(i) Whole Life Policy: In this kind of
policy, the amount payable to the
insured will not be paid before the
death of the assured. The sum then
becomes payable only to the
beneficiaries or heir of the deceased.
(ii) Endowment Life Assurance
Policy: The insurer (Insurance
Company) undertakes to pay a specified
sum when the insured attains a
particular age or on his death which
ever is earlier. The sum is payable to his
legal heir/s or nominee named therein
in case of death of the assured.
Otherwise, the sum will be paid to the
assured after a fixed period i.e., till he/
she attains a particular age. Thus, the
endowment policy matures after a
limted number of years.
(iii) Joint Life Policy: This policy is
taken up by two or more persons. The
premium is paid jointly or by either of
them in instalments or lump sum. The
assured sum or policy money is payable
upon the death of any one person to the
other survivor or survivors. Usually this
policy is taken up by husband and wife
jointly or by two partners in a
partnership firm where the amount is
payable to the survivor on the death of
either of the two.
(iv) Annuity Policy: Under this policy,
the assured sum or policy money is
payable after the assured attains a
certain age in monthly, quarterly, half
yearly or annual instalments. The
premium is paid in instalments over a
certain period or single premium may
be paid by the assured. This is useful
to those who prefer a regular income
after a certain age.