Endowments

Question 1

What is term assurance?

Answer 1

Term assurance is the most basic form of life assurance protection for a limited period with no element of investment for this reason it’s also the cheapest. term assurance can be used for personal, family protection or for business etc.

Question 2

What is life Assured?

Answer 2

The person whose life is covered by the policy for instance the policy is designed to pay out if this person dies while the policy is in place.

Question 3

Surrender Value?

Answer 3

The sum payable by the insurance company to the policyholder if the policyholder choose to terminate the policy before the end of the term or before the insured event occurs.

Question 4

What is the difference between level term and decreasing term assurance?

Answer 4

1. Level term assurance: remains constant and fixed, premiums or single premium fixed amount and term. 2. Decreasing term assurance the sum reduces to nothing, covers outstanding on a repayment mortgage. it is also called Protection policy.

Question 5

What is Gift Inter Vivos Cover?

Answer 5

Gift Inter Vivos cover is a term assurance policy designed to cover certain inheritance tax liabilities. Gifts Inter Vivos are gifts made during a person’s lifetime as opposed to on death.

Question 6

What is convertible term assurance?

Answer 6

Convertible term assurance includes an option to covert the policy into whole-of life or endowment assurance.

Question 7

What are increasing and renewable term assurances?

Answer 7

1. Increasing Term: covers needs to increase to take some account of the effects of inflation on purchasing power. 2. Renewable term assurance includes an option to renew the policy at the end of the initial for the same sum assured, without the need to provide further evidence.

Question 8

What is family Income benefits (FIB)?

Answer 8

FIB policy pay a tax-free regular income monthly or quarterly from the date of death of the life assured until the end of the chosen term.