
Methods of Endowment
Pure endowment policy
Ordinary endowment policy
Joint endowment policy
Double endowment policy
Fixed term endowment policy
Educational annuity policy
Triple benefit policy
Anticipated endowment policy
Multi-purpose endowment policy
Children’s deferred endowment policy
Money back plans
Annuity plans
Market linked insurance plans
The above types of products offered are categorized as follows:
1. Pure insurance products – Term plans.
2. Pure investment products – Pension plans.
3. Investment cum insurance products – Endowment plan, Money-back plan, Whole-life and
Unit Linked insurance plans.
8.3.1 Basic Plans of Life Insurance
You must remember that there are only two basic plans of Life Insurance. They are Term
Assurance and Pure Endowment. In term assurance the sum assured is paid only in case of death
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