Types of Life Product Lines

TYPES OF LIFE PRODUCTS

1. Term
2. Whole Life (Participating & Non-Participating)
3. Endowment (Participating & Non-Participating)
4. Investment Link (Single & Regular Premium)
5. Universal Life
6. Medical Health Insurance (MHI)

TERM INSURANCE

What is Term Insurance?

• Provide protection against death and TPD for a fixed limited duration, eg 5, 10,15, 20 years (usually up to life assured age 80)

Common Features of Term Insurance

• Renewable Term Insurance

                Renew after mature without proving insurability
                Generally for 5 years or 10 years term policies

• Guaranteed convertible Term Insurance

                 Convert the policy into permanent insurance without evidence of insurability

• Surrender value available only for policy with more than 20 year coverage term
• No maturity value
• Non-smoker discount are normally given 

Types of Term Insurance

• Level Term
• Decreasing Term
• Increasing Term

Target Market

• Customer who need short term protection with low premium. Example, mortgage loan
• Suitable for individual with small income for the present family obligations

WHOLE LIFE INSURANCE

What is Whole Life Insurance?

• Provide protection against death and TPD on whole life (usually up to life assured attained the age of 85, 90 or 100)

Common Features of Whole Life Insurance

Surrender value is available usually after policy in force for more than 3 years.

Maturity benefit payable when policy matures

Non-forfeiture provision are available:

Automatic Premium Loan (APL)

Premium unpaid after the grace period and is automatically paid by utilizing the cash value. interest will be charged on the premium loan.

Paid Up 

Allow policy owner to exchange the acquire cash value for a paid-up insurance which is similar to the original policy for a reduce face amount.

Extended Term Assurance (ETA)

Allow policy owner to exchange the acquired cash value for a paid-up term insurance for the original sum assured but with a shorter duration of cover.

For non-participating policies, insured amount is payable upon death and Total Permanent and Disability (TPD).

For participating policies, payment of the insured amount plus bonuses / dividends are payable upon death and Total Permanent Disability (TPD) within the term of the policy.

       The bonuses  and dividend is non guaranteed

Non-Participating Contract - Does not participate in company profit

Participating Contract - Participates in company profits in the form of bonus/dividends.

Types of Whole Life Insurance

• Ordinary Whole Life Policy
• Limited Whole Life Policy
• Whole Life Endowment Policy

Ordinary Whole Life Policy


Limited Whole Life Policy


Whole Life Endowment Policy


Target Market

• Customer who need long term protection and saving with affordable premium.
• Family obligation.